Saks Fifth Avenue to Expand Palm Desert, California Location

Business Wire, July 16, 2008

NEW YORK -- Saks Incorporated (NYSE: SKS) ("Saks" or the "Company") today announced it plans to expand its existing 50,000 square foot Saks Fifth Avenue store in The Gardens of El Paseo in Palm Desert, California. Work on the 27,000 square foot expansion will commence in early 2009 and is expected to be completed in November 2009.

Steve Sadove, Chairman and Chief Executive Officer of Saks, commented, "The planned expansion of our Saks Fifth Avenue Palm Desert store is consistent with our strategy of focusing our resources on existing stores in order to enhance our sales productivity. Palm Desert is a great market for us, and we are eager to increase our presence there. With a 77,000 square foot showcase store, we will be able to enhance our distinctive roster of designer collections and service offerings to better serve our many loyal customers in the area."

Saks Fifth Avenue has six additional stores in California - Beverly Hills, Costa Mesa (South Coast Plaza), Mission Viejo, San Diego, San Francisco, and Santa Barbara.

Saks Incorporated currently operates Saks Fifth Avenue, which consists of 54 Saks Fifth Avenue stores, 48 Saks Off 5th stores, and saks.com. The Company also operates Club Libby Lu specialty stores.

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.

The forward-looking information and statements are or may be based on a series of projections and estimates and involve risks and uncertainties. These risks and uncertainties include such factors as: the level of consumer spending for apparel and other merchandise carried by the Company and its ability to respond quickly to consumer trends; adequate and stable sources of merchandise; the competitive pricing environment within the retail sector; the effectiveness of planned advertising, marketing, and promotional campaigns; favorable customer response to relationship marketing efforts of proprietary credit card loyalty programs; appropriate inventory management; effective expense control; successful operation of the Company's proprietary credit card strategic alliance with HSBC Bank Nevada, N.A.; geo-political risks; changes in interest rates; and fluctuations in foreign currency and exchange rates. For additional information regarding these and other risk factors, please refer to the Company's filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended February 2, 2008, its Quarterly Reports on Form 10-Q, and its Current Reports on Form 8-K, which may be accessed via EDGAR through the Internet at www.sec.gov.

Management undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events, or otherwise. Persons are advised, however, to consult any further disclosures management makes on related subjects in its reports filed with the SEC and in its press releases.