bebe stores, inc. and Titan Industries, Inc. End Shoe Licensing Agreem

    Business Editors

    BRISBANE, Calif.--(BUSINESS WIRE)--Jan. 25, 2005--bebe stores, inc. (Nasdaq:BEBE) and Titan Industries, Inc. have announced that their licensing agreement will terminate, effective June 30, 2005.
    "This decision is consistent with the long-term strategic objectives of bebe to control all aspects of product, design and distribution," said Greg Scott, CEO of bebe. "bebe and TITAN have enjoyed a mutually rewarding relationship and we look forward to doing business with them in a private label capacity."

    bebe stores, inc. designs, develops and produces a distinctive line of contemporary women's apparel and accessories, which it markets under the bebe, BEBE SPORT and bebe O brand names. bebe currently operates 206 stores, of which 180 are bebe stores and 26 are BEBE SPORT stores. These stores are located in the United States, Puerto Rico and Canada. In addition, we have an online store at www.bebe.com.

    The statements in this news release, other than the historical financial information, contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ from anticipated results. Wherever used, the words "expect," "plan," "anticipate," "believe" and similar expressions identify forward-looking statements. Any such forward-looking statements are subject to risks and uncertainties and the company's future results of operations could differ materially from historical results or current expectations. Some of these risks include, without limitation, miscalculation of the demand for our products, effective management of our growth, decline in comparable store sales performance, ongoing competitive pressures in the apparel industry, changes in the level of consumer spending or preferences in apparel, and/or other factors that may be described in the company's annual report on Form 10-K and/or other filings with the Securities and Exchange Commission. Future economic and industry trends that could potentially impact revenues and profitability are difficult to predict.

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CONTACT: bebe stores, inc. Walter Parks, 415-715-3900

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: APPAREL/TEXTILES RETAIL MARKETING AGREEMENTS SOURCE: bebe stores, inc.

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