Saks Promotes Mustafa and Villa to Key SDSG Private Brand Positions.

BIRMINGHAM, Ala. -- Retailer Saks Incorporated (NYSE:SKS) (the "Company") today announced two promotions in its Saks Department Store Group ("SDSG") Private Brand and Product Development area based in Birmingham, Alabama.

Harris Mustafa, with nearly 30 years of merchandising, finance, and planning experience in the retail industry, has been promoted to Executive Vice President of Private Brand and Product Development for SDSG. Mustafa joined SDSG in 2003 as Senior Vice President of Planning and Operations for Private Brand. Prior to that, he was Senior Vice President of Business Planning for Williams-Sonoma, Inc. Between 1987 and 2002, Mustafa was with Payless ShoeSource, Inc., where he rose to the position of Senior Vice President and Managing Director of Payless ShoeSource International. Prior to that, he held various positions of increasing responsibility with Target Stores. He will report to George Jones, President and Chief Executive Officer of SDSG.

Steve Villa has been promoted to Senior Vice President and General Merchandise Manager of Ready-to-Wear and Intimate Apparel for Private Brand and Product Development for SDSG. Villa's retail career spans over 30 years. He joined SDSG in 1998 as Vice President of Product Development for Studio Works, one of SDSG's most established and largest volume private brands. In 2003, he assumed additional responsibility for Breckenridge, a women's brand introduced earlier this year. Villa held merchandising and strategic business development positions with Charming Shoppes between 1995 and 1998 and was with Sears for 24 years prior to that, where he held various merchandising, marketing, and store positions of increasing responsibility. Villa will report to Mustafa.

George Jones commented, "Both Harris and Steve have outstanding reputations in the retail industry and within our Company, and we are delighted to recognize their many accomplishments with their promotions to these important posts. Harris is a very talented executive who brings a wealth of private brand experience to the role, and his strong sourcing background and well-developed analytical and planning skills will greatly contribute to the future success of our private brand business.

"Steve is a proven innovative product manager and has been highly instrumental in the success of the Studio Works and Breckenridge labels. SDSG's private brand program 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, Studio Works, Laura Ashley, Ruff Hewn, and Breckenridge in women's apparel and accessories; Consensus, Cezani, RBM, and Ruff Hewn in men's apparel; Jane Seymour and LivingQuarters in home; URIT in children's apparel; and Intimate Essentials in intimate apparel. Private brands currently comprise approximately 16% of SDSG's total revenues.

Saks Incorporated currently operates Saks Department Store Group (SDSG) with 240 department stores under the names of Parisian, Proffitt's, McRae's, Younkers, Herberger's, Carson Pirie Scott, Bergner's, and Boston Store and 28 Club Libby Lu specialty stores. The Company also operates Saks Fifth Avenue Enterprises (SFAE), which consists of 62 Saks Fifth Avenue stores and 54 Saks Off 5th stores.