TITLE: Credit overview/loyalty LENGTH: EDIT DATE: AIR DATE: May 27 corp.

VIDEO AUDIO MONTAGE:Creditcardswipes,cashregisters,creditapplicationsbeingfilledoutWIDEJodiwalkingincosmetics‐cameraisoutsidetheentrancelookingin.ElmhurstfootageMEDinCOSMETICSElmhurstfootage

MUSICUPANDUNDERJODI:OneofthemajorgoalsforSaksIncorporatedin1999istoincreasethepercentageofourtotalsalesmadeusingourin‐housecreditcards.In1998,SaksIncorporatedassociatesopenednearly1.2millionnewaccountsacrossalldivisions.Thisyearweplantoopenmorethan1.2millionnewaccounts‐andthereareanumberofinitiativesplannedforhelpingusreachthatgoal.V/)OneexcitingchangeistheconversionoftheSaksFifthAvenuecreditcardportfoliototheSaksIncorporatedcreditsystem.BoththecreditandITdepartmentsarecurrentlyfocusedonthemassivetaskofconvertingthesystemwhichiscurrentlymanagedbyanoutsidecompany.ByJulyofthisyear,theconversionwillbecompleteandwewillbegintoserviceSaksFifthAvenuecustomersfromourElmhurst,Illinoiscreditfacility.Theconversionwillcreatemorethan200newfulltimeandparttimepositionsintheChicagoareaandwillallowustoprovidemorepersonalizedservicetoourSaksFifthAvenuecustomers.

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signsWIDEinCOSMETICSStrollingGFX:(Overfallingcreditcardfootage)ACQUISITIONofnewaccountsACTIVATIONofdormantaccountsLOYALTYbuildingMONTAGE:footageofinstantcreditapplicationsbeingsignedwiththewordACQUISITIONappearingfullscreenMEN’SWideshotasJodiwalksaroundtothebackofthewrapstand,camerafollows.Sameshot‐CUonJodi’shandtakingoutacreditapp.shotpullsout.

JODI(Oncamera)SaksFifthAvenueassociateswillhearmoreaboutthatconversionontheJune10SaksFifthAvenueshow.V/OThecreditdepartmentisintheprocessofinstallingcutting‐edgetechnologytobetterserveallofourexternalandinternalcustomersaswell.Thistechnologyincludesanewcallmanagementsystem,anewphonemonitoringsystem,anewschedulingsystemandanewautomatedvoicesystemcreatingastateoftheartcreditfacilityforourcompany.JODI(Oncamera)Withthesestreamlinedsystemsandfacilitiesinplace,CreditPromotionsiscurrentlyblanketingthecompanywithcampaignsfocusingonthreeprimarypoints:V/OAcquisitionofnewaccountsActivationofdormantaccountsandbuildingloyaltyamongcustomerswhoalreadyuseouraccount.MUSICUPANDUNDERJODI(Oncamera)AsImentionedearlier,amajorgoalfortheyearistoopenatleast1.2millionnewaccounts‐sothat’sourcompany’sACQUISITIONgoalfortheyear.Howwillthisgoalbeaccomplished?Althoughsomeoftheseacquisitionswillcomefromexternalcredit

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GFX:(Overblankcredtiapp.footage)BuildinglistCustomersmust:*beinthestore*havephotoIDandcreditcard*be18orolder*signanddatetheapplications*check“yes”or“no”forAccountgardProtectionBUSTinMEN’satwrapstandMONTAGE:handswithregularcreditcardsswiping,thewordACTIVATIONcomesfullscreen.WIDEwalkingdowntheaisleinMEN’SB‐rollofshoppers

promotionssuchasthepre‐approvedmailingsandtelemarketing,themajorityofthesewillcomefromInstantCreditprocessedbysalesassociatesthroughoutthecompany.(SWING)Here’sareminderofsomeproceduresthatwillhelpmoveyouandyourcustomerthroughtheInstantCreditprocessmoreefficiently: V/O:CustomerscanusetheInstantCreditapplicationonlywhenthey’reinthestore.CustomersmusthavephotoidentificationandamajorcreditcardwhenapplyingforInstantCredit.Verifythatthecustomerisoflegalage‐18,andmakesurethecustomerhassignedanddatedtheapplication.Andfinally,foralldivisionsexceptSaksFifthAvenue,ensurethecustomerhascheckedeitheryesornoforAccountgardProtection.JODI(Oncamera)Byfollowingthesesimplesteps,andbysettingdivision,store,andpersonalgoalsforsolicitinginstantcredit‐everyonebecomesanactiveparticipantinachievingthecreditACQUISITIONgoalsofourcompany. MUSICUPANDUNDER

