Saks Comps Jump 11.1% in December

Retailer Saks Incorporated reported total company comparable store sales increased 11.1% in December, while total sales increased 13.0% to $444.0 million from $392.8 million lats year.

Total and comparable store sales for all periods below represent Saks Fifth Avenue Enterprises (“SFAE”) and Club Libby Lu sales only. Sales below are in millions and represent owned departments only.

For the five weeks ended December 30, 2006 compared to the five weeks ended December 31, 2005, owned sales were:

                                    Total            Comparable
  This Year       Last Year        Increase           Increase
------------- ----------------- -------------- ----------------------
   $444.0          $392.8           13.0%              11.1%

Merchandise categories and businesses with the best sales performances for SFAE in December were women's apparel including contemporary, modern collections, classic sportswear, “gold range,” and designer; women's shoes and handbags; jewelry; men's clothing, accessories, and advanced sportswear; fragrances; and Saks Direct. Categories with the softest performances for SFAE in December were bridal, designer eveningwear, outerwear, and classic men's sportswear.

On a quarter-to-date basis, for the two months ended December 30, 2006 compared to the two months ended December 31, 2005, owned sales were:

                                             Total         Comparable
    This Year          Last Year           Increase         Increase
------------------ ------------------ ------------------- ------------
     $719.2             $646.8               11.2%            9.5%

On a year-to-date basis, for the eleven months ended December 30, 2006 compared to the eleven months ended December 31, 2005, owned sales were:

                                           Total         Comparable
    This Year         Last Year          Increase         Increase
----------------- ------------------ ----------------- ---------------
    $2,687.2          $2,590.0             3.8%             4.6%

Saks Incorporated currently operates Saks Fifth Avenue Enterprises (SFAE), which consists of 54 Saks Fifth Avenue stores, 50 Saks Off 5th stores, and saks.com. The Company also operates 62 Club Libby Lu specialty stores.

The company completed the sale of its Saks Department Store Group (“SDSG”) Proffitt's/McRae's business to Belk, Inc. effective Midnight on July 2, 2005, the sale of SDSG's Northern Department Store Group (NDSG) business to The Bon-Ton Stores, Inc. effective Midnight on March 4, 2006, and the sale of SDSG's Parisian business to Belk, Inc. effective Midnight on September 30, 2006.