Saks May Comps Climb 1.1%

Saks Incorporated for the month ended May 27, 2006, total Company comparable store sales increased 1.1% and total sales decreased 44.9%. By segment, comparable store sales increased 2.2% for SDSG and increased 0.8% for SFAE for the month.

For the four weeks ended May 27, 2006 compared to the four weeks ended May 28, 2005, owned sales were:

                                              Total       Comparable
            This Year       Last Year      (Decrease)      Increase
            ---------       ---------      ----------     ---------- 
SDSG        $    55.9       $   240.7        (76.8%)          2.2%
SFAE            175.3           178.9         (2.0%)          0.8%
            ---------       ---------      ----------     ----------
Total       $   231.2       $   419.6        (44.9%)          1.1%

Merchandise categories with the best sales performances for SDSG in May were intimate apparel, dresses, accessories, and women’s better sportswear. Categories with the softest sales performances for SDSG in May were junior’s apparel, men’s furnishings, and women’s moderate sportswear. Categories and businesses with the best sales performances for SFAE in May were women’s and men’s contemporary apparel, men’s clothing and accessories, bridal, fine jewelry, accessories, fragrances, and Saks Direct. Categories and businesses with the softest performances for SFAE in May were fashion jewelry, shoes, children’s apparel, and Off 5th.

For the four months ended May 27, 2006 compared to the four months ended May 28, 2005, owned sales were:

                                              Total       Comparable
            This Year       Last Year      (Decrease)     (Decrease)
            ---------       ---------      ----------     ----------
SDSG         $  421.5        $1,081.1        (61.0%)         (1.1%)
SFAE            841.1           878.0         (4.2%)         (1.6%)
            ---------       ---------      ----------     ----------
Total        $1,262.6        $1,959.1        (35.6%)         (1.4%)

The Company completed the sale of its SDSG Proffitt’s/McRae’s business to Belk, Inc. effective Midnight on July 2, 2005 and the sale of SDSG’s NDSG business to The Bon-Ton Stores, Inc. effective Midnight on March 4, 2006. Total and comparable store sales above reflect revenues of Proffitt’s/McRae’s and NDSG through those dates. Effective March 5, 2006, SDSG consists of Parisian and Club Libby Lu.