WLSN Wilsons The Leather Experts Inc. (MM)

Wilsons The Leather Experts Inc. (NASDAQ:WLSN) today reported a sales decrease of 13.0% to $65.9 million for the five weeks ended January 5, 2008 as compared to $75.7 million for the five weeks ended December 30, 2006. Year-to-date sales for the Company�s stores decreased 12.5% to $258.5 million compared to $295.5 million for the same period last year. Comparable store sales decreased 7.1% for the five weeks ended January 5, 2008 as compared to a 23.1% decrease for the five weeks ended December 30, 2006. Year-to-date comparable store sales decreased 11.8% compared to a decrease of 17.0% for the same period last year. Michael Searles, Chief Executive Officer, commented, �After a strong Thanksgiving start, both traffic and comparable store sales for the first three weeks of December declined in the high teens. The last two weeks of December saw a significant rebound in traffic and, as a result, comparable store sales averaged an increase of over 25% in the final two weeks. This was a result of both the calendar shift and significantly increased traffic and conversion in our stores. The first week of January has started off strong as well.� About Wilsons Leather Wilsons Leather is the leading specialty retailer of leather outerwear, accessories and apparel in the United States. As of January 5, 2008, Wilsons Leather operated 411 stores located in 45 states, including 278 mall stores, 119 outlet stores and 14 airport stores. Except for historical information, matters discussed in this press release are forward-looking statements that involve risks and uncertainties, and actual results may be materially different. Such statements are based on information available to management as of the time of such statements and include statements related to future comparable store sales results, business strategies, changes to merchandise mix, and future sales results. Factors that could cause actual results to differ include: risks associated with strengthening our existing store base and brand strategy development; continued declines in comparable store sales; our ability to expand the accessories business and acquire a suitable accessories brand; the potential need for funding in addition to our cash flow from operations and existing credit facilities; dependence on our key supplier to implement our designer label outerwear merchandise strategy; changes in customer shopping patterns; risks associated with the development of our wholesale business; the potential for additional impairment losses if our operating performance does not improve; competition in our markets; uncertainty in general economic conditions; unseasonably warm weather; our inability to effectively respond to changes in fashion trends and consumer demands; decreased availability and increased cost of leather; risks associated with foreign sourcing and international business; seasonality of our business; our inability to renew existing license agreements and/or enter into new licensing agreements; the public sale into the market of common stock issued pursuant to options granted under our employee benefit plans or shares issued in our 2004 equity financing or issuable upon exercise of warrants delivered in connection with our 2004 equity financing, as well as shares issuable upon conversion and exercise of the preferred stock and warrants issued in connection with the financing that was completed on June 15, 2007; risks associated with estimates made by management based on our critical accounting policies; changes to financial accounting standards that may affect our results of operations; loss of key members of our senior management team; concentration of our common stock; volatility of the market price of our common stock; potential delisting of our common stock if we are unable to satisfy the minimum bid price requirements; reliance on third parties for upgrading and maintaining our management information systems; war, acts of terrorism or the threat of either; and interruption in the operation of our corporate offices and distribution centers. The information included in this press release is operative as of this date only. Wilsons Leather does not undertake any obligation to update its forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. In order to ensure that all investors continue to have equal access to the same information, Wilsons Leather will refrain from updating forward-looking statements made in this press release unless it does so through means designed to provide broad distribution of the information to the public.