Sachse to Lead Macy's Marketing and Online Business

Business Wire, May 30, 2007

CINCINNATI -- Federated Department Stores, Inc. (NYSE:FD)(NYSE Arca:FD) today announced that Peter Sachse, chairman and chief executive officer of macys.com, will assume an additional role as the company's chief marketing officer and president of Macy's Corporate Marketing, effective immediately. In this role, he replaces Anne MacDonald.

Sachse was the company's first Chief Marketing Officer in June 2003, when he became president of the Macy's Corporate Marketing division being created at that time. He was named to the newly created position of chairman of macys.com in April 2006.

"By combining the leadership of our marketing and online functions under Peter Sachse, we will be able to more effectively leverage the company's fast-growing online presence as we continue to build Macy's as a national brand through a broad range of marketing tools, including Internet advertising," said Terry J. Lundgren, Federated's chairman, president and chief executive officer. "I would like to thank Anne MacDonald for helping us to define and broaden the reach of Macy's brand message, and for her efforts in launching the brand nationally last September. We wish her the best in the future.

"Going forward, our ultimate goal remains to grow sales by driving more customers into our stores and to macys.com while positioning Macy's as a destination for fashion and affordable luxury," he said.

Sachse, 49, will continue to be based in New York and report directly to Lundgren. Kent Anderson, president of macys.com, and Helaine Suval, executive vice president for merchandising at macys.com, will continue to report to Sachse and work in close partnership with him on building the online business.

Before serving as president of Macy's Corporate Marketing and chairman of macys.com, Sachse was president and chief operating officer of the company's Bon Marche division (now Macy's Northwest). Sachse began his retail career with Macy's in Kansas City in 1980. He was named division merchandise manager at Macy's Bullock's division in 1987 and in 1992 moved to The Bon Marche as senior vice president/general merchandising manager. In 1997, Sachse was named executive vice president/general merchandise manager at Macy's East in New York where, in 1999, he was promoted to vice chair/director of stores.

A native of Sheboygan, WI, Sachse is a finance graduate of the University of Wisconsin. Sachse lives with his wife, Jini, and two children in the Greater New York area.

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)