Federated Department Stores, Inc. announced that Ronald Klein, 55, will be returning to Macy's East as chairman/ceo of the New York-based division, effective February 15. Klein, who previously served as vice
chairman of Macy's East, succeeds Hal Kahn, 58, who is retiring after having served as chairman/ceo of the 104-store division since 1994.

The company also announced that Michael G. Krauter, 46, currently executive vice president/director of stores at Rich's/Lazarus/Goldsmith's-Macy's, will assume a new position as president/chief merchandising officer of the Atlanta-based division where Klein has been chairman since July 2001. Krauter will join with David L. Nichols, who will remain as president/chief operating officer
of the division, a position he has held since August 2000.

“Ron Klein is an exceptional merchant and an outstanding retail
executive, and we are confident he will bring new vision to Macy's in
his new role as chairman of our largest department store division,”
said Terry J. Lundgren, Federated's chairman/ceo and president. “Ron
will join with Jim Gray, who has been president of Macy's East since
1994, in creating a dynamic leadership team in this important
division.

“Meanwhile, we extend best wishes to Hal Kahn in his retirement
and thank him for his years of dedicated service,” Lundgren continued.
“Hal has provided both management continuity and merchandising
direction at the helm of our largest division. We appreciate all of
his positive contributions to Macy's East and Federated over the last
decade, including overseeing the successful integration of Abraham &
Straus and Macy's.”

Lundgren said that under the new management structure at
Rich's/Lazarus/Goldsmith's-Macy's, both the merchant and operations
principals will report to Susan D. Kronick, the Federated vice chair
responsible for all department store operations. Klein, in his new
capacity as chairman of Macy's East, also will continue to report to
Kronick.

“Mike Krauter is an exceptionally talented retail merchant and
Dave Nichols possesses superb skills as a retail operating principal.
Together, they will comprise a formidable executive management team,
and we are excited to be able to forge such strong division leadership
in this important division,” Lundgren said.

As chairman of the division operating 77 Rich's-Macy's,
Lazarus-Macy's and Goldsmith's-Macy's stores in nine southern and
Midwestern states, Klein successfully presided over the 2003
integration of Rich's and Macy's stores in Atlanta, and the
co-branding of all Rich's, Lazarus and Goldsmith's department stores
with the Macy's nameplate.

Klein was named executive vice chairman of Macy's East in early
2001, following two years as chairman of Federated's now-closed
Stern's division. Klein began his retail career in 1974 as a buyer for
Bloomingdale's, serving in merchandising positions of increasing
responsibility in several Federated divisions prior to being named
vice chairman/director of stores for Macy's East in 1998. A native of
New York City and a graduate of American University, Klein received an
MBA in marketing from New York University.

Kahn, a native of Brooklyn, NY, began his retail career in the
executive training program at Federated's former Abraham & Straus
division in 1970. He joined R. H. Macy & Co. in 1975, rising to vice
president of merchandising in 1979. In 1981, Kahn was named president
of Macy's former Atlanta-based Davison's division, and four years
later was named chairman of Macy's California. He returned to Atlanta
in 1989 as chairman of the then newly formed Macy's South/Bullock's
division, remaining in that position until 1992 when he left to become
president of Montgomery Ward. Kahn is a graduate of the City College
of New York and holds a masters degree in business administration from
the University of Maryland.

Krauter, a native of Roselle, NJ, began his retail career as a
sales manager at Macy's East in 1979, rising to subsequent positions
as buyer, store manager and merchandise administrator before moving to
Macy's South-Bullock's as vice president/merchandise administrator in
1988. Krauter returned to Macy's East in 1992 as a group vice
president of merchandising, and was named senior vice president of
merchandising in 1993 and general merchandise manager in 1996. He
became executive vice president of merchandising at Macy's West in
1999, prior to being named executive vice president/director of stores
at Rich's/Lazarus/Goldsmith's-Macy's in 2001. Krauter is a 1979
graduate of Rutgers University with a degree in business
administration.