Saks Incorporated Announces Saks Fifth Avenue's Bahrain Opening

Business Wire, Nov 8, 2008

NEW YORK -- Retailer Saks Incorporated (NYSE: SKS) (the "Company") announced it has expanded its international presence by the opening of its first licensed Saks Fifth Avenue store in Bahrain today. The two-level, 57,600 square foot store is located in the Bahrain City Centre, an upscale development in Manama, Bahrain.

The Bahrain 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 jewelry, accessories, handbags, fragrances, cosmetics, intimate apparel, bridal, children's apparel, and select gift items. The store will also feature Saks Fifth Avenue's world-famous 10022-SHOE salon. Saks Fifth Avenue is known for its extraordinary personalized customer service, and the Bahrain location includes numerous in-store amenities such as skin care treatment rooms, luxury fitting rooms, and the Fifth Avenue Club, its complimentary personal shopping service. The store will also offer an ongoing calendar of special events such as fashion shows and personal appearances by designers.

In 2003, the Company entered into a license agreement with Style Avenue Middle East ("SAME") to open licensed Saks Fifth Avenue stores in the United Arab Emirates, Qatar, Kuwait, and Bahrain. The Bahrain location will be the third store opened under this agreement. The first location was opened in Dubai, U.A.E. in September 2004, and a separate Saks Fifth Avenue men's store was opened in Dubai in June of this year. The Bahrain store will be operated by Style Avenue Bahrain, the sublicense of SAME and a joint venture between Kapico Group, Damas Jewellery, and The Chalhoub Group, along with esteemed Bahraini business leader Abdullah Buhindi.

Stephen I. Sadove, Chairman and Chief Executive Officer of Saks Incorporated, commented, "We are very pleased to bring Saks Fifth Avenue to Manama, Bahrain, which is a great shopping and tourist destination. We have worked closely with Style Avenue Middle East to deliver an extraordinary assortment of luxury brands and experiences to the residents of and visitors to Bahrain."

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."

About the Companies

Saks Incorporated currently operates Saks Fifth Avenue, which consists of 53 Saks Fifth Avenue stores, 50 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 53 stores throughout the United States, complemented by successful licensed stores in Riyadh, Saudi Arabia; Dubai, U.A.E.; and Mexico City, Mexico. 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.

Style Avenue Middle East consists of the following shareholders:

* Al Mana Retail W.W.L, a group of diversified companies with interests in automotive, retail, investments, and real estate.

* The Chalhoub Group, which is synonymous with luxury brands throughout the Middle East. This group owns and operates free-standing boutiques including Louis Vuitton, Chanel, Christian LaCroix, and Ralph Lauren. They are the largest distributor and retailer of cosmetics and fragrances in the Middle East.

* Damas Jewellery, the largest jeweler in the U.A.E. with over 75 locations.

* Kapico Group, a partnership of the Al Ghannam and Handa families of Kuwait, with interests in automotive, engineering and construction, healthcare, and retail.

Abdullah Buhindi is Chairman of National Investment Company, Buhindi Group, Aer Rianta M.E., Banz Group, Bahrain Kuwait Insurance Company, Bahrain Maritime & Mercantile International, United Paper Industries, Bemco, and Copyright Co. (Bahrain) W.L.L.

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.