Six Coldwater Creek Spa Locations to be Tested in Spring 2006

SANDPOINT, Idaho, Dec. 12 - Coldwater Creek, the national retailer of women's apparel, jewelry, accessories and gifts, today announced plans to expand on its legacy of providing exceptional customer service as it tests a new concept -- Coldwater Creek Spa.

The day spas, scheduled to open in spring 2006, will serve six geographically
distributed markets, offering a complete menu of spa treatments, including
massage, facials, manicures and pedicures.

These Coldwater Creek Spa locations will average 5,000 square feet, featuring a relaxed setting with soft wood accents and ambient lighting, and
will be staffed by experienced professionals in all treatment areas. The day
spas, which will be located adjacent to or within close proximity of existing
Coldwater Creek retail stores, also will carry an assortment of relevant
apparel, as well as a line of personal care products for women.

"Coldwater Creek Spa gives us an opportunity to further leverage our
national brand awareness and provide the customer with a truly
service-oriented day spa experience," said Dennis Pence, chairman and chief
executive officer of Coldwater Creek. "As a company, we have more than two
decades of exceeding expectations for both quality and service and that will
be particularly important for customers in the spa environment. We were
pleased to be recognized in a recent National Retail Federation survey as the
No. 1 specialty apparel retailer for customer service and the No. 2 retailer
overall for customer service. Our goal is to carry on this legacy in our day
spa locations."

Based on positive response to this concept from focus groups comprised of
both customers and non-customers, the company has learned there is a strong familiarity with the Coldwater Creek name, as well as a broad consensus that the brand is well-suited to provide this new service.

"We believe the day spa concept creates excellent potential for us to
cross-market Coldwater Creek retail stores and Coldwater Creek Spa to increase traffic for both concepts and generate transactions in both directions," Pence added. "Additionally, the high-profile inclusion of apparel from our Sport assortment will provide an excellent merchandising synergy, as well as potential for further expanding this part of our collection."

Coldwater Creek caters to females ages 35-60, with average household
income in excess of $75,000. The company currently has 174 retail store
locations, with the opportunity to grow its national store base to 450-500
over the next several years.

The company has a customer e-mail list of more than 2.6 million addresses
and will send out approximately 110 million catalogs in fiscal 2005.

"All of these selling channels provide an extremely effective and cost-
efficient vehicle for promoting the Coldwater Creek Spa test," Pence said.
"These Coldwater Creek Spa locations are scheduled to begin operation in the
first half of 2006. Based on customer response, we will continue to evaluate,
test and refine the spa concept."

Contact:
COLDWATER CREEK INC.
David Gunter
Divisional Vice President of Corporate Communications & Investor Relations
208-263-2266

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release contains "forward-looking statements" within the meaning
of the securities laws, including statements regarding our planned spa
concept. These statements are based on management's current expectations and are subject to a number of uncertainties and risks. Important factors that
could cause actual results to differ materially from our expectations,
including factors that could cause us to curtail or abandon our spa concept
test include: unexpected or increased costs or delays in the development of
our spa concept; the potential strain on management resources in developing
and testing a new concept; legal and regulatory constraints; the inherent
difficulty in forecasting consumer tastes and trends through market research,
concept testing or otherwise, and the possibility that we will determine
through the development or performance of our test sites that demand does not meet our expectations; our inability to fund our spa concept with operating cash as a result of either lower sales from our retail and direct businesses or higher than anticipated costs, or both, which could cause us to discontinue or delay the spa concept; and such other factors as are discussed in our Form 10-Q Quarterly Reports and in our most recent Form 10-K Annual Report filed with the U.S. Securities and Exchange Commission ("SEC"). We believe that these forward-looking statements are reasonable; however, you should not place undue reliance on forward-looking statements, which are based on current expectations and speak only as of the date of this release. We are not obligated to publicly release any revisions to forward-looking statements to reflect events after the date of this release. We provide a detailed discussion of risk factors in periodic SEC filings, and you are encouraged to review these filings in connection with this release.

SOURCE Coldwater Creek Inc.
Web Site: http://www.coldwatercreek.com