Retailer Saks Incorporated announced that for the month of December, 2005 total Company comparable store sales increased 2.4% and total sales decreased 15.0%. By segment, comparable store sales increased 1.8% for SDSG and increased 3.1% for SFAE for the month. Sales below are in millions and represent sales from owned departments only.

For the five weeks ended December 31, 2005 compared to the five weeks ended January 1, 2005, owned sales were:

                                              Total        Comparable
              This Year      Last Year      (Decrease)      Increase
             ------------   ------------   ------------   ------------
SDSG         $     514.6     $    658.7         (21.9%)          1.8%
SFAE               383.8          397.6          (3.5%)          3.1%
             ------------   ------------   ------------   ------------
Total        $     898.4    $   1,056.3         (15.0%)          2.4%

At SFAE, a store-wide merchandise clearance event, which typically begins on December 26, was accelerated to December 21 this year.

Merchandise categories with the best sales performances for SDSG in December were intimate apparel, children's apparel, shoes, junior's apparel, and women's better sportswear. Categories with the softest sales performances for SDSG in December were dresses, women's petite sportswear, women's moderate sportswear, and furniture. Categories with the best sales performances for SFAE in December were women's and men's contemporary sportswear, women's designer apparel, bridal, and men's shoes. Categories with the softest performances for SFAE in December were women's bridge apparel, fashion jewelry, gifts, and intimate apparel.

For the two months ended December 31, 2005 compared to the two months ended January 1, 2005, owned sales were:

                                              Total        Comparable
              This Year      Last Year      (Decrease)      Increase 
             ------------   ------------   ------------   ------------
SDSG         $     807.7    $   1,024.0         (21.1%)          2.0%
SFAE               634.2          668.2          (5.1%)          0.9% 
             ------------   ------------   ------------   ------------
Total        $   1,441.9    $   1,692.2         (14.8%)          1.5%

On a year-to-date basis, for the eleven months ended December 31, 2005 compared to the eleven months ended January 1, 2005, owned sales were:

                                              Total          
                                             Increase      Comparable
              This Year      Last Year      (Decrease)      Increase 
             ------------   ------------   ------------   ------------
SDSG         $   3,047.8    $   3,487.3         (12.6%)          0.4%
SFAE             2,547.3        2,545.9           0.1%           4.0%
             ------------   ------------   ------------   ------------
Total        $   5,595.1    $   6,033.2          (7.3%)          2.0%

The Company completed the sale of its SDSG Proffitt's/McRae's business to Belk, Inc. effective Midnight on July 2, 2005. Therefore, Proffitt's/McRae's sales are included in prior year sales and in current year sales through June 2005 (fiscal month ended July 2, 2005). Beginning in July 2005 (fiscal month beginning July 3, 2005), Proffitt's/McRae's sales are excluded from total company and comparable sales. The Saks Fifth Avenue store in New Orleans is closed due to hurricane damage and has been removed from the comparable store sales calculation. Revenues for the New Orleans store totaled approximately $7.7 million in December 2004.