The Neiman Marcus Group announced that computer equipment owned by a third-party pension benefits plan consultant containing files with sensitive employee information was reported stolen. The Company has no reason to believe that the data contained in the files on the computer equipment was the target of the theft nor that the information has been accessed or misused.

The file contained two-year-old data that was current as of August 30, 2005 and which included the private information of nearly 160,000 current and former Neiman Marcus Group employees (including current and former employees of Neiman Marcus Stores, Neiman Marcus Direct, Bergdorf Goodman, Horchow, Horchow Finale, Last Call, Chefs Catalog, and Contempo Casuals) and individuals receiving a Neiman Marcus Group pension.

The local law enforcement authorities are involved in an active investigation of this matter, working closely with The Neiman Marcus Group internal security team. To date, the investigation has not found any evidence that the information has been accessed or misused or even that the computer equipment is in the hands of someone seeking to misuse such private information.

The Neiman Marcus Group is in the process of notifying all affected individuals whose information may have been on the stolen computer equipment, and to provide these individuals with assistance in monitoring their credit reports for any unusual activity.

“The Neiman Marcus Group takes the security of personal information very seriously and we deeply regret that this incident occurred,” said Burt Tansky, Chairman and CEO of The Neiman Marcus Group. “While we have no evidence to suggest the information on the computer equipment has been accessed or misused, we are providing individuals affected by this incident with the resources to monitor their credit reports while our investigation continues. We are working diligently with law enforcement agencies in our efforts to locate this computer equipment.”