Bed Bath & Beyond (BBBY)

(FIFTY-THREE WEEKS) ENDED MARCH 3, 2007

·                  Earnings per Share of $.72 for Q4; $2.09 for Full Year, Including Q4 Non-Recurring $.07 Charge ($.79 for Q4; $2.15 for Full Year, Excluding Non-Recurring Charge)

·     Quarterly Comparable Store Sales Increase by 5.2%

·     15th Consecutive Year of Record Earnings Since 1992 IPO

UNION, New Jersey, April 11, 2007 — Bed Bath & Beyond Inc. today reported net earnings of $.72 per diluted share, including the previously announced fourth quarter non-recurring charge relating to Internal Revenue Code Section 409A, which resulted in approximately $.07 per diluted share, in the fiscal fourth quarter (fourteen weeks) ended March 3, 2007.  Excluding the non-recurring charge, net earnings were $.79 per diluted share in the fiscal fourth quarter of 2006, an increase of approximately 17.9% from the $.67 per diluted share earned in the fiscal fourth quarter of 2005 (thirteen weeks).  Net sales for the fiscal fourth quarter (fourteen weeks) ended March 3, 2007 were approximately $1.995 billion, an increase of approximately 18.4% from the fiscal fourth quarter (thirteen weeks) of 2005.  Comparable store sales for the fiscal fourth quarter of 2006 increased by approximately 5.2%, on top of an increase of approximately 6.3% in last year’s fiscal fourth quarter.

Net earnings for the fiscal year (fifty-three weeks) ended March 3, 2007 were $2.09 per diluted share, including the non-recurring charge relating to Internal Revenue Code Section 409A of approximately $.07 per diluted share.  Excluding the non-recurring charge, net earnings were $2.15 per diluted share for fiscal 2006, exceeding fiscal 2005 (fifty-two weeks) net earnings of $1.92 per diluted share by approximately 12.0%.  Fiscal 2006 was the 15th consecutive year of record earnings since the Company’s 1992 IPO.  Net sales for fiscal 2006 (fifty-three weeks) were approximately $6.617 billion, an increase of approximately 13.9% from the prior fiscal year (fifty-two weeks).  Comparable store sales for fiscal 2006 increased by approximately 4.9%, on top of an increase of approximately 4.6% in fiscal 2005.  Comparable store sales percentage increases are calculated based on an equivalent number of weeks for each quarter and annual period.

Effective December 20, 2006, the Board of Directors of Bed Bath & Beyond Inc. approved a $1 billion share repurchase program which authorized the Company to purchase shares of its common stock.  The Company intends to fund the program from present and expected future excess cash flows.  Through the end of fiscal 2006 (March 3, 2007), the Company repurchased approximately 7.5 million shares for an aggregate cost of approximately $300 million.

During the fiscal fourth quarter, the Company incurred a previously announced non-recurring charge primarily resulting from payments made to over 1,600 employees, excluding senior management, to protect them from certain potential adverse tax consequences arising pursuant to Internal Revenue Code Section 409A. This non-recurring pre-tax charge in the fiscal fourth quarter of 2006 was approximately $30 million, equivalent to approximately $.07 per diluted share.

As of March 3, 2007, the Company operated a total of 888 stores, including 815 Bed Bath & Beyond stores (20 of which were opened during the fiscal fourth quarter, including the first store in the state of Alaska), in 48 states, the District of Columbia and Puerto Rico.  In addition, as of March 3, 2007, Christmas Tree Shops, Inc. operated 34 stores in 8 states and Harmon Stores, Inc. operated 39 stores in 3 states (one of which was opened during the fiscal fourth quarter).  Consolidated store space as of March 3, 2007 was approximately 27.8 million square feet.

On March 22, 2007, subsequent to the end of fiscal 2006, Bed Bath & Beyond Inc. completed and announced the acquisition of buybuy BABY, a retailer of infant and toddler merchandise.  Since this acquisition occurred after the conclusion of fiscal 2006, it had no effect on Bed Bath & Beyond’s fiscal 2006 results.

Since the beginning of the current fiscal year on March 4, 2007, 1 additional Bed Bath & Beyond store has been opened, and 2 existing stores were relocated.  There are presently 816 Bed Bath & Beyond stores in operation, in 48 states, the District of Columbia and Puerto Rico.  In addition, a new Christmas Tree Shops store was opened in March.

As previously disclosed, the Company continues to cooperate with the informal inquiry of the Securities and Exchange Commission and the inquiry of the United States Attorney’s office for the District of New Jersey regarding the Company’s stock option grant practices.

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