Cost-U-Less, Inc. the well-known organization operating mid-sized warehouse club-style stores today announced here of its entrance into separate letter agreements with two shareholder groups, Delafield Hambrecht, Inc. and its affliates, and Chadwick Capital Management LLC and its affiliates.   It has also been avowed, that pursuing this Cost-U-Less agreed to nominate and support John D. Delafield for election to the Cost-U-Less Board of Directors at its 2007 annual meeting of shareholders. In addition, there would also be a submission of a proposal to shareholders at the same venue for the amendment of the Cost-U-Less articles of incorporation for the removal of the requirement that a business combination be approved by holders of at least 2/3 of the outstanding common stock under certain circumstances.

Cost-U-Less from its inception with the launching of its first retail warehouse store in 1989 has come a long way and is now acclaimed as the operator of mid-sized warehouse club-style stores. The stores are scattered over varied areas of United States Territories, the Hawaiian Islands, foreign island countries in the Pacific and the Caribbean and Sonora, California. The organization in course of time has developed a depth of expertise in its dealing with the intrinsic challenges of island market operations while refining a mid-sized building prototype intended for enduring most severe island weather conditions, integrating low construction costs and easily replicated specifications.

It has come to the knowledge, that both Delafield Hambrecht and Chadwick Capital Management agreed on the prospect that through the end of 2007, the duo would support the slate of directors nominated by the Cost-U-Less board of directors and would refrain from suggesting any other candidates for election to the Board of Directors or propose any other business at an annual meeting. In addition, there would be no submission of any proposal for the inclusion in the Cost-U-Less proxy statement or conduct any proxy solicitations.

To the confidential sources, Cost-U-Less’ entrance into the agreements had been to avoid unnecessary expenses, distraction of management’s time and disruption to the Company’s business as a result of a proxy contest. The Delafield Hambrecht had indicated in filings with the Securities and Exchange Commission about its thought on proposing certain actions at the next meeting of the Company’s shareholders, including the election of directors who support its point of view. Meanwhile, Chadwick Capital Management, through its affiliate Monarch Activist Partners LP, had already pointed out in a letter to the Company of its thought of engaging in a proxy contest with respect to the upcoming annual meeting of shareholders.