Saks November Comps Increase 7.2%

Saks Incorporated, for the four weeks ended November 25, 2006 compared to the four weeks ended November 26, 2005, total Company comparable store sales increased 7.2%, and total sales decreased 49.3%.

The Company completed the sale of its Saks Department Store Group Proffitt's/McRae's business to Belk, Inc. effective Midnight on July 2, 2005, the sale of SDSG's Northern Department Store Group (NDSG) business to The Bon-Ton Stores, Inc. effective Midnight on March 4, 2006, and the sale of SDSG's Parisian business to Belk, Inc. effective Midnight on September 30, 2006. Total and comparable store sales below reflect revenues of those businesses through the respective dates listed. Beginning October 1, 2006, the Company's business consists of Saks Fifth Avenue Enterprises (“SFAE”) and Club Libby Lu. Due to immateriality, beginning on October 1, 2006, Club Libby Lu sales have been included with SFAE sales rather than SDSG sales. For prior periods, Club Libby Lu sales are still reflected in SDSG sales.

For the four weeks ended November 25, 2006 compared to the four weeks ended November 26, 2005, owned sales were:

                                                   Total
                                                  Increase  Comparable
                         This Year   Last Year   (Decrease)  Increase
                        ----------- ------------ ---------- ----------
SFAE                    $    275.2  $     250.0       10.1%       7.2%
SDSG                           0.0        293.0    (100.0%)       N/A
                        ----------- ------------ ---------- ----------
Total                   $    275.2  $     543.0     (49.3%)       7.2%

Merchandise categories and businesses with the best sales performances for SFAE in November were women's contemporary, modern collections, “gold range,” and designer apparel; women's shoes and handbags; men's sportswear and accessories; intimate apparel; and Saks Direct. Categories with the softest performances for SFAE in November were jewelry and children's apparel.

On a year-to-date basis, for the ten months ended November 25, 2006 compared to the ten months ended November 26, 2005, owned sales were:

                                                   Total    Comparable
                                                  Increase   Increase
                         This Year   Last Year   (Decrease) (Decrease)
                        ----------- ------------ ---------- ----------
SFAE                    $  2,210.8  $   2,163.0        2.2%       3.7%
SDSG                         653.6      2,533.1     (74.2%)     (0.2%)
                        ----------- ------------ ---------- ----------
Total                   $  2,864.4  $   4,696.1     (39.0%)       2.8%

Saks Incorporated currently operates Saks Fifth Avenue Enterprises (SFAE), which consists of 54 Saks Fifth Avenue stores, 50 Saks Off 5th stores, and saks.com. The Company also operates 62 Club Libby Lu specialty stores.