org, and weeklyreader. Lyons , president
of the U.weeklyreader.04 per diluted share,
for the prior-year period. We think he is a great fit for our company and our management
team, and we look forward to benefiting from his experience and leadership.

mariah rattan

All sixteen magazines have won awards for excellence in
educational journalism .7
million from $82.5% increase for the first quarter of fiscal 2004. Lewis
brings to Kirkland 's a significant amount of merchandising experience in the
home furnishings sector. EDT online at the Company's website,
http://www.kirklands.

tradicione originated

Entry
forms will also be available at Pier 1 Kids locations and at Pier 1 Kids.12 to $0.
The Company now expects to report earnings for fiscal 2005 in a range of
$0. We have been able to establish some
sales momentum with recent promotions , but as might be expected these events
have led to some pressure on product margins. The
webcast replay will follow shortly after the call and will continue until June
2, 2005.

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45 to $0.
The Company expects to open 55 to 60 new stores and close 30 stores, or a net
increase of 25 to 30 stores, in fiscal 2005.
EDT to discuss the first quarter earnings release and other Company
developments , including the outlook for fiscal 2005. More information can be found at http://www.

wicker craftsmen

, Kirkland's, Inc .

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S.S. Funds from the sale of cards support UNICEF programs
that provide lifesaving medicines, vaccines , nutritious foods, primary
education, clean water and sanitation and emergency relief for millions of
children and women in 158 countries and territories.
On the positive side, sales in non-mall stores continue to justify our real
estate strategy, and we also experienced meaningful efficiencies from our
improved logistics operation."

Second Quarter and Fiscal 2005 Outlook
The Company issued guidance for the second quarter ending July 30, 2005,
of a net loss of $0.

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Two winners will be chosen from thousands of
entries and their winning artwork will be reproduced as official UNICEF
greeting cards sold nationwide to benefit children around the world.
Children ages 13 and under are eligible to enter the contest, which was
scheduled to coincide with the start of National Art Month (March 1st). With a background
that includes two stints with Garden Ridge Corporation , most recently as
Chairman and CEO, and a long career at Sears, Roebuck + Company, Mr. Mr. A replay of the conference
call will be available until May 26, 2005, by dialing (719) 457-0820 and
entering the passcode, 6377418.corporate-ir. The Company's stores also offer an extensive assortment of holiday
merchandise, as well as items carried throughout the year suitable for giving
as gifts. Those and other
risks are more fully described in Kirkland's filings with the Securities and
Exchange Commission, including the Company's Annual Report on Form 10-K filed
on April 14, 2005.

handforged mariah

Entry
forms are available online at pier1. Pier 1 Imports
stores and online at http://www. Lewis as
President and Chief Executive Officer, effective May 31. Looking ahead to the second quarter, we see no
immediate improvement in traffic trends.

mesquite sanchez

com.

Comparable
store sales for the first quarter of fiscal 2005 decreased 10.

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ABOUT UNICEF
Founded in 1946, UNICEF helps save, protect and improve the lives of
children around the world through immunization, education, health care,
nutrition , clean water and sanitation.
(Nasdaq: KIRK) today reported financial results for the 13-week period ended
April 30, 2005. Lewis as President and Chief Executive Officer
On May 16, 2005, the Company announced that it had hired Jack E.

originated decor

Children Are Invited To Create UNICEF Greeting Cards for the 2006 Holiday Season

Pier
1 started selling UNICEF greeting cards in 1985 and is now the world's largest
retailer of UNICEF greeting cards, having raised over $22 million for UNICEF. "The real grand-prize at the end of this contest
is that it helps provide for and protect the lives of children around the
world."
For Pier 1 store locations or for further contest information , please call
1-800-245-4595.4% compared with
a 1.16 per diluted share, compared with a net loss of
$0.net/playerlink.04
======== ========

Shares used to calculate earnings per share:
Basic 19,290 19,181
======== ========
Diluted 19,290 19,529
======== ========

KIRKLAND'S, INC.

dolores sanchez

"
This year's contest marks 21 years of a partnership between the specialty
home furnishings retailer and the international children's organization.
The 2005 grand-prize winners were Adam Carr (age 6) from Tampa, Florida
and Anna Hall (age 12), from Boulder, Colorado . In everything it does, the most
disadvantaged children and the countries in greatest need have priority .

