Saks Incorporated Names Kevin Wills EVP of Finance/Chief Accounting Of

    Business Editors/Consumer Products Writers

    BIRMINGHAM, Ala.--(BUSINESS WIRE)--May 16, 2005--Retailer Saks Incorporated (NYSE: SKS) ("Saks" or the "Company") today announced that Kevin Wills has been promoted to Executive Vice President of Finance and Chief Accounting Officer of the Company. Wills will report to R. Brad Martin, Chairman and Chief Executive Officer, and the Audit Committee of the Board of Directors.
    Wills, a Certified Public Accountant, joined the Company in 1997 and has held various financial and operational roles of increasing responsibility. He began as Vice President of Financial Reporting, was promoted to Senior Vice President of Strategic Planning in 1998, and then to Senior Vice President of Planning and Administration for the Company's Saks Department Store Group (SDSG) business segment in 1999. In 2003, Wills was promoted to his most recent post of Executive Vice President of Operations for Parisian, where he has overseen the financial operations, store operations, human resources, and merchandise planning functions of that $700 million division. Prior to joining the Company, Wills was Vice President and Controller for the Tennessee Valley Authority, and prior to that, an Audit Manager with Coopers & Lybrand. Wills earned his B.S. degree in Business Administration from Tennessee Technological University.
    Martin noted, "Kevin has served in several important capacities within our Company, and has performed in an exemplary manner in each task assigned. Kevin has an outstanding financial and operational background and is well-suited to assume the key role of EVP of Finance and Chief Accounting Officer of our corporation. We are fortunate to have the talent within the organization to fill this important position."

    Saks Incorporated operates Saks Fifth Avenue Enterprises (SFAE), which consists of 57 Saks Fifth Avenue stores, 52 Saks Off 5th stores, and saks.com. The Company also operates its Saks Department Store Group (SDSG) with 232 department stores under the names of Parisian, Proffitt's, McRae's, Younkers, Herberger's, Carson Pirie Scott, Bergner's, and Boston Store and 43 Club Libby Lu specialty stores. On April 29, 2005, the Company announced that it had entered into an agreement to sell 22 Proffitt's stores and 25 McRae's stores to Belk, Inc. The sale is subject to various closing conditions, including the expiration or termination of all waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act. The Company expects to complete the sale in the second quarter of 2005.

    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 department and specialty store industries as well as other retail channels; the effectiveness of planned advertising, marketing, and promotional campaigns; favorable customer response to increased 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; the outcome of the formal investigation by the SEC and the inquiry opened by the United States Attorney for the Southern District of New York into the matters that were the subject of the Audit Committee's investigation; the outcome of the shareholder litigation that has been filed relating to the matters that were the subject of the Audit Committee's investigation; and the delay in the filing with the SEC of the Company's Form 10-K for the fiscal year ended January 29, 2005 and the consequences thereof. For additional information regarding these and other risk factors, please refer to Exhibit 99.1 to the Company's Form 10-K for the fiscal year ended January 31, 2004 filed with the SEC, 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.

--30--SH/na*

CONTACT: For Saks Julia Bentley, 865-981-6243 www.saksincorporated.com

KEYWORD: ALABAMA INDUSTRY KEYWORD: CONSUMER/HOUSEHOLD APPAREL/TEXTILES RETAIL MANAGEMENT CHANGES SOURCE: Saks Incorporated

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