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WIDEwalkinguptothewrapstand.MONTAGE:CUofLoyaltycreditcardsinhandswiththewordLOYALTYcomingfullscreen.KIDSCUofJodi’shandswipingacard,pullsout.Backgroundfootageofloyaltycards,theneachindividualcardcomesfullasit’smentioned

JODI(Oncamera)Anotherimportantfocusforcorporatecreditisthe“Activation”ofinactiveaccounts.First,researchisconductedtodetermineunderpenetratedmarkets.Anunderpenetratedmarketisonewheretheaveragepercentageofthetotalstore’sbusinessthatisdoneonthein‐housecardisbelowthatdivision’saverage.V/O:Forexample,withthepurchaseof15formerMercantilestoreslastfall,justover160,000accountswereconvertedtoourcreditcardsinthesemarkets.Thatrepresentsabout65%percentofallcreditaccountsopenedinthesemarketsandittakessometimeandefforttobuildsalesonthesenewaccounts.Forexample,thepercentageofcreditsalesinNashvillewherewehavefiveofthesenewstoresis37%versusa42%averageforestablishedProffitt’sstoresinthatarea.Manyareasofthecompanyarefocusingonbuildingstoretrafficandsalesinunderpenatratedmarketslikethese.Corporatecreditdoesitspartinthesemarketsbygivingtheinactivecustomersintheareaincentivestocomevisitthestoreandusetheircreditcard.JODI(Oncamera)Hereagain,salesassociatesareinvaluabletotheprocess:bysimplyaskingeachcustomer“MayIputthisonyourProffitt’scard?”sellingassociatestakeanactiveroleinthecompany’ssuccess.

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WideGFX(overloyaltycardfootagebackground)“Qualifications&Benefits”Spendaminimumof$1,000eachyearQualifyingcustomerreceivesanewcreditcardandagiftcheck.bustGFX(overloyaltycardfootagebackground)“Qualifications&Benefits”Membersearnonebasepointforeverydollarspentusingtheircard.“Qualifications&Benefits”Allloyaltymemberswhoearnaminimumof1,000pointsinthepreviouscalendaryearwillreceiveamerchandisegiftcheckbasedontheirtotalpoints.“Qualifications&Benefits”PriorityAlterationsandFreegiftwrapcertificates;andexclusivemailingsincludingthequarterlyfullcolormini‐magazineMed

So,weACQUIREnewaccounts,weACTIVATEexistingcreditaccounts‐what’sleft?TheLOYALTYfactor.MUSICUPANDUNDERJODI:Buildingcustomerloyaltyisamajorcomponentinsolidifyingourcompany’slong‐termsuccess.CorporateCreditistakingaleadingroleinbuildingcustomerloyaltybyaggressivelymovingcreditloyaltyprogramstotheforefront.V/O:Thecurrentloyaltyprograms‐eitherGoldCardsorFirstPlace‐areinplaceinMcRae’s,Younkers,Proffitt’sandParisian.SaksFifthAvenuehastheSaksFirstprogramwhichissimilartotheGoldCardandFirstPlaceprograms.LoyaltyprogramsarebeingdevelopedfortheHerberger’sandCarsonPirieScottdivisionsaswell.JODI:ShoppersusingtheGoldorFirstPlacecardsrepresenttheverybestcustomersintermsofannualspendingwithourcompany.V/OInordertobeapartoftheprogram,thecustomermustspendaminimumof$1,000inthatdivisioninoneyear.AccountsarereviewedeachJanuarytodeterminewhoqualifiesandwhoisdroppedfromtheprogram.Ifacustomerqualifies,theyreceiveanewcreditcard,aletterexplainingthebenefitsoftheprogram,andagiftcheckwelcomingthat

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GFX(overloyaltycardfootagebackground)Elane’schart(Loyaltybydivision)Med.GFX(overcardfootagebackground)Elane’schart(regularchargecardsbydivision)BustGFX(overcardfootagebackground)ChartshowingbothLoyaltyandnonloyaltycardaccounts.Highlightingexamplesasshespeaks.

