Cost Plus, Inc. Announces Second Quarter Sales Up 20.8%.

Business Editors

OAKLAND, Calif.--(BUSINESS WIRE)--Aug. 9, 2001

Cost Plus, Inc. (Nasdaq: CPWM) announced today that its total sales for the second quarter ended August 4, 2001 were $112.1 million, a 20.8% increase over $92.8 million for the same quarter last year. Year-to-date, total sales were $225.0 million, a 21.6% increase over $185.0 million in the first two quarters of fiscal 2000.

Same store sales for the second quarter decreased 0.5% compared to a 7.1% increase for the second quarter of fiscal 2000. Year-to-date, same store sales increased 2.0% on top of a 6.8% increase for the same period last year.

Murray Dashe, Chairman, President and CEO, stated, "As mentioned in our press release of July 25, 2001, same store sales in the quarter were affected by the following: a continued general softness in the economy; a weaker response to outdoor furniture early in the quarter, which we believe was also experienced by other home furnishings retailers; and to a temporary slowdown in the flow of goods to stores associated with the start-up of our new warehouse management system. However, total sales results were in line with plan, due to the strong performance of our newer stores in both new and existing markets, and we reiterate our comfort with meeting consensus earnings estimates for the quarter of $0.07 per share."

The Company also indicated that it was pleased to have announced the recent addition of some new merchandise categories to its home furnishings assortment. Starting now, and building through the fourth quarter, all stores will offer bedroom and bathroom furnishings and accessories. Items in these categories have been specially designed and carefully selected to provide a look unique to Cost Plus World Market, with little overlap to the merchandise sold by other retailers, and at prices consistent with the Company's commitment to provide good values to its customers.

During the quarter, the Company opened 5 stores, one each in Santa Barbara, CA; Tucson, AZ; Kingstowne, VA; Stockton, CA and Sterling, VA.

Cost Plus, Inc. is a leading specialty retailer of casual home furnishings and entertaining products. As of August 9, 2001, the Company operated 139 stores in 19 states compared to 113 stores in 18 states at this time last year.

The above statements related to anticipated quarterly financial results for fiscal 2001 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: changes in economic conditions that affect consumer spending; changes in the competitive environment; delays in the flow of merchandise; increases in fuel and transportation costs; store construction delays; changes in the anticipated opening of the Company's new distribution center in Virginia; labor market fluctuations; unseasonable weather conditions; and changes in accounting rules and other regulations. 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.