Cost Plus, Inc. Reports Holiday Sales and Provides Webcast Information for the Cowen and Company 8th Annual Consumer Conference

Oakland, CA — January 6, 2010 — Cost Plus, Inc. (Nasdaq: CPWM) announced today its sales results for the nine-week holiday period. Net sales for the nine-week period ended January 2, 2010 were $261.1 million compared to $266.0 million for the comparable nine-week period in fiscal 2008. Same store sales for the nine-week holiday period increased 0.3% compared to a 6.6% decrease for the nine-week period last year. The increase in same store sales was attributable to a 4.8% increase in customer count partially offset by a 4.3% reduction in the average ticket per customer.

Net sales for the four-week fiscal month of November 2009 were $91.0 million compared to $88.5 million for the same period last year. Same store sales for the fiscal month of November 2009 increased 4.9% compared to a 10.8% decrease for the same period last year. Net sales for the five-week fiscal month of December 2009 were $170.1 million compared to $177.5 million for the same period last year. Same store sales for the fiscal month of December 2009 decreased 2.0% compared to a 4.3% decrease for the same period last year. Customer count increased 10.8% in November and 1.9% in December compared to last year, and average ticket decreased 5.4% in November and 3.9% in December compared to last year.

President and Chief Executive Officer Barry Feld commented, “While I am disappointed that the traffic increases in December were not enough to overcome the lower ticket and deliver a positive comp for the month, I am pleased with the continuing improvement in our traffic levels which resulted in a positive 0.3% comp for the nine-week holiday season. We achieved a 91% sell-through of our holiday merchandise at the end of December with higher margins than last year. Our inventory is clean and we are well positioned to enter the new fiscal year with fresh value-priced merchandise.”

At the end of fiscal December 2009, the Company had $36.7 million in borrowings and $12.0 million in letters of credit outstanding under its asset-based credit facility compared to $37.3 million in borrowings and $13.9 million in letters credit at the end of the same period last year.

Mr. Feld further commented, “Our solid holiday sales performance enabled us to substantially pay down our credit line leaving sufficient capacity under the $200 million asset-based credit facility to meet working capital needs for the upcoming fiscal year. Additionally, we expect to receive a tax refund of approximately $13 million in the first quarter of 2010, further improving our liquidity position.”

Cost Plus, Inc. is a leading specialty retailer of casual home living and entertaining products. As of January 6, 2010, the Company operates 269 stores in 30 states.

The Company will be presenting at the Cowen and Company 8th Annual Consumer Conference. The presentation is scheduled for Monday, January 11, 2010 at 8:30 AM Eastern Time in New York, NY. The audio portion of the presentation will be webcast live at www.corporate-ir.net/ireye/conflobby.zhtml?ticker=CPWM&item_id=2623987.

This press release contains “forward-looking statements” relating to the adequacy of our credit line to meet our fiscal 2010 working capital needs and our anticipated tax refund. These statements are based on current expectations and are subject to various risks and uncertainties, which could cause actual results to differ materially from those forecasted. The risks and uncertainties include, but are not limited to: continued deterioration in economic conditions that affect consumer spending; changes in the competitive environment; currency fluctuations; timely introduction and customer acceptance of merchandising offerings; foreign and domestic labor market fluctuations; complications or delays in the store opening and closing processes; interruptions in the flow of merchandise; changes in the cost of goods and services purchased including fuel, transportation and insurance; a material unfavorable outcome with respect to litigation, claims and assessments; unseasonable weather; the effects associated with terrorist acts; and changes in accounting rules and regulations. 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:
Jane Baughman
(510) 808-9119