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*(Mark      One)*

**CPI      Corp.**

| **Delaware**(State                or other jurisdiction of incorporation or organization) 1706                Washington Ave., St. Louis, Missouri(Address                of principal executive offices) | **43-1256674**(I.R.S.                Employer Identification No.) 63103(Zip                Code) |
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| (Title                of each class)**Common                Stock $.40 Par                Value** |  (Name                of each exchange on which Registered)**New                York Stock                Exchange** |
|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|

|  Indicate              by check mark if the registrant is a well-known seasoned issuer, as              defined in Rule 405 of the Securities Act. |                    [     ] Yes   [ X]                No |
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|  Indicate              by check mark if the registrant is not required to file reports pursuant              to Section 13 or Section 15(d) of the Act. |                    [     ] Yes   [ X]                No |
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| **Note:** | Checking                the box above will not relieve any registrant required to file reports                pursuant to Section 13 or 15(d) of the Exchange Act from their obligations                under those Sections. |
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| Indicate              by check mark whether the registrant (1) has filed all reports required              to              be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934              during the preceding 12 months (or              for such shorter period that the registrant was required to file such              reports), and (2) has been subject to such filing requirements for              the              past 90 days. |                     [X] Yes     [    ]                No |
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| Indicate              by check mark if disclosure of delinquent filers pursuant to Item 405              of              Regulation S-K is not contained herein, and will not be contained,              to the              best of registrant's knowledge, in definitive proxy or information              statements incorporated by reference in Part III of this Form 10-K              or any              amendment to this Form 10-K. |                            [X] |
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|  Indicate              by check mark whether the registrant is a shell company (as defined              in              Rule 12b-2 of the Act).  |     [   ] |
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**INTRODUCTORY      NOTE**

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| Item                  10. |   | Directors,                  Executive Officers and Corporate Governance                                                          |   | 3      |
|---------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| Item                  11. |   | Executive                  Compensation                                                                                          |   | 6      |
| Item                  12. |   | Security                  Ownership of Certain Beneficial Owners and Management and Related                  Stockholder Matters |   | 22     |
| Item                  13. |   | Certain                  Relationships and Related Transactions, and Director                  Independence                      |   | 25     |
| Item                  14. |   | Principal                  Accounting Fees and Services                                                                          |   | 25     |
|                      |   |                                                                                                                             |   |   |
| PART                  IV  |   |                                                                                                                             |   |   |
|                      |   |                                                                                                                             |   |   |
| Item                  15. |   | Exhibits                  and Financial Statement Schedules                                                                      |   | 26     |
|                      |   | Signatures                                                                                                                       |   | 31     |

**PART      III**

**Item      10.                 Directors,      Executive Officers and Corporate Governance**

|  **Name**                   |  **Principal                  Occupation, Business Experience and                  Directorships**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|----------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| James                  Abel      | Mr.                    Abel, age 61, serves as Executive Vice President, Secretary,                    Treasurer and                    Chief Financial Officer of The Lamson & Sessions Co., a diversified                    manufacturer and distributor of a broad line of thermoplastic                    electrical,                    consumer, telecommunications and engineered sewer products for                    major                    domestic markets.  Mr. Abel has been an executive officer of The                    Lamson & Sessions Co. since December 1990 and a director since                    2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Michael                  Koeneke | Mr.                    Koeneke, age 60, is a Managing Member of Knightspoint Partners                    LLC, a firm                    which he co-founded in March 2003 that is engaged in the business                    of                    acquiring, holding or disposing of investments in various                    companies.  He also serves on the Board of Directors of Sharper                    Image Corporation, a specialty retailer listed on the                    Nasdaq.  From 1997 through 2002, Mr. Koeneke was the co-head and                    then the Chairman of Global Mergers and Acquisitions at Merrill                    Lynch                    & Co., Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| David                  Meyer     | Mr.                  Meyer, age 38, has served as Chairman of the Board since April                  2004.  From October 2004 through August 2005, he served in the                  Company’s interim Office of the Chief Executive.  Since 2003,                  Mr. Meyer has served as a Managing Member of Knightspoint Partners                  LLC, a                  firm he co-founded that is engaged in the business of acquiring,                  holding                  or disposing of investments in various companies.  From 1995 to                  2002, Mr. Meyer served in various capacities in the investment                  banking                  department of Credit Suisse First Boston, most recently serving                  as a                  director in the Mergers and Acquisitions and Global Industrial                  and                  Services Groups in the firm’s London office.  He is also a                  member of the Boards of Directors of Sharper Image Corporation,                  a                  specialty retailer listed on the Nasdaq, and Ashworth, Inc., a                  golf                  apparel company also listed on the Nasdaq.  |
| Mark                  Mitchell   | Mr.                    Mitchell, age 45, is a Managing Director of Ramius Capital Group,                    LLC, a                    private investment management firm, a position he has held since                    1999.  He is also a member of the board of directors of I-many,                    Inc. an enterprise contract management software company, listed                    on                    Nasdaq.  Mr. Mitchell has over 23 years of investment management                    experience and currently heads Ramius’ Merger Arbitrage business and                    co-heads Ramius’ Opportunistic Value Investing                    Business.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Turner                  White    | Since                  May 2004, Mr. White, age 58, has served as owner of White and Company,                  LLC., a consulting and investment firm located in Kansas City,                  Missouri.  From May 2000 to May 2004, Mr. White served as                  President and Chief Executive Officer of Union Station Kansas City,                  Inc.  He was a Vice President and East region general manager of                  Cell Net Data Systems, an investor-owned data management and metering                  supplier to the electric energy industry, from September 1998 through                  February 2000. From June 1989 to September 1998, Mr. White was                  Executive                  Vice President, Corporate Development, of Kansas City Power & Light                  Company.                                                                                                                                                                                                                                                                                                                                                                                                                             |

| Renato                    Cataldo, Jr., Pharm.D. | President                    and Chief Executive Officer.  Dr. Cataldo, age 46, joined the                    Company as its Chief Operating Officer in July 2005 after serving                    as a                    consultant to the  Company since   August                    2004.  Effective October 10, 2006, he was appointed President                    and Chief   Executive Officer of the                    Company.  From 1998 until his resignation in August 2004,                    he   served as Chief Executive Officer and Chief Technology                    Officer of Publicis eHealth   Solutions, a division of the                    Publicis Groupe, S.A., an international                    communications company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Gary                    Douglass                 | Executive                    Vice President, Finance/Chief Financial Officer and Treasurer                    of the                    Company.  Mr. Douglass, age 56, joined the Company as Executive                    Vice President, Finance and Chief Financial Officer in April                    2002.  He was elected Treasurer in June 2002 and served in the                    interim Office of the Chief Executive from October 2004 until                    August                    2005.  From 1998 through 2001, he was Senior Vice President,                    Finance and Administration/Chief Financial Officer for DTI Holdings,                    a                    wholesale provider of voice and data transmission services based                    in St.                    Louis, Missouri.  Mr. Douglass served as Executive Vice                    President/Chief Financial Officer of Roosevelt Financial Group                    and                    Roosevelt Bank in St. Louis, Missouri, from 1995 to 1997.  He                    also held a broad range of management positions during his twenty-three                    year tenure with the St. Louis, Missouri office of the international                    firm                    of Deloitte and Touche, LLP, including Partner-in-Charge of Accounting                    and                    Auditing Services.  |
| Thomas                    Gallahue               | Executive                    Vice President, Operations.  Mr. Gallahue, age 56, joined CPI in                    April 2002 in the position of Vice President, Sales Development                    and                    Operations and was appointed to his current position in November                    2002.  Prior to joining CPI, Mr. Gallahue enjoyed a thirty-year                    career with Sears, Roebuck & Co. where he held various positions,                    including Store Manager, Region Product Service Manager, Director                    of Sales                    Development for Home Appliances and District General Manager.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Dale                    Heins                    | Vice                    President, Corporate Controller, Principal Accounting Officer                    and                    Assistant Treasurer.  Mr. Heins, age 44, was promoted to his                    current position in July 2005, after serving as the Company’s Tax Director                    since 1993.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Keith                    Laakko                  | Chief                    Marketing Officer.  Mr. Laakko, age 41, joined the Company in                    his current position in January 2006.  He served as Category                    Marketing Director for Controls Brands of Spectrum Brands from                    2004 until                    he joined CPI.  From 2000 until 2004, Mr. Laakko held marketing                    positions with Eastman Kodak Company, including Director of New                    Business                    Development, Business to Business, and Director of Corporate                    Branding,                    Industry Marketing from 2003 to 2004, Director of Global Brand                    Communication from 2001 to 2003 and Marketing Director, Strategic                    Web                    Partnerships and Online Community from 2000 to 2001.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Jane                    Nelson                   | General                    Counsel and Secretary of the Company.  Ms. Nelson, age 57,                    joined the Company in 1988 as Assistant General Counsel and subsequently                    served as Associate General Counsel and Assistant                    Secretary.  She was promoted to her current position in                    1993.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Ervin                  Schmitz                   | Chief                    Information Officer.  Mr. Schmitz, age 65, served as Vice                    President, Information Technology from December 1996 until February                    2004,                    at which time he retired.  He rejoined the Company in his                    current position in January 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Richard                  Tarpley                 | Executive                    Vice President, Manufacturing.  Mr. Tarpley, age 61, has served                    as Executive Vice President, Manufacturing since 1995.  Since                    joining the Company as Cost Control supervisor in 1970, he has                    held other                    positions within the manufacturing                    department.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

**Section      16(a) Beneficial Ownership Reporting Compliance**

**Code      of Business Conduct and Ethics**

**Audit      Committee**

**Item      11.                 Executive      Compensation**

**Compensation      Discussion and Analysis**

*Compensation      Committee*

**.  **

*Compensation      philosophy and goal*

| ·   | Exceptional                individual and team performance should be recognized and rewarded                (and                thereby encouraged) at all levels of the                organization. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Rewards                should be tied to the creation of stockholder                value. |
|--------------------|--------------------------------------------------------------------------------------------|

