Strictly Private and Confidential

MANAGEMENT PRESENTATION

January 2015

OVERVIEW

• Established in1976, bebe is an iconic contemporary accessible brand with a distinct offering of apparel and accessories

• Designs, develops and produces contemporary women’s apparel and accessories under the bebe, BEBE SPORT / bbsp brand names

• Operates approximately165 beberetail stores and 35 bebe outlet stores in the U.S., U.S. Virgin Islands, Puerto Rico and Canada

• Runs e-commerce business @bebe.com

• Distributes and sells bebe branded product through licensees in approximately 25 countries

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INVESTMENT HIGHLIGHTS

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Solid and Scalable retail store operations, technology and supply chain

Premier store locations primarily in A and B malls

Upgraded and empowered management team led by highly experienced executives and strong design and merchandising talent

Turnaround strategy underway with tangible progress

Distinctly positioned with merchandise designed to suit the lifestyle of a confident and feminine woman

Focus on ROI driven growth strategies with acceleration in e-commerce

Historically high margin and bottom-line accretive vertical apparel business in the process of turnaround and with ample future growth potential

bebe skews trendier and more fashion-forward than most of its competitors, and strives to provide value

BRAND POSITIONING

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• Wears her confidence – it requires a confident attitude to wear bebe and at the same time it instills confidence in the woman who wears it

• Lives a “24/7” lifestyle, constantly juggling work and her social life

• Embodies power and glamour, is ageless and stands out from the crowd

• Considers herself a trendsetter and puts her own spin on the latest fashions

• Prefers clothing that accentuates her curves; bebe is sexy

• Looks for value and uniqueness when she shops

• Diverse customer demographics including fast growing ethnicities

THE BEBE WOMAN

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Name & Title Year Joined bebe Prior Experience Years in Industry

Jim Wiggett – CEO 2014 Founder of The Jackson Hole Group, prior retail experience in Macys, Duty Free and managing

multiple brands under LVMH

40+

Liyuan Woo – CFO 2010 M&A and financial advisory to private equity and strategic corporations at Deloitte

17+

Brigitte Bogart –EVP, Design Re-joined 2013 Design director during bebe peak years, prior entrepreneur and experience with many brands such as Laundry by Shelli Segal and Guess etc.

25+

Mary Jimenez –SVP, GMM Re-joined 2014 Head of bbsp during bebe peak years, prior headof merchandising at Marciano, a division of Guess

and previously worked for LVMH

25+

Denise Cox –SVP , Production 2009 SVP at Haggar Clothing Co.; production and sourcing positions at VF Corporation

25+

Susan Powers – SVP, Stores 2007 VP of store operations at chico's/White House black market, Wet Seal and BCBG

25+

Erik Lautier – EVP, Chief Digital Officer 2014 Head of ecommerce at Lacoste and Edun(LVMH); significant experience in startups and

digital strategy consulting

15+

Richard Pierson – SVP, International 2010 VP of International at Tommy Hilfiger and Guess prior to joining bebe with 17 years of international

expansion experience

23+

EXPERIENCED MANAGEMENT TEAM

Elevated and empowered executive team with upgraded design and merchandising front-end leadership

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STRONG BRAND HERITAGE WITH AMPLE UPSIDE

For over 40 years, bebe has been a well known value oriented fashion brand. Brand messaging has been inconsistent , which confirms upside potential

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Strategic Initiatives

SIX PRONGED TURNAROUND STRATEGY

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1. 2.

3.

Increase product distinction with a contemporary,

accessible, fashion merchandised offering

designed to suit the lifestyle of this confident,

sexy, feminine and sophisticated woman

Align our marketing campaign from

traditional to new media, focused on

messaging that speaks to the bebe

woman

Growth through social media, digital marketing and strong CRM focus

4.

6.

5.

Product Distinction Brand messaging

Omni-channel

OutletsInternational

Long term growth

Refine outlets so product and messaging better align with the bebe brand

Maintain international presence through company turnaround

Strategically plan growth initiatives as we learn from our US successes

ROI-based investment for sustained

long-term growth

PRODUCT DISTINCTION

• Merchandising team to revamp the design, merchandising, production and marketing processes to ensure we consistently deliver a cohesive fashion assortment that speaks to the multiple dimensions of her lifestyle needs

– Distinct offering falls into lifestyle categories: Business Chic, Party, Special Occasion, Dressy Casual, Weekend casual, Logo and BEBE SPORT

– Maintain core competency in dresses and party while building out the tops assortment and accessories

– Focus on outfits, layers, and special occasion. Expanding her special occasion offerings will improve AUR, UPT and ADS

– Continue to build on the success of accessories and seeking other incremental opportunities

• Newly established calendar assumes 6-weeks design / buy and marketing approval on outfitting process, which will ensure coherent offering, messaging and cost savings

– Initiating the full roll out of lifestyle outfitting

― Consistency in planning, designing, merchandising and floor presentation

• Shifting IMU focused pricing to quality and value oriented pricing

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BRAND MESSAGING

• Redefining brand message to reflect the essence of the bebe woman across all channels

• Building brand relevance in social media through Facebook, Instagram and Pinterest

― Act as a fashion resource

― Starting a social impact campaign

• Upgrading loyalty and CRM platforms

― Using an email service that enables one –to-one cross-channel marketing

― Outlet CRM:

