Saks Incorporated Announces Resignation of James Scully; Coltharp and Shore to Assume Responsibilities

Doug Coltharp, Executive Vice President and Chief FinancialOfficer, will oversee strategic planning, and Paul Shore, Senior VicePresident of Human Resources, will assume overall responsibility forthe Human Resources area.

Coltharp has a financial background spanning nearly twenty years.He has served as Executive Vice President and Chief Financial Officersince he joined the Company in 1996. Prior to that, he held a varietyof positions with Bank of America (formerly NationsBank), includingthe post of Senior Vice President of Corporate Finance. Scullyreported to Coltharp on strategic planning matters. Coltharp reportsto R. Brad Martin, Chairman and Chief Executive Officer.

Shore has over twenty years of retail experience, with oversixteen of those years focused in human resources. He joined McRae'sin 1985 where he held various merchandising, store management, andhuman resources posts. He joined the Company in 1994, when the Companyacquired McRae's. He was later promoted to Vice President of HumanResources and then to his current post of Senior Vice President ofHuman Resources in 2001. Shore has extensive experience in all aspectsof human resources including recruiting, employment, training,development, succession planning, retention, and associate relations.Shore will report to Jim Coggin, President and Chief AdministrativeOfficer.

Brad Martin noted, "We are fortunate to have an extremely talentedleadership team which includes Doug Coltharp and Paul Shore. Withtheir direction, the strategic planning and human resources functionswill continue to be superbly executed."

Martin continued, "We are very appreciative of Jim Scully's manycontributions to our organization, and we wish him well in thefuture."

Saks Incorporated operates Saks Fifth Avenue Enterprises (SFAE),which consists of 56 Saks Fifth Avenue stores, 50 Saks Off 5th stores,and saks.com. The Company also operates its Saks Department StoreGroup (SDSG) with 182 department stores under the names of Parisian,Younkers, Herberger's, Carson Pirie Scott, Bergner's, and Boston Storeand 49 Club Libby Lu specialty stores.

Forward-looking Information

The information contained in this press release that addressesfuture 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 throughthe use of words such as "may," "will," "intend," "plan," "project,""expect," "anticipate," "should," "would," "believe," "estimate,""contemplate," "possible," and "point." The forward-lookinginformation is premised on many factors, some of which are outlinedbelow. Actual consolidated results might differ materially fromprojected forward-looking information if there are any materialchanges in management's assumptions.

The forward-looking information and statements are or may be basedon a series of projections and estimates and involve risks anduncertainties. These risks and uncertainties include such factors as:the level of consumer spending for apparel and other merchandisecarried by the Company and its ability to respond quickly to consumertrends; adequate and stable sources of merchandise; the competitivepricing environment within the department and specialty storeindustries as well as other retail channels; the effectiveness ofplanned advertising, marketing, and promotional campaigns; favorablecustomer response to increased relationship marketing efforts ofproprietary credit card loyalty programs; appropriate inventorymanagement; effective expense control; successful operation of theCompany's proprietary credit card strategic alliance with HSBC BankNevada, N.A.; geo-political risks; changes in interest rates; theultimate outcome and timing of the Audit Committee's internalinvestigation into the matters described in the Company's pressrelease of June 3, 2005; the outcome of the formal investigation bythe SEC and the inquiry opened by the United States Attorney for theSouthern District of New York into the matters that were the subjectof the earlier Audit Committee investigation described in theCompany's press release dated May 9, 2005; the outcome of theshareholder litigation that has been filed relating to the mattersthat were the subject of the Audit Committee's earlier investigation;the availability of funds, either through cash on hand or theCompany's revolving credit facility, to repay any amounts due shouldany notes become accelerated; decisions by merchandise and othervendors to restrict or eliminate customary trade and other creditterms for the Company's future merchandise orders and other services,which could require the Company to pay cash or secure letters ofcredit for such orders and which could have a material adverse effecton the Company's liquidity position and financial condition; and thedelay in the filing with the SEC of the Company's 2004 10-K and thefirst fiscal quarter 2005 10-Q and the consequences thereof. Foradditional information regarding these and other risk factors, pleaserefer to Exhibit 99.1 to the Company's Form 10-K for the fiscal yearended January 31, 2004 filed with the SEC, which may be accessed viaEDGAR through the Internet at www.sec.gov.

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