Kirkland's Reports First Quarter Results

Net sales are expected to be
$85 million to $88 million , with a comparable store sales decrease of 7% to
10% compared with net sales of $84.55 per diluted share, net sales of approximately $425 million to
$435 million, and comparable store sales in a range of flat to a 3% decrease.kirklands.04
======== ========
Diluted $(0.

fuente cienega

"The annual greeting card contest is a great way for children to
participate in helping their global peers," said Charles J. is North America's largest specialty retailer of
imported decorative home furnishings and gifts with Pier 1 Imports(R) stores
in 49 states, Puerto Rico, Canada and Mexico; The Pier(R) stores in the United
Kingdom and Ireland; and Pier 1 Kids(R) stores. Weekly Reader(R) currently serves approximately nine
million students and 300,000 teachers nationwide.09 per diluted share, for the first quarter of
fiscal 2005 compared with net income of $765,000, or $0.7 million and a comparable store sales
decrease of 3. The number to call for
this interactive teleconference is (913) 981-5532. was founded in 1966 and is a leading specialty retailer
of home decor in the United States. Although originally focused in the
Southeast, the Company has grown beyond that region and currently operates 312
stores in 37 states.

Except for historical information contained herein, the statements in this
release are forward-looking and made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Kirkland's disclaims any obligation to update any such
factors or to publicly announce results of any revisions to any of the
forward-looking statements contained herein to reflect future events or
developments.

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pier1. Fund for UNICEF.7 million, or $0. Alderson added, "Jack is a well-known and
respected merchant in our industry with a proven record of sales and earnings
performance. Forward-looking
statements involve known and unknown risks and uncertainties , which may cause
Kirkland's actual results to differ materially from forecasted results.09) $0.

mesas handforged

The grand-prize
winners also win a trip to New York for themselves and two family members,
where they will visit the United Nations and attend a Broadway play, among
other seasonal events.S.unicefusa .org/cards/ and at Weekly Reader's website
http://www.

ABOUT PIER 1 IMPORTS
Pier 1 Imports, Inc.
Pier 1 Kids has now expanded their product line to include exclusive new
furniture groups made from wicker, wood, metal, and other materials, as well
as specialty products such as window treatments, rugs, framed art, and toys. The Company reported a
net loss of $1.

fuente stamped

If hearing impaired, please call 1-800-754-3251.com. Acquired by
Pier 1 Imports in 2001, Pier 1 Kids, previously Cargokids, was best known for
its sturdy wooden crate-style children's beds, bookshelves, chairs and desks.
Net sales for the 13 weeks ended April 30, 2005, increased 2."

Hiring of Jack E.14 per diluted share in the prior-year period.
Mr.09) $0.

rattan wicker

"Holiday Happiness " Is This Year's Greeting Card Contest Theme

NEW YORK, Beginning today, children in the U .com, unicefusa. The children's artwork will be judged on
artistic quality and the creative interpretation of the theme "Holiday
Happiness. Greeting
cards are also available on the U.

ABOUT PIER 1 KIDS
Pier 1 Kids currently operates 45 store locations in Alabama, Delaware,
Florida , Georgia, Maryland, North Carolina, Texas and Virginia.6 million for the 13 weeks ended May 1, 2004 . Alderson, Kirkland's Chairman, said, "Consistent with the first
quarter sales announced earlier this month, our results reflect the impact
from a sluggish home furnishings sector and weak traffic trends in our stores.4% in the prior-year period. The Company's stores present a broad selection of
distinctive merchandise, including framed art, mirrors, candles, lamps,
picture frames, accent rugs, garden accessories and artificial floral
products. Those
risks and uncertainties include , among other things, the competitive
environment in the home decor industry in general and in Kirkland 's specific
market areas, inflation, product availability and growth opportunities,
seasonal fluctuations , and economic conditions in general.

chandeliers armoires

com;
or by calling Pier 1's Customer Relations Department at 1-800-245-4595.
The card contest started in 1991 as a way to help raise awareness among
U .
Two grand-prize winners will be chosen and their designs will be reprinted
as official UNICEF cards available nationwide at all U. UNICEF is non-partisan and its
cooperation is free of discrimination . For
more information, please visit http://www.com.

