The Sharper Image Resumes Redemption of Customers' Gift Cards for Full Value

SAN FRANCISCO--(Business Wire)--
Sharper Image Corporation (Pink Sheets:SHRPQ) is pleased to
announce it has resumed redemption of all its customers' Gift Cards,
Reward Cards, Gift Certificates and Merchandise Certificates for their
full value.

"We appreciate the Bankruptcy Court's prompt approval of our
request to again honor all our customers' Gift Cards for their full
value," said Robert Conway, Chief Executive Officer of The Sharper
Image. "While some conditions apply under the approved new voluntary
policy (see below), we hope our customers will consider this a fair
solution."

Under the Court approved new policy, all Gift Cards, etc., will be
honored for their full value with two conditions - (1) they must be
redeemed in full in one transaction (no partial redemptions
permitted); and (2) customers must purchase an item that costs double
the value of the gift card or merchandise certificate.

A complete summary of the Merchandise Gift Card Policy is
available for viewing at www.sharperimage.com and in all Sharper Image
stores.

About Sharper Image

The Sharper Image is a specialty retailer that is nationally and
internationally renowned as a leading source of new, innovative,
high-quality products that make life better and more enjoyable. The
Company's principal selling channels include 184 Sharper Image
specialty stores throughout the United States; the award-winning
Sharper Image monthly catalog; and its primary Web site,
www.sharperimage.com. The Company also has business-to-business sales
teams for marketing its exclusive and proprietary products for
corporate incentive and reward programs and wholesale to selected U.S.
and international retailers.

Forward-Looking Statements

This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are based on the Company's current plans,
expectations, estimates, and projections about the specialty retail
industry and management's beliefs about the Company's future
performance. Words such as "anticipates," "expects," "intends,"
"plans," "believes," "seeks," "estimates" or variations of such words
and similar expressions are intended to identify such forward-looking
statements. These statements are not guarantees of future performance
and are subject to risks and uncertainties that are difficult to
predict and which may cause the Company's actual results and
performance to differ materially from those expressed or forecasted in
any such forward-looking statements. Some of these risks and
uncertainties are discussed in the Company's Annual Report on Form
10-K for the year ended January 31, 2007 under "Risk Factors". These
risks include, among other factors, the success of its new business
strategy, its ability to continue to find or develop and to offer
attractive merchandise to customers, the market potential for products
in design, the success of its advertising efforts, changes in business
and economic conditions, risks associated with its retail store,
catalog and Internet operations, and changes in the competitive
environment in which it operates. Other risks that the Company faces
include, but are not limited to, the following: (i) the ability of the
Company to continue as a going concern; (ii) the Company's ability to
obtain court approval with respect to motions in the Chapter 11
proceeding prosecuted by it from time to time; (iii) the ability of
the Company to develop, prosecute, confirm and consummate one or more
plans of reorganization with respect to the Chapter 11 case; (iv)
risks associated with third parties seeking and obtaining court
approval to terminate or shorten the exclusivity period for the
Company to propose and confirm one or more plans of reorganization,
for the appointment of a Chapter 11 trustee or to convert the case to
a Chapter 7 case; (v) the ability of the Company to obtain and
maintain normal terms with vendors and service providers; (vi) the
Company's ability to maintain contracts and leases that are critical
to its operations; and (vii) the potential adverse impact of the
Chapter 11 case on the Company's liquidity or results of operations.
Unless required by law, the Company undertakes no obligation to update
publicly any forward-looking statements. However, readers should
carefully review the statements set forth in the reports, which the
Company files from time to time with the Securities and Exchange
Commission, particularly its Annual Report on Form 10-K, its Quarterly
Reports on Form 10-Q and its Current Reports on Form 8-K.

Sharper Image Corporation
Tersh Barber, VP, Finance, 415-445-6274 (Investors)

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