Eskenasi Promoted to President of Private Brand and Product Development for Saks Department Store Group.

Business Editors

BIRMINGHAM, Ala.--(BUSINESS WIRE)--Sept. 25, 2002

Retailer Saks Incorporated (NYSE: SKS) (the "Company") today announced that Peggy Eskenasi has been promoted to President of Private Brand and Product Development for Saks Department Store Group (SDSG).

Eskenasi will continue to lead the SDSG private brand organization based in Birmingham and to report to George Jones, President and Chief Executive Officer of SDSG. Eskenasi joined the Company in January 1997 as the Senior Vice President of Private Label and Brand Development and was promoted to Executive Vice President in June 1999. Between 1980 and December 1996, she held a variety of merchandising positions with Frederick Atkins, Inc., a buying cooperative based in New York, including the post of Senior Vice President and General Merchandise Manager of Accessories, Intimate Apparel, Children's, Cosmetics, and Shoes.

George Jones commented, "We are delighted to recognize the many accomplishments of Peggy Eskenasi with her promotion to this important new post. Peggy is largely responsible for the development and tremendous growth and success of SDSG's private brand program, which supports our strategic direction of providing distinctive and differentiated product offerings to our customers."

Since its inception in January 1997, SDSG's private brand organization has developed several brands including Relativity, Pursuits, and Studio Works in women's apparel and accessories; Consensus, Cezani, and RBM in men's apparel; LivingQuarters in home; URIT in children's apparel; and Intimate Essentials in intimate apparel. In addition, SDSG has recently entered into exclusive agreements to produce and sell merchandise under the Laura Ashley, Jane Seymour, and Ruff Hewn names. SDSG introduced Laura Ashley women's apparel and accessories in August 2002 and will add Jane Seymour home and children's private brand products and Ruff Hewn men's and women's private brand apparel, shoes, and accessories to its stores in fall 2003.

Saks Incorporated currently operates its Saks Department Store Group (SDSG) which consists of 243 department stores under the names of Parisian, Proffitt's, McRae's, Younkers, Herberger's, Carson Pirie Scott, Bergner's, and Boston Store. The Company also operates Saks Fifth Avenue Enterprises (SFAE), which consists of 61 Saks Fifth Avenue stores and 52 Off 5th stores.