KIRKLAND 'S, INC.

cienega assembled

S.
All entries must be hand-drawn and received by Pier 1 Imports' Corporate
Headquarters by April 11, 2006. Created
in 1902, Weekly Reader(R) publishes 16 magazines and a variety of other
supplemental products that reinforce curriculum, help teachers meet standards,
and engage students . JACKSON, Tenn.5% to $84.

Kirkland's will also host a live broadcast of its conference call on May
19, 2005, 10:00 a.

Southwestern design furniture from manufacturers direct or retail outlets providing pricing and an Internet ordering process.

wrought assembled

In 2004, Weekly Reader, a leader in educational publishing, became a
contest sponsor as a way to encourage their 11 million readers - predominantly
teachers, parents and children - to participate in the greeting card contest.unicefusa. Alderson commented, "Our central objective for fiscal 2005 remains
producing a significant sales and earnings turnaround in the business."

Investor Conference Call and Web Simulcast
Kirkland's will conduct a conference call on May 19, 2005, at 10:00 a.m.com, as well as
http://phx.
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
(dollars in thousands)

April 30, January 29,
2005 2005
-------- --------
ASSETS

Current assets:
Cash and cash equivalents $4,362 $17,912
Inventories, net 48,381 37,073
Other current assets 10 ,753 9,667
-------- --------
Total current assets 63,496 64,652

Property and equipment , net 64,151 64,020
Other long-term assets 1,472 1,465
-------- ------- -

Total Assets $129,119 $130,137
======== ========

LIABILITIES AND SHAREHOLDERS ' EQUITY

Revolving line of credit $ -- $ --
Accounts payable 20,407 22,199
Other current liabilities 15,178 14,936
----- --- --------
Total current liabilities 35,585 37,135

Other long-term liabilities 29,235 27,882
-------- --------
Total liabilities 64,820 65,017
-------- ---- ----

Net shareholders' equity 64,299 65,120
-------- --------

Total Liabilities and Shareholders ' Equity $129,119 $130,137
======== ========

southwestern wrought

com, beginning September 2006.
Robert E.

aztec mexican

are being asked to submit creative drawings for the 2006 Pier 1/UNICEF/Weekly
Reader Greeting Card Contest.
One hundred percent of the proceeds from the sale of all UNICEF cards sold at
Pier 1 go to UNICEF. school children about UNICEF's important work for children around the
world.S. Carr designed a cheerful
snowman under colorful Christmas lights, with a boy hugging the snowman's
tummy; and Hall created a design featuring the bright letters P-E-A-C-E, with
each letter held up by a character from a different part of the world.

ABOUT WEEKLY READER
Weekly Reader Corporation is a leader in educational publishing.

chandeliers dolores

Fund for UNICEF web site,
http://www.

mesas wicker

org or call 1-800-4UNICEF.zhtml?c=131653+s=wm+e=1055901 .

Kirkland's, Inc.

rustic cienega

We
believe we are planning and implementing the correct strategies in
merchandising, store operations, logistics and real estate to achieve this
goal, but we still expect the impact from these initiatives to fall primarily
in the second half of the year. Our plan is to closely monitor
inventory levels and open-to-buy dollars during this quarter to ensure that we
have fresh assortments in our stores as we approach the second half of the
year.m.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(dollars in thousands, except per share amounts)

13 Weeks Ended
April 30, May 1,
2005 2004
-------- --------
(restated )

Net sales $84,715 $82,611
Cost of sales 57,980 56,277
-------- --------
Gross profit 26,735 26,334

Operating expenses:
Other operating expenses 26 ,160 22,367
Depreciation and amortization 3,424 2,581
Non-cash stock compensation charge -- 67
-------- --------
Operating income (2,849) 1,319

Interest expense:
Revolving line of credit 22 63
Amortization of debt issue costs 4 52
Interest income (79) (26)
Other income (59) (35)
-------- --------
Income before income taxes (2,737 ) 1,265
Income tax provision (1,081) 500
-------- --------
Net income (loss) $(1,656) $765
======== ========

Earnings (loss) per share:
Basic $(0.