Zale Announces Change in Auditors

Business Wire, May 1, 2008

DALLAS -- Zale Corporation (NYSE: ZLC), a leading specialty retailer of fine jewelry in North America, today announced that it has engaged Ernst & Young to serve as the Company's independent public accountants for the fiscal year ending July 31, 2008. Ernst & Young will replace KPMG.

The Company and KPMG did not have any disagreement on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures which disagreement, if not resolved to the satisfaction of KPMG, would have caused it to make reference to the subject matter of the disagreement in connection with its report on the Company's consolidated financial statements.

The change in auditors eliminates any issue as to whether KPMG's independence could be impacted by the service of Richard C. Breeden and James Cotter as members of the Company's Board of Directors. Mr. Breeden serves as KPMG's Monitor, and Mr. Cotter is a member of Mr. Breeden's monitoring team.

About Zale Corporation

Zale Corporation is a leading specialty retailer of fine jewelry in North America, operating throughout the United States, Canada and Puerto Rico in 2,167 retail locations as of January 31, 2008. Zale Corporation's brands include Zales Jewelers, Zales Outlet, Gordon's Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. Zale also operates online at www.zales.com and www.gordonsjewelers.com. Additional information on Zale Corporation and its brands is available at www.zalecorp.com.