The following table sets forth, for the fiscal quarters indicated, the high and low closing market prices for the Company's Common Stock. As of March 28, 2006, there were approximately 3,154 holders of record of the Company's Common Stock. This number excludes individual stockholders holding stock under nominee security position listings.

The Company's Form 10-K Annual Report for the fiscal year ended January 28, 2006, is being delivered to shareholders with this Annual Report and should be read in conjunction with it. Information in the Form 10-K Annual Report, including the Company's Financial Statements and other financial information, Management's Discussion and Analysis of Financial Condition and Results of Operations, and disclosure regarding market risk, is important to an understanding of the Company and is incorporated herein by reference.

The Company has filed with the Securities and Exchange Commission, as an exhibit to its Form 10-K Reports for fiscal 2004 and 2005, the Sarbanes-Oxley Act Section 302 Certifications regarding the quality of the Company's public disclosure. During 2005, Mr. Josefowicz certified to the New York Stock Exchange that he was not aware of any violation by the Company of any NYSE Corporate Governance Listing Standards.

This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. One can identify these forward-looking statements by the use of words such as "expect," "continue," "goal," "plan," "will," "anticipate," and other words of similar meaning. One can also identify them by the fact that they do not relate strictly to historical or current facts. These statements are likely to address matters such as the Company's future financial performance (including sales and earnings guidance); its plans and expected benefits relating to store openings, closings, and remodels; the addition of the Seattle's Best Coffee and Paperchase brands to new and certain remodeled stores; and its intentions with respect to dividend payments and share repurchases. These statements are subject to risks and uncertainties that could cause actual results to differ materially from the Company's forward-looking statements. Please refer to the Company's annual, quarterly, and periodic reports on file with the Securities and Exchange Commission for a detailed discussion of such risks and uncertainties. The Company does not undertake any obligation to update forward-looking statements.