*Compensation      Committee Process*

*Compensation      Components and Related Policies*

** **

** **

**Compensation        Committee Interlocks and Insider Participation**

**Compensation      Committee Report**

**THE      CPI CORP. COMPENSATION COMMITTEE**

**Turner      White,      Chairman                                                      James      Abel                      Michael      Koeneke**

**Summary      Compensation Table**

| Name                      and Principal Position                  |  Salary                                    |  Bonus                      (1)       |  Stock |                                       |  Change                      in |                                       |      |                                       |   |
|-------------------------------------------------------------------|-------------------------------------------------|--------------------------------------------|-------------|--------------------------------------------|--------------------------------------|--------------------------------------------|-----------|--------------------------------------------|--------|
|  Non-Equity                                                  |  Pension                      Value and    |                                       |        |                                       |                                 |
|  Incentive                                                   |  Nonqualified                      Defered |                                       |  All   |                                       |                                 |
|  Awards                      ($)                             |  Plan                                      |  Compensation                         |        |  Other                                |                                 |                                       |
|  (2)                                                         |  Compensation                      (3)     |  Earnings                             |        |  Compensation                         | (4)                                  |  Total                                |
| Renato                      Cataldo                               |                                            |                                       |        |                                       |                                 |                                       |      |                                       |   |   |   |   |   |   |
| Chief                      Executive Officer (5)                  |                                            | $   275,000                 |        | -                                          |                                 | $                        149,667 |  (9) | $                        150,000 |   | - |   | $                            6,833 |   |  $                       581,501 |
|                                                              |                                            |                                       |        |                                       |                                 |                                       |      |                                       |   |   |   |   |   |   |
| Paul                      Rasmussen                               |                                            |                                       |        |                                       |                                 |                                       |      |                                       |   |   |   |   |   |   |
| Chief                      Executive Officer                      |                                            | $                        291,712 |  (6)   | -                                          |                                 | -                                          |      | -                                          |   | - |   | $                        392,013 |   |  $                       683,725 |
|                                                              |                                            |                                       |        |                                       |                                 |                                       |      |                                       |   |   |   |   |   |   |
| Gary                      Douglass                                |                                            |                                       |        |                                       |                                 |                                       |      |                                       |   |   |   |   |   |   |
| Chief                      Financial Officer                      |                                            | $                        275,000 |        | -                                          |                                 | $                        99,778  |  (9) | $                        100,000 |   | $                        11,289 |   | $                           3,151 |   |  $                       489,219 |
|                                                              |                                            |                                       |        |                                       |                                 |                                       |      |                                       |   |   |   |   |   |   |
| Thomas                      Gallahue                              |                                            |                                       |        |                                       |                                 |                                       |      |                                       |   |   |   |   |   |   |
| Executive                      Vice President, Operations         |                                            | $                        151,779 |  (7)   | $                        100,000 |                                 | $                        117,031 |  (8) | $                        30,000  |   | $       477 |   | $                          3,529 |   |  $  402,816 |
|                                                              |                                            |                                       |        |                                       |                                 |                                       |      |                                       |   |   |   |   |   |   |
| Richard                      Tarpley                              |                                            |                                       |        |                                       |                                 |                                       |      |                                       |   |   |   |   |   |   |
| Executive                      Vice President, Manufacturing      |                                            | $                        208,000 |        | $                        39,735  |                                 | -                                          |      | -                                          |   | $                        46,029 |   | $                          4,663 |   |  $  298,427 |
|                                                              |                                            |                                       |        |                                       |                                 |                                       |      |                                       |   |   |   |   |   |   |
| Jane                      Nelson                                  |                                            |                                       |        |                                       |                                 |                                       |      |                                       |   |   |   |   |   |   |
| General                      Counsel and Secretary of the Company |                                            | $                        195,000 |        | -                                          |                                 | $                        24,945  |  (9) | $                        25,000  |   | $                        22,183 |   | $                          6,011 |   |  $                       273,138 |

| (1)   | Amount                paid to Mr. Tarpley represents guaranteed bonus pursuant to an employment                agreement following the Change of Control.  Amounts paid to Mr.                Gallahue pertain to a retention                agreement. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | See                financial statement footnotes 1 and 9 in the Company’s Annual Report to                the Securities and Exchange Commission on Form 10-K for the fiscal                year                ended February 3, 2007 for discussion of valuation methods related                to                restricted stock.  Dividends are earned on restricted stock not                yet vested.  Such dividends are included in Other Compensation                as they are earned. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Value                of cash portion of performance bonus awarded under the CPI Performance                Plan.   The balance of the bonus was awarded in restricted                stock and is reflected in the Stock Awards                column. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | The                  payment upon termination of employment for Mr. Rasmussen totaling                  $385,000, represents one year of base salary.  Detail of all other                  compensation follows. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                                           |  Dividends                  Paid on Stock not yet Vested                                                                                |  Company                  401(k) Contribution                                                 |  Life                  Insurance Premiums |  Termination                  Payments                                              |                                                                                                           |
|-----------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|------------------------------------------------|------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|
|                                                |
|                                                |
|                                                |
|  Total                                         |
|                                                |                                                                                                                                         |                                                                                               |                                           |                                                                                     |                                                                                                           |   |   |
| Renato                    Cataldo                   |   $           3,682                                                         |  $        2,087                                       |                                           |  $          1,064                 |  $                 - |  $ |         6,833 |
| Paul                    Rasmussen                   |   $           6,058                                                         |  $               - |                                           |  $             956 |  $      385,000                                                             |  $ |     392,013 |
| Gary                    Douglass                    |   $                   -             |  $        2,087                                       |                                           |  $          1,064                 |  $                 - |  $ |         3,151 |
| Thomas                    Gallahue                  |   $              649                                         |  $        2,087                                       |                                           |  $             793 |  $                 - |  $ |         3,529 |
|                      Richard Tarpley |   $                   -             |  $        2,087                                       |                                           |  $          2,576                 |  $                 - |  $ |         4,663 |
|     Jane                Nelson  |                    $                   - |  $        2,087                                       |                                           |  $          3,924                 |  $                 - |  $ |  6,011 |

| (5)   | Dr.                  Cataldo was appointed President and Chief Executive Officer on                  October 10,                  2006. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | Reflects                  salary earned through Mr. Rasmussen’s termination from the Company on                  October 10, 2006. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | Mr.                  Gallahue entered into a retention agreement on January 12, 2006,                  which was                  amended on  August 29, 2006 and October 26,                  2006. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)   | On                  June 7, 2006, the Board of Directors approved the vesting of Mr.                  Gallahue’s restricted shares despite his planned retirement, which would                  have resulted in forfeiture of unvested shares.  As a result of                  this change, his restricted stock was revalued and expense of $15,818                  was                  recognized in 2006.  Additionally, Mr. Gallahue had 15,046                  vested options outstanding at the end of fiscal 2005.  In                  connection with his retention agreement, the term available to                  him to                  exercise his options was extended and accordingly the options outstanding                  were revalued and the Company recognized expense of                  $71,280.  Mr. Gallahue subsequently agreed to resume full-time                  service for the Company effective February 4,                  2007.  Accordingly, his options are subject to the Stock Option                  Plan, which allows exercise up to the original expiration date                  in 2010 or                  three months after termination of employment, whichever occurs                  earlier.  Additionally, Mr. Gallahue was awarded 554 shares with                  a value of $29,933 as a 2006 performance                  bonus. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9)   | The                number of restricted shares awarded to Dr. Cataldo, Mr. Douglass                and Ms.                Nelson for fiscal year 2006 performance was determined by dividing                50% of                the value of their total bonuses by the closing price of the Company’s                common stock at the end of fiscal year 2006 ($54.12).  The same                formula was used for all other recipients of restricted shares pursuant                to                the Performance Plan.  The Compensation Committee selected the                closing price of the Company’s common stock on the last trading day of the                fiscal year because the awards were for fiscal year 2006                performance.  The awards were not made until completion of the                year-end audit of the Company’s financial statements and allocation of the                incentive pool determined upon completion of the audit which occurred                April 10, 2007. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Grants      of Plan-Based Awards in 2006 Fiscal Year**

|                                   |                          | Estimated                    Payouts Under Non-Equity Incentive                    Plan Awards | Estimated                    Payouts Under Equity Incentive                    Plan                    Awards | Grant                    Date Fair Value of Stock and Options Awards ($) (2) |
|----------------------------------------|-------------------------------|------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|
| Name                                   | Grant                    Date | Threshold                    ($)                                                               | Target                    ($) (1)                                                                             | Max                    ($)                                                   | Threshold                    (#) | Target                    (#) | Max                    (#) |
| Renato                    Cataldo      | 3/17/06                       |                -    | $                      50,000                                                                       | -                                                                            |                 - | 2,704 | - |  $      47,320 |
| Paul                    Rasmussen (3)  |                          |                -    | -                                                                                                             | -                                                                            |                 - |                                            - | - |                            - |
| Gary                    Douglass       |                          |                -    | -                                                                                                             | -                                                                            |                 - |                                            - | - |                            - |
| Thomas                    Gallahue (4) | 3/17/06                       |                -    |  $   25,000                                                                               | -                                                                            |                 - | 1,352 | - |  $      39,478 |
| Richard                    Tarpley     |                          |                -    |  -                                                                                                       | -                                                                            |                 - |                                           - | - |                            - |
| Jane                    Nelson         |                          |                -    | -                                                                                                             | -                                                                            |                 - |                                           - | - |                            - |

