Cost Plus, Inc. Reports Record Fiscal 1999 Results; Net Income Up 48.7%; EPS Up 43.1%.

     Business Editors

       OAKLAND, Calif.--(BUSINESS WIRE)--March 16, 2000--Cost Plus, Inc.
(Nasdaq:CPWM) today reported record financial results for its fourth
quarter and fiscal year 1999 ended January 29, 2000.
       Net income for fiscal 1999 increased 48.7% to $19.7 million
compared with net income of $13.2 million in the prior fiscal year.
Earnings per share for fiscal 1999 were $0.93 vs. $0.65 last year, an
increase of 43.1%. For the fourth quarter of fiscal 1999, net income
increased 27.7% to $17.4 million from $13.6 million in the prior
year's fourth quarter. Earnings per share were $0.82 for the fourth
quarter of fiscal 1999, a 22.4% increase over last year's fourth
quarter earnings per share of $0.67.
       Net sales for fiscal 1999 were $402.3 million, a 27.7% increase
over the prior fiscal year's net sales of $315.1 million, with same
store sales increasing 8.6%. During the fourth quarter of fiscal 1999,
net sales increased 25.6% to $167.5 million from $133.4 million in the
fourth quarter of fiscal 1998. Same store sales for the quarter
increased 8.1%.
       Murray Dashe, President and CEO, stated, "Fiscal 1999 marked
another record year for Cost Plus, with significant increases in sales
and profitability. Additionally, a number of important milestones were
achieved in 1999: we celebrated our ninth consecutive year of
same-store sales increases in excess of 5.0%; we were profitable in
all four quarters for the first time; we introduced the World Market
Credit Card; we opened 18 stores versus a plan of 17, introducing our
concept to five new markets; we obtained significant leverage in our
SG&A expenses while continuing to build our infrastructure; and
through our marketing campaigns, strengthened our position as a
value-priced destination retailer for casual home furnishings and
entertaining merchandise."
       "These achievements were made possible by the creativity, energy,
and talent of the 3,400 Cost Plus employees throughout the country to
whom we express our deepest appreciation."
       The Company ended fiscal 1999 with 103 stores in operation and
announced that it has opened three stores since the beginning of the
first quarter of fiscal 2000, one each in: Akron, OH; Northbrook, IL;
and Columbus, OH.
       Cost Plus, Inc. is a leading specialty retailer of casual home
living and entertaining products. As of March 16, 2000, the Company
operated 106 stores in 16 states, compared with 87 stores in 16 states
at this time last year.

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                            COST PLUS, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
           (Dollars in thousands, except per share amounts)

                   Fourth Quarter Ended         Fourth Quarter Ended
                     January 29, 2000             January 30, 1999
                        (Unaudited)                 (Unaudited)

Net sales            $167,513   100.0 %         $133,439      100.0 %
Cost of sales
 and occupancy        102,016    60.9             80,496       60.3
 Gross profit          65,497    39.1             52,943       39.7
Selling, general
 and administrative
  expenses             35,841    21.4             29,590       22.2
Store preopening
 expenses                 985     0.6                670        0.5

Income from
 operations            28,671    17.1             22,683       17.0
Net interest
 expense                  160     0.1                354        0.3

Income before
 income taxes          28,511    17.0             22,329       16.7
Income taxes           11,119     6.6              8,708        6.5

Net income            $17,392    10.4 %          $13,621       10.2 %

Net income per
 share - diluted        $0.82                      $0.67

Weighted average
 shares outstanding
   -diluted            21,339                     20,473

New stores opened           4                          3


                    Fiscal Year Ended            Fiscal Year Ended
                     January 29, 2000             January 30, 1999

Net sales            $402,292   100.0 %         $315,135     100.0 %
Cost of sales
 and occupancy        255,383    63.5            200,023      63.5
  Gross profit        146,909    36.5            115,112      36.5
Selling, general
 and administrative
  expenses            110,108    27.4             89,261      28.3
Store preopening
 expenses               3,671     0.9              2,927       0.9

Income from
 operations            33,130     8.2             22,924       7.3
Net interest
 expense                  859     0.2              1,226       0.4

Income before
 income taxes          32,271     8.0             21,698       6.9
Income taxes           12,586     3.1              8,462       2.7

Net income            $19,685     4.9 %          $13,236       4.2 %

Net income per
 share - diluted        $0.93                      $0.65

Weighted average
 shares outstanding
  - diluted            21,189                     20,363

New stores opened          18                         15

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                            COST PLUS, INC.
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                        (Dollars in thousands)

                      January 29, 2000            January 30, 1999

ASSETS
Current assets:
 Cash and cash
  equivalents                  $38,411                     $28,600
 Merchandise
  inventories                   91,402                      70,680
 Other current
  assets                         5,654                       4,553

 Total current
  assets                       135,467                     103,833

Property and
 equipment, net                 67,520                      59,034
Other assets, net               11,712                      10,274

 Total assets                 $214,699                    $173,141


LIABILITIES AND
 SHAREHOLDERS' EQUITY
Current liabilities:
  Accounts payable             $26,061                     $17,568
  Income taxes
   payable                       9,237                       8,180
  Accrued compensation           8,909                       7,421
  Other current
   liabilities                  10,597                       9,633

  Total current
   liabilities                  54,804                      42,802

Capital lease
 obligations                    14,416                      15,110
Other long-term
 obligations                     7,144                       5,826

Shareholders' equity:
  Common stock                     205                         199
  Additional
   paid-capital                113,240                     103,999
  Retained earnings             24,890                       5,205

  Total shareholders'
   equity                      138,335                     109,403

Total liabilities and
 shareholders' equity         $214,699                    $173,141

     --30--jr/sf *      pb/sf


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

     KEYWORD: CALIFORNIA
     INDUSTRY KEYWORD: RETAIL EARNINGS