bebe stores, inc. (Nasdaq:BEBE) today reported retail sales of $17.7 million for the month ended May 31, 2000, a decrease of 10.2% over sales of $19.7 million for the month ended May 31, 1999.

Same store sales for May decreased 20.0% over the comparable period of fiscal 1999. Prior years' same store sales increases were 17.9% for May 1999 and 36.3% for May 1998.

Retail sales for the eleven months ended May 31, 2000 were $223.9 million compared to $184.1 million for the corresponding period last year, an increase of 21.6%. Comparable store sales for the eleven months ended May 31, 2000 increased 1.8% compared to the corresponding period of the prior year.

bebe stores, inc. provides additional information about May sales on a recorded message. Interested parties are invited to listen to the message by calling 415-657-1010.

bebe designs, develops and produces a distinctive line of contemporary women's apparel and accessories, which it markets under the bebe, bbsp and bebe moda brand names. bebe currently operates 119 stores in the United States, the U.K. and Canada and an online store at www.bebe.com.

The statements in this news release and on our recorded message, 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.