|   | Note: | Totals                include grants made in fiscal 2006 only.  Incentive plan grants                in 2006 relate to 2005 service. All non-equity and equity incentive                granted in 2006 was paid or vested prior to fiscal 2006 year-end.                 Amounts                related to 2006 service were granted subsequent to fiscal 2006 year-end                and are not included in this table.  They are included in the Summary                Compensation Table above. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1)   | Amounts                  are cash bonuses for 2005 performance awards under the CPI Performance                  Plan which were paid in fiscal                  2006. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | That                portion of a participant’s incentive compensation award for a plan year                (which is the same as the fiscal year) that the Committee determines                to                pay in the form of restricted shares shall be satisfied by the delivery                by                the Company of that number of restricted shares calculated by dividing                (1)                that portion of the participant’s incentive compensation award payable in                restricted shares for the plan year by (2) the fair market value                of one                share of the Company’s common stock measured as of the last day of the                plan year.  The restricted shares will be subject to                restrictions on transferability, as well as vesting and forfeiture                restrictions, on such terms as may be established by the Compensation                Committee in its sole discretion.  If a recipient of restricted                shares terminates employment due to early retirement (prior to age                65),                death or disability, the Compensation Committee may, in its sole                discretion, waive the restrictions remaining on any or all such                shares.  Termination due to normal retirement (65 or older) results                in automatic waiver of the uncompleted portion of restriction. Should                there be a Change of Control prior to vesting of restricted stock                under                the incentive plan, the shares will automatically                vest. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Mr.                  Rasmussen was awarded 2,028 shares of restricted stock on March                  17, 2006                  as part of his bonus for fiscal year 2005 performance.  The                  value on the date of award was $35,490.  Upon his termination in                  October 2006, this award was                  forfeited. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Mr.                  Gallahue was awarded 1,352 shares of restricted stock on March                  17, 2006 as                  part of his bonus for fiscal year 2005 performance.  The value                  on the date of award was $23,660.  On June 7, 2006, Mr.                  Gallahue’s retention agreement was amended to allow vesting despite his                  planned retirement.  As a result of this change, his restricted                  stock was revalued and additional expense of $15,818 was recognized                  in                  2006. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Employment      Contracts, Retention Agreement, Termination of Employment and Change of Control      Arrangements**

** **
** **

**Outstanding      Equity Awards At 2006 Fiscal Year-End**

| Name                                                                                                                                                     | Option                  Awards (outstanding at year end)                                                                 | Stock                  Awards (outstanding at year end)                                                                                                  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number                  of Securities                  Underlying                  Unexercised                  Options                  (#) Exercisable | Number                  of Securities                  Underlying Unexercised Options                  (#) Unexercisable | Equity                  Incentive                  Plan Awards:  Number                  of Securities Underlying Unexercised Unearned Options | Option                  Exercise                  Price | Option                  Expiration                  Date | Number                  of Shares or Units                  of Stock                  That Have                  Not Vested (#) |   | Market                  Value                  of Shares                  or Units                  that Have                  Not Vested                  ($) (1) | Equity                  Incentive Plan Awards: Number of Unearned Shares,                  Units or Other Rights that                  Have Not Vested (#) | Equity                  Incentive Plan Awards:  Market                  or Payout                  Value of Unearned Shares, Units or                  Other Rights that Have Not Vested                  ($) |
| Renato                  Cataldo                                                                                                                          | -                                                                                                                        | -                                                                                                                                                        |                      - | - |   |           1,862 |  (2) | $                    100,771 | - | - |
| Paul                  Rasmussen                                                                                                                          | -                                                                                                                        | -                                                                                                                                                        |                      - | - |   |                 - |   |                  - | - | - |
| Gary                  Douglass                                                                                                                           | 20,000                                                                                                                   | -                                                                                                                                                        |                      - | $                    16.50 | 04/08/10 |                 - |   |                  - | - | - |
| Thomas                  Gallahue (3)                                                                                                                     | 10,046                                                                                                                   | -                                                                                                                                                        |                      - | $                    12.96 | 10/21/10 |                 - |   |                  - |  - | - |
| Thomas                  Gallahue (3)                                                                                                                     |                    5,000                                                                                            | -                                                                                                                                                        |                      - | $                    17.00 | 04/15/10 |                 - |   |                  - | - | - |
| Richard                  Tarpley                                                                                                                         | -                                                                                                                        | -                                                                                                                                                        |                      - | - |   |                 - |   |                  - | - | - |
| Jane                  Nelson                                                                                                                             | -                                                                                                                        | -                                                                                                                                                        |                      - | - |   |                 - |   |                  - | - | - |

| (1)   | Calculated                as the number of shares times the closing share price at the end                of fiscal                2006. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Shares                vest 2/2/08. |
|-----------------|------------------------------------|

| (3)   | At                year end, Mr. Gallahue’s options were scheduled to expire on February 15,                2007.  Subsequent to year end, he has agreed to continue his                employment with the Company beyond his planned                retirement.  Accordingly, his options remain exercisable and                will expire  in accordance with the terms of the Stock Option                Plan. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Option      Exercises and Stock Vested in Fiscal Year 2006**

| Name                                                                               | Option                  Awards                                 | Stock                  Awards                                                                                                               |
|------------------------------------------------------------------------------------|----------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|
| Number                  of Shares Acquired Upon                  Exercise (#) | Value                  Realized Upon                  Exercise | Number                  of Shares Acquired                  Upon                  Vesting                  (#)                              | Value                  Realized on                  Vesting ($) |
| Renato                  Cataldo (1)                                                | -                                                              |                        - |                     4,566 |  $     247,112 |
| Paul                  Rasmussen                                                    | -                                                              |                        - |                           - | - |
| Gary                  Douglass                                                     | -                                                              |                        - |                           - | - |
| Thomas                  Gallahue                                                   | -                                                              |                        - |                     1,352 |  $       73,170 |
| Richard                  Tarpley                                                   | 1,839                                                          |  $                       100,023                                                                              |                           - | - |
| Jane                  Nelson                                                       | 1,007                                                          |  $        54,297                                                                               |                           - | - |

| (1) | Shares                include 2,704 shares of restricted stock awarded as part of Dr. Cataldo’s                bonus for fiscal year 2005 and 1,862 shared of restricted stock that                vested from an award upon hire on  July 25,                2005. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Pension      Benefits**

| Name                                     | Plan                  Name             |  Number                  of Years of Credited Service (#) |  Present                  Value of Accumulated Benefits |  Payments                  During Last Fiscal Year ($) |
|------------------------------------------|----------------------------------------|----------------------------------------------------------------|--------------------------------------------------------------|-------------------------------------------------------------|
| Renato                  Cataldo (1)      |                                   | -                                                              | -                                                            | -                                                           |
| Paul                  Rasmussen (1)      |                                   | -                                                              | -                                                            | -                                                           |
| Gary                  Douglass           |  Retirement                  Plan | 4                                                              | $                      25,301            | -                                                           |
| Gary                  Douglass (2)       |  SERP                             | 10                                                             | $                    813,898                       | -                                                           |
| Thomas                  Gallahue         |  Retirement                  Plan |                    4                                      | $                      26,853            | -                                                           |
| Richard                  Tarpley (3)     |  Retirement                  Plan | 36                                                             | $                    505,446                       | -                                                           |
| Richard                  Tarpley (2) (3) |  SERP                             | 10                                                             | $                    795,398                       | -                                                           |
| Jane                  Nelson (3)         |  Retirement                  Plan |  18                                                       | $                    196,305                       | -                                                           |
| Jane                  Nelson (2) (3)     |  SERP                             |  10                                                       | $                    599,045                       | -                                                           |

| (1)   | Years                of actual service differ from the years of credited service because                the                plan was frozen in 2004 and these employees were not yet employed.                  See description of the retirement plan                below. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Years                of actual service differ from the years of credited                service.  Although under the terms of the plan it takes 10 years                to vest, all participants in the SERP became fully vested at the                time of                the Change of Control in 2004. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Employee                is eligible for early retirement.  See descriptions of the                retirement plan and SERP below. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------|

**Retirement      Plan**

**Supplemental      Retirement Plan**

**Nonqualified      Defined Contribution Plan**

| Name                                 |  Executive                  Contributions in Last FY($) |  Registrant                  Contributions                  in Last                  FY ($) |  Aggregate                  Earnings                  in Last                  FY ($) |  Aggregate                  Withdrawals/Distributions                  in Last                  FY ($) |  Aggregate                  Balance                  at Last                  FYE ($) |
|--------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|
| Renato                  Cataldo      | -                                                            | -                                                                                                | -                                                                                          | -                                                                                                           | -                                                                                          |
| Paul                  Rasmussen      | -                                                            | -                                                                                                | -                                                                                          | -                                                                                                           | -                                                                                          |
| Gary                  Douglass       | -                                                            | -                                                                                                | -                                                                                          | -                                                                                                           | -                                                                                          |
| Thomas                  Gallahue     | -                                                            | -                                                                                                | -                                                                                          | -                                                                                                           | -                                                                                          |
| Richard                  Tarpley (1) | -                                                            | -                                                                                                | $                    1,237                                                       | -                                                                                                           | $                    25,781                                                      |
| Jane                  Nelson         | -                                                            | -                                                                                                | -                                                                                          | -                                                                                                           | -                                                                                          |

| (1)   | Amounts                included as earnings and the aggregate balance were recorded as                compensation expense by the                Company. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

