Saks Fifth Avenue OFF 5TH Continues Growth

The Camarillo store will be located in The Promenade at Camarillo Premium Outlets and will replace an existing OFF 5TH store at Camarillo Premium Outlets. The store is scheduled to open in April 2009.

The Mebane store will be located in Tanger Outlet Center of the Piedmont and is scheduled to open in November 2009. Mebane is located in the heart of the Piedmont region between Raleigh and Greensboro. The Company operates an existing OFF 5TH location at Triangle Factory Shops in metropolitan Raleigh.

Robert Wallstrom, President of OFF 5TH, noted, "We are very pleased to continue the growth underway at OFF 5TH. Both Camarillo and metropolitan Raleigh/Greensboro are already great markets for us, and we look forward to opening our beautiful new stores which will perfectly showcase our great merchandise selections and our outstanding customer service."

All new OFF 5TH locations are being designed after the Company's innovative prototype store which opened with much success in Orlando, Florida's Prime Outlets International Center in April 2008. This year, in addition to the Orlando store, the Company has opened new OFF 5TH stores in Tanger Outlet Center at The Arches at Deer Park in Deer Park (Long Island), New York and Prime Outlets in St. Augustine, Florida. Additionally, the Company will open an OFF 5TH store in Rio Grande Valley Premium Outlets in Mercedes, Texas later this month and has announced plans to open OFF 5TH stores in The Rim in San Antonio, Texas in March 2009; The Legends at Sparks Marina in Reno-Sparks, Nevada in May 2009; and Cincinnati Premium Outlets in Monroe, Ohio in August 2009.

About OFF 5TH and the Company

OFF 5TH is the savvy shopper's premier source for value-priced designer clothing and accessories, offering customers an exceptional array of both coveted designer names and unique merchandise under the Saks Fifth Avenue label. OFF 5TH places the highest priority on style, selection, and customer service.

The OFF 5TH prototype store, first opened in Orlando, Florida in April 2008, was carefully created using a "luxury in a loft environment" design created to highlight the merchandise and make shopping easy. The store maximizes efficiency and flexibility, enabling simple alterations in the general layout as business needs change. The store is bright and uncluttered, with no hard aisles and one consistent hard-surface floor throughout. All fixtures are on casters, ensuring ease in movement, and all hardware is interchangeable between fixtures.

Prototype store renderings and OFF 5TH store photos are available upon request.

Saks Incorporated currently operates Saks Fifth Avenue, which consists of 53 Saks Fifth Avenue stores, 50 Saks OFF 5TH stores, and saks.com. The OFF 5TH stores are located in 23 states.

Forward-looking Information

The information contained in this press release that addresses future results or expectations is considered "forward-looking" information within the definition of the Federal securities laws. Forward-looking information in this document can be identified through the use of words such as "may," "will," "intend," "plan," "project," "expect," "anticipate," "should," "would," "believe," "estimate," "contemplate," "possible," and "point." The forward-looking information is premised on many factors, some of which are outlined below. Actual consolidated results might differ materially from projected forward-looking information if there are any material changes in management's assumptions.

The forward-looking information and statements are or may be based on a series of projections and estimates and involve risks and uncertainties. These risks and uncertainties include such factors as: the level of consumer spending for apparel and other merchandise carried by the Company and its ability to respond quickly to consumer trends; adequate and stable sources of merchandise; the competitive pricing environment within the retail sector; the effectiveness of planned advertising, marketing, and promotional campaigns; favorable customer response to relationship marketing efforts of proprietary credit card loyalty programs; appropriate inventory management; effective expense control; successful operation of the Company's proprietary credit card strategic alliance with HSBC Bank Nevada, N.A.; geo-political risks; changes in interest rates; and fluctuations in foreign currency and exchange rates. For additional information regarding these and other risk factors, please refer to the Company's filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended February 2, 2008, its Quarterly Reports on Form 10-Q, and its Current Reports on Form 8-K, which may be accessed via EDGAR through the Internet at www.sec.gov.

Management undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events, or otherwise. Persons are advised, however, to consult any further disclosures management makes on related subjects in its reports filed with the SEC and in its press releases.

SOURCE: Saks Incorporated

Saks Incorporated Julia Bentley, 865-981-6243 www.saksincorporated.com