Sharper Image Reports September Sales

Sharper Image Corporation (NASDAQ:SHRP) today reported sales for the month of September and year-to-date for the first eight months of the fiscal year ending January 31, 2008. September Sales For the month ended September 30, 2007, total Company sales were $19.6 million compared to $31.9 million in the previous year, a decrease of 39 percent. Air purification sales accounted for approximately 13 percent of sales in September 2007 versus approximately 30 percent of sales in September 2006. Included in prior year sales were $3.5 million of infomercial sales. The company discontinued infomercials in October 2006. Without prior year infomercial sales, the total Company sales decrease in September was 31 percent. Total store sales were $13.6 million compared to $17.5 million in the prior September, a decrease of 22 percent. Comparable store sales in September decreased 21 percent. Total catalog/direct marketing sales (including infomercials and wholesale) were $3.7 million compared to last September’s $9.8 million, a decrease of 62 percent, or a decrease of 41 percent without infomercials. Internet sales were $2.2 million compared to last September’s $4.5 million, a decrease of 51 percent. Fiscal Year-to-Date Sales Year-to-date for the eight months ended September 30, 2007, total Company sales were $184.9 million compared to $273.4 million in the previous year, a decrease of 32 percent. Air purification sales accounted for approximately 13 percent of sales year-to-date 2007 versus approximately 33 percent of sales year-to-date 2006. Included in the prior year sales were $32.0 million of infomercial sales. Without prior year infomercial sales, the Company’s total sales decrease year-to-date was 23 percent. Total store sales for the eight months were $131.1 million compared to $158.2 million in the prior year, a decrease of 17 percent. Comparable store sales for the eight-month period decreased 17 percent. Total catalog sales/direct marketing sales (including infomercials and wholesale) for the eight-month period were $28.8 million compared to $73.6 million, a decrease of 61 percent, or a decrease of 31 percent without infomercials. Internet sales for the eight-month period were $24.9 million compared to $41.6 million, a decrease of 40 percent. 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 186 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. 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.