PriceSmart Announces April Sales; Net Warehouse Sales Increase 34%.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--May 3, 2002

PriceSmart, Inc. (Nasdaq:PSMT)(www.pricesmart.com) announced today that net warehouse sales increased 34% to $50.9 million for the month of April from $38.0 million a year earlier.

Net warehouse sales rose 38% to $416.0 million for the first eight months of the 2002 fiscal year ending August 31, 2002, from $301.6 million in the same period last year. There were 26 warehouses in operation at the end of April 2002 compared to 18 at the end of April last year.

For the four weeks ended April 28, 2002, comparable warehouse sales for stores open at least 12 months decreased 4.0% over the same four-week period last year, due in part to Easter falling at the end of March this year versus mid-April last year. The Easter impact was greater in Guatemala due to weak economic conditions, which caused lower sales at the Company's two mature stores in that market. These stores accounted for the majority of the decline in the Company's April comp sales. However, sales came in on plan in the Guatemala market overall due to strong sales in the Company's third store which opened in May 2001 in the more affluent section of Guatemala City. For the eight weeks ended April 28, 2002, comparable warehouse sales still decreased 1.5%, but for the 34 weeks ended April 28, 2002, comparable warehouse sales were up 0.8% over the same period last year.

Excluding the three stores impacted by additional PriceSmart openings within the last 12 months, comparable warehouse sales decreased 0.4% in April, increased 3.9% for the first eight weeks of the third quarter and increased 4.6% for the first 34 weeks of fiscal 2002 over the comparable periods last year.

Allan Youngberg, Executive Vice President and Chief Financial Officer, stated, "While sales immediately following Semana Santa, or Easter week, were slower than expected, total warehouse sales for March and April combined exceeded our budget by $0.4 million, primarily as a result of strong sales at our recently opened stores in Guam and the Philippines. Comparative warehouse sales declined 7.9% in the first two weeks of April, but increased 0.3% in the last two weeks of the month, and this positive trend appears to be continuing into early May. Despite somewhat disappointing April comp sales results, we remain on track to meet our fiscal 2002 revenue goal of $650 million."

PriceSmart now operates 26 warehouse clubs in 10 countries and two U.S. territories in Central America, the Caribbean and Asia (four in Panama; three each in Costa Rica, Dominican Republic, Guatemala and the Philippines; two each in El Salvador, Honduras and Trinidad; and one each in Aruba, Barbados, Guam and the United States Virgin Islands). PriceSmart also licenses ten warehouses in China and one in Saipan, Micronesia.

PriceSmart, headquartered in San Diego, is a volume-driven, membership merchandise and services provider, delivering quality, value and low prices to the rapidly emerging consumer class in Latin America, the Caribbean and Asia.

This press release contains forward-looking statements that are subject to risks and uncertainties that might cause actual results to differ from those foreseen, including the following risks: our financial performance is dependent on international operations; the success of our business requires effective assistance from local business people with whom we have established strategic relationships; any failure by us to manage our growth could adversely affect our business; we face significant competition; we may encounter difficulties in the shipment of goods to our warehouses; we are exposed to weather and other risks associated with our operations in Central America, the Caribbean and Asia; declines in the economies of the countries in which we operate our warehouse stores would harm our business; the loss of key personnel could harm our business; and we are subject to volatility in foreign currency exchange; as well as the other risks detailed in the Company's SEC reports, including the Company's Form 10-K filed pursuant to the Securities and Exchange Act of 1934 on November 29, 2001, as amended January 10, 2002 and February 14, 2002.

For further information, please contact Bill Naylon, Executive Vice President and Chief Operating Officer, [phone], or Allan Youngberg, Executive Vice President and Chief Financial Officer, [phone].