Cost-U-Less Guam Stores Impacted by Supertyphoon Pongsona.

Business Editors

PRESTON, Wash.--(BUSINESS WIRE)--Dec. 11, 2002

Cost-U-Less, Inc. (the "Company") (Nasdaq:CULS) today reported that its two stores on the island of Guam have been closed since Supertyphoon Pongsona hit the island Sunday afternoon, December 8, 2002. Winds of up to 180 mph were reported at the height of the storm, resulting in significant damage throughout the island.

The Company's Tamuning store, opened in 1995, lost its generator in the storm and is currently awaiting delivery of a replacement. The store is expected to re-open later this week. There is no electric power currently available on the island. In July of this year, another typhoon, Chata'an, struck the island with much less force but power was not restored for three to four weeks. The Company's Dededo store, opened in 1992, suffered more significant damage. The store is currently under repair and we are uncertain, at this time, when it will re-open. Both stores also experienced nominal product loss due to water damage and a lack of power to the refrigeration units. The Company believes it maintains adequate casualty and business interruption insurance for this catastrophe.

"First, let me say, that we mourn the loss of life on the island, but we are very grateful to know that all of our employees are safe despite some having their homes totally destroyed." said J. Jeffrey Meder, the Company's President and CEO. "Our employees are actively engaged in preparing our stores for re-opening despite their own personal loss. Our board of directors and management greatly appreciate the commitment and hard work demonstrated by our Guam employees. We have had a longer and more successful presence on the island than any other warehouse club. We know that the people of Guam are resilient and we believe we will come through this adversity together, as we have for the past ten years. Lastly, the timing is unfortunate, given the Christmas season, and this will certainly affect our fourth-quarter results. But beyond the numbers, we remain comforted by the knowledge that our employees are safe, and with one another's support, we can look forward to celebrating the season ahead of us, as it was meant to be observed."

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. These statements are based on current expectations that are subject to risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. These factors include, without limitation; delays in construction or more significant damage to, or destruction of, our stores than currently assessed; delays in the re-establishment of electrical power on the island of Guam; delays in the delivery of, or the loss of, product or supplies, including our replacement generator, due to potential damage to or destruction of ships or containers delivering our goods; and shortages of critical resources such as water and gasoline. Additional risk factors include our small store base; relationships with third parties; litigation; our 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. There can be no assurance that we will be able to devote the resources necessary to meet the challenges posed by the severe weather conditions and natural disasters associated with our island operations, or that losses from casualty or business interruption will be adequately compensated by insurance. Any failure to do so would have a material adverse effect on our business, financial condition and operating results.