**Potential        Payments Upon Termination or Change of Control**

|                                           |                                       |  Renato                  Cataldo                                                                                                                                     |  Gary                  Douglass                                                                                                                                |  Thomas                  Gallahue                                                                                                                                                            |  Jane                  Nelson                                                                                                    |  Richard                  Tarpley                                                                                         |
|------------------------------------------------|--------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|
|                                           |                                       |                                                                                                                                                                      |                                                                                                                                                                |                                                                                                                                                                                              |                                                                                                                                  |                                                                                                                           |
| Termination                  with cause        |                                       |                                                                                                                                                                      |                                                                                                                                                                |                                                                                                                                                                                              |                                                                                                                                  |
|                                           | Pension                  (3)               |  $                         -            |  $               25,301                                                             |  $                   26,853                                                                   |  $        196,305                                                                        |  $               505,446                       |
|                                           |                                       |                                                                                                                                                                      |                                                                                                                                                                |                                                                                                                                                                                              |                                                                                                                                  |                                                                                                                           |
| Termination                  without cause (1) |                                       |                                                                                                                                                                      |                                                                                                                                                                |                                                                                                                                                                                              |                                                                                                                                  |
|                                           | Salary                  (4)                |  $              275,000                                                                        |  $             550,000                                                                        |  $                 205,000                                                                              |  $        195,000                                                                        |  $               416,000                       |
|                                           | Pension                  (3)               |                             - |                   25,301                                                  |                       26,853                                                        |            196,305                                                             |                   505,446            |
|                                           | SERP                  (2)                  |                             - |                 813,898                                                             |                                 - |            599,045                                                             |                   795,398            |
|                                           | Deferred                  compensation     |                             - |                            - |                                 - |                       - |                     22,382 |
|                                           | Total                                      |  $              275,000                                                                        |  $          1,389,199                                                                                        |  $                 231,853                                                                              |  $        990,350                                                                        |  $            1,739,226                                       |
|                                           |                                       |                                                                                                                                                                      |                                                                                                                                                                |                                                                                                                                                                                              |                                                                                                                                  |                                                                                                                           |
| Retirement                  or resignation     |                                       |                                                                                                                                                                      |                                                                                                                                                                |                                                                                                                                                                                              |                                                                                                                                  |
|                                           | Pension                  (3)               |  $                         -            |  $               25,301                                                             |  $                   26,853                                                                   |  $        196,305                                                                        |  $               505,446                       |
|                                           | SERP                  (2)                  |                             - |                 813,898                                                             |                                 - |            599,045                                                             |                   795,398            |
|                                           | Deferred                  compensation     |                             - |                            - |                                 - |                       - |                     22,382 |
|                                           | Total                                      |  $                         -            |  $             839,199                                                                        |  $                   26,853                                                                   |  $        795,350                                                                        |  $            1,323,226                                       |
|                                           |                                       |                                                                                                                                                                      |                                                                                                                                                                |                                                                                                                                                                                              |                                                                                                                                  |                                                                                                                           |
|                                           |                                       |                                                                                                                                                                      |                                                                                                                                                                |                                                                                                                                                                                              |                                                                                                                                  |                                                                                                                           |
| Death                                          |                                       |                                                                                                                                                                      |                                                                                                                                                                |                                                                                                                                                                                              |                                                                                                                                  |
|                                           | Pension                  (3)               |  $                         -            |  $               12,651                                                             |  $                   13,427                                                                   |  $          98,153                                                             |  $               252,723                       |
|                                           | SERP                  (5)                  |                             - |              1,327,466                                                                             |                                 - |            941,294                                                             |                1,004,046                            |
|                                           | Other                  life insurance plan |                  550,000                                                             |                 550,000                                                             |                     410,000                                                                   |            390,000                                                             |                   416,000            |
|                                           | Deferred                  compensation     |                             - |                            - |                                 - |                       - |                     22,382 |
|                                           | Total                                      |  $              550,000                                                                        |  $          1,890,117                                                                                        |  $                 423,427                                                                              |  $     1,429,446                                                                                        |  $            1,695,151                                       |
|                                           |                                       |                                                                                                                                                                      |                                                                                                                                                                |                                                                                                                                                                                              |                                                                                                                                  |                                                                                                                           |
|                                           |                                       |                                                                                                                                                                      |                                                                                                                                                                |                                                                                                                                                                                              |                                                                                                                                  |                                                                                                                           |
| Disability                                     |                                       |                                                                                                                                                                      |                                                                                                                                                                |                                                                                                                                                                                              |                                                                                                                                  |
|                                           | Disability                  benefits (5)   |  $           1,537,734                                                                                        |  $             980,658                                                                        |  $                 922,599                                                                              |  $        873,817                                                                        |  $               583,236                       |
|                                           | Pension                  (3)               |                             - |                   25,301                                                  |                       26,853                                                        |            196,305                                                             |                   505,446            |
|                                           | SERP                  (2)                  |                             - |                 813,898                                                             |                                 - |            599,045                                                             |                   795,398            |
|                                           | Deferred                  compensation     |                             - |                            - |                                 - |                       - |                     22,382 |
|                                           | Total                                      |  $           1,537,734                                                                                        |  $          1,819,857                                                                                        |  $                 949,452                                                                              |  $     1,669,168                                                                                        |  $            1,906,462                                       |
|                                           |                                       |                                                                                                                                                                      |                                                                                                                                                                |                                                                                                                                                                                              |                                                                                                                                  |                                                                                                                           |

|  Note: |  Termination                benefits for Mr. Rasmussen are not included in this table since he                was                terminated in October                2006 and all related payments have been made to                him. |
|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1)   | In                the agreements of Mr. Douglass, Ms. Nelson and Mr. Tarpley, termination                for cause is triggered by dishonesty intended to result in substantial                personal enrichment at the expense of the Company, a material violation                of                the employment contract which is willful and deliberate and results                in                material injury to the Company, or the conviction of the executive                of a                felony or a crime of moral turpitude.  In the agreements of Dr.                Cataldo and Mr. Gallahue, termination for cause is triggered by an                act in bad faith and to the detriment of the Company, refusal or                failure                to act in substantial accordance with any written material direction                or                order of the Company, repeated unfitness or unavailability for service,                disregard of the Company’s rules or policies after reasonable notice and                opportunity to cure, conviction of a crime involving dishonesty,                breach or                trust or physical or emotional harm to any person, breach of the                employment agreement or other contractual obligation to the                Company.  These benefits are paid in a lump sum at the time of                termination.  Any gross up payments are paid not less than 45                days after termination payment. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | SERP                payments are paid monthly for 20 years beginning at age                65. |
|-----------------|------------------------------------------------------------------------------------------------|

| (3)   | Retirement                is the voluntary or involuntary termination of employment except                for death                or permanent disability before attaining age 65.  Employees who                reach age 55 and have 15 years of service may elect early retirement                benefits.  Retirement benefits are payable monthly for                life.  Options to cover spouses are available for a reduced                benefit.   If an employee dies prior to retirement age, his                or her spouse is entitled to 50% of his benefits at the employee’s                retirement age.  If an employee terminates prior to retirement                age,  he or she can apply for vested pension benefits once they                reach retirement age. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Amount                  for Mr. Gallahue is based upon a full-time annual salary.  He                  was part-time at February 3, 2007 but became full-time on February                  5,                  2007.  During the first half of 2007 Mr. Gallahue and Ms                  Nelson's employment contracts were amended to provide one year                  of                  severance upon termination without cause.  This has been reflected in                  the table. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Death                and disability benefits are incorporated in the employment agreements                of                Mr. Douglass, Ms. Nelson and Mr. Tarpley.  The benefits are                payable in monthly installments beginning the month after death or                disability; disability payments continue through the month that the                employee turns age 65 and death benefits continue for 240                months.  These employees are entitled to death and disability                benefits available to all other salaried employees.  Disability                benefits, however are paid at the higher of the amount calculated                per the                employee contract or that as determined by the plan available to                all                employees.  Death and disability benefits for Dr. Cataldo and                Mr. Gallahue are under the same plan as all salaried                employees. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Obligations      applicable to the receipt of termination benefits**

**Director      Compensation in Fiscal Year 2006**

| Name                             | Fees                  Earned or Paid in Cash ($) (1) | Stock                  Awards ($) (2)             | Option                  Awards ($) | Non-Equity                  Incentive Plan Compensation ($) | Change                  in Pension Value and Non Qualified Deferred Compensation                  Earnings | All                  Other Compensation ($) (3)      | Total                                             |
|----------------------------------|------------------------------------------------------|---------------------------------------------------|------------------------------------|-------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------|---------------------------------------------------|
| David                  Meyer     | $                    12,000                | $                    132,807            | -                                  | -                                                           | -                                                                                                          | $                    3,569                 | $                    148,376            |
| James                  Abel      | $                    22,500                | $                      47,298 | -                                  | -                                                           | -                                                                                                          | $                    1,363                 | $                      71,160 |
| Michael                  Koeneke | $                    24,000                | $                      33,786 | -                                  | -                                                           | -                                                                                                          | $                       973 | $                      58,760 |
| Mark                  Mitchell   | $                    10,500                | $                      33,786 | -                                  | -                                                           | -                                                                                                          | $                       973      | $                      45,260 |
| Turner                  White    | $                    30,000                | $                      33,786 | -                                  | -                                                           | -                                                                                                          | $                       973 | $                      64,760 |

| (1)   | Includes                payment to Mr. White of $6,000 for his service as chairman of the                Compensation Committee, with the remainder representing meeting fees                paid                to the directors. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The                Board of Directors maintains a CPI Corp. Non-Employee Directors Restricted                Stock Policy (the "Policy") pursuant to the CPI Corp. Restricted                Stock                Plan, as amended and restated as of April 14, 2005 (the                "Plan").  The purpose of the Policy is to advance the interests                of the Company and its stockholders by enabling the directors who                are not                employees of the Company to elect each year to receive shares of                restricted common stock of the Company ("Restricted Shares") in lieu                of up                to 100%, but not less than 50%, of the annual retainer they receive                as                directors of the Company.  Directors who chair committees of the                Board may also elect to receive Restricted Shares in lieu of an annual                retainer in cash for their service as committee                chairmen. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Other                compensation represents dividends earned on restricted stock awards                prior                to vesting. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------|

| **Item                12.** | **Security                Ownership of Certain Beneficial Owners and Management and Related                Stockholder Matters** |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------|

