August Comparable Store Sales Decrease 4.6%, in Line with Company Expectations; Regular-Price Comps on Early Fall Merchandise in Core Women's Businesses Continued to be Healthy.

HINGHAM, Mass. -- The Talbots, Inc. (NYSE:TLB) today announced sales for fiscal August, the four weeks ended August 28, 2004, decreased 1% to $86.8 million from $87.8 million for the four weeks ended August 30, 2003. Comparable store sales decreased 4.6% for the month, as expected. Year-to-date sales for the thirty weeks ended August 28, 2004 increased 5% to $915.2 million from $872.4 million reported for the thirty weeks ended August 30, 2003. Comparable store sales increased 0.4% for the year-to-date period.

Arnold B. Zetcher, Chairman, President and Chief Executive Officer, commented,"We reported August comparable store sales results of negative 4.6%, which were in line with our expectations. As previously stated, this performance reflects the reduced inventory levels of markdown merchandise remaining for our semi-annual sale event. Regular-price selling trends on early fall merchandise in our core women's businesses continued to be healthy with comps increasing in the mid-single digit range for the month."

"Looking ahead, given our August results, we are reconfirming our current outlook for third quarter earnings per share growth of 10%, compared to the prior year period. In addition, in late August the Company received positive resolution from the Joint Committee on Taxation of certain prior year's income tax issues and expects to record a benefit in the third quarter of 2004 of two cents," concluded Mr. Zetcher.

Talbots is a leading national specialty retailer and cataloger of women's, children's and men's classic apparel, shoes and accessories. The Company operates 1,013 stores - 507 Talbots Misses stores, including 20 Talbots Misses stores in Canada and five Talbots Misses stores in the United Kingdom; 277 Talbots Petites stores, including three Talbots Petites stores in Canada; 40 Talbots Accessories & Shoes stores; 68 Talbots Kids stores; 87 Talbots Woman stores, including two Talbots Woman stores in Canada; nine Talbots Mens stores; one Talbots Collection store; and 24 Talbots Outlet stores. Its catalog operation currently expects to circulate approximately 45 million catalogs worldwide in fiscal 2004. Talbots on-line shopping site is located at www.talbots.com.

For more detailed information, please visit our website at www.talbots.com, or call [phone] to listen to The Talbots, Inc. monthly sales recording.

The foregoing contains forward-looking information within the meaning of The Private Securities Litigation Reform Act of 1995. These statements may be identified by such forward-looking terminology as "expect," "look," "believe," "anticipate," "outlook," "will," or similar statements or variations of such terms. All of the "outlook" information (including future revenues, future comparable sales, future earnings, future EPS, and other future financial performance or operating measures) constitutes forward-looking information.

Our outlook and other forward-looking statements are based on a series of expectations, assumptions, estimates and projections about our Company which involve risks and uncertainty, including assumptions and projections concerning store traffic, levels of store sales including regular price selling and markdown selling, and customer preferences. All of our outlook information and other forward-looking statements are as of the date of this release only. The Company can give no assurance that such outlook or expectations will prove to be correct and does not undertake to update or revise any outlook information or any other forward-looking statements to reflect actual results, changes in assumptions, estimates or projections, or other circumstances occurring after the date of this release, even if such results, changes or circumstances make it clear that any projected results will not be realized.

Our forward-looking statements involve substantial known and unknown risks and uncertainties as to future events which may or may not occur, including effectiveness of the Company's brand awareness and marketing programs, effectiveness and profitability of new concepts including the Mens concept, effectiveness of its e-commerce site, acceptance of Talbots fashions including its transitional and fall 2004 fashions, the Company's ability to anticipate and successfully respond to changing customer tastes and preferences and to produce the appropriate balance of merchandise offerings, increased merchandise inventory levels expected for the 2004 second half, the Company's ability to sell its merchandise at regular prices as well as its ability to successfully execute its major sale events including the timing and levels of markdowns and appropriate balance of available markdown inventory, retail economic conditions including consumer spending, consumer confidence and a continued uncertain economy, and the impact of a continued promotional retail environment. In each case, actual results may differ materially from such forward-looking information.

Certain other factors that may cause actual results to differ from such forward-looking statements are included in the Company's periodic reports filed with the Securities and Exchange Commission and available on the Talbots website under "Investor Relations," and you are urged to carefully consider all such factors.