bebe stores, inc. Vice President Adopts Rule 10b5-1 Trading Plan.

BRISBANE, Calif. -- bebe stores, inc. (Nasdaq: BEBE) today announced that Susan Peterson, Vice President of Design, bebe, adopted a pre-arranged stock trading plan to sell a portion of her bebe stock over time as part of her individual long-term strategy for asset diversification and liquidity. The stock trading plan was 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 Ms. Peterson's Rule 10b5-1 Plan, stock options may be exercised for up to approximately 80,000 shares and such shares may be sold for her account over a period of approximately eighteen months. Shares are exercisable under Ms. Peterson's stock options only in accordance with their vesting requirements.

The transactions under the above trading plans 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, COLLECTION bebe, Neda by bebe, Neda, BEBE SPORT and bebe O brand names. bebe currently operates 259 stores, of which 189 are bebe stores, 20 are bebe outlet stores, 49 are BEBE SPORT stores and 1 is a bebe accessories store. These stores are located in the United States, Puerto Rico and Canada. In addition, there is an online store at www.bebe.com.

The statements in this news release 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.