The Wet Seal, Inc. Announces December Comparable Store Sales Declined 12.5%, Updates Fourth Quarter EPS Estimate to Lower End of Prior Guidance Range

The Wet Seal, Inc. (Nasdaq: WTSLA), a leading specialty retailer to young women, reported net sales and comparable store sales for the five-week period ended January 3, 2009, or fiscal December, as follows:

Ed Thomas, chief executive officer of The Wet Seal, Inc., commented: "We were pleased with the relative resilience of our Wet Seal comparable store sales results in light of the extremely difficult retail environment and the positive comparable store sales from the prior year. With our offering of fashionable, on-trend apparel and accessories at an excellent value, we continue to believe Wet Seal is well-positioned in this very challenging economic climate.”

Mr. Thomas continued, "We continue to manage our Arden B business very conservatively during its turn-around process. We believe the young contemporary women’s apparel category has been highly vulnerable to the economic downturn. With this in mind, we continue to carefully manage inventory levels at Arden B, at the potential expense of lost sales productivity, to ensure we improve the merchandise margin rate over the prior year fourth quarter and avoid excess inventory exposure.

"Coming out of the holiday season, we remain comfortable with the conservative inventory levels at both operating divisions. We project year-over-year declines in inventory per square foot, in line with comparable store sales trends, as of fiscal year-end. We are also very pleased with our continued balance sheet strength, with projected cash in excess of $140 million and long-term debt of only $2.7 million as of fiscal year-end.”

Mr. Thomas concluded, "We currently estimate fourth quarter earnings will be in the range of $0.06 to $0.08 per diluted share, which is within our previous guidance range of $0.06 to $0.10 per diluted share. Through disciplined operational and inventory management and cost control in all facets of our business, we anticipate maintaining earnings within initial guidance in spite of comparable store sales running slightly below prior expectations. Our earnings guidance does not include any non-cash benefit to income taxes for the potential reversal of our deferred income tax valuation allowance or any estimate for potential non-cash long-lived asset impairment charges.”

About Wet Seal

Headquartered in Foothill Ranch, California, The Wet Seal, Inc. is a leading specialty retailer of fashionable and contemporary apparel and accessory items. As of January 3, 2009, the Company operated a total of 503 stores in 47 states, the District of Columbia and Puerto Rico, including 412 Wet Seal stores and 91 Arden B stores. The Company’s products can also be purchased online at www.wetseal.com or www.ardenb.com. For more company information, visit www.wetsealinc.com.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This news release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements that relate to the Company’s earnings per share, merchandise margin, inventory level, cash and long-term debt guidance for the fourth quarter of fiscal 2008 and competitive positioning of its operating segments, as well as the intent, belief, plans or expectations of the Company or its management. All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors beyond the Company’s control. Accordingly, the Company’s future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company’s filings with the Securities and Exchange Commission. This news release contains results reflecting partial year data and non-fiscal data that may not be indicative of results for similar future periods or for the full year. The Company will not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.