**Security      Ownership of Certain Beneficial Owners**

| **Name**                                                          |   | **Number                of Shares** |   | **Percent**      |
|-------------------------------------------------------------------|--------|-------------------------------------|--------|------------------|
| Knightspoint                Group                                 |   | 1,048,383                 (1)  |   | 16.4%            |
| Bear                Stearns Asset Management Inc.                 |   | 810,147                 (2)    |   | 12.7%            |
| Goldman                Sachs Asset Management, L.P.               |   | 657,243                 (3)    |   | 10.3%            |
| Barclay's                Global Investors, NA.                    |   | 646,730                 (4)    |   | 10.1%            |
| Renaissance                Technologies Corp. and James H. Simons |   | 396,900                 (5)    |   |   6.2% |

| (1)   | As                reported in Amendment No. 4 to its Schedule 13D, dated March 9, 2005                and                shares owned by David Meyer, Michael Koeneke and Mark                Mitchell.  Under the rules of the Securities and Exchange                Commission, Knightspoint Partners, I, L.P., Knightspoint Capital                Management I LLC, Knightspoint Partners LLC, David Meyer, a director                and                chairman of the board of the Company, Michael Koeneke, a director                of the                Company, Ramius Securities, LLC, Ramius Capital Group, LLC, C4S & Co.,                LLC, RCG Ambrose Master Fund, Ltd., Ramius Master Fund, Ltd., Peter                A.                Cohen, Morgan B. Stark, Thomas W. Strauss, Ramius Advisors, LLC,                Starboard                Value & Opportunity Fund, LLC, Admiral Advisors, LLC and Jeffrey M.                Solomon may be deemed to be members of a group (the “Knightspoint Group”)                and, as a result, each of the members may be deemed to beneficially                own                shares of common stock beneficially owned by each of the other                members.  Mark Mitchell, a director of the Company, is Managing                Director and Head of Merger Arbitrage of Ramius Capital Group,                LLC.  See also footnote  (1) of the table set forth                below under the caption “Security Ownership of Management” for additional                information regarding the ownership of these shares.  The                address of the stockholder is 787 Seventh Avenue, 9th Floor, New                York, New                York 10019. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | As                reported in its Amendment No. 6 to Schedule 13G, dated as                of  April 11, 2007, Bear Stearns Asset Management has sole                voting power for  455,530 shares, shared voting power                for  329,020 shares, sole dispositive power                for  606,597 shares and shared dispositive power                for  203,550 shares.  The address of this stockholder                is 383 Madison Avenue, New York, New                York  10179. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | As                reported in its Amendment No. 1 to Schedule 13G, dated as of February                9,                2007, Goldman Sachs Asset Management, L.P. has sole voting power                for  539,281 shares and sole dispositive power                for  657,243 shares.  The address of this stockholder                is 30 Hudson Street, Jersey City, New                Jersey,  07302. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | As                reported on Schedule 13G, dated January 9, 2007, Barclays Global                Investors, NA., has sole voting power for 563,079 shares and sole                dispositive power for  563,779 shares.  Barclays                Global Fund Advisors has sole voting power  and sole dispositive                power for  79,627 shares.  The address of this                stockholder is 45 Fremont Street, San Francisco,                CA  94105.  Barclays Global Investors, LTD, has sole                voting power and sole dispositive power for  3,324                shares.  The address of this stockholder is Murray House, 1                Royal Mint Court, London, EC3N 4HH. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | As                reported on Schedule 13D, dated November 30, 2006.  Renaissance                Technologies Corp. has sole  voting power for all 396,900 shares                and sole dispositive power for all 396,900 shares.  The address                of this stockholder is 800 Third Avenue, New York, New                York  10022. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Security      Ownership of Management**

| Name                                                                      |  Amount                  of Record                                       |  Indirect                  Shares (1)                                                                          |  Restricted                  Shares (2)                                                            |  Profit                  Sharing Plan (3)                                                          |  Vested                  Options (4)                                                               |  Total                                                                                           | Percent |
|---------------------------------------------------------------------------|-------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|---------|
| James                  Abel                                               |             6,334 |                    - |             970                             |                                                                                                    |                                                                                                    |                 7,304 | *       |
| Renato                  Cataldo                                           |             4,089 |                                                                                                                |          4,634                                             |               43                  |                  - |                 8,766 | *       |
| Gary                  Douglass                                            |             4,500 |                                                                                                                |          1,848                                             |             485                             |        20,000                                                        |               26,833            | *       |
| Thomas                  Gallahue                                          |             1,316 |                                                                                                                |             554                             |             475                             |        15,046                                                        |               17,391            | *       |
| Michael                  Koeneke                                          |             4,458 |         984,321                                                             |             693                             |                                                                                                    |                                                                                                    |             989,472                       | 15.5%   |
| David                  Meyer                                              |           43,828            |         984,321                                                             |          9,932                                             |                                                                                                    |                                                                                                    |          1,038,081                                       | 16.3%   |
| Mark                  Mitchell                                            |             4,458 |         984,321                                                             |             693                             |                                                                                                    |                                                                                                    |             989,472                       | 15.5%   |
| Jane                  Nelson                                              |             2,176 |                                                                                                                |             462                             |          1,272                                             |                  - |                 3,910 | *       |
| Paul                  Rasmussen                                           |             2,201 |                                                                                                                |                  - |                  - |                  - |                 2,201 | *       |
| Richard                  Tarpley                                          |             4,055 |                                                                                                                |                  - |             933                             |                  - |                 4,988 | *       |
| Turner                  White                                             |             4,458 |                    - |             693                             |                                                                                                    |                                                                                                    |                 5,151 | *       |
|                                                                      |                                                                          |                                                                                                                |                                                                                                    |                                                                                                    |                                                                                                    |                                                                                                  |    |
| Directors                  and Executive Officers as a group (13 persons) |           71,068            |         996,284                                                             |        24,393                                                        |          5,103                                             |        35,046                                                        |          1,131,894                                       | 17.7%   |

| (1)   | Mark                Mitchell is a portfolio manager of RCG Ambrose Master Fund, Ltd.                (“Ambrose”). As such, Mr. Mitchell makes day-to-day investment                decisions with respect to the securities held in Ambrose.  In                addition, Mr. Mitchell trades on behalf of affiliates of Ambrose,                including Starboard Value & Opportunity Fund, LLC, Ramius                Securities, LLC and Ramius Master Fund, Ltd.  Currently,                Ambrose, Ramius Securities, LLC, Ramius Master Fund, Ltd. and Starboard                Value & Opportunity Fund, LLC, hold 882,000 shares of common                stock in the aggregate (the “Ramius related entities”).  The                investment advisor to Ambrose is Ramius Capital Group,                LLC.  Ramius Securities, LLC is an affiliate and wholly owned                subsidiary of Ramius Capital Group, LLC.  The investment advisor                to Ramius Master Fund, Ltd. is Ramius Advisors, LLC, another affiliate                and                wholly owned subsidiary of Ramius Capital Group, LLC.  The                managing member of Ramius Capital Group LLC is C4S & Co.,                LLC.  Mark Mitchell is a limited partner of C4S & Co.,                LLC. The managing member of Starboard Value & Opportunity Fund,                LLC is Admiral Advisors, LLC whose sole member is Ramius Capital                Group,                LLC.  Mr. Mitchell does not have investment or voting                control over shares held by any of Ambrose, Ramius Securities, LLC,                Ramius                Master Fund or Starboard Value & Opportunity Fund,                LLC.  Mr. Koeneke and Mr. Meyer have no voting or                dispositive power over and disclaim beneficial ownership of the 882,000                shares owned by Ramius related entities. Under the rules of the Securities                and Exchange Commission, Mr. Koeneke and Mr. Meyer may be deemed                to be a                member of the Knightspoint Group and, as a result, he may be deemed                to                beneficially own shares of common stock beneficially owned by each                of the                other members of the Knightspoint                Group. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | For                directors, this includes restricted shares awarded in lieu of cash                compensation for the 2007 Board retainer and committee chair retainers                as                well as an award of 9,239 shares to Mr. Meyer for his performance                as                Chairman of the Board in 2006.    For executive                officers,  these restricted shares were awarded as part of 2006                incentive compensation. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Shares                are held under the CPI Corp. Employees’ Profit Sharing Plan and                Trust.  The executives do not  have  voting                power  with respect to these                shares. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Includes                shares which such persons have the right to acquire within 60 days                after                May 25, 2007, upon the exercise of employee stock                options. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Plan                    Category                       |                                                | Number                    of securities to be issued upon exercise of outstanding options,                    warrants                    and rights        (a)  |                                                                                                                                                          | Weighted-average                    exercise price of outstanding options, warrants and                    rights     (b) |                                                                                                                                  | Number                    of securities remaining available                    for future issuance under                    equity compensation plans                    (excluding securites reflected                    in column (a))      (c) |
|--------------------------------------------------------|-----------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |                                                |                                                                                                                                                                                           |                                                                                                                                                          |                                                                                                                                     |                                                                                                                                  |                                                                                                                                                                                                                                                                   |
| Equity                    compensation plans           |                                                |                                                                                                                                                                                           |                                                                                                                                                          |                                                                                                                                     |                                                                                                                                  |                                                                                                                                                                                                                                                                   |
|                                                   | approved                    by security holders     |                                                                                                                                                                                                          |              35,046                                                           |                                                                                                                                               |  $            15.56                                        |                                                                                                                                                                                                                                                                             |          1,270,987 (1) |
| Equity                    compensation plans not       |                                                |                                                                                                                                                                                           |                                                                                                                                                          |                                                                                                                                     |                                                                                                                                  |                                                                                                                                                                                                                                                                   |
|                                                   | approved                    by security holders (2) |                                                                                                                                                                                                          |                        -    |                                                                                                                                               |                     -   |                                                                                                                                                                                                                                                                             |               80,232 (3) |
| Total                    |                                                |              35,046                                                                                                           |                                                                                                                                                          |  $            15.56                                                     |                                                                                                                                  |          1,351,219                                                                                                                                                                                                        |
|           |                                                |                                                                                                                                                                                           |                                                                                                                                                          |                                                                                                                                     |                                                                                                                                  |                                                                                                                                                                                                                                                                   |

| (1)   | Includes                1,020,639 shares reserved for issuance under the Company’s stock option                plan, 240,909 shares reserved for issuance under the Company’s restricted                stock plan and 9,439 shares reserved for issuance under the Company’s                employees’ profit sharing plan. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The                only plan not approved by security holders is the Company’s stock bonus                plan.  This plan was enacted in fiscal 1982 and is no longer                active.  The remaining awards granted under this plan vested in                fiscal 2003. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Represents                80,232 shares reserved for issuance under the Company’s inactive stock                bonus plan. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

