EXHIBIT 99.1

Pacific Sunwear of California, Inc.

July 28, 2006

VIA PERSONAL DELIVERY

Mr. Seth Johnson
Chief Executive Officer
Pacific Sunwear of California, Inc.
3450 East Miraloma Avenue
Anaheim, CA 92806

Re: Notice of Election to Extend Employment Agreement

Dear Seth:

     Reference is made to the Employment Agreement (the “Agreement”) between you and Pacific Sunwear of California, Inc. (the “Company”), dated October 11, 2004. We are delivering to you this letter on this date (July 28, 2006). Please be advised by this letter that the Company hereby elects to extend the Agreement for an additional one-year period ending on October 31, 2007, in accordance with Section 2 of the Agreement.

Sincerely,

/s/ GERALD M. CHANEY 

Gerald M. Chaney

Sr. Vice President, Chief Financial

Officer and Secretary