Caldor Announces Fourth Quarter and Fiscal 1997 Results and a New DIP/Exit Credit Facility.

NORWALK, Conn.--(BUSINESS WIRE)--April 28, 1998--The Caldor Corporation today announced its financial results for the thirteen and fifty-two week periods ended January 31, 1998.

Warren D. Feldberg, Chairman and Chief Executive Officer of Caldor, commented, "The Company generated EBITDAR of $53.7 million in fiscal 1997 which represents a significant improvement over 1996 results of $1.5 million. EBITDAR is the most important measure of our performance and reflects the fundamental changes we have made in how we approach our business. We are more effectively serving our core customers and we are better differentiating ourselves in the marketplace.

"Under our Five Year Business Plan, we have revitalized and refocused our merchandise content on more fashion, newness and quality at low prices; revised our marketing and advertising strategies, including revamping our weekly circulars to deliver a more cohesive and impactful message; dramatically improved customer service levels, which have enhanced the overall shopping experience in our stores; lowered prices on 7,500 of the most frequently purchased items and improved in-stock levels. At the same time, we have improved our gross margin rate by 130 basis points in 1997 and exceeded our targets for operating cost reductions, slicing in excess of $85 million in operating expenses since 1996. Additionally, our sales performance for the first two months of fiscal 1998 has been better than we planned. Overall, we are making solid progress in achieving the goals set forth in our Five Year Business Plan."

The Company also reported that it has signed a commitment letter with BankBoston Retail Finance Inc., a subsidiary of BankBoston Corporation, for a fully underwritten and committed $450 million DIP replacement credit facility and a separate $450 million exit credit facility, subject to Bankruptcy Court approval. The combined terms of the facilities is four years.

"The replacement of our DIP facility provides the Company with the liquidity to continue to move ahead with our plans to reorganize Caldor and successfully emerge from Chapter 11. This, combined with an exit facility, should enable Caldor to have the necessary financing available at emergence." Mr. Feldberg also said that he was pleased with the continued support of the Company's suppliers. During fiscal 1997, the Company significantly reduced its operating loss (results before interest, taxes and reorganization items) from $57.8 million in fiscal 1996 to $3.0 million in fiscal 1997. The Company's operating profit for the fourth quarter of fiscal 1997 was $36.8 million, versus an operating profit of $7.8 million in the fourth quarter of fiscal 1996.

The net loss for fiscal 1997 was $132.6 million, compared to a net loss of $185.3 million for fiscal 1996. The Company's net loss for the fourth quarter of fiscal 1997 was $43.2 million, compared to a net loss of $65.7 million in the fourth quarter of fiscal 1996.

The net loss for fiscal 1997 included reorganization charges of $84.9 million compared to $87.5 million in fiscal 1996. Reorganization charges for the fourth quarter of fiscal 1997 were $68.5 million compared to $62.1 million for the fourth quarter of fiscal 1996. The reorganization charges for the fourth quarter and fiscal 1997 consisted primarily of provisions related to lease rejections and closing of locations as well as asset write-offs, which are substantially either non-cash in nature or represent liabilities subject to compromise. The charges also included provisions for the employee retention program, professional fees and other bankruptcy-related items.

For the fifty-two weeks ended January 31, 1998, net sales were $2.5 billion compared to $2.6 billion in fiscal 1996 (52 weeks ended February 1, 1997). Comparable store sales for fiscal 1997 declined by 2.1% from 1996. For the fourth quarter of fiscal 1997, net sales were $810.1 million compared to $843.1 million for the fourth quarter of fiscal 1996. Comparable store sales declined by 1.0% for the same period.

The comparable store sales decline was primarily attributable to changes in the Company's marketing strategy including the discontinuance of one-day sale events, mid-week circulars and coupon sales that were neither profitable nor compatible with the Company's long-term marketing strategy. In addition, unseasonable weather in the Northeast and the intensely competitive retail environment contributed to the decline in comparable store sales.

