**Exhibit      99.1**

**Cost-U-Less      Reports Earnings of 16 cents per share for Second Quarter.**

| ·   | EPS                of $0.16 on net income of $0.7MM compared to EPS of $0.11 on net                income of                $0.5MM for the corresponding period a year ago (Q2                2006). |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Operating                income of $1.0MM compared to operating income of $0.9MM for Q2 2006. |
|--------------------|-----------------------------------------------------------------------------------------------|
| ·   | EBITDA                of $1.7MM compared to EBITDA of $1.5MM for Q2 2006 (see Appendix                A). |
|--------------------|-----------------------------------------------------------------------------------------------------------|
| ·   | Sales                of $55.3MM compared to $53.6MM for Q2                2006. |
|--------------------|---------------------------------------------------------------------------------|
| ·   | Gross                margin on sales of 19.4% compared to 18.8% for Q2                2006. |
|--------------------|---------------------------------------------------------------------------------------------|
| ·   | Comparable                store sales (stores open a full 13 months) increase of 3.3% over                Q2                2006. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

**Forward        Looking Statements**

----

|                                           |   | Q2                  ended |   | YTD      |   |
|------------------------------------------------|--------|---------------------------|--------|----------|--------|
|                                           |   | 07/01/07                  |   | 07/01/07 |   |
|                                           |   |                      |   |     |   |
| Net                  income                    |   | $                         | 683    |     | $      | 1,330 |   |
| Depreciation                  and amortization |   |                      | 658    |     |   | 1,329 |   |
| Interest                  expense, net         |   |                      | (41    | )        |   | 5 |   |
| Income                  taxes                  |   |                      | 370    |     |   | 715 |   |
|                                           |   |                      |   |     |   |   |   |
| EBITDA                                         |   | $                         | 1,670  |     | $      | 3,379 |   |

|                                           |   | Q2                  ended |   | YTD      |   |
|------------------------------------------------|--------|---------------------------|--------|----------|--------|
|                                           |   | 07/02/06                  |   | 07/02/06 |   |
|                                           |   |                      |   |     |   |
| Net                  income                    |   | $                         | 475    |     | $      | 1,233 |   |
| Depreciation                  and amortization |   |                      | 579    |     |   | 1,141 |   |
| Interest                  expense, net         |   |                      | 107    |     |   | 213 |   |
| Income                  taxes                  |   |                      | 330    |     |   | 760 |   |
|                                           |   |                      |   |     |   |   |   |
| EBITDA                                         |   | $                         | 1,491  |     | $      | 3,347 |   |

----

**COST-U-LESS,        INC.**

**CONDENSED        CONSOLIDATED STATEMENTS OF OPERATIONS**

**(in        thousands, except share and per share data)**

**(Unaudited)**

|                                                                 |   | **13                  Weeks Ended**  |      | **26                  Weeks Ended**  |   |
|----------------------------------------------------------------------|--------|--------------------------------------|-----------|--------------------------------------|--------|
|                                                                 |   | **July                  1,****2007** |      | **July                  2,****2006** |   | **July                  1,****2007** |   | **July                  2,****2006** |   |
|                                                                 |   |                                 |      |                                 |   |   |   |   |   |
| Net                  sales                                      |   | $                                    | 55,343    |                                 | $      | 53,568 |   | $ | 110,971 |   | $ | 108,260 |   |
| Merchandise                  costs                              |   |                                 | 44,604    |                                 |   | 43,515 |   |   | 89,620 |   |   | 88,008 |   |
| Gross                  profit                                   |   |                                 | 10,739    |                                 |   | 10,053 |   |   | 21,351 |   |   | 20,252 |   |
|                                                                 |   |                                 |      |                                 |   |   |   |   |   |   |   |   |   |
| Operating                  expenses:                                 |   |                                 |      |                                 |   |   |   |   |   |   |   |   |   |
| Store                                                           |   |                                 | 7,743     |                                 |   | 7,319 |   |   | 15,259 |   |   | 14,535 |   |
| General                  and administrative                     |   |                                 | 1,833     |                                 |   | 1,680 |   |   | 3,776 |   |   | 3,343 |   |
| Store                  openings                                 |   |                                 | 159       |                                 |   | 139 |   |   | 272 |   |   | 153 |   |
| Total                  operating expenses                       |   |                                 | 9,735     |                                 |   | 9,138 |   |   | 19,307 |   |   | 18,031 |   |
|                                                                 |   |                                 |      |                                 |   |   |   |   |   |   |   |   |   |
| Operating                  income                               |   |                                 | 1,004     |                                 |   | 915 |   |   | 2,044 |   |   | 2,221 |   |
|                                                                 |   |                                 |      |                                 |   |   |   |   |   |   |   |   |   |
| Other                  income (expense):                             |   |                                 |      |                                 |   |   |   |   |   |   |   |   |   |
| Interest                  income (expense), net                 |   |                                 | 41        |                                 |   | (107 | ) |   | (5 | ) |   | (213 | ) |
| Other                                                           |   |                                 | 8         |                                 |   | (3 | ) |   | 6 |   |   | (15 | ) |
| Income                  before income taxes                     |   |                                 | 1,053     |                                 |   | 805 |   |   | 2,045 |   |   | 1,993 |   |
|                                                                 |   |                                 |      |                                 |   |   |   |   |   |   |   |   |   |
| Income                  tax provision                           |   |                                 | 370       |                                 |   | 330 |   |   | 715 |   |   | 760 |   |
| Net                  income                                     |   | $                                    | 683       |                                 | $      | 475 |   | $ | 1,330 |   | $ | 1,233 |   |
|                                                                 |   |                                 |      |                                 |   |   |   |   |   |   |   |   |   |
| Earnings                  per common share:                          |   |                                 |      |                                 |   |   |   |   |   |   |   |   |   |
| Basic                                                           |   | $                                    | 0.17      |                                 | $      | 0.12 |   | $ | 0.33 |   | $ | 0.31 |   |
| Diluted                                                         |   | $                                    | 0.16      |                                 | $      | 0.11 |   | $ | 0.31 |   | $ | 0.29 |   |
|                                                                 |   |                                 |      |                                 |   |   |   |   |   |   |   |   |   |
| Weighted                  average common shares outstanding, basic   |   |                                 | 4,038,363 |                                 |   | 4,021,173 |   |   | 4,033,824 |   |   | 4,009,506 |   |
| Weighted                  average common shares outstanding, diluted |   |                                 | 4,280,795 |                                 |   | 4,244,038 |   |   | 4,271,278 |   |   | 4,232,807 |   |

