PriceSmart (PSMT) 8-K Results of Operations and Financial Condition

Exhibit 99.1

PriceSmart Announces Third Quarter Results of Operations;

San Diego, California (July 2, 2007) – PriceSmart, Inc. (NASDAQ: PSMT) today announced its results of operations for the third quarter of fiscal year 2007, which ended on May 31, 2007.

For the third quarter of fiscal year 2007, net warehouse club sales increased 21.4% to $219.5 million from $180.8 million in the third quarter of fiscal year 2006. Total revenues for the third quarter increased 21.5% to $224.3 million, compared to $184.6 million in the prior year. The Company had 23 warehouse clubs in operation as of May 31, 2007 and 2006.

The Company recorded operating income in the third quarter of $9.0 million, compared to operating income of $4.6 million in the third quarter of the prior year. Net income was $5.2 million, or $0.18 per diluted share, in the third quarter of fiscal 2007 compared to $3.2 million, or $0.11 per diluted share, in the third quarter of fiscal 2006.

For the first nine months of fiscal 2007, net warehouse club sales increased 20.0% to $644.3 million from $536.9 million in the first nine months of fiscal 2006. Total revenues for the first nine months of the fiscal year increased 20.2% to $658.7 million from $547.9 million in the same period of the prior year. For the first nine months of fiscal 2007, the Company recorded operating income of $25.9 million, and net income of $15.8 million, or $0.54 per diluted share. During the same nine month period in fiscal 2006, the Company recorded operating income of $13.8 million, and net income of $8.5 million, or $0.31 per diluted share.

About PriceSmart

PriceSmart, headquartered in San Diego, owns and operates U.S.-style membership shopping warehouse clubs in Central America and the Caribbean, selling high quality merchandise at low prices to PriceSmart members. PriceSmart now operates 23 warehouse clubs in 11 countries and one U.S. territory (four each in Panama and Costa Rica; two each in Dominican Republic, El Salvador, Guatemala, Honduras, and Trinidad; and one each in Aruba, Barbados, Jamaica, Nicaragua and the United States Virgin Islands).

This press release may contain forward-looking statements concerning the Company’s anticipated future revenues and earnings, adequacy of future cash flow and related matters. These forward-looking statements include, but are not limited to, statements containing the words “expect,” “believe,” “will,” “may,” “should,” “project,” “estimate,” “scheduled,” and like expressions, and the negative thereof. These statements are subject to risks and uncertainties that could cause actual results to differ materially, including the following risks: the Company had substantial net losses in fiscal 2003, 2004 and 2005, and may not be able to sustain the profitability it achieved in fiscal 2006 in future periods; the Company’s financial performance is dependent on international operations which exposes the Company to various risks; any failure by the Company to manage its widely dispersed operations could adversely affect the Company’s business; although the Company has taken and continues to take steps to improve significantly its internal controls, there may be material weaknesses or significant deficiencies that the Company has not yet identified; the Company faces significant competition; the Company faces difficulties in the shipment of and inherent risks in the importation of merchandise to its warehouse clubs; the Company is exposed to weather and other risks associated with international operations; declines in the economies of the countries in which the Company operates its warehouse clubs would harm its business; a few of the Company’s

stockholders have control over the Company’s voting stock, which will make it difficult to complete some corporate transactions without their support and may prevent a change in control; the loss of key personnel could harm the Company’s business; the Company is subject to volatility in foreign currency exchange; the Company faces the risk of exposure to product liability claims, a product recall and adverse publicity; a determination that the Company’s long-lived or intangible assets have been impaired could adversely affect the Company’s future results of operations and financial position; and the Company faces increased costs and compliance risks associated with compliance with Section 404 of the Sarbanes-Oxley Act of 2002; as well as the other risks detailed in the Company’s SEC reports, including the Company’s Form 10-K filed pursuant to the Securities Exchange Act of 1934 on November 13, 2006, as amended by Amendment No. 1 on Form 10-K/A filed on December 19, 2006. We assume no obligation and expressly disclaim any duty to update any forward-looking statement to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events. Certain prior period amounts may have been reclassified to conform to the current period presentation.

For further information, please contact Robert E. Price, Chief Executive Officer (858) 551-2336; or John M. Heffner, Executive Vice President and Chief Financial Officer (858) 404-8826.

