PriceSmart Announces Extension of
$7 Rights Offering Exercise Period

San Diego, CA, January 18, 2005 – PriceSmart, Inc. (NASDAQ:PSMT) today announced that it has extended the period in which holders of its rights to purchase PriceSmart common stock issued pursuant to its previously announced rights offering may subscribe for its common stock at a price of $7 per share. PriceSmart has extended the $7 subscription period by one business day such that it will now expire at 5:00 p.m., New York City time, on January 24, 2005. On January 18, 2005, PriceSmart intends to mail to its rights holders of record as of January 14, 2005, a prospectus supplement comprised of PriceSmart’s Quarterly Report on Form 10-Q for the quarterly period ended November 30, 2004. PriceSmart is extending the $7 subscription period because it would like to give its rights holders an opportunity to review this prospectus supplement before making a decision to exercise rights at a price of $7. The $7 subscription period was to expire on January 21, 2005. The expiration of the $8 subscription period is not affected by this announcement.

This announcement is neither an offer to sell nor a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or foreign jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or foreign jurisdiction. A registration statement relating to these securities has been filed with and has been declared effective by the Securities and Exchange Commission.

About PriceSmart

PriceSmart, headquartered in San Diego, owns and operates U.S.-style membership shopping warehouse clubs in Central America, the Caribbean, and the Philippines, selling high quality merchandise at low prices to PriceSmart members. PriceSmart now operates 26 warehouse clubs in 12 countries and one U.S. 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).

For further information, please contact Robert E. Price, Interim Chief Executive Officer at (858) 551-2336; or John M. Heffner, Executive Vice President and Chief Financial Officer at (858) 404-8826.