customertotheprogram.JODI:(oncamera)Whenintroducingtheloyaltycardprogramstocustomersinyourdepartment,makesuretoexplainthepremiumservicesoftheprogram.V/O:MembersearnoneBasePointforeverydollarspentusingtheirGoldorFirstPlaceCard.Allloyaltymemberswhoearnaminimumof1,000pointsinthepreviouscalendaryearwillreceiveamerchandisegiftcheckbasedontheirtotalpoints.OtherperksoftheprogramincludePriorityAlterationsandFreegiftwrapcertificates;andexclusivemailingsincludingthequarterlyfullcolormini‐magazinefeaturingseasonaltrends. JODI(oncamera)Perhapsthebiggestmotivationforintroducingchargecustomerstotheloyaltyprogram,istosimplylookatthenumbers.Here’salookathowtheLoyaltycardprogramsaddupbydivision.V/OThischartshowsushowmanyLoyaltycardparticipantstherearebyeachdivision,whatpercenttheseaccountholdersrepresentoftotalchargeaccountcustomersinthatdivision;howmucheachofthesecustomerscontributetothetotalpercentofcreditsales;thepercentofcustomersthatwereactiveshopperslastyear;andfinally,theaverageamounteachoftheseactiveloyaltyaccountcardholdersspendsperyear.JODI:Asyoucansee,eachofthese

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WIDEWalkingoutGFX(overcardfootagebackground)building10.3millionregularin‐housecardholders+1.2millionnewaccountswehopetoacquire=11.5millionregularin‐housechargeaccountsGFX(overcardfootagebackground)building50%or5.7millioncurrentactiveaccountsx$500averagespentperyear=$2.8billiondollars.BETTER‐WidewalkingGFX(overcardfootagebackground)50%or5.7millioncurrentactiveaccountsbuildingx25%customersnewlyactivated=8.2millioncustomers=$4.1billiondollarsBETTER‐Med.

customersspentanaverageof$1,500in1998.Thisrepresents$499millioninsalestoSaksIncorporated.Nowlet’stakealookatthestandingsofourstandardin‐housenon‐loyaltychargeaccounts.V/O:Hereweseethenumberofcardholdersbydivision;thepercentageofthosecardholderswhoactivelymadeapurchaselastyear;andtheaverageamountspentbythesenon‐loyaltycardholdersduringthecourseofayear.JODI:Nowhere’swherethenumbersreallycount‐let’scompare:V/O:CustomersusingYounkers’“Gold”cardspentanaverageof$1,670lastyear‐whilecustomersusingaregularYounkerscardspentonly$468duringtheyear.InadditionGoldcardorFirstPlacecardcustomersthroughoutourvariousdivisionsactivelyusedtheircardsover95%ofthetimelastyear,however,nearly50%ofourregularcardholdersdidnotmakeonesinglepurchaseatalllastyear.JODI:Prettyamazingdon’tyouthink?Nowlet’sdosomeforecastingwiththesenumbersusingour“Acquisitions,”“Activation,”and“Loyalty”initiatives.V/O:Accordingtothechartswe’vebeenlookingat,wehaveatotalofapproximately10.3millionregularin‐housecardholders‐thosearethenon‐loyaltyaccounts.Weaddtothat

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GFX:(overcardfootagebackground)11.5millionregularin‐housechargeaccountsx25%upgradedtoloyaltyaccountsbuilding=2.8millioncustomersx$1,500averageeachyear=$6.1billiondollarsBETTER‐Med.BETTER‐WideJodiwalksoutMONTAGE

