FOR IMMEDIATE RELEASE [Draft Only]

CONTACT: Loren K. Jensen
Chief Financial Officer
TUESDAY MORNING CORPORATION
972/934-7299

Laurey Peat
LAUREY PEAT + ASSOCIATES
214/871-8787

TUESDAY MORNING CORPORATION
ANNOUNCES 5.2% INCREASE IN NET INCOME FOR THE SECOND QUARTER

DALLAS, TX – April 21, 2005 -- Tuesday Morning Corporation (NASDAQ: TUES ) today reported that net income for the second quarter ended June 30, 2005 increased 5.2 % to $10.5 million or $0.25 per diluted share, compared to $10.0 million or $0.24 for the second quarter of 2004. For the six-months ended June 30, 2005, net income decreased 5.5% to $17.2 million or $0.41 per diluted share, compared to $18.2 million or $0.44 per share in the same prior year period. Net income and diluted earnings per share for the current six-month period, excluding the after-tax lease adjustment recorded in the first quarter of 2005, were $19.6 million and $0.47, representing a 7.9% and 6.8% increase over the six-months ended June 30, 2004, respectively.

As previously reported, net sales for the second quarter of 2005 increased 3.8% to $218.8 million, from $210.7 million for the second quarter last year. Comparable store sales for the second quarter of 2005 decreased 4.7%, compared to the second quarter of 2004. On a year-to-date basis, sales are up 6.6% to $404.4 million, with a comparable store sales decrease of 2.7%, compared to the first six months of 2004.

“We are pleased that we achieved increased earnings in the second quarter of this year compared to second quarter of last year,” said Kathleen Mason, President and Chief Executive Officer. Traffic was equivalent to last year’s strong second quarter. The combination of clean, controlled inventories and an exciting array of incoming merchandise positions us well for the remainder of the year.”

Tuesday Morning management will review second quarter financial results in a teleconference call on July 21, 2005 at 10:00 a.m. Eastern Time.

About Tuesday Morning

Tuesday Morning is the leading closeout retailer of upscale, decorative home accessories and famous-maker gifts in the United States. The Company opened its first store in 1974 and currently operates 692 stores in 45 states during periodic “sale events.” Tuesday Morning is nationally known for bringing its more than 7.5 million loyal customers a treasure hunt of high-end, first quality, brand name merchandise at prices 50% to 80% below department and specialty stores and catalogues.

This press release contains forward-looking statements, within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995, which are based on management’s current expectations, estimates and projections. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those projected or implied in the forward-looking statements. Such risks and uncertainties include: the success of new store openings, competitive factors, access to merchandise and unanticipated changes in consumer demand and economic trends, as well as other risks detailed in the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K for the period ending December 31, 2004.