Knightspoint Group Discloses 12.8% Ownership of Sharper Image; Proposes Turnaround Plan and Seven Nominees to Replace Board

Business Wire, March 9, 2006

NEW YORK -- The Knightspoint Group today disclosed that it beneficially owns approximately 1.9 million common shares, or 12.8% of the outstanding common shares, of Sharper Image Corporation (NASDAQ: SHRP) and has delivered written notice to the Company of its intent to nominate seven directors to replace the existing Board at the 2006 Annual Meeting. The Knightspoint Group ("Knightspoint") consists of Knightspoint Partners LLC, Ramius Capital Group, LLC and various other entities and individuals detailed in its 13-D filing.

Knightspoint proposes to implement an aggressive operational and cultural turnaround plan to materially improve the Company's financial performance and future prospects. Knightspoint believes Sharper Image has been slow to respond to changing market dynamics, has inefficiently deployed financial and other resources, and has pursued a flawed new product development and merchandising strategy that has led to undue reliance on a narrow set of key product categories.

Sharper Image's diluted EPS fell from $1.51 for the year ended January 31, 2004 to a loss of $0.44 in the 12 months ending October 31, 2005, with far larger losses likely to be reported for the year ended January 31, 2006, in light of large declines in total sales and same store sales in the fourth quarter. This unacceptable performance accelerated last month with total February sales and same store sales plummeting 33% and 31%, respectively, versus the same period last year.

Director nominee Jerry W. Levin said: "Sharper Image is a great consumer brand, historically providing consumers with innovative, quality products. However, the Company's results have demonstrated that its strategy has stagnated. My experience has been in successfully restoring underperforming consumer brands to positions of growth and profitability. These brands have included most recently Sunbeam (R), Oster (R), Mr. Coffee (R), First Alert (R) and Coleman (R) and past successes include Revlon (R) and Haagen Dazs (R). I and the other Knightspoint director nominees believe that by focusing on consumer wants and needs and implementing an active and disciplined new product process as well as a sophisticated consumer communications strategy, Sharper Image can greatly improve its performance and return to being a profitable growth company."

Mr. Levin has agreed to assume one or more of the roles of lead outside director, Chairman, and/or interim Chief Executive Officer if the Knightspoint Board slate is elected and a mutually acceptable agreement with the Company is reached. Any future compensation arrangement between Mr. Levin and the Company would be negotiated solely on an arms length basis between Mr. Levin and the Company.

Knightspoint's Board nominees intend to refocus the Company's strategy by:

--Creating a consumer-focused product development process to meet the specific needs of various lifestyle and demographic groups

--Formulating new merchandising and marketing strategies

--Reducing and redirecting marketing spending

--Reducing overhead and tightly managing product costs

--Eliminating significant quantities of slow moving and obsolete inventory

--Focusing capital spending and deferring store expansion.

--Enhancing internal communications and broadening decision-making authority

--Implementing new executive compensation policies that align the interests of the Board of Directors, executive management and employees with the interests of stockholders

Knightspoint's director nominees have outstanding operational and financial credentials, a track record of engineering similar turnarounds, and the judgment, experience, and energy needed to implement these measures. They are:

Michael Glazer      Mr. Glazer has been President of Team Neu since
                    August 2005. He was President and Chief Executive
                    Officer of KB Toys from 1996 to 2005. He was
                    previously President of the Bombay Company. He is
                    also a Director of Stage Stores, Inc. and
                    previously served as a Director of Brookstone and
                    Big Lots (formerly Consolidated Stores).

David Glew          Mr. Glew is a consultant to Sony Music--Epic
                    Records. From 1988 to 2003, he was President and
                    Chairman of Epic Records--Sony Music.

Michael S. Koeneke  Mr. Koeneke is a Managing Member and co-founder of
                    Knightspoint Partners LLC. From 1997 through 2002,
                    Mr. Koeneke was co-head and then Chairman of
                    Global Mergers and Acquisitions at Merrill Lynch &
                    Co., Inc. Mr. Koeneke is a director of CPI Corp.

Jerry W. Levin      Mr. Levin is Chairman and CEO of JW Levin Partners
                    LLC, a management and investment firm. From 1998
                    to 2005, he was Chairman and CEO of American
                    Household, Inc. (formerly Sunbeam Corporation). He
                    was previously Chairman and CEO of Revlon, Inc.
                    and held senior executive positions with The
                    Pillsbury Company, where he led several operating
                    units, including Haagen-Dazs and restaurants
                    including Burger King, Steak & Ale, Bennigan's,
                    Chart House, and Godfather's Pizza. He is a
                    director of US Bancorp, Ecolab, Inc., and Wendy's
                    International Inc.

David M. Meyer      Mr. Meyer is a Managing Member of Knightspoint
                    Partners LLC. Since 2004, he has been Chairman of
                    the Board of Directors of CPI Corp. and in
                    2004-2005 was a member of the interim Office of
                    the Chief Executive. From 1995 to 2002, Mr. Meyer
                    served in various capacities at Credit Suisse
                    First Boston including as a director in the
                    Mergers and Acquisitions and Global Industrial and
                    Services Groups in the firm's London office.

Peter M. Weil       Mr. Weil is Partner of Lighthouse Retail Group
                    LLC, a consulting firm specializing in improving
                    operating and positioning strategies for
                    retailers. From 1996 to 2004, he was Senior Vice
                    President/Director of Retail Forward (formerly
                    PriceWaterhouseCoopers' retail consulting group).
                    He previously held Senior Vice President positions
                    with Macy's, Marshalls and J Baker/Morse Shoe in
                    merchandising and supply chain management.

Andrea Weiss        Ms. Weiss has been President and CEO of Retail
                    Consulting, LLC, a retail consulting firm, since
                    2002. She was previously President of dELiA*s
                    Corp., a multi-channel retailer focused on teenage
                    girls and young women. From 1998 to 2001, she was
                    Executive Vice President and Chief Stores Officer
                    of Limited Brands, Inc., the parent company of
                    Victoria's Secret, Limited, Express, and Bath &
                    Body Works. She is a Director of CBRL Group, Inc.,
                    eDiets.com, Inc and Tabi International and
                    previously served as a Director of Brookstone,
                    Inc. and dELiA*s Corp.