CULS Cost-U-Less (MM)

Cost-U-Less, Inc. (the "Company") (Nasdaq:CULS) today reported that its Board of Directors (the "Board") has, as part of its ongoing review of the Company's corporate governance, approved certain actions it believes will improve corporate governance and shareholder communications. At its August 2, 2006, meeting, the Board approved a proposed amendment to the Company's articles of incorporation to require, in place of existing two-thirds supermajority vote and "continuing director" approval requirements, only a simple majority vote of outstanding shares to approve business combinations, amendments to the Company's bylaws, and most amendments to the Company's articles of incorporation. The Board indicated its intention to place the proposed amendment to the articles of incorporation on the agenda for the Company's next annual meeting of shareholders, expected to be held in May of 2007, and to recommend that shareholders approve the amendment at that time. Under the Company's existing articles of incorporation, the affirmative vote of two-thirds of the outstanding shares will be required in order to approve the proposed amendment. The Company intends to engage a proxy solicitation firm to assist it in obtaining the required approval. In addition, the Board approved a new policy of holding quarterly webcasts following the release of its quarterly and annual financial results. The first of these webcasts is expected to be scheduled for November 2006, following the announcement of financial results for the third fiscal quarter. Further details on this webcast will be released at a later time. Cost-U-Less currently operates eleven stores in the Caribbean and Pacific region: U.S. Virgin Islands (2), Netherlands Antilles (2), Hawaiian Islands (2), California (1), Guam (2), American Samoa (1), and Republic of Fiji (1). The Company builds its business through delivering high-quality U.S. and local goods, progressive merchandising practices, sophisticated distribution capabilities, and superior customer service, primarily to island markets. Additional information about Cost-U-Less is available at www.costuless.com. This press release contains statements that are forward-looking. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements, including the Company's plans to submit certain proposed articles amendments for shareholder approval, are based on the Company's present intentions but are subject to various risks and uncertainties that could cause actual results to differ materially from those anticipated, including the possibility that the Company's board of directors could determine not to submit any amendment to the Company's articles of incorporation for shareholder vote or to hold quarterly webcasts due to future conditions, strategic circumstances or material, non-public information; and the possibility that the Company may be unable to obtain the requisite two-thirds approval from its shareholders with respect to any amendment to the Company's articles of incorporation. Other risks and uncertainties affecting the Company's plans and expectations generally are also detailed in the Company's filings with the SEC.