The Walking Company Holdings, Inc. Announces Recent Sales Results and the Big Dogs Restructuring Plan

SANTA BARBARA, CA--(Marketwire - October 2, 2008) - The Walking Company Holdings, Inc. (NASDAQ: WALK) (www.thewalkingcompany.com) (www.bigdogs.com), a developer and retailer of branded, lifestyle consumer products, announces the following recent sales results for the Walking Company and the Big Dogs restructuring plan.

The Walking Company

The Walking Company comparative store sales increased approximately 2% for the third quarter ended September 30, 2008. The Company has been trending up approximately 5% since late July. Commenting on the recent sales trend, Andrew Feshbach, CEO, said, "Despite the difficult retail environment we were pleased to produce solid comparative store sales increases over the summer. It is our expectation that our current positive sales trend will continue in the next quarter." The Walking Company currently has 207 stores open and expects to open another three stores this year.

Big Dogs

As part of a long-term restructuring and strategic plan, the Company has been successful in negotiating a plan to close-out the Big Dogs chain of retail stores. The chain peaked at 231 stores, had been reduced to about 140 by the end of 2007, and is currently at 71 stores. The Company has reached agreements with substantially all of its landlords to close the remaining stores. It is expected that the chain will be reduced to approximately six to eight stores by the end of January 2009, and these stores will liquidate remaining inventory in 2009.

Prior to the restructuring plan, the Big Dogs chain was experiencing declining comparative store sales of approximately 10%, as well as declines in gross margin. Near the end of May, the Company began promoting the liquidation of its inventory and the near-term closing of approximately 35 stores (closed by the end of September). The results of this planned liquidation produced comparable store sales increases in excess of 10% (and as high as 50% in the stores slated for closing), albeit at reduced margins. This week, substantially all the remaining Big Dogs stores have implemented the same inventory liquidation and store closing plan, and the Company expects inventory to continue to be liquidated at the same higher trends experienced earlier through the end of the year.

Financial Update

The orderly liquidation of Big Dogs store inventory during the year has significantly improved the Company's liquidity position, since inventory replenishment has been minimal and the liquidation promotions have generated increased comparative store sales. With the liquidation plan in place, the Company is anticipating Big Dogs inventory levels at year end to approximate $5MM, compared to $22MM last year.

Although The Walking Company store contribution remains consistent from the prior year, due to Big Dogs, the Company will not post any profits this year. The Company estimates the majority of the costs (cash and non-cash) associated with the orderly wind-down of the Big Dogs retail stores will be recorded in 2008, with the remainder to be expensed in 2009 due to accounting requirements. These costs include payments to landlords, employee severance, write-off of remaining assets and other expenses. Looking forward to next year, the Company is anticipating that Big Dogs' remaining stores and internet operations will not materially impact the Company.

The Walking Company Holdings, Inc. (the "Company") consists of its The Walking Company and Big Dogs subsidiaries. The Walking Company ("TWC") is a leading independent specialty retailer of high-quality, technically designed comfort footwear and accessories that features premium brands such as ECCO, Mephisto, Dansko, Uggs, and MBT, among many others. These products have particular appeal to one of the largest and most rapidly growing demographics in the nation. The Walking Company operates 207 stores in premium malls across the nation. Big Dogs develops, markets and retails a branded, lifestyle collection of unique, high-quality, popular-priced consumer products, including active wear, casual sportswear, accessories and gifts.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 -- With the exception of historical information, the matters discussed in this press release are forward looking statements that involve a number of risks and uncertainties. The actual future sales and other results of the Company could differ significantly from those statements. Further information on the Company's risk factors is contained in the Company's June 30, 2008 quarterly and December 31, 2007 annual reports as filed with the Securities and Exchange Commission.

Contact Information: For Further Information: The Walking Company Holdings, Inc. 121 Gray Avenue Santa Barbara, California 93101 www.walkingcompany.com www.bigdogs.com CONTACT: Alexis Dilg Investor Information (805) 963-8727, ext. 1302 alexisd@bigdogs.com