Cost Plus, Inc. Announces Third Quarter Results.

OAKLAND, Calif.--(BUSINESS WIRE)--Nov. 19, 1996--Cost Plus, Inc. (NASDAQ: CPWM) announced today financial results for the thirteen and thirty-nine-week periods ended November 2, 1996.

For the third quarter ended November 2, 1996, the Company reported continued improved results of a net loss of $863,000 or $.10 per share, compared with a net loss of $1.5 million, or $.25 per share, for the thirteen-week period ended October 21, 1995. Net sales for the 1996 third quarter increased 23.6%, to $45.0 million, from $36.4 million, a year ago. Comparable store sales increased 6.0% for the third quarter.

For the 1996 year-to-date period, Cost Plus reported a net loss of $1.5 million, or $.18 per share, compared with a net loss of $3.1 million, or $.50 per share, last year. Net sales for the nine-months ended November 2, 1996, were $124.2 million, a 22.5% increase from $101.4 million, for the nine months ended October 21, 1995. Comparable store sales for the thirty-nine-week period ended November 2, 1996 increased 5.2%.

"Our sales and financial results continued to surpass our plans," said Ralph D. Dillon, chairman and chief executive officer. "We are pleased with the operating performance of our stores and our results benefited from both improved gross profit and the continued leverage of selling, general and administrative expenses. The nine new stores we opened this year performed above our expectations."

As of November 2, 1996, Cost Plus operated 57 stores compared to 48 stores as of November 4, 1995. Cost Plus' 58th store was opened on November 7, 1996 in Thousand Oaks, California.

Cost Plus, Inc. is a leading retailer of casual home living and entertaining products. The Company operates 58 stores under the name "Cost Plus World Market" in 10 states. -0-

                           Cost Plus, Inc.
          Statements of Condensed Consolidated Operations
         (In thousands except per share amounts, unaudited)

                                       Thirteen Weeks Ended
                             November 2, 1996       October 21, 1995

Net Sales                    $45,041    100.0%     $36,412    100.0%
Cost of sales
 and occupancy                29,030     64.5       23,446     64.4
  Gross Profit                16,011     35.5       12,966     35.6

Selling, general and
 administrative expenses      15,718     34.9       13,327     36.6
Preopening store expenses      1,145      2.5          813      2.2

Loss from operations            (852)    (1.9)      (1,174)    (3.2)
Interest expense                 611      1.3        1,449      4.0

Loss before income taxes      (1,463)    (3.2)      (2,623)    (7.2)
Income tax benefit              (600)    (1.3)      (1,075)    (3.0)

  Net loss                      (863)    (1.9)      (1,548)    (4.2)

Net loss per common
 and common equivalent share    (.10)                 (.25)

Weighted average common and
 common equivalent
  shares outstanding           8,488                 6,153


                                     Thirty-Nine Weeks Ended
                             November 2, 1996      October 21, 1995

Net Sales                   $124,154    100.0%    $101,369    100.0%
Cost of sales and occupancy   80,356     64.7       66,027     65.1
  Gross profit                43,798     35.3       35,342     34.9

Selling, general and
 administrative expenses      42,284     34.1       35,502     35.0
Preopening store expenses      1,985      1.6        1,423      1.4

Loss from operations            (471)     (.4)      (1,583)    (1.5)
Interest expense               1,995      1.6        3,682      3.7

Loss before income taxes      (2,466)    (2.0)      (5,265)    (5.2)
Income tax benefit            (1,011)     (.8)      (2,159)    (2.1)

  Net loss                    (1,455)    (1.2)      (3,106)    (3.1)

Net loss per common and
 common equivalent share        (.18)                 (.50)

Weighted average common and
 common equivalent
  shares outstanding           7,985                 6,153


                           Cost Plus, Inc.
               Condensed Consolidated Balance Sheets
                     (In thousands, unaudited)

                             November 2, 1996      October 21, 1995

ASSETS
Current assets:
 Cash and cash equivalents        $1,093                $2,638
Merchandise inventories           56,228                45,856
Other current assets               3,481                 3,301

  Total current assets            60,802                51,795

Property and equipment, net       58,994                57,329

Other assets                       8,490                 8,209

  Total assets                  $128,286              $117,333

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
 Accounts payable                 15,329                16,476
 Accrued compensation              6,069                 3,295
 Revolving line of credit         14,239                20,474
 Other current liabilities         7,304                 6,150

  Total current liabilities       42,941                46,395

Capital lease obligations         14,320                14,715
Note payable to related parties        0                19,895
Deferred income taxes              4,455                 4,646
Other long-term obligations        2,439                 2,261

Shareholders' equity:
 Common stock                         81                    58
 Additional paid-in capital       90,970                61,753
 Deficit                         (26,920)              (32,390)
  Total shareholders' equity      64,131                29,421

Total liabilities and
 shareholders' equity           $128,286              $117,333

CONTACT: Cost Plus, Inc.

Alan Zimtbaum, 510/893-7300 ext. 3006