A letter from Dennis Pence
Founder and Chairman
Coldwater Creek

In the summer of 2004, our Board of Directors approved the formation of the Coldwater Creek Social Responsibility Committee – an innovative group of employees which remains very active today. I'm happy to report that many of the things we discussed doing at that time are either in place or well on their way to being so. Of course, we still have a long list of items that need to be tackled.

At our first meeting, I asked the committee to join me in "thinking big thoughts" in relation to potential social and ethical concerns associated with our plans to begin direct importing on a global level. Quickly, our conceptual scope broadened to embrace areas that went beyond global apparel sourcing, including issues related to our employees and their families, the local communities affected by our presence as an employer, our customers and investors, and our impact on the environment.

Playing our part in protecting the environment has been a very high priority for us from the time Ann Pence and I founded the company in 1984. With that in mind, some of our key accomplishments so far in the area of social responsibility have been in this arena. For instance, we recently converted to company-wide use of wind energy to power our headquarters, distribution and customer contact centers, and growing base of retail stores, as detailed in the "Protecting our Resources" section.

Beyond that, we have installed energy and water saving technology in our operational facilities and retail stores, with more installations to come, and we are making real strides in our efforts to recycle an ever-increasing amount of cardboard, packing materials and office paper.

We're also proud to join other major national apparel brands as a member of the Apparel Water Quality Working Group, facilitated by Business for Social Responsibility. As a group, we are committed to developing a single set of standards – and ensuring that they are closely monitored and enforced – in order to improve water quality in the countries that manufacture our merchandise.

And because we understand that the move to directly importing our apparel comes with a heightened level of responsibility, we have implemented strict social compliance requirements and a code of vendor conduct, as outlined in the "Affirming our Ethics" section.

These are just the first steps in what we realize will always be a work in progress. As a company, you have our commitment that we will continue along this path as we find new ways to improve our performance in the areas of environmental stewardship and social responsibility.

Sincerely,

Dennis Pence
Founder and Chairman
Coldwater Creek