----

**COST-U-LESS,        INC.**

**CONDENSED        CONSOLIDATED BALANCE SHEETS**

**(in        thousands)**

**(Unaudited)**

|                                                              |   | **July                  1,****2007** |    | **December                  31,****2006** |   |
|-------------------------------------------------------------------|--------|--------------------------------------|---------|-------------------------------------------|--------|
| **ASSETS**                                                        |   |                                 |    |                                      |   |
|                                                              |   |                                 |    |                                      |   |   |   |
|                                                              |   |                                 |    |                                      |   |   |   |
| Current                  assets:                                  |   |                                 |    |                                      |   |   |   |
| Cash                  and cash equivalents                   |   | $                                    | 6,130   |                                      | $      | 7,420 |   |
| Accounts                  receivable, net                    |   |                                 | 969     |                                      |   | 1,133 |   |
| Inventories                                                  |   |                                 | 25,287  |                                      |   | 22,829 |   |
| Other                  current assets                        |   |                                 | 2,225   |                                      |   | 1,049 |   |
| Total                  current assets                        |   |                                 | 34,611  |                                      |   | 32,431 |   |
|                                                              |   |                                 |    |                                      |   |   |   |
| Buildings                  and equipment, net                |   |                                 | 20,016  |                                      |   | 20,881 |   |
| Deposits                  and other assets                   |   |                                 | 726     |                                      |   | 723 |   |
|                                                              |   |                                 |    |                                      |   |   |   |
| Total                  assets                                |   | $                                    | 55,353  |                                      | $      | 54,035 |   |
|                                                              |   |                                 |    |                                      |   |   |   |
|                                                              |   |                                 |    |                                      |   |   |   |
| **LIABILITIES                  AND SHAREHOLDERS’ EQUITY**   |   |                                 |    |                                      |   |   |   |
|                                                              |   |                                 |    |                                      |   |   |   |
| Current                  liabilities:                             |   |                                 |    |                                      |   |   |   |
| Accounts                  payable                            |   | $                                    | 15,219  |                                      | $      | 15,831 |   |
| Accrued                  expenses and other liabilities      |   |                                 | 6,257   |                                      |   | 5,706 |   |
| Current                  portion of long-term debt           |   |                                 | 267     |                                      |   | 267 |   |
| Current                  portion of capital lease            |   |                                 | 322     |                                      |   | 311 |   |
| Total                  current liabilities                   |   |                                 | 22,065  |                                      |   | 22,115 |   |
|                                                              |   |                                 |    |                                      |   |   |   |
| Other                  long-term liabilities                 |   |                                 | 1,731   |                                      |   | 1,576 |   |
| Long-term                  debt, less current portion        |   |                                 | 1,611   |                                      |   | 1,744 |   |
| Capital                  lease, less current portion         |   |                                 | 1,440   |                                      |   | 1,604 |   |
| Total                  liabilities                           |   |                                 | 26,847  |                                      |   | 27,039 |   |
|                                                              |   |                                 |    |                                      |   |   |   |
| Commitments                  and contingencies                    |   |                                 | — |                                      |   | — |   |
|                                                              |   |                                 |    |                                      |   |   |   |
| Shareholders’                  equity                  |   |                                 | 28,506  |                                      |   | 26,996 |   |
|                                                              |   |                                 |    |                                      |   |   |   |
| Total                  liabilities and shareholders’ equity |   | $                                    | 55,353  |                                      | $      | 54,035 |   |