Cost Plus, Inc. Announces First Quarter Total Sales Increase of 19.0%, Same Store Sales Up 3.8%; East Coast Distribution Center Opens Two Months Early; Seven New Stores Opened.

Business Editors

OAKLAND, Calif.--(BUSINESS WIRE)--May 9, 2002

Cost Plus, Inc. (Nasdaq:CPWM) announced today that same store sales for the first quarter ended May 4, 2002 increased 3.8% on top of a 4.4% increase for the first quarter of last year. Total sales for the first quarter ended May 4, 2002 were $134.3 million, a 19.0% increase from $112.9 million for last year's first quarter ended May 5, 2001.

Murray Dashe, Chairman, President and CEO, stated, "Sales performance for the Easter season was impressive and the momentum continued through the month of April as we introduced our 'Outdoor Living' campaign. Trends indicate that the strong sales we experienced in the home furnishings categories have continued into the second quarter."

Additionally, the Company announced the successful opening of its new East Coast distribution center near Norfolk, VA. Shipments from the new 500,000 square foot facility commenced during the last week of April. The original plan was to begin shipments to stores from this center at the end of June, 2002. According to Mr. Dashe: "Careful planning and execution have paid off handsomely with an early opening and distribution processes which are now the most efficient in our history. We will continue to add to the number of stores served from this new distribution facility with the goal of supporting all Cost Plus World Market stores east of the Mississippi River by February, 2003."

During the quarter, the Company opened seven stores, one more than originally scheduled, with one store each in: Arlington, VA; Thornton, CO; Greensboro, NC; Los Angeles, CA; Birmingham, AL; Atlanta, GA; and Novi, MI. As planned, the Company closed one store in Fresno, CA, its replacement having been opened in fiscal 2001.

The Company's first quarter earnings conference call will be on May 23, 2002 at 8:00 a.m. PST. It will be held in a "listen-only" mode for all participants other than sell-side and buy-side investment professionals who regularly follow the Company. Phone number for the call is [phone]. Callers are advised to dial in approximately 15 minutes prior to the scheduled start time. A telephonic replay will be available at [phone], Access Code: 11771534, from 9:30 a.m. to 10:00 p.m. PST on Thursday, May 23. Investors may also access the live call or the replay over the internet at www.streetevents.com; www.companyboardroom.com and www.costplus.com. The replay will be available approximately 30 minutes after the live call concludes.

Cost Plus, Inc. is a leading specialty retailer of casual home furnishings and entertaining products. As of May 4, 2002, the Company operated 156 stores in 20 states compared to 132 stores in 19 states as of May 5, 2001.

The above statements relating sales trends in the home furnishings categories and the expansion of the stores supported by the East Coast distribution center, are "forward-looking statements" which are based on current expectations and are subject to various risks and uncertainties which could cause actual results to differ materially from those forecasted. Such risk factors include, but are not limited to: general economic conditions; changes in the competitive environment; the Company's ability to continue to ramp up the East Coast distribution center efficiently; interruptions in the flow of merchandise and further terrorist attacks and the nation's response thereto. Please refer to documents on file with the Securities and Exchange Commission for a more detailed discussion of the Company's risk factors. The Company does not undertake any obligation to update its forward-looking statements.