Federated Shareholders Approve Name Change to Macy's, Inc

Business Wire, May 18, 2007

Board of Directors Declares Increase in Quarterly Cash Dividend

CINCINNATI -- Federated Department Stores, Inc. (NYSE:FD)(NYSE Arca:FD) today announced that shareholders have approved a change in its corporate name to Macy's, Inc., effective June 1, 2007. On that date, the company's shares will begin trading under the ticker symbol "M" on the New York Stock Exchange.

"Today represents a milestone in the history of our company," said Terry J. Lundgren, Federated's chairman, president and chief executive officer. "By changing our corporate name to Macy's, Inc., we are demonstrating that we are a consumer-driven company focused on growing the Macy's and Bloomingdale's brands. In particular, this move will increase awareness of Macy's, which represents about 90 percent of the revenue of our corporation.

"As Macy's, Inc., we look forward to maintaining the fundamental values that have made Federated successful over the years, including integrity in the way we conduct business, respect for diverse points of view and a commitment to our communities," he said.

The change in corporate name will not affect the validity or transferability of any existing stock certificates that bear the Federated name. Stockholders with Federated certificates should continue to hold them. No action is required.

In a separate move, Federated's Board of Directors has declared a 2 percent increase in the quarterly cash dividend to 13 cents per outstanding common share. The dividend will be paid on July 2, 2007, to shareholders of record on June 15, 2007. The previous quarterly dividend was 12.75 cents per outstanding common share.

Federated, with corporate offices in Cincinnati and New York, is one of the nation's premier retailers, with fiscal 2006 sales of $27 billion. Federated operates more than 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's and Bloomingdale's. The company also operates macys.com, bloomingdales.com and Bloomingdale's By Mail. Federated's name will change to Macy's, Inc. and trade on the New York Stock Exchange under ticker symbol "M", effective June 1, 2007.

All statements in this press release that are not statements of historical fact are forward-looking statements 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.

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