Sharper Image Announces Stock Repurchase Plan

    Business Editors

    SAN FRANCISCO--(BUSINESS WIRE)--Jan. 4, 2005--Sharper Image Corporation (Nasdaq:SHRP) today announced that its Board of Directors has authorized the Company to purchase up to one million shares of the company's common stock during the next 12 months.
    "Given our current stock price and our strong financial position, a stock repurchase program is an attractive investment for the Company," said Mr. Richard Thalheimer, founder, chairman and chief executive officer. "We anticipate that this repurchase program will add long term value to our shareholders and, at current market prices, is expected to be accretive to earnings," concluded Mr. Thalheimer.
    Sharper Image is a specialty retailer that is nationally and internationally renowned as a leading source of new, innovative, high-quality products that make life better and more enjoyable. A significant and growing proportion of sales are of proprietary products created by the Company's product development group, Sharper Image Design. The Company's principal selling channels include 177 Sharper Image specialty stores throughout the United States; the award-winning Sharper Image monthly catalog with annual circulation in excess of 90 million; and its primary Website, http://www.sharperimage.com. The Company also sells its products through its own online auction Website and an online Outlet store to help manage refurbished and close-out inventory; both sites are accessed from the home page of sharperimage.com. The Company also has business-to-business sales teams for marketing its exclusive and proprietary products for corporate incentive and reward programs and wholesale to selected U.S. and international retailers.

    This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on our current plans, expectations, estimates, and projections about the specialty retail industry and management's beliefs about our future performance. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates" or variations of such words and similar expressions are intended to identify such forwarding-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties that are difficult to predict and which may cause our actual results and performance to differ materially from those expressed or forecasted in any such forward-looking statements. These risks and uncertainties are discussed in our Annual Report on Form 10-K under "Factors Affecting Future Operating Results" and include our ability to continue to find or develop and to offer attractive merchandise to our customers, changes in business and economic conditions, risks associated with the expansion of our retail store, catalog and Internet operations, and changes in the competitive environment in which we operate. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements. However, readers should carefully review the statements set forth in the reports, which we file from time to time with the Securities and Exchange Commission, particularly our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and any Current Reports on Form 8-K.

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CONTACT: The Sharper Image Tersh Barber, 415-445-6274 (Investor Relations)

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: BANKING RETAIL PRODUCT SOURCE: Sharper Image Corporation

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