Federated plans four California Bloomingdale's; seven additional stores slated for conversions to Macy's.

CINCINNATI--(BUSINESS WIRE)--Dec. 27, 1995--Federated Department Stores, Inc. today announced its long-awaited plans for Bloomingdale's entry into California, naming four locations -- Century City, Sherman Oaks and Newport Beach Fashion Island in the south and Stanford in the north -- scheduled for conversions to Bloomingdale's by late fall 1996. The company also identified seven additional former Broadway Stores, Inc. locations that will be converted to Macy's in the coming year.

"We are tremendously excited about the prospect of Bloomingdale's entry into California in such a big way in 1996," said Michael Gould, chairman and chief executive officer of the New York-based division. "We think the uniqueness and excitement that is Bloomingdale's will be an excellent fit with California's unique sense of style and fashion flair, as well as its trendier lifestyles.

"This is a market we know well, as I spent a good part of my career in California," Gould added. "This makes us doubly excited about bringing Bloomingdale's to California, and encouraged to be doing so at a time when the state's economy is showing real signs of improvement."

Bloomingdale's entry into California will mark the upscale retailer's first venture west of the Rockies. Currently, Bloomingdale's operates 18 department stores in nine states, all of which -- with the exception of Mall of America in Minneapolis -- are east of the Mississippi River.

The four Bloomingdale's locations announced today include one location -- Newport Beach Fashion Island -- that previously had been announced for conversion to Macy's. Merchandise clearance sales are scheduled to begin in each of the future Bloomingdale's stores in early January, and to run through late February or early March.

Federated said there may be additional Bloomingdale's store conversions announced at a later date.

The addition of seven new stores to the list of former Broadway stores that will be retained and converted to Macy's brings to 95 the total number of stores to be operated under the Macy's nameplate throughout California and five other western states in the new year. A total of approximately 10,800 persons will be employed by Macy's in the 46 former Broadway locations it will operate as part of Federated's San Francisco-based Macy's West division.

The seven additional former Broadway stores slated to be converted to Macy's, beginning in February, include: -0-

    o   Baldwin Hills/Crenshaw Broadway, Los Angeles
    o   Crystal Court Broadway, Costa Mesa
    o   Sun Valley Emporium, Concord
    o   Southland Mall Emporium, Hayward
    o   Grossmont Center Broadway, La Mesa
    o   Emporium, Newpark
    o   Del Amo Broadway, Torrance

Federated has said it expects to invest more than $525 million in capital on store conversions and major remodels of the former Broadway stores during the next three years. Extensive renovations planned for the four Bloomingdale's stores will necessitate the closing of those locations from March through October; the new Bloomingdale's stores are expected to open in November 1996.

There are approximately 775 current employees of the four future Bloomingdale's locations affected by the store closures, all of whom were notified today of the company's plans. These employees will be offered severance, outplacement, some company-paid health care premiums and the opportunity to apply for available positions in other Federated-owned stores in the area.

In a related move, Federated announced that it would be closing its Bullock's store in downtown Los Angeles at the end of February, and transferring all of the store's 121 employees to the nearby Broadway Plaza store. Staffing at the larger Broadway Plaza store will be increased proportionately; there will be no layoffs as a result of the downtown Los Angeles store consolidations.

Federated also noted that while plans for the future of the Broadway store at Beverly Center in Los Angeles have yet to be finalized, the store's approximately 170 employees were notified today that the store would be closing by mid-March. A planned store-closing clearance sale at Beverly Center is slated to get underway in early January.

In San Francisco, approximately 500 employees at the downtown Emporium store were notified today that the store would be closing in mid-March, although plans for the future of that site have yet to be finalized. Merchandise clearance sales in that location will begin after the first of the year.

Also in San Francisco, approximately 114 employees at Macy's Paul Avenue warehouse also were notified today of that facility's planned closing in early spring. Work performed in that center, including vendor returns alterations and bedding delivery, will be reassigned to other Macy's facilities in the state, including the El Camino furniture and bedding distribution center in South San Francisco, which will be expanding its operations to absorb the additional demands of the Broadway merger. Many of those employed at the Paul Avenue facility will be offered opportunities for employment at El Camino or in one of the other Macy's operations in the area, or will be given severance.

Additionally, Federated said there have been changes in two other previously announced Broadway store determinations: the Weinstock's store in Stockton, employing 113, will remain open through June 1996 rather than closing early in the year, as had been stated; the Almaden Emporium store in San Jose, employing 181 persons, will close in mid-March rather than in September, as originally had been announced.

With today's announcements, determinations now have been made on the future of all but nine of the former Broadway Stores, Inc. locations acquired by Federated in October. Those stores on which no decisions yet have been made are: -0-

    o   Solano Emporium, Fairfield
    o   Weinstock's, Fresno
    o   Hawthorne Plaza Broadway, Hawthorne
    o   Huntington Center Broadway, Huntington Beach
    o   Weinstock's, Modesto
    o   Fashion Center Broadway, Northridge
    o   Hilltop Emporium, Richmond
    o   Weinstock's, downtown Sacramento
    o   Valley Fair Emporium, Santa Clara

The company said it hopes to resolve the future of the remaining properties within the next six months. Such determinations could include the potential sale of these properties to other interested parties; store closures; additional conversions to Macy's or Bloomingdale's nameplates; or continued operation under existing nameplates for an undetermined period.

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 billion. Federated currently operates more than 440 department stores and 100 specialty stores in 37 states. Federated's department stores now operate under the names of Bloomingdale's, The Bon Marche, Broadway, Bullock's, Burdines, Emporium, Goldsmith's, Jordan Marsh, Lazarus, Macy's, Rich's, Stern's and Weinstock's. -0-

(NOTE: Information on Federated and its operating divisions, including copies of past press releases and corporate background data, also is available by calling Fax-On-Demand at 1-800-853-9150.)

CONTACT: Federated Department Stores Inc., Cincinnati

Media - Carol Sanger, 513/579-7764

Investor - Susan Robinson, 513/579-7780