Design Within Reach Announces Resignation of Ken La Honta, Chief Financial Officer.

SAN FRANCISCO -- Design Within Reach, Inc. (Nasdaq: DWRI) today announced that Ken La Honta, Chief Financial Officer, has resigned. The Company is in the process of identifying a new CFO, and expects to announce a replacement soon.

Mr. La Honta has informed the Company that he plans to stay in his current capacity through the earlier of the filing of the quarterly Form 10-Q or September 1, 2006. He will work with Peter Kruglinski, Controller and Vice President of Finance, to facilitate a smooth transition. As recently announced, Mr. Kruglinski joined the Company to help strengthen Design Within Reach's finance, accounting, external reporting, tax, treasury and investor relations departments, as well as the Company's fulfillment center operations.

"I want to thank Ken for his hard work," said Ray Brunner, President and Chief Executive Officer of Design Within Reach. "We appreciate his willingness to stay on through August to work with Peter and complete the filing of our quarterly Form 10-Q, and we wish Ken well in the future. A search for his successor is well underway."

About Design Within Reach, Inc.

Design Within Reach, Inc., founded in 1998 and headquartered in San Francisco, is an integrated multi-channel provider of distinctive modern design furnishings and accessories. The Company markets and sells its products to both residential and commercial customers nationwide through the DWR catalog, studios, website and direct sales force, and a single common "in stock and ready to ship" inventory.

"Design Within Reach" is a registered trademark of Design Within Reach, Inc.

This press release includes forward-looking statements, including statements related to anticipated revenues, expenses, earnings, operating cash flows, the outlook for Design Within Reach's markets and the demand for its products. Factors that could cause Design Within Reach's actual results to differ materially from these forward-looking statements including the following: if we are unable to continue to increase our net sales while reducing our promotional discounts, our profitability may be impaired; if we fail to offer merchandise that our customers find attractive, the demand for our products may be limited; we do not have long-term vendor contracts and as a result we may not have continued or exclusive access to products that we sell; our business depends, in part, on factors affecting consumer spending that are not within our control; our business will be harmed if we are unable to implement our growth strategy successfully; the expansion of our studio operations could result in increased expenses with no guarantee of increased earnings; if we do not manage our inventory levels successfully, our operating results will be adversely affected; we depend on domestic and foreign vendors, some of which are our competitors, for timely and effective sourcing of our merchandise; declines in the value of the U.S. dollar relative to foreign currencies could adversely affect our operating results; and we face intense competition and if we are unable to compete effectively, we may not be able to maintain profitability. Please refer to our reports and filings with the Securities and Exchange Commission, including our latest Quarterly Report on Form 10-Q for the first quarter of fiscal year 2006, for a further discussion of these risks and uncertainties. We also caution you not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made or to reflect the occurrence of unanticipated events.