Neiman Marcus June Comps Increase 9.2%

The Neiman Marcus Group June sales increased 8.2% to 351 million. Comparable store sales in June increased 9.2% on top of a 13% increase last year. The company also announced the following preliminary Company-wide revenues:

                                 5 weeks ended
                            July 2,          July 3,
                             2005              2004          % Change
                       ----------------- ---------------- ------------

Total Revenues           $351 million      $324 million           8.2%

Comparable Revenues      $348 million      $319 million           9.2%

Comparable revenues for the five weeks ended July 3, 2004 exclude the sales of Chef's Catalog prior to its disposition in November 2004.

In the five-week June period, comparable revenues in the Specialty Retail Stores segment, which includes Neiman Marcus Stores and Bergdorf Goodman, increased 7.6 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, men's shoes, accessories, jewelry and designer handbags.

Comparable revenues at Neiman Marcus Direct in the five-week June period increased 22.2 percent. The top selling merchandise categories in the Direct Marketing segment included women's shoes, handbags, accessories, jewelry, women's apparel and men's.

The Company currently expects comparable store revenues for the fourth quarter of fiscal 2005 to increase in the range of 7 percent to 9 percent compared to last year versus the fourth quarter of fiscal year 2004 increase in comparable revenues of 12.6 percent.