numberthe1.2millionnewaccountswehopetoacquirethisyear,givingusagrandtotalof11.5millionregularin‐housechargeaccounts.Nowremember,onlyabout50%or5.7millionoftheseaccountsareactive‐sotheir$500averageperyeargeneratesaround$2.8billiondollars.JODI(oncamera)Sowhatifweactivated25%moreofthesecardholdersbringingourtotalnumberofactivecardcustomersfrom5.7millionto8.2million.V/O:Thatbringsoursalesfromtheseshoppersaloneupfrom$2.8billionto$4.1billiondollars.JODI(oncamera)Nowitgetsreallyexciting!Let’supgrade25%ofthoseregularaccountholders‐whichifyou’repayingattention,willbe11.5millioncustomersifwereachouracquisitiongoalsthisyear‐andlet’smakethemloyaltycardholders.V/O:Wewouldthenhave2.8millioncustomersspendinganaverageof$1,500eachyearinsteadof$500peryearforagrandtotalof$6.1billiondollars.JODI:(Oncamera)It’salljustfascinating,don’tyouthink?Andallofthissuccessreallyboilsdowntounderstandingandembracingthreesimplecorporate‐wideinitiatives:acquisition,activationandloyalty.

(swing)Well,Ihopeyou’veenjoyedourlittlemathtutorial.Goodluckwithyourcreditgoalsfortheyear.Nowifyou’llexcuseme,I’mofftodoalittleactivatingmyself!MUSICUPANDOUT

Script for CEO Brad Martin’s loyalty segment of the May 20 “Psychology of Our Customer” Corporate Broadcast ****BRAD**** SO FAR THIS MORNING WE’VE HEARD SOME VALUABLE INFORMATION FROM EXPERTS WHO HAVE SHED SOME NEW LIGHT ON WHAT MAKES OUR CUSTOMER’S TICK AND HOW WE CAN BEHAVE IN A WAY TO ACCOMMODATE OUR CUSTOMER’S SPECIFIC NEEDS. THE SINGLE MOST IMPORTANT FACTOR IN THE SUCCESS OF OUR COMPANY IS CREATING AND MAINTAINING RELATIONSHIPS BETWEEN CUSTOMERS AND ASSOCIATES. NOW THAT MAY SEEM LIKE A HEAVY BURDEN FOR OUR SALES ASSOCIATES TO CARRY, BUT BUILDING CUSTOMER LOYALTY IS NOT TO LIMITED HOW SALES ASSOCIATES PERFORM AT THE WRAP STAND. THE SUCCESS OR FAILURE OF OUR COMPANY IS IMPACTED BY EVERY PERSON IN EVERY DEPARTMENT OF THIS COMPANY. FOR EXAMPLE, ALTHOUGH SPEED AND ACCURACY OF TRANSACTIONS AT THE REGISTER IS ONE FACTOR GREATLY IMPACTING THE LOYALTY OF A CUSTOMER, SOME OF THE BIGGEST ISSUES WHICH IMPEDE CUSTOMER LOYALTY INCLUDE: BEING OUT OF STOCK ON ADVERTISED ITEMS, NOT STOCKING BASIC ITEMS, AND THE INTEGRITY OF OUR PRICING. WE MUST ALL TAKE AN ACTIVE ROLL IN SUPPORTING EACH OTHER AS WE FOCUS ON OUR COMPANY’S GOAL OF EXCELLENT CUSTOMER SERVICE. ONE PRO-ACTIVE APPROACH IS TO EVALUATE THE RELATIONSHIP BETWEEN CUSTOMER LOYALTY AND ASSOCIATE LOYALTY. AS YOU BEGIN TO THINK ABOUT THESE TWO COMPONENTS, IT’S EASY TO SEE HOW OUR HAPPINESS AND THAT OF OUR CUSTOMERS IS INTERTWINED. AND ONCE YOU’VE IDENTIFIED THE CORRELATION, YOU CAN BEGIN ACTIVELY FOSTER AN ENVIRONMENT OF GROWTH AND OPPORTUNITY BY RECOGNIZING TEAM MEMBERS FOR THEIR LOYAL SERVICE. JUST AS SALES ASSOCIATES MUST BE SENSITIVE IN HOW THEY GREET AND THANK CUSTOMERS IN OUR STORES, MANAGERS MUST BE SENSITIVE IN ISSUING DIRECTIVES BY ACCESSING THE IMPACT ON THE FRONT-LINE. AND JUST AS WE MUST LISTEN TO THE NEEDS OF OUR CUSTOMERS IN ORDER TO BUILD A WINNING RELATIONSHIP WITH THEM, MANAGERS MUST ALSO LISTEN TO AND INVOLVE ASSOCIATES IN DECISIONS EFFECTING THEM WHETHER IT’S NEW CORPORATE BENEFITS OR SCHEDULING HOURS. REFLECT UPON OUR FOUR CORNERSTONES OF STYLE, QUALITY, SERVICE AND INTEGRITY, AND THINK FOR A MOMENT, HOW CAN YOU GO THE EXTRA MILE TO SOLVE A PROBLEM, NOT JUST A PROBLEM WITH ONE OF OUR VALUED CUSTOMERS, BUT PROBLEMS EFFECTING CO-WORKERS AS WELL USING THOSE CORNERSTONES AS YOUR ROAD MAP. THINK ABOUT

