CACHE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

			October 2,		January 2,		September 26,
ASSETS			2010		2010		2009
Current assets:
Cash and equivalents		$	2,483,000	$	5,516,000	$	5,329,000
Marketable securities			21,865,000		29,999,000		27,376,000
Certificate of deposits - restricted			2,500,000		1,500,000		1,500,000
Receivables, net			2,020,000		3,411,000		2,713,000
Income tax receivable, net			81,000		3,438,000		2,225,000
Inventories, net			19,243,000		16,599,000		20,434,000
Prepaid expenses and other current assets			6,041,000		4,943,000		1,117,000
	Total current assets		54,233,000		65,406,000		60,694,000
Equipment and leasehold improvements, net			26,836,000		31,713,000		35,724,000
Goodwill			9,092,000		9,092,000		9,092,000
Intangible assets, net			102,000		102,000		1,012,000
Other assets			7,965,000		4,684,000		4,274,000
	Total assets	$	98,228,000	$	110,997,000	$	110,796,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	8,949,000	$	7,624,000	$	7,676,000
Note payable			1,751,000		1,408,000		1,294,000
Accrued compensation			1,222,000		2,668,000		2,862,000
Accrued liabilities			9,321,000		11,783,000		8,246,000
	Total current liabilities		21,243,000		23,483,000		20,078,000
Note payable			476,000		1,425,000		2,199,000
Other liabilities			14,103,000		15,806,000		17,202,000
Commitments and contingencies
STOCKHOLDERS' EQUITY
Common stock			165,000		164,000		164,000
Additional paid-in capital			47,888,000		47,555,000		47,428,000
Retained earnings			54,148,000		62,359,000		63,520,000
Treasury stock, at cost			(39,795,000)		(39,795,000)		(39,795,000)
	Total stockholders' equity		62,406,000		70,283,000		71,317,000
	Total liabilities and stockholders' equity	$	98,228,000	$	110,997,000	$	110,796,000

CACHE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

39 Weeks Ended	39 Weeks Ended
October 2,	September 26,
2010	2009

Net sales	$	150,649,000	$	154,813,000
Cost of sales, including buying and occupancy		93,099,000		93,574,000
Gross profit		57,550,000		61,239,000
Expenses
Store operating expenses		55,766,000		57,840,000
General and administrative expenses		15,048,000		13,341,000
Employee separation charge		-		2,121,000
Total expenses		70,814,000		73,302,000
Operating loss		(13,264,000)		(12,063,000)
Other income (expense):
Interest expense		(94,000)		(146,000)
Interest income		117,000		178,000
Total other income, net		23,000		32,000
Loss before income taxes		(13,241,000)		(12,031,000)
Income tax benefit		(5,030,000)		(4,498,000)
Net loss	$	(8,211,000)	$	(7,533,000)
Basic loss per share	$	(0.64)	$	(0.59)
Diluted loss per share	$	(0.64)	$	(0.59)
Basic weighted average shares outstanding		12,774,000		12,810,000
Diluted weighted average shares outstanding		12,774,000		12,810,000

CACHE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

		13 Weeks Ended		13 Weeks Ended
		October 2,		September 26,
		2010		2009
Net sales	$	45,524,000	$	44,941,000
Cost of sales, including buying and occupancy		29,622,000		30,727,000
Gross profit		15,902,000		14,214,000
Expenses
Store operating expenses		17,959,000		18,590,000
General and administrative expenses		6,033,000		4,357,000
Employee separation charge		-		2,121,000
Total expenses		23,992,000		25,068,000
Operating loss		(8,090,000)		(10,854,000)
Other income (expense):
Interest expense		(27,000)		(48,000)
Interest income		32,000		52,000
Total other income, net		5,000		4,000
Loss before income taxes		(8,085,000)		(10,850,000)
Income tax benefit		(3,058,000)		(4,067,000)
Net loss	$	(5,027,000)	$	(6,783,000)
Basic loss per share	$	(0.39)	$	(0.53)
Diluted loss per share	$	(0.39)	$	(0.53)
Basic weighted average shares outstanding		12,780,000		12,748,000
Diluted weighted average shares outstanding		12,780,000		12,748,000