Exhibit 99.1

Final: For Release		Company Contact:
		Ronald Ristau
		Chief Operating Officer
		Chief Financial Officer
		(212) 884-2000

		Investor/Media Contact:
		Integrated Corporate Relations
		(203) 682-8200
		Investor: Allison Malkin
		Media: Kellie Baldyga

NEW YORK & COMPANY, INC. REPORTS AUGUST SALES RESULTS
Total Sales Increase 5.3%
Comparable Store Sales Increase 1.0%

New York, New York — August 31, 2006 — New York & Company, Inc. [NYSE:NWY], a specialty apparel chain with 540 stores, announced today that total net sales for the four-week period ended August 26, 2006 increased 5.3% to $76.8 million, as compared to $72.9 million in the prior year period. Comparable store sales increased 1.0% for the four-week period, as compared to a comparable store sales decrease of 13.4% in the prior year period.

Total net sales for the thirty-week year-to-date period ended August 26, 2006 increased 1.9% to $608.8 million, as compared to $597.5 million in the prior year period. Comparable store sales decreased 5.8% for the thirty-week period, as compared to an increase of 0.2% in the prior year period.

Richard P. Crystal, Chairman and CEO stated: “We were pleased with our August performance, with business strengthening throughout the month as customers responded favorably to our new fall merchandise offerings. We believe that our improved performance demonstrates that our fall assortment better reflects the desires of our target consumer, which should bode well for the fall season.”

The Company opened six new stores and closed three stores in August, ending the month with 540 stores and 3.3 million selling square feet in operation.

Conference Call Information

To listen to New York & Company’s pre-recorded August sales message beginning today, Thursday, August 31, 2006 at 8:00 am ET, please dial (888) 203-1112 followed by the conference identification number #1785143.

Forward-Looking Statements: This press release contains certain forward-looking statements. Some of these statements can be identified by terms and phrases such as “anticipate,” “believe,” “intend,” “estimate,” “expect,” “continue,” “could,” “may,” “plan,” “project,” “predict” and similar expressions and include references to assumptions that we believe are reasonable and relate to our future prospects, developments and business strategies. Such statements are subject to various risks and uncertainties that could cause actual results to differ materially. These include, but are not limited to: (i) our ability to open and operate stores successfully; (ii) seasonal fluctuations in our business; (iii) our ability to anticipate and respond to fashion trends and launch new product lines successfully; (iv) general economic conditions, consumer confidence and spending patterns; (v) our dependence on mall traffic for our sales; (vi) the susceptibility of our business to extreme and/or unseasonable weather conditions; (vii) our ability to retain and recruit key personnel; (viii) our reliance on third parties to manage some aspects of our business; (ix) changes in the cost of raw materials, distribution services or labor; (x) our reliance on foreign sources of production; (xi) the potential impact of natural disasters and health concerns relating to outbreaks of widespread diseases, particularly on manufacturing operations of our vendors; (xii) the ability of our manufacturers to manufacture and deliver products in a timely manner while meeting our quality standards; (xiii) our ability to successfully integrate acquired businesses into our existing business; (xiv) our reliance on manufacturers to maintain ethical business practices; (xv) our ability to protect our trademarks and other intellectual property rights; (xvi) our ability to maintain and our reliance on our information systems infrastructure; (xvii) our dependence on the success of our brand; (xviii) competition in our market, including promotional and pricing competition; (xix) our reliance on the effective use of customer information; (xx) the effects of government regulation; (xxi) the control of our company by our sponsors; and (xxii) other risks and uncertainties as described in our documents filed with the SEC, including our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. We undertake no obligation to revise the forward-looking statements included in this press release to reflect any future events or circumstances.

About New York & Company, Inc.

New York & Company, Inc., founded in 1918, is a leading specialty retailer of fashion-oriented, moderately-priced women’s apparel. The Company’s proprietary branded New York & Company™ merchandise is sold exclusively through its national network of New York & Company retail stores. The Company currently operates 540 retail stores in 45 states. Additionally, certain product, press release and SEC filing information concerning the Company are available at the Company’s website: www.nyandcompany.com.

DELAWARE		1-32315		33-1031445
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

Exhibit No.		Description
99.1		Press release issued on August 31, 2006

	NEW YORK & COMPANY, INC.

		/s/ Ronald W. Ristau
Date: August 31, 2006	Name:	Ronald W. Ristau
	Title:	Chief Operating Officer and
		Chief Financial Officer

Exhibit No.		Description
99.1		Press release issued August 31, 2006