Cost Plus Alerts Consumers in Southern California Area of Suspected Electronic Funds...

Cost Plus Alerts Consumers in Southern California Area of Suspected Electronic Funds Transfer Unit (PIN Pad) Tampering at Eight Retail Locations

Company Believes Payment Terminal PIN Pads Tampered With Between
February 2008 and April 2008; Changes Point of Sale Procedures to
Ensure Customers Can Safely Use Debit and Credit Cards

Affected Locations Include San Diego (Downtown), Oceanside, La
Jolla, Mission Viejo, San Dimas, Valencia, Palm Desert and Oxnard
OAKLAND, Calif.--(Business Wire)--
Cost Plus World Market ("Cost Plus") recently learned that
Electronic Funds Transfer devices (known as "PIN pads") at eight of
its Southern California stores may have been tampered with between
February 2008 and April 2008 and, as a result, certain account and PIN
numbers used at those locations only may have been acquired by
unauthorized third parties. After a thorough investigation, Cost Plus
believes that only cards used at the eight stores identified below are
affected. There have been reports of unauthorized debit card activity
on some of those accounts. To date there is no evidence of any credit
card fraud associated with this incident.

Cost Plus has changed its point of sale procedures nation-wide and
is confident that its customers can safely use debit and credit cards
at all CPWM stores. The payment card data read by a PIN pad is limited
and it is not believed that other customer information, including
name, address and social security number, was obtained.

The eight stores that have been identified in connection with this
incident include: San Diego (372 Fourth Avenue San Diego, CA 92101),
Oceanside (2140 Vista Way Oceanside, CA 92054), La Jolla (8657 Villa
La Jolla Drive Suite La Jolla, CA 92037), Mission Viejo (28341
Marquerite Parkway Mission Viejo, CA 92692), San Dimas (638 West Arrow
Highway San Dimas, CA 91773), Valencia (25676 North The Old
Road Valencia, CA 91381), Palm Desert (44-439 Town Center Way, Palm
Desert, CA 92260) and Oxnard (221 Esplanade Drive, Oxnard, CA 93030).

Since learning of the incident, Cost Plus has worked closely with
the financial institutions and law enforcement officials to ensure
that any of its customers impacted by this incident are identified.
Cost Plus is also working with its merchant bank and the payment card
issuers to ensure that any affected cards are blocked and reissued. In
addition to the chain-wide changes in its point of sale procedures,
the Company has begun the process of replacing the PIN pad devices
throughout all of its stores nationwide and expects to complete the
process by the end of August. Furthermore, the Company has engaged
Verizon Business/Cybertrust, a nationally recognized data security
firm, to review its overall data security program.

Cost Plus strongly recommends that consumers who have used a
payment card at one of these Cost Plus retail locations between
February 2008 and April 2008 should carefully review their account
statements and immediately notify their credit or debit card company
or bank if they suspect fraudulent use. Cost Plus apologizes to its
valued customers for any inconvenience caused by this incident. The
privacy of our customers and their personal information is a matter of
the highest concern to the company, and every effort is made to ensure
that all personal information and financial data maintained by Cost
Plus is secure and safe.

Important Information for Customers

You can obtain additional information at
www.worldmarket.com/securityalertfaqs or call us at 1-877-World Market
(1-877-967-5362) between 4amPT-9pmPT, Sunday-Saturday.

About Cost Plus World Market

Celebrating its 50th Anniversary this year, Cost Plus World Market
now operates nearly 300 stores in 34 states under the names "World
Market" and "Cost Plus World Market." The store features an
ever-changing selection of casual home furnishings, housewares, gifts,
jewelry, decorative accessories, 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 World
Market regularly supplied by an international network of individual
and regional artisans developed over the Company's 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
are made out of recycled glass and yet countless are constructed of
environmentally friendly bamboo. The value, breadth and continual
refreshment of products invite customers to come back throughout a
lifetime of changing home furnishings and entertaining needs.

Media:
Sard Verbinnen & Co
Dan Gagnier, 212-687-8080
or
Ron Low, 415-618-8750

Copyright Business Wire 2008