Cost Plus, Inc. Reports 60% Increase in First Quarter Earnings.

    Business Editors

      OAKLAND, Calif.--(BUSINESS WIRE)--May 16, 2000--Cost Plus, Inc.
(NASDAQ:CPWM) announced today record financial results for its first
quarter ended April 29, 2000.
      Net income for the first quarter of fiscal 2000 was $1.1 million,
60% higher than last year's net income of $707,000. Earnings per share
were $0.05 for the first quarter, compared with the prior year's
earnings of $0.03.
      Net sales for the first quarter were $92.2 million, a 22.3%
increase over fiscal 1999 net sales of $75.4 million. Same store sales
increased 6.4%, following last year's 10.2% increase.
      Murray Dashe, Chairman and CEO stated, "Our earnings growth in the
first quarter was especially noteworthy given the opening of one more
new store than originally planned and one more than last year. These
results demonstrate continued balance across all areas of the Company
in the achievement of our financial objectives."
      During the quarter, the Company opened 6 stores, including its
first entry into the Atlanta, Georgia market with two new stores. The
remaining four stores were opened in the Chicago, Illinois; Cleveland,
Ohio; and Columbus, Ohio markets.
      Cost Plus, Inc. is a leading specialty retailer of casual home
living and entertaining products. As of April 29, 2000, the Company
operated 109 stores in 17 states, compared to 90 stores in 16 states
as of May 1, 1999.
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                            COST PLUS, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
      (Dollars in thousands, except per share amounts, unaudited)

                                     First Quarter Ended
                          April 29, 2000              May 1, 1999

Net sales              $92,238      100.0%       $75,389       100.0%
Cost of sales
 and occupancy          60,447       65.5         49,525        65.7
Gross profit            31,791       34.5         25,864        34.3
Selling, general
 and administrative
 expenses               28,657       31.1         23,543        31.2
Store preopening
 expenses                1,244        1.4            994         1.3

Income from
 operations              1,890        2.0          1,327         1.8
Net interest
 expense                    32        0.0            167         0.3

Income before
 income taxes            1,858        2.0          1,160         1.5
Income taxes               725        0.8            453         0.6


Net income             $ 1,133        1.2%       $   707         0.9%

Net income
 per share - diluted   $  0.05                   $  0.03

Weighted average
 shares outstanding-
 diluted                21,325                    20,814

New stores
 opened                      6                         5




                            COST PLUS, INC.
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                       (In thousands, unaudited)

                                April 29, 2000       May 1, 1999

ASSETS
Current assets:
Cash and cash
 equivalents                      $ 26,126             $ 23,239
Merchandise
 inventories                        87,332               66,339
Other current
 assets                              7,765                4,722

Total current
 assets                            121,223               94,300

Property and
  equipment, net                    67,666               60,484
Other assets                        12,448                9,725

Total assets                      $201,337             $164,509


LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
Accounts payable                  $ 17,026             $ 13,283
Accrued compensation                 8,447                7,540
Other current
 liabilities                        11,398               10,179

Total current
 liabilities                        36,871               31,002

Capital lease
 obligations                        14,301               14,944
Other long-term
 obligations                         7,659                6,201

Shareholders' equity:
Common stock                           207                  202
Additional paid-in
 capital                           116,276              106,248
Retained earnings                   26,023                5,912

Total shareholders'
 equity                            142,506              112,362

Total liabilities
 and shareholders'
 equity                           $201,337             $164,509

    --30--jb/sf*

    CONTACT: Cost Plus, Inc.
             Murray Dashe, 510/893-7300
              or
             John F. Hoffner, 510/893-7300 ext. 3006

    KEYWORD: CALIFORNIA
    INDUSTRY KEYWORD: RETAIL EARNINGS