**Item      13.                 Certain      Relationships and Related Transactions and Director      Independence**

**Certain      Relationships and Related Transactions**

**.**

**Director      Independence**

**Item      14.                 Principal      Accounting Fees and Services**

**Fees      Paid to Independent Registered Public Accounting Firm**

**Audit      Fees**

**Audit-Related        Fees**

**Tax        Fees**

**All      Other Fees**

**Procedure      for Approval of Non-Audit Services**

**PART      IV**

**Item      15.                 Exhibits      and Financial Statement Schedules**

|    |   |                                                                                                                                                   |   |   | EXHIBIT                  INDEX |   |   |
|---------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------------------|--------|--------|
|    |   |                                                                                                                                                   |   |   |                           |   |   |   |
| EXHIBIT |   |                                                                                                                                                   |   |   |                           |   |   |   |
| NUMBER  |   |                                                                                                                                                   |   |   | DESCRIPTION                    |   |   |
|    |   |                                                                                                                                                   |   |   |                           |   |   |   |
| (3.1)   |   | Articles                  of Incorporation of the Company, incorporated by reference to CPI                  Corp.'s                  Annual Report    |
|    |   | for                  fiscal year 1989 on Form 10-K, Exhibit 3.1, filed 4/30/90.                                                                        |   |   |
|    |   |                                                                                                                                                   |   |   |                           |   |   |   |
| (3.2)   |   | By-Laws                  of  CPI Corp., restated as of June 7, 2006, incorporated by                  reference to CPI Corp.'s               |
|    |   | Form                  10-Q, Exhibit 3.2, filed August 25, 2006.                                                                                        |   |   |                           |
|    |   |                                                                                                                                                   |   |   |                           |   |   |   |
| (4.1)   |   | Form                  of Rights Agreement, Dated as of March 13, 2000 between CPI Corp.                  and                  Harris Trust and         |
|    |   | Savings                  Bank, incorporated by reference to CPI Corp.'s Form 8-A, Exhibit                  4.5,                  dated March 14, 2000. |
|    |   |                                                                                                                                                   |   |   |                           |   |   |   |
| (10.1)  |   | License                  Agreement Sears, Roebuck & Co. dated 1/1/99, incorporated by reference                  to CPI Corp.'s                    |
|    |   | Annual                  Report for fiscal year 1998 on Form 10-K, Exhibit 10.28,  filed                  5/5/99.                             |   |
|    |   |                                                                                                                                                   |   |   |                           |   |   |   |
| (10.2)  |   | Second                  Amendment dated 11/10/99 to License Agreement Sears, Roebuck & Co.,                  incorporated                          |
|    |   | by                  reference to CPI Corp.'s Form 10-Q, Exhibit 5.1, filed                  12/23/99.                                                  |   |
|    |   |                                                                                                                                                   |   |   |                           |   |   |   |
| (10.3)  |   | License                  Agreement Sears, Roebuck & Co. (Off Mall) dated 1/1/99, incorporated                  by reference to                     |
|    |   | CPI                  Corp.'s Annual Report for fiscal year 1998 on Form 10-K, Exhibit                  10.29,                  filed 5/5/99.           |
|    |   |                                                                                                                                                   |   |   |                           |   |   |   |
| (10.4)  |   | Second                  Amendment dated 11/10/99 to License Agreement Sears, Roebuck & Co.                  (Off Mall),                            |
|    |   | incorporated                  by reference to CPI Corp.'s Form 10-Q, Exhibit 5.2, filed                  12/23/99.                                     |
|    |   |                                                                                                                                                   |   |   |                           |   |   |   |
| (10.5)  |   | License                  Agreement Sears, Roebuck De Puerto Rico, Inc. dated 1/1/99, incorporated                  by reference                        |
|    |   | to                  CPI Corp.'s Annual Report for fiscal year 1998 on Form 10-K, Exhibit                  10.30, filed 5/5/99.                         |
|    |   |                                                                                                                                                   |   |   |                           |   |   |   |
| (10.6)  |   | Development                  and License Agreement dated 1/31/01 between Sears, Roebuck & Co.                  and                                 |
|    |   | Consumer                  Programs, Incorporated, incorporated by reference to CPI Corp.'s                  Annual                  Report for         |
|    |   | fiscal                  year 2000 on Form 10-K, Exhibit 10.15, filed 5/3/01.                                                                           |   |   |
|    |   |                                                                                                                                                   |   |   |                           |   |   |   |
| (10.7)  |   | Third                  Amendment dated 6/5/02 to Sears License Agreement, incorporated                  by  reference to                     |
|    |   | CPI                  Corp.'s Form 10-Q, Exhibit 10.51, filed 6/7/02.                                                                                   |   |   |
|    |   |                                                                                                                                                   |   |   |                           |   |   |   |
| (10.8)  |   | Sixth                  Amendment dated 11/20/02 to Sears License Agreement, incorporated                  by                  reference to             |
|    |   | CPI                  Corp.'s Form 10-Q, Exhibit 10.54, filed 12/11/02.                                                                                 |   |   |
|    |   |                                                                                                                                                   |   |   |                           |   |   |   |
| (10.9)  |   | Third                  Amendment to Sears License Agreement (Off Mall) dated 11/20/02,                  incorporated by                                |
|    |   | reference                  to CPI Corp.'s Form 10-Q, Exhibit 10.55, filed 12/11/02.                                                                    |   |
|    |   |                                                                                                                                                   |   |   |                           |   |   |   |
| (10.10) |   | Fourth                  Amendment to Sears License Agreement (Off Mall) dated 11/20/02,                  incorporated by                               |
|    |   | reference                  to CPI Corp.'s Form 10-Q, Exhibit 10.56,                  filed  12/11/02.                                        |   |
|    |   |                                                                                                                                                   |   |   |                           |   |   |   |
| (10.11) |   | Fifth                  Amendment to Sears License Agreement (Off Mall) dated 11/20/02,                  incorporated by                                |
|    |   | reference                  to CPI Corp.'s Form 10-Q, Exhibit 10.57,                  filed  12/11/02.                                        |   |
|    |   |                                                                                                                                                   |   |   |                           |   |   |   |
| (10.12) |   | Sears                  License Agreement dated 1/1/03 by and between Sears, Canada, Inc.,                  Sears                  Roebuck & Co.    |
|    |   | and                  CPI Corp. incorporated, by reference to CPI Corp.'s Annual Report                  for                  fiscal year               |
|    |   | 2002                  on Form 10-K, Exhibit 10.64, filed 5/16/03.                                                                                      |   |   |                           |

