Exhibit 99.1

FOR IMMEDIATE RELEASE

CONTACT:	Elizabeth Schroeder
	Chief Financial Officer
	TUESDAY MORNING CORPORATION
	972-934-7299
	Laurey Peat
	LAUREY PEAT+ ASSOCIATES
	214-871-8787

TUESDAY MORNING CORPORATION

ANNOUNCES SECOND QUARTER FISCAL 2008 SALES

DALLAS, TX — January 10, 2008 — Tuesday Morning Corporation (NASDAQ: TUES) today reported net sales for the second quarter ended December 31, 2007 were $308.7 million compared to $321.3 million for the quarter ended December 31, 2006, a decrease of 3.9%.  Comparable store sales for the quarter ended December 31, 2007 decreased by 7.6% comprised of a 7.2% decrease in traffic and a 0.4% decrease in average ticket.  For the six month period ended December 31, 2007, net sales were $510.3 million compared to $515.7 million for the same period last year.  Comparable store sales for the six month period ended December 31, 2007 decreased 5.3% comprised of a 4.7% decrease in traffic and a 0.6% decrease in average ticket.

Based on the second quarter sales results, the Company currently expects diluted earnings per share for the second quarter to be in the range of $0.49 to $0.51.  Diluted earnings per share were $0.57 for the quarter ended December 31, 2006.

Kathleen Mason, President and Chief Executive Officer, stated, “The revised guidance issued on December 18, 2007 reflected the results of the December 2007 quarter.  In what was a difficult holiday season for retailers in the home furnishings sector, we are pleased that we posted our 34^th consecutive quarter of positive net income and earnings per share.”

Tuesday Morning Corporation management will review second quarter financial results in a teleconference call on January 29, 2008 at 10:00 a.m. Eastern Time. The Company will release second quarter results prior to the call.

About Tuesday Morning

Tuesday Morning is a leading closeout retailer of upscale, decorative home accessories, housewares and famous-maker gifts in the United States. The Company opened its first store in 1974 and currently operates 831 stores in 47 states. Tuesday Morning is nationally known for bringing its more than 9.0 million loyal customers a unique treasure hunt of high-end, first quality, brand name merchandise...never seconds or irregulars...at prices well below those of 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.  Forward-looking statements typically are identified by the use of terms such as “may,” “will,” “should,” “expect,” “anticipate,” “believe,” “estimate,” “intend” and similar words, although some forward-looking statements are expressed differently.  You should carefully consider statements that contain these words because they describe our expectations, plans, strategies and goals and our beliefs concerning future business conditions, our future results of operations, our future financial positions, and our business outlook or state other “forward-looking” information.

Reference is hereby made to “Item 1A.  Risk Factors” of the Company’s Transition Report on Form 10-KT for the six month period ended June 30, 2007 and the Company’s Quarterly Report on Form 10-Q for the three month period ended September 30, 2007 for examples of risks, uncertainties and events that could cause our actual results to differ materially from the expectations expressed in our forward-looking statements.  These risks, uncertainties and events also include, but are not limited to, the following:  uncertainties regarding our ability to open stores in new and existing markets and operate these stores on a profitable basis; conditions affecting consumer spending; inclement weather; changes in our merchandise mix; timing and type of sales events, promotional activities and other advertising; increased or new competition; loss or departure of one or more members of our senior management, as well as experienced buying and management personnel; an increase in the cost or a disruption in the flow of our products; seasonal and quarterly fluctuations; fluctuations in our comparable store results; our ability to operate information systems and implement new technologies effectively; our ability to generate strong cash flows from our operations; our ability to maintain internal control over financial reporting; and our ability to anticipate and respond in a timely manner to changing consumer demands and preferences.  The forward-looking statements made in this press release relate only to events as of the date on which the statements were made.  We undertake no obligations to update our forward-looking statements to reflect events and circumstances after the date on which the statements were made or to reflect the occurrence of unanticipated events.

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