Cost Plus, Inc. Updates Fourth Quarter Sales and Earnings Progress

Oakland, CA – January 9, 2006 – Cost Plus, Inc. (NASDAQ: CPWM) today indicated that sales and earnings thus far for the fourth quarter are consistent with the low end of its prior guidance. The Company estimates comparable store sales, total sales and earnings per share for the fourth quarter will be at or near the low end of its prior guidance of:

Comparable store sales decrease of 3% to flat
Total sales $363 million to $375 million
Earnings per diluted share $.98 to $1.08

The Company’s fourth quarter ends Saturday, January 28, 2006, and final quarterly sales results will be announced Thursday, February 2, 2006.

The above statements relating to anticipated fourth quarter sales and earnings for fiscal 2005 are “forward-looking statements” that are based on current expectations and are subject to various risks and uncertainties, which could cause actual results to differ materially from those forecasted. Such risk factors include, but are not limited to: sales volume for the remainder of January, 2006; the timing and rate of gift card redemptions; adverse winter weather conditions; delays in the flow of merchandise to stores; changes in economic conditions that affect consumer spending; changes in the competitive environment; determination of ultimate gross profit rate earned on fourth quarter sales; determination of operating costs and other expenses; a material unfavorable outcome with respect to litigation, claims and assessments; changes in accounting rules and regulations; and adjustments identified in closing the Company’s books and accounting records. Please refer to documents on file with the Securities and Exchange Commission for a more detailed discussion of the Company’s risk factors. The Company does not undertake any obligation to update its forward-looking statements.

Contact: Barry Feld
(510) 893-7300