Neiman Marcus April Retail Comps Climb 12.5%

The Neiman Marcus Group announced the following preliminary company-wide revenues:

 
                                    4 weeks ended

                              April 30,        May 1,
                                2005            2004        % Change
                            -------------- -------------- -----------

Total Revenues               $309 million   $272 million        13.3%

Comparable Revenues          $307 million   $269 million        14.2%


                                   13 weeks ended
                                (3rd Fiscal Quarter)

                               April 30,        May 1,
                                 2005           2004        % Change
                            -------------- -------------- -----------

Total Revenues               $933 million   $873 million         6.9%

Comparable Revenues          $928 million   $859 million         8.0%

Comparable revenues for the four weeks ended May 1, 2004 exclude the sales of Chef's Catalog prior to its disposition in November 2004.

In the four-week April period, comparable revenues in the Specialty Retail Stores segment, which includes Neiman Marcus stores and Bergdorf Goodman, increased 12.5 percent. Revenue growth trends were the strongest in the Company's stores in the Southeast and Western regions. The merchandise categories in the Specialty Retail Stores segment that performed the strongest included women's contemporary sportswear and fine apparel, jewelry, designer handbags and accessories, women's shoes and men's clothing.

Comparable revenues at Neiman Marcus Direct for the four-week April period increased 19.5 percent. The Neiman Marcus brand experienced the highest year-over-year sales performance in the direct-to-consumer business, supported by strong sales in women's apparel, cosmetics, women's shoes and jewelry.

Comparable revenues for the Neiman Marcus Group for the third quarter of fiscal year 2005 increased 8.0 percent, while the increase for the same period last year was 22.0 percent. For the third quarter of fiscal year 2005, Specialty Retail Stores comparable revenues increased 6.5 percent including a 6.3 percent increase at Neiman Marcus Stores and an 8.1 percent increase at Bergdorf Goodman. Neiman Marcus Direct third quarter fiscal year 2005 revenues were 16.8 percent above last year.

The Company currently expects earnings in the range of $1.53 to $1.58 per share for the third quarter of fiscal year 2005. The Company currently expects comparable store revenues for the fourth quarter of its fiscal year 2005 to increase 5 percent to 7 percent compared to last year.