Pacific Sunwear to Close Remaining 154 demo Stores

ANAHEIM, Calif., Jan. 4, 2008 (PRIME NEWSWIRE) -- Pacific Sunwear of California,
Inc. (Nasdaq:PSUN) (the "Company") reported today that it will close its
remaining 154 demo stores as soon as is practical. The determination to take
this action followed a review of strategic alternatives for its demo division,
as previously announced in October 2007. In February 2007, the Company announced
the planned closure of 74 underperforming demo stores, all of which were closed
as of the end of May 2007.

Pacific Sunwear's Chairman and Chief Executive Officer Sally Frame Kasaks
commented: "As we previously announced, we strongly believe that the best course
for enhancing shareholder value is to focus our attention and resources on the
PacSun business. We engaged an outside financial advisor to help us carefully
evaluate strategic alternatives for demo and have determined on the basis of
this review that it is in the best interests of our investors to close our
remaining demo stores and concentrate our efforts on our core business."

As a result of this decision, the Company expects to incur aggregate pre-tax
charges in the range of approximately $35 million to $50 million for anticipated
lease terminations, employee severance charges, inventory reserves, and agency
fees. Approximately $3 million to $4 million of such charges are expected to be
incurred during the fourth quarter of fiscal 2007 ending February 2, 2008. These
charges were not reflected in the Company's previously given GAAP earnings
guidance for the fourth quarter of fiscal 2007. The remainder of such charges is
expected to be incurred during the first quarter of fiscal 2008 ending May 3,
2008, by which time the Company currently expects that all 154 demo stores will
be closed. Upon the completion of the inventory liquidation and lease
termination negotiations, together with anticipated income tax benefits expected
to be realized, the Company expects the net cash outflow of the demo store
closings to be in the range of near neutral to approximately $10 million. The
Company intends to engage the Gordon Brothers Group, LLP and its subsidiary, DJM
Realty, LLP, to assist in the demo store closing effort.

Separately, the Company also announced today that, following a review of its
supply chain operations, it will relocate all of its distribution activities to
its distribution center in Olathe, Kansas, and close its distribution center in
Anaheim, California.

Ms. Kasaks added, "In analyzing our operations, it became clear that we can
better leverage our existing capacity at our Olathe distribution center to
improve the efficiency of our supply chain, better service our stores and reduce
certain costs. We regret the impact on our associates of both of these
decisions, but recognize these actions are necessary in order to improve our
financial performance and best position the Company for future growth."

The relocation of the Anaheim distribution operations is expected to result in
pre-tax charges of approximately $3 million, of which approximately $1 million
is expected to be incurred during the fourth quarter of fiscal 2007 and
approximately $2 million is expected to be incurred during the first quarter of
fiscal 2008. These charges were not reflected in the Company's previously given
GAAP earnings guidance for the fourth quarter of fiscal 2007. The Company plans
to gradually phase down its operations in the Anaheim distribution center and
expects the facility to close by the end of April 2008. The Company is currently
evaluating sale or lease alternatives for the Anaheim distribution center, which
are expected to generate cash flow in excess of the current net book value of
those assets.

About Pacific Sunwear of California, Inc.

Pacific Sunwear, operating under three distinct retail concepts, is a leading
specialty retailer of everyday casual apparel, accessories and footwear designed
to meet the needs of active teens and young adults. As of January 2, 2008, the
Company operated 841 PacSun stores, 120 PacSun Outlet stores, 154 demo stores
and 6 One Thousand Steps stores for a total of 1,121 stores in 50 states and
Puerto Rico. PacSun's website address is www.pacsun.com, merchandise carried at
demo stores can be found at www.demostores.com and information about One
Thousand Steps can be found at www.onethousandsteps.com.

The Pacific Sunwear of California logo is available at
http://www.primenewswire.com/newsroom/prs/?pkgid=2087

Pacific Sunwear Safe Harbor

This press release contains "forward-looking statements," including statements
with respect to the Company's plans to close its remaining 154 demo stores and
consolidate its distribution operations in Olathe, Kansas, the amount and timing
of anticipated lease termination, employee severance, inventory reserve, agency
fee, and relocation charges associated with these decisions, and the anticipated
cash flows to be generated from any sale or lease of the Anaheim distribution
center. In each case, these statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. The Company
intends that these forward-looking statements be subject to the safe harbors
created thereby. These statements are subject to risks, uncertainties, and other
factors, including, among others, risks, uncertainties and factors set forth in
our reports and documents filed with the United States Securities and Exchange
Commission, including but not limited to the Annual Report on Form 10-K for the
year ended February 3, 2007 and subsequent periodic reports filed with the SEC.
We caution that it is impossible to predict actual results or outcomes or the
effects of risks, uncertainties or other factors on anticipated results or
outcomes. In particular, the timing and amount of actual charges and expenses
relating to the Company's demo stores may differ from our initial estimates
depending on the terms of landlord lease terminations, amounts received for demo
inventory or from alternatives for the Anaheim distribution center, and actual
severance, agency and relocation costs, each of which could be impacted by
unanticipated delays or costs as plans and activities are finalized. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date hereof. The Company assumes no obligation to update or
revise any such forward-looking statements to reflect events or circumstances
that occur after such statements are made. Nonetheless, the Company reserves the
right to make such updates from time to time by press release, periodic report
or other method of public disclosure without the need for specific reference to
this press release. No such update shall be deemed to indicate that other
statements not addressed by such update remain correct or create an obligation
to provide any other updates.

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CONTACT: Pacific Sunwear of California, Inc.
Gar Jackson, Sr. Director Investor Relations
(714) 414-4049