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Press release from Business Wire

The Wet Seal, Inc. Announces October Comparable Store Sales Declined 0.7%

<p class=' bwalignc'> <b>Affirms Third Quarter Earnings Guidance at High End of Initial Range, Including Non-Cash Asset Impairment Charges</b> </p>

Thursday, November 04, 2010

The Wet Seal, Inc. Announces October Comparable Store Sales Declined 0.7%07:00 EDT Thursday, November 04, 2010 FOOTHILL RANCH, Calif. (Business Wire) -- The Wet Seal, Inc. (Nasdaq: WTSLA), a leading specialty retailer to young women, reported net sales and comparable store sales for the four-week period ended October 30, 2010, or fiscal October, and the fiscal third quarter ended October 30, 2010, as follows: Fiscal October     Net Sales         Comparable Store Sales % Change $ in Millions     % Change From Last Year This Year     Last Year Wet Seal $36.2     5.8% -0.7%     -3.1% Arden B 6.5     -4.9% -0.9%     8.2% Total $42.7     4.1% -0.7%     -1.3%   Fiscal Third Quarter     Net Sales       Comparable Store Sales % Change $ in Millions     % Change FromLast Year This Year     Last Year Wet Seal $125.5     5.3% 0.4%     -7.6% Arden B 20.9     -6.7% -2.9%     1.3% Total $146.4     3.4% -0.1%     -6.2%   Ed Thomas, chief executive officer of The Wet Seal, Inc., commented: “October comparable store sales results were slightly above plan. We were encouraged by stronger sales performance at Wet Seal in the final week of the month leading up to Halloween, and by the performance at Arden B, particularly given the strong prior year comparison.” Mr. Thomas continued, “We estimate that year-over-year inventories per square foot at the end of the third quarter decreased 5.6% at Wet Seal and decreased 1.9% at Arden B. We are comfortable with our conservative inventory levels and content in both divisions as we enter the very important holiday season.” The Company expects earnings per diluted share for the fiscal third quarter to be at the high end of its initial guidance range of $0.01 to $0.03. This includes estimated non-cash asset impairment charges, net of income taxes, of $0.9 million, or $0.01 per diluted share, which were not anticipated in the Company's original guidance. Excluding the asset impairment charges, earnings per diluted share for the fiscal third quarter are expected to be $0.04. The Company is reviewing components of its non-cash deferred tax assets for potential adjustment, and this guidance does not include any estimate for such tax adjustments. 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 October 30, 2010, the Company operated a total of 522 stores in 47 states, the District of Columbia and Puerto Rico, including 444 Wet Seal stores and 78 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, the Company's earnings per diluted share expectations for its fiscal third quarter, the Company's estimated inventory positions as of the end of its fiscal third quarter, and 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. The Wet Seal, Inc.Steven H. Benrubi(949) 699-3947