Pacific Sunwear of California, Inc. (Nasdaq:PSUN) Thursday reported sales of $36.3 million for the four week period ended May 28, 2000, an increase of 33% over sales of $27.3 million for the comparable four week period ended May 30, 1999.

Company same store sales increased .5% for the period with PacSun same store sales up .7% and d.e.m.o. same store sales down 3.5%.

"Although top line sales increased 33% and merchandise margins were slightly improved from May a year ago, sales of summer seasonal merchandise were below our expectations," stated Greg Weaver, chairman and chief executive officer. "Two of these categories, both men's and junior's (girls) shorts and woven shirts, seem to be suffering from a lack of newness and appear to have become more promotional in the marketplace. Although business in May started strong, with same store sales up over 6% for the first two weeks, week three was difficult, with week four better, but still slightly negative. June is the largest sales volume month (five weeks) of the quarter as many of our customers begin summer break and July is important as we begin back to school in several markets. We are cautiously optimistic about business, however, if same store sales were to be up less than 6% for June and July, or if merchandise margins were negatively impacted, second quarter earnings per share would be below the current consensus estimate of analysts of $.29 per share."

"d.e.m.o. same store sales had been strong for the past year until May. We believe several merchandising decisions and misses during March and April contributed to May's results, including not transitioning more quickly out of certain slower turning brands into stronger up and coming brands. We have taken steps to address these issues," concluded Weaver.

Total sales for the first four months (17 weeks) of fiscal 2000 were $148.8 million, an increase of 36.8% over sales of $108.8 million for the first four months (17 weeks) of fiscal 1999. Company same store sales increased 5.3% for the first four months of fiscal 2000 with PacSun same store sales up 5.1% and d.e.m.o. same store sales up 10.7%.

Pacific Sunwear is a leading specialty retailer of everyday casual apparel, accessories and footwear designed to meet the needs of active teens and young adults. The company currently operates 428 PacSun stores, 37 PacSun outlet stores and 53 d.e.m.o. stores for a total of 518 stores in 48 states. PacSun's Web site address is www.pacsun.com.

The matters discussed in this release, including comments about future expectations of the performance of the business and having addressed d.e.m.o. issues are forward-looking statements and involve risks and uncertainties, including changes in consumer demands and preferences, competition from other retailers and uncertainties generally associated with apparel retailing. The historical results achieved are not necessarily indicative of future prospects of the company. Information on factors that could affect the forward-looking statements and the company's financial results is included in the company's Report on Form 10-K for the year ended Jan. 30, 2000 and subsequent periodic reports filed with the Securities and Exchange Commission.