IT . . . WHEN HAVE YOU OR ANYONE YOU KNOW EVER BEEN JUMPED ON FOR USING GOOD JUDGMENT AND COMMON SENSE FOR TRYING TO ACCOMMODATE A CUSTOMER OR HELP A CO-WORKER? BY DEVELOPING A MIND-SET WHICH FOCUSES ON PAYING ATTENTION TO CUSTOMERS AND CO-WORKERS IN ORDER TO BUILD WINNING RELATIONSHIPS, THE SUCCESS WE EXPERIENCE AS INDIVIDUALS WILL LEAD THE WAY TO OUR SUCCESS AS A COMPANY. ****JODI (LIVE)****

*** 6-24-99*** *** SAKS TV – INFORMATION TECHNOLOGY **** **** LIVE PROMPTOR SCRIPT *** ***(INTRO TAPE *** *** DENISE *** FROM THE COMPUTERS IN OUR OFFICES TO THE SPACE-AGE FABRICS IN OUR STORES - IT’S THE WONDERFUL WORLD OF TECHNOLOGY COMING UP NEXT ON SAKS TV. *** TAPE (SAKS TV OPEN) *** *** DENISE *** WHEN YOU STOP TO CONSIDER ALL OF THE WAYS TECHNOLOGY TOUCHES OUR LIVES, IT CAN BE MIND-BOGGLING. GONE ARE THE DAYS OF MANUAL TYPEWRITERS AND HAND DELIVERED TELEGRAMS - TODAY IT’S LAP-TOP COMPUTERS AND COMMUNICATION VIA EMAIL. IN THIS EDITION OF SAKS TV, WE EXPLORE PLANS AND INITIATIVES DESIGNED TO MAXIMIZE OUR SUCCESS AS WE HEAD INTO THE MILLENNIUM. EXECUTIVE VICE PRESIDENT & CHIEF INFORMATION OFFICER - DAN SMITH JOINS US LIVE LATER TO ANSWER YOUR CALLS. BUT FIRST, LET’S BEGIN OUR JOURNEY INTO THE WONDERFUL WORLD OF TECHNOLOGY WITH AN IN-DEPTH LOOK AT THE SAKS INCORPORATED INFORMATION TECHNOLOGY TEAM. (SWING) THE I.T. DIVISION CONSISTS OF ASSOCIATES WITH A WIDE VARIETY OF SKILLS, ALL OF WHICH KEEP OUR COMPANY’S TECHNOLOGY UP TO DATE AND IN SMOOTH WORKING ORDER. TO UNDERSTAND THE VARIOUS INITIATIVES AND SUPPORT I.T. PROVIDES, IT MIGHT BE HELPFUL TO UNDERSTAND HOW THE I.T. TEAM IS STRUCTURED. FIRST THERE IS THE APPLICATIONS TEAM. THESE PEOPLE WORK TO DEVELOP NEW SYSTEMS FOR THE COMPANY SUCH AS THE MERCHANT’S NEW VENDOR ANALYSIS SYSTEM. THEY ARE ALSO RESPONSIBLE FOR TROUBLE-SHOOTING EXISTING SYSTEMS SUCH AS THOSE USED BY SALES ASSOCIATES AT POINT OF SALE TERMINALS. NEXT THERE’S THE COMPUTER OPERATIONS TEAM WHO IS IN CHARGE OF MONITORING THE MAINFRAME. THIS TEAM ENSURES THE MAINFRAME IS PROCESSING ALL OF THE DATE CORRECTLY FOR OUR VARIOUS CORPORATE SYSTEMS SUCH AS CREDIT AND SALES AUDIT. IF THE MAINFRAME ISN’T WORKING PROPERLY, THE COMPUTER OPERATIONS TEAM GETS THE RIGHT FOLKS IN LINE TO REPAIR IT.

