Paper Warehouse notified of possible NASDAQ delisting

Paper Warehouse Inc. received notification from NASDAQ that it is not in compliance with the NASDAQ SmallCap Market`s maintenance standard. This standard requires that the company maintain at least $1.00 minimum bid price. It has until May 2 to comply. In order to comply, Paper Warehouse`s common stock must trade above $1.00 for at least 10 consecutive trading days prior to May 2. If Paper Warehouse does not trade at this level, NASADQ could delist Paper Warehouse`s common stock as early as the opening of business on May 3. Paper Warehouse specializes in party supplies and paper goods and operates under the names Paper Warehouse, Party Universe, and PartySmart.com.