PRICESMART, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)

	Three Months Ended May 31,						Nine Months Ended May 31,
	2007			2006			2007			2006
Revenues:
Sales:
Net warehouse club	$	219,515		$	180,781		$	644,337		$	536,856
Export		190			9			456			20
Membership income		3,559			2,961			10,221			8,423
Other income		1,048			886			3,652			2,570
Total revenues		224,312			184,637			658,666			547,869
Operating expenses:
Cost of goods sold:
Net warehouse club		185,762			153,619			547,220			458,309
Export		172			7			432			23
Selling, general and administrative:
Warehouse club operations		22,252			20,068			64,294			57,556
General and administrative		7,024			6,312			19,869			17,691
Preopening expenses		1			—			256			336
Asset impairment and closure costs		68			59			731			172
Total operating expenses		215,279			180,065			632,802			534,087
Operating income		9,033			4,572			25,864			13,782
Other income (expense):
Interest income		395			624			1,238			1,348
Interest expense		(129	)		(708	)		(574	)		(2,258	)
Other income (expense), net		(100	)		(71	)		(122	)		(46	)
Total other income (expense)		166			(155	)		542			(956	)
Income from continuing operations before provision for income taxes, loss of unconsolidated affiliate and minority interest		9,199			4,417			26,406			12,826
Provision for income taxes		(3,819	)		(1,192	)		(10,011	)		(4,686	)
Loss of unconsolidated affiliate		(99	)		(12	)		(282	)		(56	)
Minority interest		(75	)		(88	)		(337	)		(261	)
Income from continuing operations		5,206			3,125			15,776			7,823
Discontinued operations, net of tax		25			103			71			650
Net income	$	5,231		$	3,228		$	15,847		$	8,473
Basic income per share:
Continuing operations	$	0.18		$	0.11		$	0.55		$	0.29
Discontinued operations, net of tax		—			—			—			0.02
Net income	$	0.18		$	0.11		$	0.55		$	0.31
Diluted income per share:
Continuing operations	$	0.18		$	0.11		$	0.54		$	0.29
Discontinued operations, net of tax		—			—			—			0.02
Net income	$	0.18		$	0.11		$	0.54		$	0.31
Shares used in per share computations:
Basic		28,549			28,373			28,485			26,970
Diluted		29,250			29,067			29,206			27,412
Dividends per share	$	0.00		$	0.00		$	0.32		$	0.00

PRICESMART, INC.

CONSOLIDATED BALANCE SHEETS

(AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)

	May 31, 2007			August 31, 2006
	(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	11,554		$	39,995
Short-term restricted cash		7,945			7,651
Receivables, net of allowance for doubtful accounts of $205 and $191, respectively		4,476			3,599
Merchandise inventories		90,211			77,432
Prepaid expenses and other current assets		11,747			8,985
Assets of discontinued operations		1,661			1,594
Total current assets		127,594			139,256
Long-term restricted cash		407			531
Notes receivable		2,231			—
Property and equipment, net		173,569			162,029
Goodwill		31,727			31,870
Deferred tax asset		19,548			20,183
Other assets		3,934			1,903
Investment in unconsolidated affiliate		2,999			3,271
Total Assets	$	362,009		$	359,043
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Short-term borrowings	$	2,812		$	158
Accounts payable		67,736			65,520
Accounts payable to unconsolidated affiliate		—			381
Accrued salaries and benefits		6,354			5,765
Deferred membership income		6,605			5,780
Income taxes payable		4,346			4,098
Other accrued expenses		16,138			15,194
Dividend payable		4,665			—
Long-term debt, current portion		1,000			5,417
Liabilities of discontinued operations		141			130
Total current liabilities		109,797			102,443
Deferred tax liability		1,321			1,101
Deferred rent		1,843			1,730
Accrued closure costs		3,112			3,226
Long-term debt, net of current portion		37			13,252
Total liabilities		116,110			121,752
Minority interest		2,999			2,672
Commitments and contingencies
Stockholders’ Equity:
Common stock, $.0001 par value, 45,000,000 shares authorized; 29,638,440 and 29,404,457 shares issued and 29,162,216 and 28,966,294 shares outstanding (net of treasury shares), respectively		3			3
Additional paid-in capital		366,004			364,132
Tax benefit from stock-based compensation		3,935			3,509
Accumulated other comprehensive loss		(13,810	)		(13,883	)
Accumulated deficit		(103,157	)		(109,676	)
Less: treasury stock at cost; 476,224 shares and 438,163 shares held, respectively		(10,075	)		(9,466	)
Total stockholders’ equity		242,900			234,619
Total Liabilities and Stockholders’ Equity	$	362,009		$	359,043

Note: The consolidated balance sheet at August 31, 2006 has been derived from the audited consolidated financial statements.