PriceSmart Announces Extension of $8 Rights Offering Exercise Period

San Diego, CA., September 1, 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 $8 per share. The expiration of the $8 subscription period is now 5:00 p.m. New York City time on January 31, 2006. The $8 subscription period was previously set to expire on December 21, 2005. PriceSmart is extending the $8 subscription period to give its rights holders an opportunity to review the Company's results of operations during the first quarter of fiscal year 2006 before making a decision to exercise their rights. The Company plans to report its first quarter results in mid-January 2006 and circulate a prospectus supplement containing these results prior to the expiration of the $8 subscription period.

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 and the Caribbean, selling high quality merchandise at low prices to PriceSmart members. PriceSmart now operates 22 warehouse clubs in 11 countries and one U.S. territory (four in Panama; 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 (858) 551-2336; or John M. Heffner, Executive Vice President and Chief Financial Officer (858) 404-8826.