Cost-U-Less Presents at Edgewater Research Conference.

BELLEVUE, Wash. -- Cost-U-Less, Inc. (the "Company") (Nasdaq:CULS) today reported that Jeff Meder, the Company's president and chief executive officer, and Martin Moore, the Company's chief financial officer, discussed the Company's recent financial performance and business initiatives at the Edgewater Research Fall Conference in Coeur d'Alene, Idaho, on Sept. 13 and 14, 2004.

According to Meder, the Company has successfully accomplished the turn around efforts begun in fiscal 2000, has successfully implemented advanced retail systems, and has strengthened the Company's balance sheet. "We are now poised for expansion, and we are focused on identifying and analyzing opportunities in selected new markets and relocation opportunities for existing stores where leases are expiring, such as the St. Croix market," said Meder. "Executing our growth strategy is one of management's top priorities, and although we have nothing to report at this time, we are currently working on several opportunities we hope to be able to announce in the future."

On Sept. 30, 2004, the Company expects to announce its sales results for the third fiscal quarter ended Sept. 26, 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. 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. For example, if we are unable to execute our growth strategy, our business could suffer. We do not have operating experience in many of the markets in which we may consider opening new stores, and there can be no assurance that we will be able to adapt our operations to support our future expansion plans or that any new stores will be profitable. Any failure on our part to manage our growth could have a material adverse effect on our business, financial condition and operating results. Other factors that could cause actual results to differ materially from those anticipated include, without limitation; future market opportunities for existing and planned products and services; our small store base; the mix of geographic and product revenues; 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.