BENSALEM, Pa., June 23 /PRNewswire-FirstCall/ -- Charming Shoppes, Inc., (Nasdaq: CHRS), a leading multi-channel specialty apparel retailer and direct marketer specializing in women's plus-size apparel, today held its 2005 Annual Meeting of Shareholders at its Catherines Plus Sizes home office in Memphis, Tennessee.

At the meeting, shareholders approved the reelection of two directors, Dorrit J. Bern and Alan Rosskamm, for a three-year term.

Dorrit J. Bern, CEO, President and Chairman of Charming Shoppes, Inc., reviewed the Company's performance during 2004. Bern said, "We made great progress during 2004, with a 70% increase in net income. The majority of our success was a direct result of focusing on our merchandise offerings at Lane Bryant, and delivering assortments that met our customers' needs and expectations. Other key areas of success during the year included strong increases in our e-commerce business, and improved performance of our credit portfolio, driven by lower delinquencies than a year ago. We saw solid improvement in our gross margin of 160 basis points, driven primarily by merchandise initiatives at Lane Bryant, as well as increases in direct sourcing volumes and the consolidation of our distribution operations for our Lane Bryant and Catherines brands.

"Additionally," Bern continued, "we began 2005 strongly, reporting record earnings in our first quarter ended April 30, 2005. We also announced the strategic acquisition of Crosstown Traders, Inc., which accelerates our growth as a multi-channel retailer."

Dorrit J. Bern's presentation at the Company's annual shareholders meeting is available at http://www.charmingshoppes.com/investors/manage/index.asp.

Concurrent with the Company's Annual Meeting, Kenneth S. Olshan retired as a director, as he has reached the mandatory retirement age as prescribed in the Company's by-laws. Ken has served as a director of Charming Shoppes since 1999.

The Company also announced that Charming Shoppes recently received its corporate governance quotient (CGQ) analysis from Institutional Shareholder Services (ISS), which stated that Charming Shoppes' CGQ outperformed 89.1% of the companies in the Russell 3000 and 89.6% of the companies in the retailing group.

Charming Shoppes, Inc. operates 2,235 stores in 48 states under the names LANE BRYANT(R), FASHION BUG(R), FASHION BUG PLUS(R), and CATHERINES PLUS SIZES(R). Additionally, the following apparel, accessories, footwear and gift catalogs are operated by Charming Shoppes' Crosstown Traders division: Old Pueblo Traders, Bedford Fair Lifestyles, Bedford Fair Shoestyles, Willow Ridge, Lew Magram, Brownstone Studio, Regalia, Intimate Appeal, Monterey Bay Clothing Company, Coward Shoe and Figi's.

Please visit http://www.charmingshoppes.com for additional information about Charming Shoppes, Inc.

This press release and the Company's presentation contain certain forward- looking statements concerning the Company's acquisition of Crosstown Traders, Inc. and its and the Company's operations, performance, and financial condition. Such forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those indicated. Such risks and uncertainties may include, but are not limited to: failure to successfully integrate the operations of Crosstown Traders, Inc. with Charming Shoppes, Inc., the failure to implement the Company's business plan for increased profitability and growth in the plus-size women's apparel business, the failure to successfully implement the Company's business plan for Crosstown Traders, Inc., changes in or miscalculation of fashion trends, extreme or unseasonable weather conditions, economic downturns, a weakness in overall consumer demand, failure to find suitable store locations, the ability to hire and train associates, trade restrictions and political or financial instability in countries where goods are manufactured, the interruption of merchandise flow to the Company's retail stores from its centralized distribution facilities, competitive pressures, and the adverse effects of acts or threats of war, terrorism, or other armed conflict on the United States and international economies. These, and other risks and uncertainties, are detailed in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended January 29, 2005 and other Company filings with the Securities and Exchange Commission. Charming Shoppes assumes no duty to update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

SOURCE Charming Shoppes, Inc.

CONTACT: Gayle M. Coolick, Director of Investor Relations, Charming Shoppes, +1-215-638-6955