ANOTHER MAJOR I.T. GROUP IS TECHNOLOGICAL SERVICES AND TELECOMMUNICATIONS. THESE ARE THE TECHYIST OF THE TECH TEAMS AND THEY ARE RESPONSIBLE FOR HOW WELL THE MAINFRAME WORKS. THEY ALSO KEEP THE TELEPHONES AND COMPUTER NETWORKS FUNCTIONING PROPERLY. AND THEN OF COURSE THERE ARE THE HARDWARE TEAM FROM I.T. THESE ARE THE HANDS-ON PEOPLE WHO INSTALL AND REPAIR EVERYTHING FROM PCS TO POINT-OF-SALE TERMINALS. LET’S TAKE A CLOSER LOOK AT THE VARIOUS SYSTEM SUPPORT AND UPGRADES THE I.T. TEAM IS INVOLVED IN. *** TAPE (I.T. OVERVIEW, AT YOUR SERVICE) *** *** DENISE *** IN A RECENT “TIME” MAGAZINE/CNN POLE, 59% OF AMERICANS SAID THEY ARE VERY VERY CONCERNED ABOUT THE VARIETY OF PROBLEMS THE Y2K BUG COULD POSSIBLY CAUSE OUR SOCIETY. COMPANIES ACROSS THE NATION ARE SPENDING A GREAT DEAL OF TIME AND MONEY TO ENSURE Y2K RELATED PROBLEMS ARE SOLVED BEFORE THEY BECOME A REALITY. THE SAKS INCORPORATED INFORMATION TECHNOLOGY DIVISION HAS BEEN WORKING HARD AS WELL TO MAKE SURE THE FIRST DAY OF THE MILLENNIUM IS JUST ANOTHER DAY FOR ASSOCIATES AND CUSTOMERS VISITING OUR STORES. LET’S TAKE A LOOK. *** TAPE (Y2K) *** YOUKNOW,IJUSTCAN’TESCAPETHEBUZZ...Y2K,MILLENNIUMBUG,YEAR2000COMPLIANCE,ANDI’LLBETTHERE’SBEENSOMETALKAROUNDYOURWATERCOOLERASTOWHATTHEWORKDAYWILLBELIKEONJANUARYFIRST2000.SFXJUSTTOGIVEYOUANIDEAOFWHAT’SHAPPENINGBEHINDTHESCENESATSAKSINCORPORATEDTOMAKETHINGSRUNSMOOTHLYONTHATDAY‐I.T.WILLHAVECHECKEDMORETHAN3000PCS,15,000POINTOFSALETERMINALSAND10MILLIONLINESOFCOMPUTERCODEALONGWITHTHEHUNDREDSOFOTHERPIECESOF

HARDWAREUSEDTONETWORKALLOFTHOSEPIECESTOGETHER.(WALKING)WEALSOHAVEHUNDREDSOFPEOPLE,INCLUDINGASSOCIATESOUTSIDEOFI.T.CONTRIBUTINGTIMEOREXPERTISETOMAKESURETHATTHERIGHTCHANGESAREMADEANDEQUIPMENTISRESEARCHEDANDTESTED‐ALLSOTHATEVERYTHINGFROMTHETVINYOURSTOREWORKSSOYOUCANWATCHSAKSTV,TOEXAMININGTHETIME‐KEEPINGSYSTEMTOINSUREPAYCHECKSARECORRECT.(SITS) SFXTHEY2KPROBLEMREALLYBOILSDOWNTOHOWCOMPUTERCHIPSSTOREDATES.INORDERTOSAVESPACE,MANYCOMPUTERSYSTEMSWEREPROGRAMMEDTOSTOREREFERENCESTOYEARSASONLY2DIGITS,SOINSTEADOFUSING1999TOREFERTOTHISYEAR,THECOMPUTERREFERENCESTHISYEARAS99.THEPROBLEMHEREISTHATWHENWEROLLINTOTHENEXTCENTURY,THESYSTEMWILLTHETHINK00IS1900.SFXENOUGHTECHTALK,LETMEPAINTYOUPICTUREOFOFSTOREOPERATIONSONTHEFIRSTDAYOFTHEMILLENNIUM‐ANDASYOU’REABOUTTOFINDOUT‐IT’SAHUGETEAMEFFORT.SFXTECHGUY:FIRSTOFALL‐THEDOORSWILLOPEN.(HESWIPESASECURITYCARD)LOSSPREVENTIONISREVIEWINGALLOFTHESECURITYSYSTEMS,INCLUDINGCAMERASANDALARMS‐CHECKINGWITHEACHVENDORTOMAKESURETHESYSTEMSWORKCORRECTLY.SFXTHELIGHTSWILLBEON.STOREPLANNINGSTARTEDREVIEWINGTHEENERGYMANAGEMENTSYSTEMSINEACHLOCATIONSEVERALMONTHSAGOANDISINTHEPROCESSOFUPGRADINGTHESE

