Pacific Sunwear of California, Inc. reported that total sales for the five weeks of December of fiscal 2003 were
$187.5 million, an increase of 22.6% over total sales of $152.9 million for the five weeks of December of fiscal 2002. Company same store sales increased 12.0% for the comparable five-week period ended January 3, 2004 with PacSun same store sales up 11.9% and d.e.m.o. same store sales up 12.7%.

The 12.0% same store sales increase in December for the Company was achieved on top of a 16.1% same store sales increase for the same period last year.

Based on November and December sales results, the Company is raising its fourth quarter earnings per share outlook to $.41 versus its previous guidance of $.37. This outlook assumes a January same store sales increase of 5-10%.

“We were very pleased with our holiday business and the
continuation of strong sales trends. We were comp positive in guys and
girls apparel, footwear and accessories in both PacSun and d.e.m.o.
and in all geographic regions of the US and Puerto Rico. The strong
trends in footwear, accessories, girls and guys denim and t-shirts
bodes very well as we enter 2004,” stated Greg Weaver, Chairman and
Chief Executive Officer.

Total Internet sales for Pacsun.com for the five weeks of December
were $3.1 million, which was an 103% increase in sales as compared to
the same period last year.

The Company achieved a 38% total increase in gift card sales for
the period between Thanksgiving and Christmas and a 28% comparable
store increase in gift card sales during the same period.

The Company also announced today that it now expects to open 110
net new stores in fiscal 2004 versus 100 that were previously
announced. The ten additional new stores will be d.e.m.o. stores. The
110 net new stores are expected to include 40 d.e.m.o. stores, 65
PacSun stores and 5 PacSun Outlet stores. The Company also expects to
complete approximately 35 relocations/expansions of existing stores to
larger locations in fiscal 2004 versus its previous plan of 25, of
which approximately 12 will be for stores with leases expiring within
two years. The Company now expects square footage growth for fiscal
2004 to be approximately 15% versus its previous guidance of 13%.

The Company is now forecasting that its 2003 fiscal year-end cash
and invested cash balances will exceed $140 million which would
represent a net increase in cash for fiscal 2003 of greater than $100
million.

Total sales for the first eleven months of fiscal 2003
(forty-eight weeks) were $985.8 million, an increase of 22.8% over
total sales of $802.7 million for the first eleven months of fiscal
2002 (forty-eight weeks). Company same store sales increased 13.2% for
the first eleven months of fiscal 2003 with PacSun same store sales up
12.2% and d.e.m.o. same store sales up 21.7%.