Press Release: September 6, 2000

WR Hambrecht + Co Initiates Coverage of Williams-Sonoma (WSM) with a Buy Rating and a Price Target of $48

Powerful brand key opportunity for future expansion

San Francisco, CA, September 6, 2000—WR Hambrecht + Co today initiated research coverage on Williams-Sonoma, Inc. (WSM) with a buy rating and a price target of $48. WR Hambrecht + Co’s Retail/Consumer analyst Kristine Koerber cited Williams-Sonoma’s highly leverageable brand, multi-channel distribution, including a profitable Internet channel, proprietary merchandise offerings, and growing customer database as key reasons for the rating. WR Hambrecht + Co offers all its research reports free and real-time at www.wrhambrecht.com.

“We believe the Company has uniquely positioned the Williams-Sonoma, Inc. brands to be a springboard for future expansion. The Company’s ‘3 x 3’ brand-by-channel strategy provides a seamless approach to building customer relationships. The Company’s business continues to strengthen as a result of strong economic demand across the home furnishings sector. Williams-Sonoma, Inc.’s strong customer focus and proven merchandising strategies have enabled it to carve out a distinct market position,” Koerber said.

Koerber projects Williams-Sonoma will continue to grow revenues and earnings at a 20-25 percent annual pace and projects total revenues will reach $1.8 billion in 2000 and $2.2 billion in 2001, up from $1.4 billion in 1999.

Williams-Sonoma, Inc. is one of the country’s largest retailers of specialty products for the home.