The Neiman Marcus Group, Inc. June sales increased 10.0% to $386 million compared to $351 million last year. Comparable store sales increased 7.7%.

                                   5 weeks ended

                               July 1,       July 2,
                                2006          2005        % Change
                            ------------- ------------- -----------

Total Revenues              $386 million  $351 million        10.0%

Comparable Revenues         $376 million  $349 million         7.7%

In the five-week June period, comparable revenues in the Specialty Retail Stores segment, which includes Neiman Marcus Stores and Bergdorf Goodman, increased 6.1 percent. Revenue growth trends were the strongest in the Company’s stores in the Southeast and West. The merchandise categories in the Specialty Retail Stores segment that performed the strongest included women’s contemporary sportswear and fine apparel, designer handbags, women’s and men’s shoes and jewelry.

Comparable revenues at Neiman Marcus Direct in the five-week June period increased 15.7%. The top selling merchandise categories in the Direct Marketing segment included jewelry, women’s apparel, accessories and men’s.