Citing Strong Trends, Talbots Announces Extension of Stock Repurchase Program.

Business Editors

HINGHAM, Mass.--(BUSINESS WIRE)--January 24, 2000

Company Also Announces Completion of Earlier Stock

Repurchase Program

The Talbots, Inc. (NYSE:TLB) today announced that its Board of Directors has approved a new authorization, which is immediately effective, for the Company to repurchase $20 million of its common stock. This represents the fourth extension of Talbots stock repurchase program adopted in 1995.

Arnold B. Zetcher, President and Chief Executive Officer, commented, &uot;Due to our very healthy sales trends, the Company is enjoying a strong cash position. We believe that our current stock price is a particularly attractive investment opportunity for the Company, and that this new buyback represents an appropriate use of available cash. It also underscores our on-going commitment to enhancing shareholder value.&uot;(a)

&uot;Further, this authorization comes on top of our recently announced increase in our expectations for fourth quarter earnings per share to a range of $0.44 - $0.46 per diluted share. This significantly increased range is at least 70% over the $0.26 per diluted share reported in the fourth quarter last year,&uot; continued Mr. Zetcher.(a)

&uot;As we transition into the spring season, our strong momentum continues to fuel our optimistic outlook,&uot; Mr. Zetcher concluded.(a)

The extended stock repurchase authorization provides for repurchases on the open market and, consistent with its previous repurchase authorizations, the Company will purchase a pro rata number of shares from JUSCO (U.S.A.), Inc., so as to maintain substantially the same percentage ownership balance in the Company between JUSCO (U.S.A.) and the public shareholders. Currently, 61.4% of Talbots outstanding shares are owned by JUSCO (U.S.A.), a wholly owned subsidiary of JUSCO Co., Ltd./AEON Group, a Tokyo- based international retail conglomerate. The other 38.6% of the outstanding shares are publicly owned. At January 1, 2000, the Company had 31,231,151 shares of common stock outstanding.

The Company also announced today that in December, it completed the repurchase of approximately $20 million of its outstanding common stock under the Company's previous stock repurchase program approved by its Board of Directors and announced in May 1999. Since the inception of the stock repurchase program in 1995, the Company has acquired a total of 4,651,211 shares of its outstanding common stock at a cost of $133 million.

Talbots is a leading national specialty retailer and cataloger of women's classic apparel, shoes and accessories. The Company currently operates 672 stores - 404 Talbots Misses stores, including 19 Talbots Misses stores in Canada and six Talbots Misses stores in the United Kingdom; 155 Talbots Petites stores, including one Talbots Petites store in Canada; 35 Talbots Accessories &Shoes stores; 54 Talbots Kids stores; five Talbots Woman stores; and 19 Talbots Outlet stores. Its catalog operation currently expects to circulate approximately 57 million catalogs worldwide in fiscal 1999. Talbots on-line shopping site is located at www.talbots.com.

The foregoing contains forward-looking information within the meaning of The Private Securities Litigation Reform Act of 1995. The statements may be identified by an &uot;(a)&uot; or such forward-looking terminology as &uot;expect,&uot; &uot;look,&uot; &uot;believe,&uot; &uot;anticipate,&uot; &uot;may,&uot; &uot;will,&uot; or similar statements or variations of such terms. Such forward-looking statements involve risks and uncertainties including levels of sales, effectiveness of the Company's brand awareness and marketing programs, effectiveness and profitability of new concepts, effectiveness of the new e-commerce site and the overall affect of e-commerce on Talbots business, store traffic, acceptance of Talbots fashions, appropriate balance of merchandise offerings, timing and levels of markdowns, and any potential disruptions to the Company's operations caused by failure of any of the Company's IT Systems, non-IT Equipment, or third party suppliers or vendors to be Y2K ready, and, 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 Current Report on Form 8-K dated October 30, 1996 filed with the Securities and Exchange Commission (a copy of which may also be obtained from the Company at 781-741-4500) as well as other periodic reports filed by the Company with the Securities and Exchange Commission and you are urged to consider such factors. The Company assumes no obligation for updating any such forward-looking statements.