Neiman Marcus July Comps Increase 16.6%

The Neiman Marcus Group preliminary July comparable revenues in the Specialty Retail Stores segment, which includes Neiman Marcus Stores and Bergdorf Goodman, increased 13.5 percent.Comparable revenues at Neiman Marcus Direct in the four-week July period increased 38.4 percent.

                             4 weeks ended
                             ------------- 

                      July 31,         August 2,        % Change
                       2004              2003           ---------  
                      --------         ---------        

Total Revenues     $218 million      $187 million          16.6%

Comparable         $218 million      $187 million          16.6%
Revenues

                            13 weeks ended
                            --------------

                      July 31,         August 2,        % Change
                       2004              2003           --------  
                      --------         ---------        

Total Revenues     $789 million      $703 million          12.4%

Comparable         $788 million      $700 million          12.5%
Revenues

                            52 weeks ended
                            --------------

                      July 31,         August 2,        % Change
                       2004              2003           --------   
                      --------         ---------          

Total Revenues    $3.55 billion     $3.10 billion          14.5%

Comparable        $3.53 billion     $3.09 billion          14.0%
Revenues

In the four-week July period, comparable revenues in the Specialty Retail Stores segment, which includes Neiman Marcus Stores and Bergdorf Goodman, increased 13.5 percent. Top merchandise categories were designer handbags, women's shoes, women's apparel and men's.

Comparable revenues at Neiman Marcus Direct in the four-week July period increased 38.4 percent. In the direct-to-consumer business, the Neiman Marcus brand experienced the highest year-over-year sales performance, supported by strong sales in linens, women's apparel, designer handbags and women's shoes.

Comparable revenues for the Neiman Marcus Group for the fourth quarter of fiscal year 2004 increased 12.5 percent. For the fourth quarter of fiscal year 2004, Specialty Retail Stores comparable revenues increased 11.4 percent. Neiman Marcus Direct fourth quarter fiscal year 2004 revenues were 18.9 percent above last year.

The Company currently expects earnings per share to range from $0.30 to $0.35 for the fourth quarter of fiscal year 2004 which includes a charge of approximately $0.05 for the impairment of the Chef's Catalog tradename. The Company currently expects comparable store revenues for the first quarter of its fiscal year 2005 to increase in the range of 5 percent to 7 percent compared to the first quarter of fiscal year 2004 comparable store revenues of 10.7 percent.