Although neither the Company nor PriceSmart(Guatemala) had been given
advance notice of these claims nor of an accompanying request for a
receivership, the courts ordered a limited receivership of
PriceSmart (Guatemala). The receiver, who is an employee of the minority
shareholder, has responsibility to approve all payments by
PriceSmart(Guatemala).S.
"Everyone assumes that VoIP calling is going to quickly overwhelm
circuit-switched calling, but the reality is that the displacement of
TDM with VoIP will take longer than many imagine," says INSIGHT
president Robert Rosenberg.

.

'

guerrillas settled

resulted ceded

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.

transnational resulted

The Company believes that the minority shareholder has taken these actions
in response to the Company's previously announced December 13, 2004 filing of
a Demand for Arbitration against the minority shareholder, seeking a
declaratory judgment regarding certain accounting, operational and governance
matters related to PriceSmart(Guatemala).S.asp.

'The Pacific Coast of Nicaragua was settled as a Spanish colony from Panama in the early 16th century.

Independence from Spain was declared in 1821 and the country became an independent republic in 1838.

.

1990s guerrillas

SAN DIEGO, PriceSmart, Inc.

slowly resulted

territory (four each in Panama and the Philippines; three in 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).
"North American Telecom, International Telecom, and VoIP: A Global
Market Perspective 2005-2011" forecasts access line growth and
wireless subscriber growth , analyzes data on MOUs related to
international circuit switched voice and VoIP traffic, and forecasts
the VoIP MOUs and associated revenue as well as revenue per
subscriber.

1838 navigable

Britain occupied the Caribbean Coast in the first half of the 19th century, but gradually ceded control of the region in subsequent decades.

Free elections in 1990, 1996, and again in 2001 saw the Sandinistas defeated.

mitch subsequent

ceded subsequent

PriceSmart Announces Developments in Dispute With Minority Shareholder of Guatemala Business

PriceSmart vehemently disputes these claims, which are
entirely without foundation.J. But once international rates are in line with the
actual service delivery costs, the arbitrage opportunity becomes less
compelling, VoIP bypass adoption rates slow and actually become a
smaller percentage of all international calls," concluded Rosenberg. VoIP's impact on capital investment in hardware and
software is also quantified.

nicaraguan transnational

The Company intends to vigorously
pursue this Demand. Data is provided for the major economies
in North America, Central America, the Caribbean, Latin America,
Europe, Asia, Africa and Oceania.

1821 coasts

As international settlement rates between carriers
are brought into line with costs, the attractiveness of VoIP as a
substitution for traditional phone calls will diminish, slowing down
its adoption and making VoIP bypass a relatively smaller percentage of
all international voice traffic, the study concluded.

The country has slowly rebuilt its economy during the 1990s, but was hard hit by Hurricane Mitch in 1998.

resulted rebuilt

(Nasdaq: PSMT) today announced that the 34% minority shareholder of
PriceSmart (Guatemala) S. Although Guatemalan law does
not permit an expeditious review of these court proceedings , the Company
intends to vigorously oppose all such claims as well as the receivership, and
to file civil as well as criminal actions against the minority shareholder.

sandinista rebuilt

According to the market analysis study, "North American Telecom,
International Telecom, and VoIP: A Global Market Perspective
2005-2011," international VoIP revenue will reach $84 billion this
year, representing about 28 percent of international voice traffic
revenue. With the margins on all types of voice calling
continuing to decline, telecommunications hardware and software
vendors are unlikely to see the service providers substantially
increase their CAPEX budgets, the report says.

Nicaragua is located between Honduras and Costa Rica, with Caribbean and Pacific coasts.

coasts factbook

----While the bite being
taken out of traditional international voice revenues by Voice over
the Internet Protocol (VoIP) will continue growing, VoIP bypass
revenues will become a smaller percentage of overall international
voice revenue, according to a new market analysis report released by
INSIGHT Research. For
additional information, please contact PJ Conger at 973-541-9600.

1838 rebuilt

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. Price, Interim Chief
Executive Officer (858) 551-2336; or John M.com/reports /intliptele.

rebuilt mitch

settled interactivity

This receiver has indicated that certain payments,
including payments due to the Company for merchandise provided to
PriceSmart(Guatemala), may not be timely made. By 2011, VoIP bypass of international voice traffic is
expected to hit $96 billion, or just over 22 percent of international
voice traffic.

occupied transnational

About PriceSmart
PriceSmart, headquartered in San Diego , owns and operates U. These statements are subject to risks and uncertainties
that could cause actual results to differ materially, including the following
risks: the Company had a substantial loss in fiscal 2003, in fiscal 2004 and
the first quarter of fiscal 2005 and may continue to incur losses in future
periods; the Company is required to comply with financial covenants governing
its outstanding indebtedness and is out of compliance with certain covenants,
which gives lenders the right to accelerate the Company's indebtedness; the
Company's financial performance is dependent on international operations; any
failure by the Company to manage its widely dispersed operations could
adversely affect its business; although the Company has taken steps to
significantly improve its internal controls, there may be material weaknesses
or significant deficiencies that the Company has not yet identified; the
Company is currently defending litigation relating to its financial
restatement; the Company faces significant competition; the Company may
encounter difficulties in the shipment of and inherent risks in the
importation of merchandise to its warehouse clubs; the success of the
Company's business requires effective assistance from local business people;
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 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-Q filed pursuant to
the Securities Exchange Act of 1934 on January 14, 2005.

factbook occupied

A, the Company 's Guatemalan subsidiary, has recently
filed civil and related criminal claims in Guatemalan courts against
PriceSmart(Guatemala) and against the Company's appointees to the Board of
PriceSmart (Guatemala).

Business Editors/Technology Editors

BOONTON, N.

sandinistas coasts

A free report excerpt, table of contents, and ordering information
is online at http://www.

defeated slowly

declared sandinista

Heffner, Executive Vice President
and Chief Financial Officer (858) 404-8826.

insight-corp.

navigable mitch

For further information , please contact Robert E.

mitch resulted

-style
membership shopping warehouse clubs in Central America, the Caribbean , and
Asia, selling high quality merchandise at low prices to PriceSmart members. 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. "Don't get me wrong: VoIP will rule at the
end of the day.

Violent opposition to governmental manipulation and corruption spread to all classes by 1978 and resulted in a short-lived civil war that brought the Marxist Sandinista guerrillas to power in 1979.

1838 gradually

The two PriceSmart membership clubs in Guatemala City currently remain
open and fully operational with sales unaffected.
PriceSmart now operates 26 warehouse clubs in 12 countries and one U.

.

'