Saks Incorporated Announces Support Efforts for Associates Affected by Hurricane Katrina; Company Establishes Associate Support Hotline

Business Wire, Sept 8, 2005

BIRMINGHAM, Ala. -- Retailer Saks Incorporated (NYSE: SKS) ("Saks" or the "Company") has announced support efforts for associates affected by Hurricane Katrina.

R. Brad Martin, Chairman and Chief Executive Officer of the Company, noted, "The horrible effects of Hurricane Katrina will likely reshape the Gulf Coast and our nation for years to come. Many of our colleagues have been affected by this devastating storm, particularly our New Orleans Saks Fifth Avenue store associates. We have established a Hotline to assist these Saks Fifth Avenue associates in the wake of Hurricane Katrina. We have now been in contact with nearly 200 of our 230 New Orleans associates. All of the associates we have heard from are safe, although the majority report extensive damage to their homes and property."

Saks is aggressively trying to learn the whereabouts of the remaining 30 New Orleans associates and is working with local law enforcement and other agencies to locate them. Saks is asking that all displaced associates call the toll-free Saks Support Center Hotline at 1-888-564-5420 so that the Company can update current contact information, answer questions, and direct them to relief services.

At this time, the New Orleans Saks Fifth Avenue store remains closed indefinitely.

The Company is taking several actions to support its displaced New Orleans associates. Specifically, Saks will:

--Continue to pay out-of-work associates for 90 days and maintain their existing benefits during this time frame.

--Offer temporary or permanent transfers for all affected associates, including relocation assistance. Possible transfer opportunities include other Saks Fifth Avenue locations, Off 5th stores, Parisian stores, or the Saks Incorporated operations center in Jackson, Mississippi. The Company's goal is to place every associate in another position within the Company.

--Cover emergency transportation costs to connect associates with their families.

--Suspend minimum payments, finance charges, and late fees on all Saks Incorporated associate charge card accounts for a period of six months, from September 2, 2005 to February 28, 2006.

--Continue to man the Support Center Hotline 24 hours a day, seven days a week.

In addition to the New Orleans associates, the Company has only been able to reach a few of its 13 Club Libby Lu associates in Biloxi, Mississippi. These individuals are directed to call the Company's toll-free Associate Information Line at 1-866-705-7257. Each displaced Club Libby Lu associate from Biloxi will be provided the same benefits as outlined above.

Several of the Company's associates from its Parisian, Off 5th, and other Club Libby Lu stores along the Gulf Coast also were affected. Martin noted, "I can report that we believe all of these associates have been accounted for and are safe, although several reported extensive property damage."

Affected associates may apply for assistance from the Company's existing Saks Incorporated Disaster Associate Relief Fund, which was established to provide financial help to associates in such times of crisis. The Company's 40,000 associates from around the country are being given an opportunity to directly assist their fellow associates affected by this tragedy through payroll deductions and donations. In addition to the millions of dollars of support that Saks will provide for its associates as previously outlined, the Company will also make a major financial commitment to the Associate Relief Fund.

Martin further noted, "I am very proud of our many associates who have already rallied and donated time, money, shelter, supplies, and other support to the victims of this terrible event. Our Company and associates have always stepped up to challenges, and we will once again. We are committed to helping rebuild the lives of our associates and the communities we serve."

Saks Incorporated operates Saks Fifth Avenue Enterprises (SFAE), which consists of 55 Saks Fifth Avenue stores, 50 Saks Off 5th stores, and saks.com. The Company also operates its Saks Department Store Group (SDSG) with 181 department stores under the names of Parisian, Younkers, Herberger's, Carson Pirie Scott, Bergner's, and Boston Store and 49 Club Libby Lu specialty stores.