LETTER TO SHAREHOLDERS Since my first day at Build-A-Bear Workshop, Inc. in June 2013, I could tell this  was a special company. From the gracious passing of the baton from the dynamic  founder, Maxine Clark, after 16 years at the helm, to the employee passion for  the brand, it is clear that this is a company with heart. As you may know, “heart” has been an  important part of the company since its  very beginning. The now iconic Heart  Ceremony that occurs at the “Stuff Me”  station in all of our stores around the world  has been a part of the creation of more than  125 million furry friends — and certainly  even more smiles.  With this momentum, the strength of the  brand and the emerging path to sustainable  long-term profitability for retail, I believe we  have a tremendous opportunity to expand  our business model. This next step in our plan will, no doubt,  take  heart  — but that is something I know  we have. As we turn the page to 2014 and beyond,  I would like to thank our board, in particular  Mary Lou Fiala, our non-executive chair,  and, of course, Maxine, for their support and  guidance. I would also like to say “thank- you” for the years of service that Lou Mucci  and Ginger Kent have provided the company  as board members, as they will be stepping  down from their positions this year. Finally,  I would like to extend my appreciation to  our associates, partners and investors. Your  passionate commitment to the Build-A-Bear  brand and business is key to our success.  We have the opportunity to see our strong  brand through a fresh set of eyes, the way our  consumers do as we attain skills sets that  will allow us to monetize the existing brand  equity via new profit and revenue streams.  That heart has taken this company from  a spark of an idea in 1997 to a $400 million  dollar business in less than a decade. Heart  has made the brand a household name that  immediately conjures up great memories  for kids of all ages. And, heart has given  this organization the tenacity to fight  through the early days of a turn-around  in a tough economy.  Our objective is to continue with our overall  strategies, to deliver sustainable long- term profitability and, thereby, increase  shareholder value throughout the fiscal  year. Because of our strong plan and strong  brand, we are optimistic about our outlook  for fiscal 2014 and beyond.  Best Regards,  I am encouraged by the progress in the year,  delivering four consecutive quarters of  improved operating results. Our annual  consolidated comparable store sales  increased by 5.1%, retail gross margin  expanded by 220 basis points and we had  a $13 million shift in profitability with  adjusted net income of $3 million from  an adjusted net loss of $10 million in 2012. 1) Optimizing our real estate,  2) Resetting our consumer value  equation and,  3) Rationalizing expenses.  In 2013, we stayed true to our stated  three-pronged strategy:  2013 ANNUAL REPORT 1 BUILD-A-BEAR WORKSHOP, INC. Sharon Price John Chief Executive Officer