Federated Names New Division Presidents

Business Wire, May 23, 2007

Macy's East President James E. Gray to Retire after Distinguished 46-Year Career

CINCINNATI -- Federated Department Stores, Inc. (NYSE:FD)(NYSE Arca:FD) today announced new presidents for its New York-based Macy's East division and Miami-based Macy's Florida division.

* Mark S. Cosby, Federated's senior vice president for property development, has been named president and chief operating officer of Macy's East, effective June 4, 2007. He replaces James E. Gray, who is retiring after a distinguished 46-year career with the company. Cosby will join Ron Klein, chairman and chief executive officer, as the principal team at Macy's East.

* J. David Scheiner, previously vice chairman and director of stores at Macy's Florida, has been named president and chief operating officer of that division. Along with Julie Greiner, chairman and chief executive officer, Scheiner remains a principal of Macy's Florida. He replaces Nirmal K. "Trip" Tripathy, former president of Macy's Florida, who has left the company to pursue another opportunity.

"We are fortunate that we have executives of the caliber of Mark Cosby and David Scheiner to fill these key operating roles," said Federated Vice Chair Susan D. Kronick, who oversees Federated's retail divisions, including Macy's East and Macy's Florida. "Both Mark and David are experienced leaders who have a track record of success in managing the operations of complex organizations, as well as a clear understanding of our customer and business priorities.

"As Jim Gray retires from Macy's East, we will miss his broad experience and deep commitment to the company," Kronick said. "Jim is a truly special individual who has been president of three Federated divisions over the past 22 years. He is a friend and trusted colleague to everyone in our management organization."

Cosby, 48, joined Federated in July 2006 as senior vice president for property development, a position in which he oversees a range of corporate-level functions, including store design and construction, energy services, real estate and licensed operations.

Previously, Cosby served as president of full-line stores for Sears Roebuck & Co., where his responsibilities included merchandising, store operations and supply chain management. Prior to joining Sears, he was chief operating officer of KFC and chief development officer of Yum Brands, the branded restaurants company spun off from PepsiCo. He began his career as a financial analyst for General Foods Corporation.

A native of Madison, WI, Cosby holds bachelor's and MBA degrees from the University of Wisconsin. He currently lives in Cincinnati with his wife, Kathy, and two children.

Scheiner, 57, first joined Burdines (predecessor of Macy's Florida) in 1972 as assistant buyer of men's slacks. He advanced to group senior vice president and general merchandise manger, overseeing Burdines' fashion office and women's apparel and center core categories. In 1988, Scheiner became president of Maas Brothers/Jordan Marsh until the merger of the Burdines and Mass Brothers/Jordan Marsh in October 1991, when he became vice chairman and director of stores for the combined organization.

A native of New York, Scheiner graduated from the University of New Haven with a degree in marketing and management. Scheiner and his wife, Joan, live in Coral Gables, FL.

Gray, 68, has been president of Macy's East since December 1994. Previously, he was president of Burdines (now Macy's Florida) since June 1988. From 1985 to 1988, he was president of Los Angeles-based Bullock's (now part of Macy's West) and was also chief executive officer from 1987 to 1988.

Gray joined Federated in 1961 as an executive trainee at Foley's in Houston (now part of Macy's South). Over the next 27 years, his career at Bullock's included positions of increasing responsibility, including manager of electronic data processing, controller, vice president for finance, control and long range planning, executive vice president, and president.

Gray is a graduate of the University of Texas and currently lives in New York with his wife, Sheila.

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.

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