Saks Incorporated Announces Saks Fifth Avenue's Mexico City Opening

Business Wire, Nov 28, 2007

NEW YORK -- Retailer Saks Incorporated (NYSE: SKS) (the "Company") announced it has expanded its international presence by opening its first Saks Fifth Avenue store in Mexico today. The tri-level, 150,000 square foot store is located in the Santa Fe Shopping Center, an upscale development in Mexico City.

The Mexico City Saks Fifth Avenue store is congruent with the Saks Fifth Avenue stores in the United States in both product and service, while catering to local tastes and preferences. The unique store includes distinctive offerings from established and emerging American and international designers and presents a sought-after collection of fine designer apparel for Men and Women as well as shoes, jewelry, accessories, handbags, fragrances and cosmetics, intimate apparel, bridal, and select gift items. Saks Fifth Avenue is known for its extraordinary personalized customer service, and the Mexico City location includes numerous in-store amenities such as restaurants, luxury fitting rooms, and the Fifth Avenue Club, its complementary personal shopping service. The store will also offer an ongoing calendar of special events such as fashion shows and personal appearances by designers.

The Company entered into a license agreement with Operadora de Tiendas Internacionales, S. A. de C. V., a wholly owned affiliate of Grupo Sanborns, S. A. de C. V. ("Grupo Sanborns") to locate and develop appropriate sites for potential Saks Fifth Avenue stores in Mexico. Grupo Sanborns will own and operate the stores under the license agreement with Saks Fifth Avenue. The Santa Fe store is the first location to open under the agreement.

Stephen I. Sadove, Chairman and Chief Executive Officer of Saks Incorporated, commented, "We are so excited to bring Saks Fifth Avenue to Mexico City. This wonderful city, and the Santa Fe Shopping Center in particular, is a great shopping and tourist hub. We have worked closely with Grupo Sanborns to deliver a unique, world-class selection of luxury brands and experiences to the residents of and visitors to Mexico City, and I hope that they will be pleased with our offerings.

"Grupo Sanborns is a premier retail enterprise in Mexico, and we are fortunate to have such a highly-regarded business partner to assure our future success in this region."

Sadove concluded, "While our principal focus remains on improving the operations of our domestic stores, the opening of select international licensed locations can broaden the reach of our brand and produce a supplemental income stream for the Company."

Mr. Carlos Hajj, CEO of Grupo Sanborns commented, "We have been working hard to bring the Saks Fifth Avenue store to Mexico City. We believe that we will fill a void that currently exists in the Mexican market by catering to a discerning luxury customer. We are going to do our best to satisfy our customer's expectations by providing superior personalized customer service, world class brand merchandise and amenities in the store. The store was built thinking of its customers, with world class in-store shop-in-shop boutiques such as Salvatore Ferragamo, Kiehl's, Hermes, Giorgio Armani, among others, which have created an extraordinary ambiance in the store."

About the Companies

Saks Incorporated currently operates Saks Fifth Avenue, which consists of 54 Saks Fifth Avenue stores, 49 Saks Off 5th stores, and saks.com. The Company also operates Club Libby Lu specialty stores.

Founded in 1924 with the opening of its Fifth Avenue, New York flagship store - which continues today to be the Company's landmark store - Saks Fifth Avenue has grown to 54 stores throughout the United States, complemented by successful licensed stores in Riyadh, Saudi Arabia and Dubai, U.A.E.. Saks has announced plans to open its first licensed store in Shanghai, China in 2009. Saks Fifth Avenue is one of the most recognized luxury retail brands in the world and has key relationships with the leading fashion houses including Giorgio Armani, Chanel, Louis Vuitton, Dolce and Gabbana, Salvatore Ferragamo, Gucci, Donna Karan, John Varvatos, Calvin Klein, Ralph Lauren, Judith Leiber, Prada, Escada, Carolina Herrera, Oscar de la Renta, St. John, Yves St. Laurent, TOD'S, Ermenegildo Zegna, and Max Mara.

Mexico-based Grupo Sanborns is subsidiary of Grupo Carso S.A. de C.V. ("Grupo Carso"), which controls and operates a diversified group of companies related to the retail, industrial, and consumer business. Through Grupo Sanborns, Grupo Carso operates several retail formats such as Sanborns, Sanborns Cafe, Mixup music stores, and Sears and Dorians department stores as well as several specialized stores including Oakley, Mask, Pier 1, Sasch, and Von Dutch among others, and owns and operates some of the most important shopping centers in Mexico City.

Forward-looking Information

The information contained in this press release that addresses future results or expectations is considered "forward-looking" information within the definition of the Federal securities laws. Forward-looking information in this document can be identified through the use of words such as "may," "will," "intend," "plan," "project," "expect," "anticipate," "should," "would," "believe," "estimate," "contemplate," "possible," and "point." The forward-looking information is premised on many factors, some of which are outlined below. Actual consolidated results might differ materially from projected forward-looking information if there are any material changes in management's assumptions.