SYSTEMSTOMAKESURETHEYWILLTURNTHELIGHTSONATTHERIGHTTIME.THISPROJECTWILLBEFINISHEDINTHEFALL.SFXTHEPHONESWILLWORK.WHENYOUGETTOYOURWRAPSTANDANDPICKUPYOURPHONEYOU’LLACTUALLYBETESTINGTHEPHONESWITCHINYOURSTOREANDTHEVOICENETWORKWITHONECALL.(INTOTHEPHONEASIFTALKINGTOSOMEONE)YES,WE’VEREPLACEDSWITCHESANDUPGRADEDSOFTWAREASNEEDED.(HANGSUP)ALLOKTHERETOO.SFXTHEPOINTOFSALETERMINALSWILLBEUPANDRUNNINGWITHTHECORRECTPRICECHANGESINEFFECT.SOFTWAREUPGRADESARETAKINGPLACETHROUGHOUTTHECOMPANYNOWANDI.T.REPRESENTATIVESAREVISITINGEVERYSTORETOMAKESURETHEINSTALLATIONISDONECORRECTLY.SFXRINGINGYOURFIRSTSALEWILLPROVETHATYOURREGISTERANDTHEINSTORECONTROLLERAREINFINEWORKINGORDER.ASAMATTEROFFACT,WHILEPREPARINGFORTHISDAYWEDISCOVEREDTHATONEOFTHEMOSTIMPORTANTPIECESOFEQUIPMENTINASTOREISTHESTORECONTROLLER.THISPROCESSORHOLDSTHEPRICEFILES,ROUTESAUTHORIZATIONSTOTHEMAINFRAME,ANDMOSTIMPORTANTLYGATHERSSALESDATAANDSENDSITONFORMAINFRAMEPROCESSING.IFFORANYREASONTHECONNECTIONTOTHEMAINFRAMEISLOST,THESESMARTBOXESCANCOLLECTDATAFORDAYSIFNEEDED.THECREDITAUTHORIZATIONCODEYOUGETBACKWHENRINGINGASALELETSYOUKNOWTHECONNECTIONTOTHEMAINFRAMEANDTHENETWORKAREINWORKINGORDER.SFX

NOWIKNOWYOU’VEPROBABLYHADSOMECONCERNSABOUTTHINGSLIKECREDITSTATEMENTS.THESAKSINCORPORATEDCREDITSYSTEMISANAPPLICATIONUSINGALLFOURDIGITSWHENREFERINGTOTHEYEAR,SOWHENWECALCULATEYOURCUSTOMER’SFIRSTPAYMENTINTHEYEAR2000,THEIRSTATEMENTWILLINCLUDEONLYONEMONTHSWORTHOFFINANCECHARGESNOT99YEARSWORTH.INCIDENTALLY,WHENCUSTOMERSASKYOUABOUTTHESEISSUES,SFXWERECOMMENDYOUADVISETHEMTOKEEPCOPIESOFTHEIR1999STATEMENTSALONGWITHANYCURRENTRECEIPTSFROMOURSTOREORANYOTHERBUSINESSTHEYUSEFORTHATMATTER.STATEMENTSANDRECEIPTSCONTAINTHEKINDOFINFORMATIONTHATMOSTCOMPANIESWILLUSEWHENFIXINGANYPROBLEMS.SFXWHATKINDSOFTHINGSDON’TYOUHAVETOWORRYABOUT?SFXINOURSTORELOCATIONSCRTS,PRINTERS,ANDCALCULATORSAREN’TSMARTENOUGHTOWORRYABOUTDATES.SFXATHOME‐CARSSHOULDBEOKTHEYCALCULATEHOWMANYDAYSFROMYOURLASTMAINTENANCEWORK,BUTDON’TKEEPACALENDAR.SFXMOSTAPPLIANCESDON’TCAREABOUTDATESEITHER.THEYCALCULATETIMEBUTNOTDATES.SFX

