Cost-U-Less Chief Executive Officer Adopts Rule 10b5-1 Trading Plan.

BELLEVUE, Wash. -- Cost-U-Less, Inc. (Nasdaq:CULS) announced today that J. Jeffrey Meder, the Company's President and Chief Executive Officer, has adopted a personal trading plan to sell shares of Cost-U-Less common stock in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934.

Pursuant to Rule 10b5-1, officers and directors of public companies may adopt predetermined plans for selling specified amounts of stock at specified prices. The plans may be entered into only when the officer or director is not in possession of material, nonpublic information and may be used to diversify investment portfolios over a period of time.

Under the plan, Mr. Meder has directed a broker unaffiliated with the company to exercise certain of Mr. Meder's employee stock options and subsequently sell the shares acquired from the exercise of the options, subject to certain conditions, up to 116,667 shares of common stock over the period commencing March 1, 2005, and ending February 25, 2006.

"I remain very optimistic about the long-term prospects for Cost-U-Less," stated Mr. Meder. "I am adopting this plan on the recommendation of my financial advisors as a way of achieving prudent diversification of my investments."

The stock sold under this plan has designated target pricing. If Cost-U-Less stock is not trading at or above that price target, the shares will not be sold. The transactions under this plan will be disclosed publicly on Form 4 filings with the SEC. The Form 4 filings will also be posted on the Company's web site.

The Company also announced that Mr. Meder has agreed to a new three-year employment contract, effective September 1, 2004.

Cost-U-Less currently operates eleven stores in the Caribbean and Pacific region: U.S. Virgin Islands (2), Netherlands Antilles (2), Hawaiian Islands (2), California (1), Guam (2), American Samoa (1), and Republic of Fiji (1). The Company builds its business through delivering high-quality U.S. and local goods, progressive merchandising practices, sophisticated distribution capabilities, and superior customer service, primarily to island markets. Additional information about Cost-U-Less is available at www.costuless.com.

This press release contains statements that are forward-looking. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements, including comparable store sales expectations, trends in or expectations regarding the Company's revenue growth, and the Company's growth plans are all based on currently available operating, financial, and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, including that the Company may encounter substantial delays, increased expenses or loss of potential store sites due to the complexities, cultural differences, and local political issues associated with the regulatory and permitting processes in the island markets in which the Company may locate its stores. Prolonged adverse occurrences affecting tourism or air travel, particularly to non-U.S. destinations, including political instability, armed hostilities, terrorism, natural disasters or other activity that involves or affects air travel or the tourism industry generally, could cause actual results to differ materially from historical results or those anticipated. Other risks and uncertainties include the Company's small store base; the mix of geographic and product revenues; relationships with third parties; litigation; the Company's ability to maintain existing credit facilities and obtain additional credit; business and economic conditions and growth in various geographic regions; pricing pressures; political and regulatory instability in various geographic regions; and other risks and uncertainties detailed in the Company's filings with the SEC.