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|Federated Plans Corporate Name Change|
Shareholders to Vote on Conversion to Macy's Group, Inc.
CINCINNATI--(BUSINESS WIRE)--Feb. 27, 2007--Federated Department Stores, Inc. (NYSE:FD) (NYSE Arca:FD) today announced that its Board of Directors will ask shareholders to change the company's name to Macy's Group, Inc. A vote to amend the corporation's charter to accommodate the new name will be conducted in conjunction with Federated's Annual Meeting on May 18, 2007.
If approved, the company will be known as Macy's Group, Inc., effective June 1, 2007.
(Editor's Note: Federated this morning issued three additional news releases - one reporting fourth quarter and fiscal 2006 financial results, one declaring a regular quarterly dividend, and another announcing an increase in Federated's stock buyback program.)
"Macy's Group is a name that more accurately reflects the transformation of our business in recent years. Today, we are a brand-driven company focused on Macy's and Bloomingdale's, not a federation of department stores," said Terry J. Lundgren, Federated's chairman, president and chief executive officer. "By aligning our corporate name with our largest brand, we will increase the visibility of the company with customers, leverage the world-famous Macy's brand name, and get more credit for our accomplishments in the marketplace.
"Macy's Group is the appropriate name for our company, given that about 90 percent of our sales involve the Macy's brand. That said, Bloomingdale's is - and will remain - a very important part of the company. Becoming Macy's Group will in no way limit or constrict us from growing in any direction in the future," Lundgren added.
Federated Department Stores, Inc. was originally chosen as the company's name in 1929 by a group of family-owned department stores that joined together under a corporate holding company umbrella. Federated became an operating company in 1945, and its portfolio over the years has included various regional department store names. In 2005 and 2006, all regional nameplates were converted to Macy's. The company today operates only Macy's and Bloomingdale's stores, with both brands expanding nationwide.
Federated, with corporate offices in Cincinnati and New York, is one of the nation's premier retailers, with fiscal 2006 sales of $27 billion. Federated operates more than 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's and Bloomingdale's. The company also operates macys.com, bloomingdales.com and Bloomingdale's By Mail.
All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Federated's management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed transactions, prevailing interest rates, competitive pressures from specialty stores, general merchandise stores, manufacturers' outlets, off-price and discount stores, new and established forms of home shopping (including the Internet, mail-order catalogs and television) and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission.
(NOTE: Additional information on Federated, including past news releases, is available at www.fds.com/pressroom)
CONTACT: Federated Department Stores, Inc. Media Jim Sluzewski, 513-579-7764 or Investor Susan Robinson, 513-579-7780 SOURCE: Federated Department Stores, Inc.