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Restoration Hardware, Inc. Signs Lease for New Distribution Center

CORTE MADERA, Calif., Aug. 8 /PRNewswire-FirstCall/ -- Restoration Hardware, Inc. (Nasdaq: RSTO) today announced that it has signed a 15 year lease for a new distribution center in West Jefferson, Ohio. Construction is expected to begin in Fall 2007 with operations commencing in Summer 2008. The new facility will complement Restoration Hardware's existing distribution centers in Hayward and Tracy, California and Baltimore, Maryland, and will allow the Company to phase out of its current third party operations in Nashville, Tennessee.

The West Jefferson facility will be approximately 800,000 square feet and will be used primarily for fulfillment to the Company's East Coast retail stores and its non-furniture direct-to-customer business.

"This is a significant step in the planned transformation of our supply chain and infrastructure," said Ken Dunaj, Chief Operating Officer of Restoration Hardware. "Over the next three years, we'll be executing a sequenced plan to drive greater service and productivity in our supply chain and build a network that can support our long-term growth objectives. Earlier this year, we completed the retrofitting of our furniture DC's and consolidated our small package direct-to-customer operations. Over the balance of the year, we'll be phasing in a new warehouse management system and enhancing our sourcing and production management. Future initiatives include a new order management system and the redesign of our furniture delivery network."

Mr. Dunaj concluded, "After conducting a comprehensive search, we believe this is an ideal location for our next distribution center and look forward to working with the village of West Jefferson and the state of Ohio. Local, county and state officials responded enthusiastically to our plans, they have a thorough understanding of our business needs and will serve as an important resource as we expand our operations."

Restoration Hardware, Inc. is a specialty retailer of high quality home furnishings, bath fixtures and bathware, functional and decorative hardware, gifts and related merchandise that reflects the Company's classic and authentic American point of view. Restoration Hardware, Inc. sells its merchandise offering through its retail stores, catalog (800-762-1005) and online at http://www.restorationhardware.com. As of August 8, 2007, the Company operated 102 retail stores and eight outlet stores in 30 states, the District of Columbia and Canada.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This release contains forward-looking statements that involve known and unknown risks. Such forward-looking statements include, without limitation, statements concerning or relating to the expected date on which construction will commence and operations will commence for the new distribution center, statements relating to the expected phase out of certain third party operations in Nashville, Tennessee, statements relating to the Company's supply chain network plans and the Company's long-term goals, and other statements containing words such as "expects" and words of similar import or statements of management's opinion. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, including financial results, market performance or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause such differences include, but are not limited to, customer reactions to the Company's current and anticipated merchandising and marketing programs and strategies, timely introduction and customer acceptance of the Company's merchandise, positive customer reaction to the Company's catalog and Internet offerings, revised product mix, prototype stores and core businesses, timely and effective sourcing of the Company's merchandise from its foreign and domestic vendors and delivery of merchandise through its supply chain to its stores and customers, effective inventory and catalog management, actual achievement of cost savings and improvements to operating efficiencies, effective sales performance, in particular during the holiday selling season, the actual impact of key personnel of the Company on the development and execution of the Company's strategies, changes in investor perceptions of the Company, fluctuations in comparable store sales, limitations resulting from restrictive covenants in the Company's credit facility, changes in economic or business conditions in general, changes in political conditions in the United States and abroad in general, changes in product supply, changes in the competitive environment in which the Company operates, changes in the Company's management information needs, changes in customer needs and expectations, governmental actions and other factors detailed in the Company's filings with the Securities and Exchange Commission, including its recent filings on Forms 10-K, 10-Q and 8-K, including, but not limited to, those described in the Company's Form 10-Q for the quarter ended May 5, 2007, in Part I, Item 2 thereof ("Management's Discussion and Analysis of Financial Condition and Results of Operations"), in Part I, Item 4 thereof ("Controls and Procedures"), and in Part II, Item 1A thereof ("Risk Factors").

Contact: Chris Newman, SVP & CFO 415 945 3578

             Christine Greany, The Consumer Group 858 523 1732


SOURCE  Restoration Hardware, Inc.
    -0-                             08/08/2007
    /CONTACT:  Chris Newman, SVP & CFO of Restoration Hardware, Inc.,
+1-415-945-3578/
    /Web site:  http://www.restorationhardware.com /
    (RSTO)

CO:  Restoration Hardware, Inc.
ST:  California, Ohio
IN:  REA HOU
SU:  PDT

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3536 08/08/2007 16:05 EDT http://www.prnewswire.com