Cost Plus, Inc. Executes Confidentiality and Standstill Agreement with Red Mountain Capital Partners

OAKLAND, Calif. — April 18, 2007 — Cost Plus, Inc. (NASDAQ:CPWM) today confirmed that it had executed a Confidentiality and Standstill Agreement with Red Mountain Capital Partners LLC, pursuant to which it would be providing current non-public information about the Company. Red Mountain is a 9.8% shareholder of Cost Plus and had previously expressed interest in maintaining a dialogue with management regarding, among other things, Cost Plus’s operations, strategic direction, capital structure and corporate governance. The Company agreed to grant Red Mountain’s request for confidential information conditioned upon its acceptance of a customary standstill agreement that, among other things, prohibits it from, without the Company’s prior written consent, acquiring additional Company securities through the end of 2007 and taking other specified actions that would seek to cause a change of control of the Company through the end of 2007.

About Cost Plus World Market
Cost Plus World Market operates 292 stores in 34 states under the names “World Market” and “Cost Plus World Market.” The stores feature an ever-changing selection of casual home furnishings, housewares, gifts, decorative accessories, jewelry, over 500 international wines, gourmet foods and beverages offered at affordable prices and are imported from more than 50 countries. Many items are unique and exclusive to Cost Plus World Market. All are regularly supplied by an international network of individual and regional artisans developed over the Company’s nearly 50 years in the import business. The majority of the store’s furniture is constructed of environmentally friendly, farm raised wood while a number of items in their store are made out of recycled glass. The value, breadth and continual refreshment of products invite customers to come back throughout a lifetime of changing home furnishings and entertaining needs.

About Red Mountain Capital Partners
Red Mountain is an investment firm based in Los Angeles that takes long term strategic stakes in micro cap public companies and works with management to increase shareholder value. Its managing partner, Willem Mesdag, is a former partner of Goldman, Sachs & Co.

Contact:
Cost Plus, Inc.
Tom Willardson
(510) 808-9119