|     |   |                                                                                                                                        |   |   | EXHIBIT                INDEX (…continued) |   |
|----------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------|--------|
|     |   |                                                                                                                                        |   |   |                                            |   |   |   |
| EXHIBIT  |   |                                                                                                                                        |   |   |                                            |   |   |   |
| NUMBER   |   |                                                                                                                                        |   |   | DESCRIPTION                                     |   |   |
|     |   |                                                                                                                                        |   |   |                                            |   |   |   |
| (10.13)  |   | Seventh                Amendment dated 8/11/03 to Sears License Agreement, incorporated                by                reference          |
|     |   | to                CPI Corp.'s Form 10-Q, Exhibit 10.69, filed 8/27/03.                                                                      |   |   |
|     |   |                                                                                                                                        |   |   |                                            |   |   |   |
| (10.14)  |   | Eighth                Amendment dated 9/1/03 to Sears License Agreement, incorporated by                reference to                        |
|     |   | CPI                Corp.'s Form 10-Q, Exhibit 10.70, filed 12/18/03.                                                                        |   |   |
|     |   |                                                                                                                                        |   |   |                                            |   |   |   |
| (10.15)  |   | Fourth                Amendment dated 6/5/02 to License Agreement by and between Sears,                Roebuck                and Co.       |
|     |   | and                CPI Corp., incorporated by reference to CPI Corp.'s Annual Report                for                fiscal year 2003     |
|     |   | on                Form 10-K, Exhibit 10.74, filed 4/22/04.                                                                                  |   |   |                                            |
|     |   |                                                                                                                                        |   |   |                                            |   |   |   |
| (10.16)  |   | Sixth                Amendment dated 4/29/04 to License Agreement (Off Mall)  by and                between Sears,                |
|     |   | Roebuck                and Co. and CPI Corp., incorporated by reference to CPI Corp.'s Form                10-Q,                            |
|     |   | Exhibit                10.83, filed 6/10/04.                                                                                                |   |   |                                            |   |
|     |   |                                                                                                                                        |   |   |                                            |   |   |   |
| (10.17)  |   | Extension                dated January 18, 2006 of Sears License Agreement between CPI Corp.                and                             |
|     |   | Sears                Canada, Inc., incorporated by reference to CPI Corp.'s Annual Report                for                                |
|     |   | fiscal                year 2005 on Form 10-K, Exhibit 10.58, filed 4/19/06.                                                                 |   |   |
|     |   |                                                                                                                                        |   |   |                                            |   |   |   |
| (10.18)  |   | Amendment                dated August 18, 2006 to Sears License Agreement between CPI                Corp.                                  |
|     |   | and                Sears Canada, Inc., incorporated by reference to CPI Corp.'s Form                10-Q,                Exhibit 10.63,     |
|     |   | filed                August 25, 2006.                                                                                                       |   |   |                                            |   |   |
|     |   |                                                                                                                                        |   |   |                                            |   |   |   |
| (10.19)* |   | Employment                Contract Jane E. Nelson dated 2/6/00, incorporated by reference to                CPI                Corp.'s      |
|     |   | Annual                Report for fiscal year 1999 on Form 10-K, Exhibit 10.36, filed                4/26/00.                                |   |
|     |   |                                                                                                                                        |   |   |                                            |   |   |   |
| (10.20)* |   | CPI                Corp. 1981 Stock Bonus Plan (As Amended and Restated Effective 2/3/91),                incorporated by                   |
|     |   | reference                to CPI Corp.'s Annual Report for fiscal year 1992 on Form 10-K, Exhibit                10.29, filed 5/5/93.        |
|     |   |                                                                                                                                        |   |   |                                            |   |   |   |
| (10.21)* |   | First                Amendment to CPI Corp. 1981 Stock Bonus Plan (As Amended and Restated                Effective                         |
|     |   | February                3, 1991) Effective January 1, 1995, incorporated by reference to                CPI                Corp.'s Annual   |
|     |   | Report                for fiscal year 2000 on  Form 10-K, Exhibit 10.30, filed                5/3/01.                             |   |
|     |   |                                                                                                                                        |   |   |                                            |   |   |   |
| (10.22)* |   | CPI                Corp. Deferred Compensation and Retirement Plan for Non-Management                Directors                              |
|     |   | (Amended                and Restated as of January 28, 2000), incorporated by reference to                CPI                Corp.'s Annual |
|     |   | Report                for fiscal year 2000 on Form  10-K, Exhibit 10.31, filed                5/3/01.                             |   |
|     |   |                                                                                                                                        |   |   |                                            |   |   |   |
| (10.23)* |   | Deferred                Compensation and Stock Appreciation Rights Plan (Amended and Restated                as                of           |
|     |   | June                6, 1996),  incorporated by reference to CPI Corp.'s Annual                Report for fiscal year 2000         |
|     |   | on                Form 10-K, Exhibit 10.32, filed 5/3/01.                                                                                   |   |   |                                            |
|     |   |                                                                                                                                        |   |   |                                            |   |   |   |
| (10.24)* |   | CPI                Corp. Stock Option Plan (Amended and Restated Effective as of December                16,                1997),          |
|     |   | incorporated                by reference to CPI Corp.'s Annual Report for fiscal year  2000                on Form 10-K,          |
|     |   | Exhibit                10.34, filed 5/3/01.                                                                                                 |   |   |                                            |   |

|     |   |                                                                                                                                   |   |   | EXHIBIT                INDEX (…continued) |   |
|----------|--------|----------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------|--------|
|     |   |                                                                                                                                   |   |   |                                            |   |   |   |
| EXHIBIT  |   |                                                                                                                                   |   |   |                                            |   |   |   |
| NUMBER   |   |                                                                                                                                   |   |   | DESCRIPTION                                     |   |   |
|     |   |                                                                                                                                   |   |   |                                            |   |   |   |
| (10.25)* |   | CPI                Corp. Key Executive Deferred Compensation Plan (As Amended and Restated                June 6, 1996),               |
|     |   | incorporated                by reference to CPI Corp.'s Annual Report for fiscal year 2000 on                Form                10-K, |
|     |   | Exhibit                10.36, filed 5/3/01.                                                                                            |   |   |                                            |   |
|     |   |                                                                                                                                   |   |   |                                            |   |   |   |
| (10.26)* |   | Employment                Agreement dated 4/8/02 by and between Gary W. Douglass and CPI                Corp.,                         |
|     |   | incorporated                by reference to CPI Corp.'s Annual Report for fiscal year 2001 on                Form                10-K, |
|     |   | Exhibit                10.50, filed 5/1/02.                                                                                            |   |   |                                            |   |
|     |   |                                                                                                                                   |   |   |                                            |   |   |   |
| (10.27)* |   | First                Amendment to CPI Corp. Deferred Compensation and Retirement Plan                for                Non-management |
|     |   | Directors                (As Amended and Restated as of January 28, 2002), incorporated by                reference to                 |
|     |   | CPI                Corp.'s Form 10-Q, Exhibit 10.52, filed 6/7/02.                                                                     |   |   |
|     |   |                                                                                                                                   |   |   |                                            |   |   |   |
| (10.28)* |   | Employment                Agreement dated 10/21/02 by and between Peggy J. Deal and CPI                Corp.,                          |
|     |   | incorporated                by reference to CPI Corp.'s Form 10-Q, Exhibit 10.58, filed                12/11/02.                       |
|     |   |                                                                                                                                   |   |   |                                            |   |   |   |
| (10.29)* |   | Employment                Agreement dated 11/15/02 by and between Thomas Gallahue and CPI                Corp.,                        |
|     |   | incorporated                by reference to CPI Corp.'s  Form 10-Q, Exhibit 10.59, filed                12/11/02.            |
|     |   |                                                                                                                                   |   |   |                                            |   |   |   |
| (10.30)  |   | First                Amendment dated 9/30/02 to CPI Corp. Retirement Plan and Trust,                incorporated by                    |
|     |   | reference                to CPI Corp.'s Annual Report for fiscal year 2002 on Form 10-K, Exhibit                10.65,                 |
|     |   | filed                5/16/03.                                                                                                          |   |   |                                            |   |   |
|     |   |                                                                                                                                   |   |   |                                            |   |   |   |
| (10.31)  |   | Second                Amendment dated 11/29/02 to CPI Corp. Retirement Plan and Trust,                incorporated by                  |
|     |   | reference                to CPI Corp.'s Annual Report for fiscal year 2002 on Form 10-K, Exhibit                10.66,                 |
|     |   | filed                5/16/03.                                                                                                          |   |   |                                            |   |   |
|     |   |                                                                                                                                   |   |   |                                            |   |   |   |
| (10.32)  |   | Third                Amendment dated 2/6/04 to CPI Corp. Retirement Plan and Trust,                incorporated by                     |
|     |   | reference                to CPI Corp.'s Annual Report  for fiscal year 2003 on Form 10-K,                Exhibit 10.73,      |
|     |   | filed                4/21/04.                                                                                                          |   |   |                                            |   |   |
|     |   |                                                                                                                                   |   |   |                                            |   |   |   |
| (10.33)* |   | CPI                Corp. Restricted Stock Plan as Amended and Restated Effective as                of April                14, 2005,   |
|     |   | incorporated                by reference to CPI Corp.'s Annual Report for fiscal year 2004 on                Form                10-K, |
|     |   | Exhibit                10.86, filed 4/21/05.                                                                                           |   |   |                                            |   |
|     |   |                                                                                                                                   |   |   |                                            |   |   |   |
| (10.34)* |   | CPI                Corp. Performance Plan Adopted Effective as of April 14, 2005,                incorporated by reference             |
|     |   | to                CPI Corp.'s Annual Report for fiscal year 2004  on Form 10-K,                Exhibit 10.90, filed 4/21/05. |
|     |   |                                                                                                                                   |   |   |                                            |   |   |   |
| (10.35)* |   | CPI                Corp. Non-Employee Directors Restricted Stock Policy Pursuant to                the CPI                Corp.        |
|     |   | Restricted                Stock Plan Adopted Effective as of April 14, 2005, incorporated by                reference                  |
|     |   | to                CPI Corp.'s Annual Report for fiscal year 2004 on Form 10-K, Exhibit                10.91, filed 4/21/05.            |

