bebe stores, inc. Executive Officers and Directors Adopt Rule 10b5-1 Trading Plan.

BRISBANE, Calif. -- bebe stores, inc. (Nasdaq:BEBE) today announced that Manny Mashouf, Chairman; Barbara Wambach, Chief Administrative Officer; Barbara Bass, Director and Corrado Federico, Director, have each adopted a pre-arranged stock trading plan to sell a portion of their bebe stock over time as part of their individual long-term strategy for asset diversification and liquidity. The stock trading plans were each adopted in accordance with the requirements of Rule 10b5-1 of the Securities and Exchange Act of 1934 and bebe's policies regarding its employees' stock transactions.

Rule 10b5-1 allows a company's officers and directors to adopt written, pre-arranged stock trading plans when they do not have material, non-public information about the company or its securities. Using these plans, which preclude an insider from exercising subsequent influence over the timing or amount of trades, insiders can gradually diversify their investment portfolios, spread stock trades out over an extended period of time to reduce any market impact and avoid concerns about whether they had material, non-public information when stock is sold on their behalf.

Under Mr. Mashouf's Rule 10b5-1 Plan, he may sell up to 2,700,000 shares over a period of approximately twelve months. If Mr. Mashouf completes all the planned sales of shares under his Rule 10b5-1 Plan, he would beneficially own approximately 65,000,000 shares (approximately 70%) of bebe's outstanding stock.

Under Ms. Wambach's Rule 10b5-1 Plan, stock options may be exercised for up to approximately 455,000 shares and such shares may be sold for her account over a period of approximately twelve months. Shares are exercisable under Ms. Wambach's stock options only in accordance with their vesting requirements.

Under Ms. Bass's Rule 10b5-1 Plan, stock options may be exercised for up to approximately 181,000 shares and such shares may be sold for her account over a period of approximately twelve months. Shares are exercisable under Ms. Bass's stock options only in accordance with their vesting requirements.

Under Mr. Federico's Rule 10b5-1 Plan, stock options may be exercised for up to approximately 186,000 shares and such shares may be sold for his account over a period of approximately twelve months. Shares are exercisable under Mr. Federico's stock options only in accordance with their vesting requirements.

The transactions under the above trading plans will commence no earlier than June 19, 2006 and will be disclosed publicly through Form 144 and Form 4 filings with the Securities and Exchange Commission. The Form 4 filings will also be posted on bebe's investor relations website at www.bebe.com

bebe stores, inc. designs, develops and produces a distinctive line of contemporary women's apparel and accessories, which it markets under the bebe, BEBE SPORT and bebe O brand names. bebe currently operates 234 stores, of which 177 are bebe stores, 20 are bebe outlet stores and 37 are BEBE SPORT stores. These stores are located in the United States, Puerto Rico and Canada. In addition, we have an online store at www.bebe.com.

The statements in this news release, other than the historical financial information, contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ from anticipated results. Wherever used, the words "expect," "plan," "anticipate," "believe" and similar expressions identify forward-looking statements. Any such forward-looking statements are subject to risks and uncertainties and the company's future results of operations could differ materially from historical results or current expectations. Some of these risks include, without limitation, miscalculation of the demand for our products, effective management of our growth, decline in comparable store sales performance, ongoing competitive pressures in the apparel industry, changes in the level of consumer spending or preferences in apparel, and/or other factors that may be described in the company's annual report on Form 10-K and/or other filings with the Securities and Exchange Commission. Future economic and industry trends that could potentially impact revenues and profitability are difficult to predict.