Coldwater Creek Announces Increase in Second Quarter 2008 Sales and Earnings Guidance

                         - Company to Host Analyst

                    - Investor Event on July 15, 2008 -



    SANDPOINT, Idaho, July 14 /EMWNews-FirstCall/ -- Coldwater Creek

Inc. (Nasdaq: CWTR) announced today that it has increased its sales and

earnings guidance for the second quarter and full year of fiscal 2008.



    The Company increased its second quarter fiscal 2008 sales guidance to

a range of $235 million to $240 million and earnings per share to a range

of $0.00 to $0.02. The previous ranges were $215 million to $239 million

and $(0.09) to $(0.03), respectively. For fiscal 2008, the Company

increased its sales guidance to a range of $1,105 million to $1,151 million

and earnings per share to a range of $(0.04) to $0.09. The previous ranges

were $1,085 million to $1,150 million and $(0.13) to $0.04, respectively.



    "We are very pleased with the results of the entire organization's

intense focus on executing our strategic initiatives, particularly in light

of the continued challenging retail environment," said Daniel Griesemer,

president and chief executive officer of Coldwater Creek. "We continue to

focus on the aspects of the business within our control and remain

committed to returning the company to sustainable and profitable growth and

ensuring that our product and experience exceeds the Coldwater Creek

customer's expectations."










    2008 Guidance Summary

                                                                    Full Year

                     Q108A        Q208         Q308        Q408       2008



    Sales (in

     millions)        $271        $235 -       $261 -      $338 -    $1,105 -

                                  $240         $279        $361      $1,151



    Earnings (loss)

     per share      ($0.10)       $0.00 -      $0.02 -     $0.04 -   ($0.04) -

                                  $0.02        $0.07       $0.10      $0.09





    Analyst - Investor Event



    Coldwater Creek will host an Analyst - Investor event in Sandpoint,

Idaho on Tuesday, July 15, 2008 beginning at 11:30 a.m. (Eastern). To

listen via telephone, please dial 913-312-9309 approximately five minutes

before the scheduled start time. You will be asked by the operator to

identify yourself and provide the password "2174720" to enter the call. To

listen to the live audio web cast of the management presentations, log on

to http://www.videonewswire.com/event.asp?id=49987. Also, a link to the

live Web cast of the call is provided in the Investor Relations section of

the Company's Web site at http://www.coldwatercreek.com/. The call will be

archived from approximately one hour after the conference call until

midnight on Friday, August 29, 2008. The replay can be accessed by dialing

719-457-0820 and giving the password "2174720". A replay and transcript of

the call will also be available in the investor relations section of the

Company's Web site.



    Founded in 1984, and headquartered in Sandpoint, Idaho, Coldwater Creek

is a leading specialty retailer of women's apparel, gifts, jewelry, and

accessories. The company sells its merchandise through premium retail

stores across the country, online at coldwatercreek.com and through its

catalogs.



    CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:



    This news release contains "forward-looking statements" within the

meaning of the securities laws, including statements relating to our

projected fiscal 2008 sales, earnings (loss) per share, store openings,

capital expenditures, expenses and inventory levels. These statements are

based on management's current expectations and are subject to a number of

uncertainties and risks, as well as assumptions that if they do not fully

materialize or prove incorrect, could cause our actual results to differ

materially from those expressed or implied by the forward-looking

statements. Important factors that could cause actual results to differ

materially from estimates or projections contained in the forward-looking

statements include, but are not limited to:



    - the inherent difficulty in forecasting consumer buying and retail

traffic patterns and trends, which continue to be erratic and are affected

by factors beyond our control, such as increased promotional activity in

the specialty retail marketplace, weather, rising fuel costs, economic,

political and competitive conditions and the possibility that because of

lower than expected customer response we may be required to sell

merchandise at lower than expected margins, or at a loss;



    - the possibility that our cost cutting efforts will not be successful;



    - unexpected or increased costs or delays in the development and

expansion of our retail chain, such as delays we may encounter in securing

premium retail space for our stores;



    - our potential inability to recover the substantial fixed costs of our

retail expansion due to sluggish sales;



    - our inability to continue to fund our retail expansion with operating

cash as a result of either lower sales or higher than anticipated costs, or

both;



    - delays we may encounter in sourcing merchandise from our foreign and

domestic vendors, and risks related to our foreign sourcing strategy, which

include weakness in the U.S. dollar, additional costs of doing business

overseas, transportation delays, and political and economic instability,

and the possibility, therefore, that foreign sourcing may not lead to any

reduction of our sourcing costs or improvement in our margins;



    - the effect of increased fuel costs on various aspects of our

business, including shipping, transportation, merchandise acquisition and

consumer spending;



    - increasing competition from discount retailers and companies that

have introduced concepts or products similar to ours;



    - unexpected costs or problems associated with our efforts to manage

our expanding and increasingly complex business, including our current

efforts to improve key management information systems and controls;



    - uncertainties related to our shift to a triple-channel model, in

particular, the effects of shifting patterns of e-commerce or retail

purchases versus catalog purchases;



    - difficulties encountered in anticipating and managing customer

returns and the possibility that customer returns will be greater than

expected;



    - the risk that the benefits expected from our strategic initiatives

will not be achieved or may take longer to achieve than we expect;



    - the inherent difficulties in catalog management, for which we incur

substantial costs prior to mailing that we may not be able to recover, and

the possibility of unanticipated increases in mailing and printing costs;



    - new interpretations of or changes to current accounting rules;



    - risks associated with our dependence on a single distribution

facility;



    - risks associated with a failure by independent manufacturers to

comply with our quality, product safety and labor practices requirements;



    - our ability to hire, retain and train key personnel; and such other

factors as are discussed in our most recent Quarterly Report on Form 10-Q

and Annual Report on Form 10-K filed with the U.S. Securities and Exchange

Commission ("SEC"). We believe that these forward-looking statements are

reasonable; however, you should not place undue reliance on forward-

looking statements, which are based on current expectations and speak only

as of the date of this release. We are not obligated to publicly release

any revisions to forward-looking statements to reflect events after the

date of this release. We provide a detailed discussion of risk factors in

periodic SEC filings, and you are encouraged to review these filings in

connection with this release.






     Contact:

     COLDWATER CREEK INC.

     Marie Hirsch

     Director of Investor Relations

     208-265-7354