|     |   |                                                                                                                                                    |   |   | EXHIBIT                  INDEX (…continued) |   |
|----------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------|--------|
|     |   |                                                                                                                                                    |   |   |                                              |   |   |   |
| EXHIBIT  |   |                                                                                                                                                    |   |   |                                              |   |   |   |
| NUMBER   |   |                                                                                                                                                    |   |   | DESCRIPTION                                       |   |   |
|     |   |                                                                                                                                                    |   |   |                                              |   |   |   |
| (10.36)* |   | CPI                  Corp. Non-Employee Directors Restricted Stock Policy (Restricted                  Stock                  Election)                 |
|     |   | Adopted                  by the Company April 14, 2005, incorporated by reference to CPI                  Corp.'s                  Annual Report        |
|     |   | for                  fiscal year 2004 on Form 10-K, Exhibit 10.92, filed                  4/21/05.                                                      |   |   |
|     |   |                                                                                                                                                    |   |   |                                              |   |   |   |
| (10.37)* |   | Restricted                  Stock Award Agreement, incorporated by reference to CPI Corp.'s                  Annual                  Report for         |
|     |   | fiscal                  year 2004 on Form 10-K, Exhibit 10.93, filed 4/21/05.                                                                           |   |   |
|     |   |                                                                                                                                                    |   |   |                                              |   |   |   |
| (10.38)* |   | First                  Amendment to Employment Agreement by and between Consumer Programs                  Incorprated                                  |
|     |   | and                  Thomas Gallahue, incorporated by reference to CPI Corp.'s Annual                  Report                  for fiscal year          |
|     |   | 2004                  on Form 10-K, Exhibit 10.95, filed 4/21/05.                                                                                       |   |   |                                              |
|     |   |                                                                                                                                                    |   |   |                                              |   |   |   |
| (10.39)* |   | Employment                  Agreement by and between CPI Corp. and Renato Cataldo, incorporated                  by                  reference          |
|     |   | to                  CPI Corp.'s Form 10-Q, Exhibit 10.102, filed 9/1/05. File                  No.  1-10204                                   |   |
|     |   |                                                                                                                                                    |   |   |                                              |   |   |   |
| (10.40)* |   | Stock                  Award and Restriction Agreement by and between CPI Corp. and Renato                  Cataldo,                                    |
|     |   | incorporated                  by reference to CPI Corp.'s Form 10-Q, Exhibit 10.103, filed                  9/1/05.                                     |
|     |   |                                                                                                                                                    |   |   |                                              |   |   |   |
| (10.41)* |   | Confidentiality,                  Noncompetition and Nonsolicitation Agreement by and between CPI                  Corp.                  and           |
|     |   | Renato                  Cataldo, incorporated by reference to CPI Corp.'s Form 10-Q, Exhibit                  10.104, filed 9/1/05.                     |
|     |   |                                                                                                                                                    |   |   |                                              |   |   |   |
| (10.42)* |   | Stock                  Award and Restriction Agreement by and between CPI Corp. and Paul                  Rasmussen,                                    |
|     |   | incorporated                  by reference to CPI Corp.'s Form 10-Q, Exhibit 10.105, filed                  9/1/05.                                     |
|     |   |                                                                                                                                                    |   |   |                                              |   |   |   |
| (10.43)* |   | Confidentiality,                  Noncompetition and Nonsolicitation Agreement by and between CPI                  Corp.                  and           |
|     |   | Paul                  Rasmussen, incorporated by reference to CPI Corp.'s Form 10-Q,                  Exhibit                  10.106, filed 9/1/05.    |
|     |   |                                                                                                                                                    |   |   |                                              |   |   |   |
| (10.44)  |   | Credit                  Agreement (As Amended and Restated Effective November 30, 2005)                  among the                  Company,            |
|     |   | the                  financial institutions that are or may from time to time become                  parties                  thereto and LaSalle      |
|     |   | National                  Bank Association, incorporated by reference to CPI Corp.'s Current                  Report                  on Form 8-K,      |
|     |   | Exhibit                  10.84, filed 12/8/05.                                                                                                          |   |   |                                              |   |
|     |   |                                                                                                                                                    |   |   |                                              |   |   |   |
| (10.45)  |   | Guaranty                  and Collateral Agreement among CPI Corp. and the other parties                  thereto, as                  guarantors, and  |
|     |   | LaSalle                  Bank National Association, an administrative agent, incorporated                  by                  reference to CPI Corp.'s |
|     |   | Current                  Report on Form 8-K, Exhibit 10.85, filed 12/8/05.                                                                              |   |   |
|     |   |                                                                                                                                                    |   |   |                                              |   |   |   |
| (10.46)* |   | Retention                  agreement, dated as of January 12, 2006, by and between CPI Corp.                  and                  Thomas Gallahue,     |
|     |   | incorporated                  by reference to CPI Corp.'s Current Report on Form 8-K, Exhibit                  10.107,                  filed 1/19/06.  |
|     |   |                                                                                                                                                    |   |   |                                              |   |   |   |
| (10.47)  |   | First                  Amendment to Amended and Restated Credit Agreement dated as of                  January 25,                  2006                |
|     |   | (the                  "Credit Agreement"), among the Company, the financial institutions                  that                  are or may from         |
|     |   | time                  to time become parties thereto and LaSalle Bank National Association,                  as                  administrative agent   |
|     |   | and                  arranger for the lenders, incorporated by reference to CPI Corp.'s                  Current                  Report on Form 8-K,   |
|     |   | Exhibit                  10.108, filed 1/26/06.                                                                                                         |   |   |                                              |   |

|    |   |                                                                                                                                           |   |   | EXHIBIT                  INDEX (...continued) |   |
|---------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------|--------|
|    |   |                                                                                                                                           |   |   |                                          |   |   |   |
| EXHIBIT |   |                                                                                                                                           |   |   |                                          |   |   |   |
| NUMBER  |   |                                                                                                                                           |   |   | DESCRIPTION                                   |   |   |
|    |   |                                                                                                                                           |   |   |                                          |   |   |   |
| (10.48) |   | Stock                  Award and Restriction Agreement, dated April 6, 2006, by and between                  CPI                  Corp. and    |
|    |   | David                  Meyer, incorporated by reference to CPI Corp.'s Current Report                  on Form                  8-K,           |
|    |   | Exhibit                  10.57, filed 4/12/06.                                                                                                 |   |   |                                          |   |
|    |   |                                                                                                                                           |   |   |                                          |   |   |   |
| (10.49) |   | First                  Amendment to Employment Agreement, dated as of April 25, 2006,                  by and                  between         |
|    |   | Consumer                  Programs Incorporated and Gary W. Douglass, incorporated by reference                  to                            |
|    |   | CPI                  Corp.'s Form 8-K, Exhibit 10.60, filed May 1, 2006.                                                                       |   |   |
|    |   |                                                                                                                                           |   |   |                                          |   |   |   |
| (10.50) |   | Letter                  from the Company regarding Supplemental Retirement Benefits, dated                  June                  28, 2006,    |
|    |   | delivered                  to Richard Tarpley, incorporated by reference to CPI Corp.'s Form                  8-K,                             |
|    |   | Exhibit                  10.61, filed July 5, 2006.                                                                                            |   |   |                                          |   |
|    |   |                                                                                                                                           |   |   |                                          |   |   |   |
| (10.51) |   | Letter                  from the Company regarding Supplemental Retirement Benefits, dated                  June                  28, 2006,    |
|    |   | delivered                  to Jane E. Nelson, incorporated by reference to CPI Corp.'s Form                  8-K,                              |
|    |   | Exhibit                  10.62, filed July 5, 2006.                                                                                            |   |   |                                          |   |
|    |   |                                                                                                                                           |   |   |                                          |   |   |   |
| (10.52) |   | First                  Amendment to Retention Agreement, dated as of August 23, 2006,                  by and                  between         |
|    |   | Consumer                  Programs Incorporated and Thomas Gallahue, incorporated by reference                  to                             |
|    |   | CPI                  Corp.'s Form 8-K, Exhibit 10.64, filed August 29, 2006.                                                                   |   |   |
|    |   |                                                                                                                                           |   |   |                                          |   |   |   |
| (10.53) |   | Second                  Amendment to Retention Agreement, dated as of October 26, 2006,                  by and                  between       |
|    |   | Consumer                  Programs Incorporated and Thomas Gallahue, incorporated by reference                  to                             |
|    |   | CPI                  Corp.'s Form 8-K, Exhibit 10.65, filed November 1, 2006.                                                                  |   |   |
|    |   |                                                                                                                                           |   |   |                                          |   |   |   |
| (10.54) |   | Resignation                  Agreement dated as of October 30, 2006, by and between CPI                  Corp.                                 |
|    |   | and                  Paul Rasmussen, incorporated by reference to CPI Corp.'s Form                  8-K,                                       |   |
|    |   | Exhibit                  10.66, filed November 1, 2006.                                                                                        |   |   |                                          |   |
|    |   |                                                                                                                                           |   |   |                                          |   |   |   |
| (11.1)  |   | Computation                  of Earnings Per Share - Diluted, incorporated by reference to CPI                  Corp.'s                        |
|    |   | Annual                  Report for fiscal year 2006 on Form 10-K, Exhibit 11.1, filed April                  17,                  2007.        |
|    |   |                                                                                                                                           |   |   |                                          |   |   |   |
| (11.2)  |   | Computation                  of Earnings Per Share - Basic, incorporated by reference to CPI                  Corp.'s                          |
|    |   | Annual                  Report for fiscal year 2006 on Form 10-K, Exhibit 11.2, filed April                  17,                  2007.        |
|    |   |                                                                                                                                           |   |   |                                          |   |   |   |
| (21.0)  |   | Subsidiaries                  of the Registrant, incorporated by reference to CPI                  Corp.'s                                     |   |
|    |   | Annual                  Report for fiscal year 2006 on Form 10-K, Exhibit 21.0, filed April                  17,                  2007.        |
|    |   |                                                                                                                                           |   |   |                                          |   |   |   |
| (23.0)  |   | Independent                  Auditor's Consent, incorporated by reference to CPI                  Corp.'s                                      |   |
|    |   | Annual                  Report for fiscal year 2006 on Form 10-K, Exhibit 23.0, filed April                  17,                  2007.        |
|    |   |                                                                                                                                           |   |   |                                          |   |   |   |
| (31.1)  |   | Certification                  Pursuant to Rule 13a-14(a) Under the Securities and Exchange Act                  of                  1934      |
|    |   | by                  the President and Chief Executive Officer                                                                                  |   |   |                                          |
|    |   |                                                                                                                                           |   |   |                                          |   |   |   |
| (31.2)  |   | Certification                  Pursuant to Rule 13a-14(a) Under the Securities and Exchange Act                  of                  1934      |
|    |   | by                  the Executive Vice President, Finance and Chief Financial                  Officer                                         |   |
|    |   |                                                                                                                                           |   |   |                                          |   |   |   |
| (32.0)  |   | Certification                  Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section                  906 of                  the |
|    |   | Sarbanes-Oxley                  Act of 2002 by the President and Chief Executive Officer and                  the                              |
|    |   | Executive                  Vice President, Finance and Chief Financial Officer                                                                 |   |   |

SIGNATURE

|   | **CPI              Corp.** |                                                                                         |
|--------|----------------------------|----------------------------------------------------------------------------------------------|
|   |                       |                                                                                         |   |
|   | By:                        | /s/ Gary              W. Douglass                                                       |   |
|   |                       | Gary              W. Douglass                                                                |   |
|   |                       | Executive              Vice President, Finance              and Chief Financial Officer |   |
|   |                       |                                                                                         |   |