The Sharper Image to Resume Redemption of Gift Cards for Full Value

Business Wire, March 7, 2008

SAN FRANCISCO -- After a brief suspension, Sharper Image Corporation (Pink Sheets:SHRPQ) plans to immediately resume redemption of all its customers' Gift Cards, Reward Cards, Gift Certificates and Merchandise Certificates for their full value as follows after Bankruptcy Court approval.

All Gift Cards, etc., will be honored for their full value with two conditions - (1) they must be redeemed in full in one transaction; and (2) customers must purchase an item that costs double the value of the gift certificate or merchandise certificate. For example, if a customer holds a $25 Gift Certificate, the customer will get the full value of the $25 Gift Certificate as long as the customer purchases at least $50 worth of goods. Partial redemptions will not be honored at this time. This is a purely voluntary program. Customers who do not wish to redeem their cards on this basis can retain them for future use, as Sharper Image is working diligently to be able to honor the cards without condition in the future.

This updated policy will apply to all Gift Cards, Reward Cards, Gift Certificates and Merchandise Certificates issued prior to the Company's petition for protection under chapter 11 of the Bankruptcy Code (February 19, 2008).

"We have worked very hard to address the concerns of our customers, and to dispel rumors in the media that Sharper Image's gift cards are worthless. That is simply not true," said Robert Conway, Chief Executive Officer of The Sharper Image. He also said that Sharper Image "certainly appreciates our customers' continued support during this difficult period. While not a complete solution, it does provide immediate satisfaction to customers on a voluntary basis. We are extremely gratified that our Company will now be able to honor the full value of all pre-Chapter 11 Gift Cards, Reward Cards and Merchandise Certificates. I sincerely hope the vast majority of customers will feel this is a fair resolution to the difficult problem and we look forward to serving our customers well today and for many years to come."

About Sharper Image

The Sharper Image is a specialty retailer that is nationally and internationally renowned as a leading source of new, innovative, high-quality products that make life better and more enjoyable. The Company's principal selling channels include 184 Sharper Image specialty stores throughout the United States; the award-winning Sharper Image monthly catalog; and its primary Web site, www.sharperimage.com. The Company also has business-to-business sales teams for marketing its exclusive and proprietary products for corporate incentive and reward programs and wholesale to selected U.S. and international retailers.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the Company's current plans, expectations, estimates, and projections about the specialty retail industry and management's beliefs about the Company's future performance. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates" or variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties that are difficult to predict and which may cause the Company's actual results and performance to differ materially from those expressed or forecasted in any such forward-looking statements. Some of these risks and uncertainties are discussed in the Company's Annual Report on Form 10-K for the year ended January 31, 2007 under "Risk Factors". These risks include, among other factors, the success of its new business strategy, its ability to continue to find or develop and to offer attractive merchandise to customers, the market potential for products in design, the success of its advertising efforts, changes in business and economic conditions, risks associated with its retail store, catalog and Internet operations, and changes in the competitive environment in which it operates. Other risks that the Company faces include, but are not limited to, the following: (i) the ability of the Company to continue as a going concern; (ii) the Company's ability to obtain court approval with respect to motions in the Chapter 11 proceeding prosecuted by it from time to time; (iii) the ability of the Company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 case; (iv) risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, for the appointment of a Chapter 11 trustee or to convert the case to a Chapter 7 case; (v) the ability of the Company to obtain and maintain normal terms with vendors and service providers; (vi) the Company's ability to maintain contracts and leases that are critical to its operations; and (vii) the potential adverse impact of the Chapter 11 case on the Company's liquidity or results of operations. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements. However, readers should carefully review the statements set forth in the reports, which the Company files from time to time with the Securities and Exchange Commission, particularly its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K.