Design Within Reach, Inc. Engages Thomas Weisel Partners LLC to Assist in Review of Strategic Alternatives

Design Within Reach, Inc. (NASDAQ:DWRI) today announced the engagement of Thomas Weisel Partners LLC (TWP), an investment banking firm headquartered in San Francisco, CA. The team at TWP will assist in the review of strategic alternatives, including advice related to an unsolicited offer recently received by the Company.

"We have decided to evaluate alternatives that will best serve the interest of all of our shareholders given our depressed share price,” stated Chief Executive Officer Ray Brunner. "The Board has appointed a committee of independent directors to work with TWP to allow our management team to focus on day-to-day operations.”

In the review process, the Committee will consider a full range of possible alternatives, including, among other things, a possible sale, merger, strategic partnership or refinancing. The Company currently has no commitments or agreements with respect to any particular transaction and noted that there can be no assurance that its review of strategic alternatives will result in any transaction. The Company undertakes no obligation to make any further announcements regarding its strategic alternatives analysis.

About Design Within Reach, Inc.

Design Within Reach, Inc., founded in 1998 and headquartered in San Francisco, California, offers the best in modern design. The company markets and sells its products to both residential and contract customers through over 68 retail Studios and two DWR: Tools for Living stores in the United States and Canada, online at www.dwr.com and via its San Francisco-based phone sales team at 1.800.944.2233.

Forward-Looking Statements

This press release includes forward-looking statements that reflect Design Within Reach’s judgment and involve risks and uncertainties as of the date of this release. These statements include those related to entering into a strategic transaction. Factors that could cause Design Within Reach’s actual results to differ materially from these forward-looking statements including the following: there can be no assurance that the Company will be able to successfully execute any of the strategic alternatives mentioned above; we have recently revised our corporate strategy and our new strategy may not be successful; if we fail to offer merchandise that our customers find attractive, the demand for our products may be limited; the expansion of our studio operations could result in increased expenses with no guarantee of increased revenues; we do not have long-term vendor contracts and as a result we may not have continued or exclusive access to products that we sell; our business depends, in part, on factors affecting consumer spending that are not within our control; recent turmoil in the credit markets and the financial services industry may negatively impact our business, results of operations, financial condition, liquidity or market price of our common stock; we are subject to various risks and uncertainties that might affect our ability to procure quality merchandise from our vendors or receive favorable payment terms from our vendors; we rely on catalog-based marketing, which could have significant cost increases and could have unpredictable results; we must manage our online business successfully or our business will be adversely affected; we have made and will continue to make certain systems changes that might disrupt our supply chain operations and delay financial results; management has identified material weaknesses in internal controls over financial reporting; our failure to implement and maintain effective internal controls in our business could have a material adverse effect on our business, financial condition, results of operations and stock price; we may need additional financing and may not be able to obtain additional financing on favorable terms or at all, which could increase our costs, limit our ability to grow and dilute the ownership interests of existing stockholders; we may not manage our inventory levels successfully; changes in the value of the U.S. Dollar relative to foreign currencies and any failure by us to adopt and implement an effective hedging strategy could adversely affect our operating results; we rely on foreign sources of production, which subjects us to various risks; we may fail to timely and effectively obtain shipments of product from our vendors and deliver merchandise to our customers; we face intense competition and if we are unable to compete effectively, we may not be able to achieve and maintain profitability; and our operating and financial performance in any given period might not meet the guidance that we have provided to the public and other risks detailed in our reports and filings with the Securities and Exchange Commission, including our latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which is available at the SEC's website at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein, and we caution you not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made or to reflect the occurrence of unanticipated events.