Announces Participation in the Thomas Weisel Partners Consumer Conference

Cache Inc. (NASDAQ: CACH), a specialty chain of women’s apparel stores with 295 stores currently open, today announced that it is revising its third quarter guidance, primarily to reflect a softer than anticipated sales performance in the latter part of the period, as a result of a difficult homecoming dress season prompted by the tough economy. Sales were also negatively impacted by tropical storms that caused temporary store closings in Florida, Texas and Louisiana, where the Company has a significant presence. The Company is also revising its full year fiscal 2008 guidance to reflect its current third quarter outlook and an expectation that the difficult economy will continue to impact the fourth quarter. Cache expects to report full third quarter fiscal 2008 results during the week of October 20, 2008.

Thomas Reinckens, Chairman and Chief Executive Officer, commented: “As we began the third quarter, we were optimistic about our performance given solid July sales results and a favorable response to our fall assortments. However, our business became particularly challenging in the second week of September, as we experienced a softening in special occasion dresses, which typically strengthen in mid-September through mid-October coinciding with the homecoming season. We were also negatively impacted by temporary store closures due to hurricanes in some of our largest markets. On a positive note, our sportswear business continues to trend positively. Consequently, we expect September 2008 comparable store sales to decline approximately 6%, as compared to the prior year period.”

“During the period, we were successful in generating incremental traffic with our marketing vehicles, which drove a significantly higher percentage of our sales than in prior periods,” Mr. Reinckens continued. “We believe this demonstrates the effectiveness of our advertising, the strength of our loyalty program and excitement in our assortments. We also expect to end the third quarter with a strong balance sheet. Average finished goods inventory per store, at cost, is on track to end down, in the double-digit range, from the third quarter last year. As we look ahead, while special occasion dresses are less significant for holiday, as compared to homecoming in the third quarter, we believe it is prudent to revise our fourth quarter expectations, given the difficult economy. We have also reduced our inventory commitments, to reflect our current sales trends and we will manage expenses tightly.