Federated Prices $1.6 Billion Senior Notes Offering.

CINCINNATI -- Federated Department Stores, Inc. (NYSE:FD)(NYSE Arca:FD) today announced the pricing of the public offering of $1.1 billion aggregate principal amount of senior notes due 2012 and $500 million aggregate principal amount of senior notes due 2037 by its wholly owned subsidiary, Federated Retail Holdings, Inc. The 2012 senior notes will bear interest at a rate of 5.35 percent per annum and the 2037 notes will bear interest at a rate of 6.375 percent per annum. The senior notes will be fully and unconditionally guaranteed on a senior unsecured basis by Federated Department Stores. The transaction is expected to close on or about March 12, 2007, subject to market conditions and other factors. The net proceeds from the offering will be used by Federated Retail Holdings to repay commercial paper borrowings incurred in connection with its previously announced accelerated share repurchase programs and for general corporate purposes.

Credit Suisse Securities (USA) LLC is acting as the global coordinator and Banc of America Securities LLC, Goldman, Sachs & Co. and J.P. Morgan Securities Inc. are acting as joint book-running managers. Jones Day is acting as counsel to Federated Department Stores and Federated Retail Holdings.

Copies of the prospectus and prospectus supplement relating to the senior notes may be obtained for free by visiting EDGAR on the SEC Web site at http://www.sec.gov. Alternatively, copies of the prospectus and prospectus supplement may be obtained from the global coordinator by contacting Credit Suisse Securities (USA) LLC at [phone] or from any of the joint book-running managers by contacting Banc of America Securities LLC at [phone], Goldman, Sachs & Co. at [phone] or J.P. Morgan Securities Inc. at [phone].

Federated, with corporate offices in Cincinnati and New York, is one of the nation's premier retailers, with fiscal 2006 sales of approximately $27 billion. Federated operates more than 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's and Bloomingdale's. The company also operates macys.com, bloomingdales.com and Bloomingdale's By Mail.

All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Federated's management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed transactions, changes in the conditions of the securities markets, particularly the markets for debt securities and other factors identified in documents filed by Federated with the Securities and Exchange Commission.

(NOTE: Additional information on Federated, including past news releases, is available at www.fds.com/pressroom)