� Reconnect with outlet marketing team

� Align messaging to ensure consistency with bebebrand

• Launching standalone iPad/iPhone version of digital catalog

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OMNI CHANNEL

• Refining the online presence and establish a true omni-channel relationship with our consumer from messaging to promotions to logistics

• Improved product and site conversion metrics to drive higher yield from our digital marketing

• Integrate in-store into digital experience to offer greater level of service and interaction

― Using technology to access full inventory even in smaller stores

― Ownership and management of “virtual” locations to drive foot traffic as well as traditional digital marketing traffic drivers

― More sophisticated “find in store” functionality including pick up in store

― Enhanced merchandising functions to ensure sale is completed regardless of channel

• Opportunities:

― Testing and optimization

― Personalization and CRM

― Elevate shipping, returns and packaging

― Re-engage lapsed customers with strong brand affinity

― Social and UGC

― International business

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• bebe is currently positioned in 170 of the 312 defined A and B volume malls

• Elevate the bebe brand and shopping experience through windows and in store merchandising

• New store concept currently rolled out to 7 bebe stores. Comparable performance indicates 5-8% margin gain and increase in sales per SF

• Plan to roll out the concept to all new stores and relocated stores

• Strategically pre-plan floor sets, fixture and marketing needs by partnering with merchandising, marketing and design teams

• Improve window display and in-store marketing in partnership with marketing team

• Non-apparel table testing successfully with planned 50% rollout by March 2015

NEW STORE CONCEPT DRIVES SALES AND MARGIN

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OUTLETS

• Realign outlet product offering with the outlet customer

― Eliminated 2b product and determine the optimal mix between bebe MFO, logo and clearance transfers

• Maintain the casual successes under the bebe label

― Maximize the made for outlet opportunity: with brand approved bebe product that increases customer awareness while delivering incremental revenue

• Strategically incorporate non-apparel product into outlets

― Goal of 20% store penetration by 2016

• Increase top line and bottom line while retaining brand equity and integrity

― Increase Average AUR, IMU% and GM%

― Pop-up locations to eliminate MDs

• 5-year goal is to add 38 new outlets by FY 2018 for a total outlet portfolio of approximately 70 outlet locations

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INTERNATIONAL GROWTH

• The bebe brand has found success internationally by serving a sophisticated, branded customer, and offering an aspirational product

• Enhanced our product assortments. Branding efforts are receiving a positive response from the consumer

• Currently in 25 countries with 10 partnerships and working to maintain store count through our brand transition

― Position our partners for future success when brand has strategy and positioning back in alignment

― Monitor US selling and successes and then build on those internationally

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Strictly Private and Confidential

Financial Highlights

FY14 FY13 FY12

July 5, 2014 July 3, 2013 June 30, 2012

Net Sales $425.1 $463.2 $519.8

Gross Margin 32.5% 33.3% 40.2%

SG&A as % of sales 46.5% 42.6% 36.0%

Operating Income (Loss) ($59.7) ($43.0) $21.8

Income (Loss) from Continuing Operations ($59.2) ($69.1) $13.2

EPS from Continuing Operations ($0.75) ($0.84) $0.16

EBITDA after one-time items ($28.7) ($7.2) $41.8

Stores at end of period 207 242 252

Actual to 40% Margin Delta $31.9 $31.1

FISCAL YEAR FINANCIAL HIGHLIGHTS

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1Q15 1Q14

October 4, 2014 October 5, 2013

Net Sales $102.2 $109.3

Gross Margin 32.1% 36.3%

SG&A as % of sales 41.2% 43.8%

Operating Income (Loss) ($9.4) ($8.2)

Loss from Continuing Operations ($9.0) ($7.9)

EPS from Continuing Operations ($0.12) ($0.11)

EBITDA ($5.8) ($3.5)

Guidance for 2Q15 -

The net loss per share is expected to be in the range of low to mid-single digit range; revised to be

in the low-single digit range

Sales comp is expected to be in the flat to low single digit positive range; actualized at

approximately +8%

1Q15 FINANCIAL HIGHLIGHTS

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October 4, 2014

(In millions) (unaudited)

July 5, 2014

(In millions)

Cash and Investments $93.3 $125.0

Merchandise Inventories 34.7 31.7

Property and Equipment, net 96.3 93.6

Total Assets $248.4 $270.4

Total Liabilities 76.2 85.2

Shareholders’ Equity $172.2 $185.1

Balance Sheet and Cash Flow Summary

• Planned CapEx of $16M

• Planned Dividends payment of $4.8M, 40% reduction from historical payment

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SHORT TERM TURNAROUND & LONG TERM GROWTH

• Driving increased store productivity through focused merchandising and marketing initiatives as well as new store concept rollout and visual presentation

• Focusing on high quality sales through improved product offering, better managed promotions and disciplined approach to inventory management

• Managing and planning for investments in inventory, SG&A and CapEx

� Headcount reduction and restructuring steps took place in July, coupled with a $10 million marketing spend reduction for fiscal 2015

� benefit SG&A beginning the first fiscal quarter

� Continued profitable investments in e-commerce and CRM to enhance the relationship with customers and drive growth

� Invest in less capital intensive and revenue enhancing areas in CapEx to leverage our new store concept

• Continue to monitor and right-size unproductive bebe stores while growing e-comm. outlets and international

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