<PAGE>
Exhibit 99.1
FOR IMMEDIATE RELEASE
DATE: August 1, 2000
FROM: FOR:
Padilla Speer Beardsley Inc Paper Warehouse, Inc
224 Franklin Avenue West 7630 Excelsior Boulevard
Minneapolis, MN 55404 Minneapolis, MN 55416
John Mackay (612) 871-8877 Cheryl Newell or Diana Purcel
(952) 936-1000
PAPER WAREHOUSE, INC., APPOINTS NEW DIRECTOR
MINNEAPOLIS, August 1 -- Paper Warehouse, Inc. (Nasdaq: PWHS) announced
today that Richard W. (Perk) Perkins has been elected to the Company's Board of
Directors effective August 1, 2000, increasing the size of the Board to seven.
Perkins is the president of Perkins Capital Management, Inc., which manages
private equity accounts and mutual funds.
"We are very pleased to have Perk join our Board of Directors," said
Paper Warehouse's president and chief executive officer, Yale T. Dolginow. "He
brings a tremendous amount of financial expertise in working with small and
microcap companies such as ourselves, in addition to a wealth of board
experience."
Prior to starting Perkins Capital Management Inc. in 1984, he was
instrumental at Piper Jaffray, Inc. in establishing one of the first
institutional research and sales boutiques for a regional brokerage firm.
Perkins earned BBA and MBA degrees from the University of
<PAGE>
Paper Warehouse
August 1, 2000
Page 2
Wisconsin, Madison. He holds the CFA designation, is a fellow of the Financial
Analysts Federation and has received the Institute of Chartered Financial
Analysts Certificate of Achievement awards. He is also a member of the Twin City
Society of Security Analysts and is a director for nine public and seven private
companies.
Paper Warehouse specializes in party supplies and paper goods and
operates under the names Paper Warehouse, Party Universe, and
www.PartySmart.com. PartySmart.com can be accessed at WWW.PARTYSMART.COM. Paper
Warehouse stores offer an extensive assortment of special occasion, seasonal and
everyday party and entertainment supplies, including paper supplies, gift wrap,
greeting cards and catering supplies at everyday low prices. As of July 28,
2000, the Company had 146 retail locations (99 company-owned stores and 47
franchise stores) conveniently located in major retail trade areas to provide
customers with easy access to its stores. The company's headquarters is in
Minneapolis.
FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESS RELEASE ARE MADE
UNDER THE SAFE HARBOR PROVISION OF THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995. ANY SUCH STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD
CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE ANTICIPATED. SUCH FACTORS
ARE DESCRIBED FROM TIME TO TIME IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K AND
OTHER REPORTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.
###
