Party America Sets Seven Consecutive Sales Years and Record Profits

Alameda, CA – Party America, a 290 store leading retailer of party supplies nationwide, announced today for year ending January 31, 2005, system-wide sales increased 86 percent to $160,597,849. Same store sales for the chain increased 6.6 percent. The strong sales increase came as a result of a full year of sales from the Paper Warehouse acquisition that took place in 2003 and from a partial year of sales from their most recent acquisition of Party Concepts in October of 2004.

Net income again rose year over year. Since the company is privately held the actual net profit was not released. The company is also expecting sales to increase in 2006 by another 40 percent as they will have the benefit of the Party Concepts acquisition for 12 months. The company is continuing to open new stores, increase the franchise base, and further develop its Internet strategy.

“It’s been an interesting time in our life cycle as we have had to manage a very aggressive growth pattern. In the last eighteen months we have acquired two of our competitors, and we have grown from a regional chain of 36 stores doing approximately $55 million in sales to a national chain with over 290 stores in 45 states with sales over $225 million. To say that it has been exciting and challenging would be an understatement, but we have handled it quite well considering our size. We continue to look for more opportunities for growth,” said Marty Allen, CEO, Party America.

About Party America

PARTY AMERICA, America’s favorite party superstores, is the leading retail innovator and second largest operator of party supply stores in the United States with over 290 company-owned stores, more than 60 franchises, and a presence in 45 states. The company is planning to open new stores in fiscal 2006, and is currently awarding franchises throughout all 50 states and internationally. Party America delivers a wide selection of party goods at a great value, coupled with providing fun and imaginative party ideas to the consumer through a well-trained group of people in each store. For more information see www.partyamerica.com