Exhibit 99.1

                      Pier 1 Imports, Inc. Clarifies Quotes
              Attributable to Chairman and CEO Marvin J. Girouard

    FORT WORTH, Texas--(BUSINESS WIRE)--Oct. 3, 2006--Pier 1 Imports,
Inc. (NYSE:PIR) would like to clarify quotes attributed to Chairman
and CEO, Marvin J. Girouard, in articles posted by the Fort Worth Star
Telegram on October 3, 2006. In those articles it was reported that
Pier 1 Imports, Inc. has been exploring a possible sale since May and
recently agreed to provide confidential financial data to a large
shareholder, who is considering a transaction. In the articles, Mr.
Girouard was quoted as saying that he predicted the chances are
"50-50" that the Company's Board will reach an agreement with a buyer
on a sale price. Mr. Girouard was also reported as saying that a deal
would likely happen quickly. He was quoted as saying that, "It would
be in weeks, not in months."

    Since May, Pier 1 has agreed to provide confidential financial
data to several entities for the purpose of permitting those entities
to consider a possible transaction with Pier 1, one of which was the
investor to which reference was made in the articles.

    To date, Pier 1 has received one preliminary indication of
interest, but the entity submitting that indication of interest
subsequently advised Pier 1 it would not continue further discussions
with Pier 1 regarding a possible transaction. Pier 1 has had no other
substantive discussions, to date, with any of the other entities
regarding a possible transaction. Pier 1, therefore, cannot predict
whether or when any of these remaining entities will propose a
possible transaction, or, if proposed, whether the terms, including
the proposed price, would be acceptable to Pier 1's Board of Directors
and its shareholders. Pier 1 makes no prediction whatsoever as to
when, if ever, Pier 1's Board will reach an agreement with respect to
a proposed transaction.

    Any forward-looking projections or statements made in this press
release should be considered in conjunction with the cautionary
statements contained in the Company's most recently filed report on
Form 10-Q. Management's expectations and assumptions regarding planned
store openings, financing of Company obligations from operations,
results from its new marketing, merchandising and store operations
strategies, and other future results are subject to risks,
uncertainties and other factors that could cause actual results to
differ materially from the anticipated results or other expectations
expressed in the forward-looking statements.

    Risks and uncertainties that may affect Company operations and
performance include, among others, the effects of terrorist attacks or
other acts of war, conflicts or war involving the United States or its
allies or trading partners, labor strikes, weather conditions or
natural disasters, volatility of fuel and utility costs, the general
strength of the economy and levels of consumer spending, consumer
confidence, the availability of new sites for expansion along with
sufficient labor to facilitate growth, the availability and proper
functioning of technology and communications systems supporting the
Company's key business processes, the ability of the Company to import
merchandise from foreign countries without significantly restrictive
tariffs, duties or quotas and the ability of the Company to source,
ship and deliver items from foreign countries to its U.S. distribution
centers at reasonable prices and rates and in a timely fashion. The
Company assumes no obligation to update or otherwise revise its
forward-looking statements even if experience or future changes make
it clear that any projected results expressed or implied will not be
realized.

    Pier 1 Imports, Inc. 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 and
Pier 1 kids(R) stores in the United States. Information about the
Company is available on www.pier1.com.



    CONTACT: Pier 1 Imports, Inc.
             Cary Turner, 817-252-8400