Federated Signs Deal for Puerto Rico Macy's.

CINCINNATI--(BUSINESS WIRE)--Aug. 17, 1998--Federated Department Stores, Inc. today announced that final agreement has been reached for the construction of a new Macy's store in San Juan, Puerto Rico.

The new Macy's store will begin construction later this year at Plaza Las Americas in San Juan. The 260,000 square foot, three-level store will be a full-line department store, excluding furniture, including all of the national and private brands found in every Macy's store. The store is scheduled to open in early Fall 2000.

In announcing the deal, James M. Zimmerman, chairman and chief executive officer of Federated, said, "We are excited about the first Federated store in an international market and look forward to offering customers in Puerto Rico an innovative merchandise assortment, representing the fashion and value they expect from the Macy's name."

The store will be part of Federated's Macy's East division, which currently operates 87 stores in 15 states in the eastern United States.

Federated, with corporate offices in Cincinnati and New York, is one of the nation's leading department store retailers, with annual sales of more than $15.6 billion. Federated currently operates approximately 400 department stores in 36 states. Federated's department stores operate nationally under the names of Bloomingdale's, The Bon Marche, Burdines, Goldsmith's, Lazarus, Macy's, Rich's and Stern's.

(NOTE: Information on Federated and its operating divisions is available on the Internet at http://www.federated-fds.com. Copies of past press releases and corporate background data also are available by calling Fax-On-Demand at 1-800-853-9150.)

    CONTACT:  Federated Department Stores, Inc.
               Jean Coggan, 513/579-7315