Federated Identifies Six Additional Stores for Divestiture

Business Wire,  Oct 24, 2005  

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CINCINNATI -- Federated Department Stores, Inc. (NYSE:FD)(PCX:FD) today said it has identified an additional six duplicate stores in Arizona, California, Indiana, Kentucky and New Hampshire it intends to divest commencing in 2006 as a result of its merger with The May Department Stores Company.

Federated previously announced 76 locations it plans to divest beginning in 2006 because duplicative Macy's and May Company stores operate in the same mall or shopping center. Also as previously announced, four May Company locations will be closed for renovation in 2006 and later re-opened as Bloomingdale's.

Today's additions to the divestiture list brings the total to 82, with total 2004 sales of $2.2 billion. The six added to the list today are:

--Macy's in Wesleyan Park Plaza in Owensboro, KY (55,000 square feet, 55 employees, opened in 1987).

--Macy's in Rockingham Park Mall in Salem, NH (159,000 square feet, 134 employees, opened in 1994).

--Macy's in Tucson Mall in Tucson, AZ (138,000 square feet; 186 employees, opened in 1982).

--Macy's apparel store in The Oaks in Thousand Oaks, CA (149,000 square feet; 57 employees; opened in 1983).

--Marshall Field's in University Park Mall in Mishawaka, IN (123,000 square feet, 144 employees, opened in 1980).

--Robinsons-May south store in North County Fair in Escondido, CA (116,000 square feet; 280 employees; opened in 1986).

As initially described in Federated's news release of July 28, 2005, the company continues to review its portfolio of stores and may make additional adjustments.

Federated also said it intends to begin "going out of business" sales on January 29, 2006, in malls where the company operates 32 duplicative store locations the company already announced it plans to divest or convert to Bloomingdale's.

(NOTE: See attached list of locations to begin "going out of business" sales on January 29.)

Additional locations announced for divestiture or conversion will continue to operate, subject to agreements with five states attorneys general and/or lease and operating agreements. Some of these remaining stores on the divestiture list may begin "going out of business" sales in early 2006 as requirements and covenants are resolved.

Once duplicate stores are divested, the remaining Macy's in that location will include employees from both locations. The company expects to offer employment to all management personnel in good standing from both stores and to offer positions to the vast majority of associates.

All statements in this press release that are not statements of historical fact are forward-looking statement disclaimers within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Federated's management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed transactions, prevailing interest rates, competitive pressures from specialty stores, general merchandise stores, manufacturers' outlets, off-price and discount stores, new and established forms of home shopping (including the Internet, mail-order catalogs and television) and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission.

Federated, with corporate offices in Cincinnati and New York, is one of the nation's premier retailers, with 2004 sales of more than $15.6 billion. With the May Company's 487 department stores and 710 bridal and formalwear stores in 47 states, the District of Columbia and Puerto Rico, Federated operates nearly 950 department stores and more than 700 bridal and formalwear stores in 49 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's, Bloomingdale's, Famous-Barr, Filene's, Foley's, Hecht's, Kaufmann's, Lord & Taylor, L.S. Ayres, Marshall Field's, Meier & Frank, Robinsons-May, Strawbridge's, The Jones Store, David's Bridal, After Hours Formalwear and Priscilla of Boston. The company also operates macys.com and Bloomingdale's By Mail. www.fds.com

(NOTE: Additional information on Federated, including past news releases, is available at www.fds.com/pressroom.)

DIVESTED STORES PLANNED FOR
                      ---------------------------
           "GOING OUT OF BUSINESS" SALES ON JANUARY 29, 2006
           -------------------------------------------------

Nameplate/Location                                City/State
------------------                                ----------
Macy's Central/Eastland Mall                      Columbus, OH
Macy's East/Warwick Mall(a)                       Warwick, RI
Macy's East/Pheasant Lane(a)                      Nashua, NH
Macy's West/Galleria at Tyler(a)                  Riverside, CA
Macy's West/Montclair Plaza(a)                    Montclair, CA
Macy's West/Inland Center(a)                      San Bernardino, CA
Macy's West/Paradise Valley(a)                    Phoenix, AZ
Macy's West/Tucson Mall(a)                        Tucson, AZ
Macy's West/Coronado Center(a)                    Albuquerque, NM
Filene's/Chestnut Hill(b)                         Newton, MA
Filene's/Cape Cod - home/furniture                Hyannis, MA
Filene's/Crystal Mall                             Waterford, CT
Filene's/Danbury Fair Mall                        Danbury, CT
Filene's/Downtown Boston                          Boston, MA
Filene's/Maine Mall - Main                        Portland, ME
Filene's/Maine Mall - Men's                       Portland, ME
Robinsons-May/South Coast Plaza(b)                Costa Mesa, CA
Robinsons-May/Fashion Valley(b)                   San Diego, CA
Robinsons-May/Fiesta Mall                         Mesa, AZ
Robinsons-May/Fox Hills                           Culver City, CA
Robinsons-May/Los Cerritos Center                 Los Cerritos, CA
Robinsons-May/North County Fair - north           Escondido, CA
Robinsons-May/North County Fair - south           Escondido, CA
Robinsons-May/Plaza Camino Real                   Carlsbad, CA
Robinsons-May/Santa Anita                         Arcadia, CA
Robinsons-May/Santa Monica Place                  Santa Monica, CA
Robinsons-May/University Town Ctr                 La Jolla, CA
Robinsons-May/Valley Plaza S.C.                   Bakersfield, CA
L.S. Ayres/Castleton Square                       Indianapolis, IN
Strawbridge's/Christiana Mall                     Newark, DE
Strawbridge's/Deptford Mall                       Deptford, NJ
Strawbridge's/Springfield Mall                    Springfield, PA

(a) "Going out of business" sales for these Macy's locations will be
    conducted at the May Company nameplate store in the same mall.

(b) Stores to be reopen as Bloomingdale's after being closed and
    renovated.

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