The Wet Seal, Inc. (Nasdaq: WTSLA), a leading specialty retailer to young women, reported net sales and comparable store sales for the five-week period ended July 5, 2008, or fiscal June, as follows:

Including the effect of the $1.9 million in non-cash interest charges described below, the Company now estimates earnings for its fiscal second quarter will range from $0.07 to $0.09 per diluted share. Before the effect of such charges, the Company now estimates earnings will range from $0.09 to $0.11 per diluted share. This estimate represents an increase over the Company’s previous earnings guidance before any such charges, which ranged from $0.08 to $0.10 per diluted share.

Ed Thomas, chief executive officer of The Wet Seal, Inc., commented: “Comparable store sales for June were in line with our expectations, and we continue to be encouraged by the early customer response to the improved merchandise we began delivering to Arden B stores in May. I am pleased with the slight improvement in our earnings expectations before non-cash interest charges. This reflects greater than previously expected benefits from our ongoing cost and inventory management efforts in this difficult, and very promotional, retail environment.”

The Company announced that, during fiscal June, investors converted $3.4 million of the Company’s Secured Convertible Notes (the “Notes”) into approximately 2.3 million shares of the Company’s Class A Common Stock. As a result, the Company incurred non-cash interest charges of $1.9 million, or $0.02 per diluted share, for the accelerated write-off of net unamortized debt discount, deferred financing costs and capitalized interest. The Company’s previously issued earnings guidance for the second quarter did not include any such charges due to an inability to predict the timing of Note conversions.

After the effect of the Note conversions, $4.7 million of Notes, convertible into approximately 3.1 million shares of Class A Common Stock, remain outstanding. There is approximately $2.6 million of net unamortized debt discount, deferred financing costs and capitalized interest associated with the remaining outstanding Notes.

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 July 5, 2008, the Company operated a total of 496 stores in 47 states, the District of Columbia and Puerto Rico, including 402 Wet Seal stores and 94 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, statements that relate to the Company’s earnings expectations for the fiscal second quarter as well as 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