In February 1998, Caldor announced the extension of its exclusivity period through September 1, 1998, and the period for which it can solicit acceptances for the reorganization plan through October 30, 1998.

The Caldor Corporation is the fourth largest discount department store chain in the U.S., with annual sales of approximately $2.5 billion and approximately 22,000 Associates. It currently operates 145 stores in nine East Coast and Mid-Atlantic states. With a strong consumer franchise in high density urban/suburban markets, Caldor offers a diverse merchandise selection including both softline and hardline products. -0-

               The Caldor Corporation and Subsidiaries
                Consolidated Statements of Operations
            (Dollars in thousands, except per share data)

                           Fourth Quarter Ended  Fiscal Year Ended
                            Jan. 31,    Feb. 1,   Jan. 31,    Feb. 1,
                              1998       1997       1998       1997
                           (13 Weeks) (13 Weeks) (52 Weeks) (52 Weeks)
                          (Unaudited)(Unaudited)

Net sales                   $ 810,102  $ 843,088 $2,496,747 $2,602,456
Cost of goods sold            595,055    643,579  1,828,343  1,938,861
SG&A expenses, net of
   depreciation and
   amortization               167,244    177,903    619,538    666,073
Depreciation and
   amortization                10,349     13,055     51,209     54,594
Loss on disposition of
    property and equipment        671        729        671        729
Operating earnings (loss)      36,783      7,822     (3,014)  (57,801)
Interest expense, net          10,980     10,885     43,864     39,502
Income (loss) before
   reorganization items
   and income taxes            25,803     (3,063)   (46,878)  (97,303)
Reorganization items           68,482     62,101     84,931     87,522
Loss before income taxes      (42,679)   (65,164)  (131,809) (184,825)
Income tax provision              500        500        800        500
Net loss                     ($43,179)  ($65,664) ($132,609)($185,325)
Per Share Amounts:
Basic and Diluted net loss     ($2.55)    ($3.86)    ($7.84)  ($10.91)
Weighted average common and
   common equivalent shares
   used in computing basic and
   diluted per share amount     16,903     17,046     16,911    16,994


               The Caldor Corporation and Subsidiaries
                     Consolidated Balance Sheets
                        (Dollars in thousands)

                                       Jan. 31,    Feb. 1,
                                         1998       1997
ASSETS
Current assets:
   Cash and cash equivalents           $  21,561  $  27,477
   Restricted cash                         1,023      5,254
   Accounts receivable                    12,853     12,573
   Merchandise inventories               419,682    450,499
   Assets held for disposal               30,076      8,177
   Refundable income taxes                    0      13,040
   Prepaid expenses & other
      current assets                      20,987     17,422
        Total current assets             506,182    534,442

Property and equipment, net              436,658    508,071
Debt issuance costs                        1,086      2,516
Other assets                               5,194      5,851
                                        $949,120 $1,050,880

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
   Accounts payable and
      accrued expenses                $  210,019 $  215,295
   Other accrued liabilities              53,542     64,478
   Borrowings under revolving
      credit agreement                   187,698    152,000
   Current maturities of long-term deb     9,936        550
        Total current liabilities        461,195    432,323

Long-term debt                            10,525     18,463
Other long-term liabilities               31,037     28,322
Liabilities subject to compromise        729,039    719,980

Total stockholders' deficit             (282,676)  (148,208)
                                      $  949,120 $1,050,880

Footnotes:

     (1) EBITDAR (Earnings before interest, taxes, depreciation,
amortization and reorganization) for the thirteen weeks ended January
31, 1998 was a profit of $48.2 million compared to a profit of $21.9
million in the 13 weeks ended February 1, 1997. For the fifty-two
weeks ended January 31, 1998, EBITDAR was a profit of $53.7 million
compared to a profit of $1.5 million for the 52 weeks ended February
1, 1997.
     (2) Certain items previously reported in the accompanying
financial information have been reclassified to conform with the
current year's classifications.
-0-

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