Build-A-Bear Workshop, Inc. Expands to Germany with New Franchise Agreement

Build-A-Bear Workshop, Inc. (NYSE: BBW), an interactive entertainment retailer of customized stuffed animals, today announced an agreement with Choose Germany A/S as a new international franchisee. Choose Germany A/S is a subsidiary of Choose Holding A/S a Denmark company which also holds the franchise rights to Build-A-Bear Workshop in Denmark, Sweden and Norway. The group is led by John Kristensen and Soren Nielsen and currently has five stores in Denmark and one store in Sweden; the first store in Norway is scheduled to open in late October. "We are eager to introduce our brand in Germany,” said Chairman and Chief Executive Bear, Maxine Clark. "Germany is a large and exciting market for Build-A-Bear Workshop and we are fortunate to be working with our highly experienced and successful franchisee partners. John, Soren and their team understand the Build-A-Bear Workshop brand, product and store experience and the German market. Since opening their first store in Copenhagen in 2004 they have successfully expanded stores and raised brand awareness. In Hamburg, they have identified two prime real estate locations where stores will open later this year.” "Germany can’t wait for Build-A-Bear Workshop”, said Soren Nielsen, Choose Germany A/S chief executive bear. "This unique retail-entertainment brand appeals to ‘kids’ of all ages and allows each Guest to create and customize their stuffed animal. Our experience and success with Build-A-Bear Workshop in Denmark gives us confidence in our ability to grow the brand in Germany. We are excited about our two initial store locations in Hamburg – in the Alstertal-Einkaufszentrum shopping center and the Europa Passage arcade.” Build-A-Bear Workshop expects to continue to grow internationally through third party franchisees. As of July 1, 2006, international franchisees had 22 stores open in eight countries and by year end expect to have 29 to 31 stores open. About Build-A-Bear Workshop, Inc. Build-A-Bear Workshop, Inc. is the only global company that offers an interactive make-your-own stuffed animal retail-entertainment experience. Founded in St. Louis in 1997, the company currently operates more than 255 stores in the United States, Canada, the United Kingdom and Ireland. The addition of franchise stores in Europe, Asia and Australia make Build-A-Bear Workshop the leader in interactive retail. In November 2004, the company expanded the make-your-own concept from stuffed animals to dolls with the opening of its first friends 2B made® stores, where Guests can make their own doll friends. In April 2006, Build-A-Bear Workshop acquired The Bear Factory Limited and Amsbra, Ltd. adding company-owned stores in the United Kingdom and Ireland. Build-A-Bear Workshop (NYSE: BBW) posted total revenue of $362 million in fiscal 2005. For more information, call 888.560.BEAR (2327) or visit the company’s award-winning Web sites at www.buildabear.com and www.friends2bmade.com. Forward-Looking Statements This press release contains "forward-looking statements" (within the meaning of the federal securities laws) which represent the Build-A-Bear Workshop’s expectations or beliefs with respect to future events. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated. Those factors include, without limitation: we may not realize some of the expected benefits of the acquisition of Amsbra and The Bear Factory; we may be unable to generate comparable store sales growth; our marketing initiatives may not generate sufficient brand awareness and sales; we may be unable to effectively manage our international franchises or comply with changing laws relating thereto; we may be unable to generate demand for our retail experience, or to respond to consumer preferences; customer mall traffic may decrease, as a result of various factors, including a reduction of consumer confidence because of terrorism or war; general economic conditions may worsen; our market share could be adversely affected by competitors; we may lose key personnel, or be unable to hire qualified additional personnel; vendor deliveries may be disrupted; the availability and costs of our products could be impacted by international manufacturing and trade issues; our warehousing and distribution vendors may perform poorly; we may fail to protect our intellectual property and may have infringement, misappropriation or other disputes or litigation with third parties; we may be unable to open new stores, renew or replace our store leases, enter into leases for new stores on favorable terms, or continue to comply with our current leases; we may experience communications or information systems failures; we may suffer negative publicity or be sued due to alleged violations of labor laws, employee regulations or unethical practices, either by the Company or its merchandise manufacturers; and we may violate or be accused of violating privacy or security laws by reason of improperly obtaining or failing to adequately protect Guest information. These and other applicable risks, cautionary statements and factors that could cause actual results to differ from the Company's forward-looking statements are included in the Company's filings with the SEC, including as described in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2005. The Company undertakes no obligation to update or revise any forward- looking statements to reflect subsequent events or circumstances even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.