PREPERATIONANDCOMMUNICATIONAREREALLYTHEKEYSTOMAKINGSUREYOURSTORE,OFFICEANDHOMEISY2KCOMPLIANT:I.T.WILLCONTINUETOINVESTIGATEANDTESTEQUIPMENTANDSOFTWAREBUTEVERYONE’SINVOLVEMENTISIMPORTANT:TAKESOMETIMEOUTOFYOURDAYTOLOOKAROUNDANDUNDERSTANDWHATEQUIPMENTYOUUSETODOYOURJOB.V/OMAKEALISTANDDISCUSSITWITHYOURMANAGERANDTEAM.WATCHFORTHESAKSINCORPORATEDY2KNEWSLETTERSANDCHECKLISTSWHICHWILLCONTINUETOPROVIDEIMPORTANTINFORMATIONTHROUGHOUTTHISYEAR.ANDFINALLY,CONTACTTHEI.T.YEAR2000TEAMIFYOUHAVEANYQUESTIONSORTHOUGHTSCONCERNINGY2KCOMPLIANCE.SFX WELL,IHOPEI’VEALLEVIATEDSOMEMILLENNIUMANXIETYFORYOU‐NOWIFYOU’LLEXCUSEME‐I’DBETTERPOPBACKINTOTHELABANDGETBACKTOMYSYSTEMCONVERSIONS. *** DENISE *** WE BEGIN THIS MONTH’S EDITION OF NEWS FLASH WITH A PROCEDURAL UPDATE FROM CORPORATE CREDIT. THE INSTANT CREDIT FORMS HAVE BEEN REDESIGNED AND ARE NOW IN STORES. THE FORMS HAVE THE FOLLOWING IMPORTANT CHANGES: THEY NO LONGER CONTAIN A “TEAR-OFF” PORTION FOR CUSTOMERS TO USE AS A TEMPORARY CARD; THERE IS A NEW SPACE PROVIDED FOR THE ACCOUNT NUMBER ON THE UPPER THIRD OF THE APPLICATION; AND FINALLY, THE FORM NOW INCLUDES A LINE TO WRITE THE FIRST 4 DIGITS OF THE CREDIT CARD CUSTOMERS PRESENT WHEN APPLYING. WATCH FOR POSTERS AND FLYERS POSTED IN YOUR STORES SOON. (SWING) FROM LOSS PREVENTION - A CORPORATE WIDE INITIATIVE IS BEING IMPLEMENTED - “THE EASTBORNE LOSS PREVENTION SYSTEM” MONITORS POINT OF SALE ACTIVITY AND USES DATA FROM CREDIT, PAYROLL, AND SALES AUDIT TO PRODUCE DETAILED REPORTS. THESE REPORTS WILL BE USED BY L.P. AND MANAGEMENT TO IDENTIFY SHORTAGE CAUSING FACTORS, AND REDUCE LOSS..

FROM HUMAN RESOURCES - “SAKS INCORPORATED’S WELLNESS WORKS” ANNOUNCES OUR COMPANY’S COMMITMENT TO WORK AND FAMILY ISSUES WITH A NEW PROGRAM. “THE NEW PARENTS PROGRAM” CELEBRATES PARENTHOOD BY PROVIDING USEFUL HEALTH & WELLNESS INFORMATION TO ASSOCIATES DURING THIS EXCITING YET CHALLENGING EVENT. EFFECTIVE IMMEDIATELY, ASSOCIATES WHO BECOME PARENTS THROUGH BIRTH OR ADOPTION, WILL RECEIVE A NEW PARENTS PACKET CONTAINING MEDICAL RESOURCE GUIDES, BENEFITS INFORMATION AND A 20% DISCOUNT COUPON FOR INFANT APPAREL. THE PACKET IS PRESENTLY AVAILABLE TO ALL DIVISIONS ACCEPT SAKS FIFTH AVENUE. SEE AN H.R. REPRESENTATIVE FOR DETAILS. (SWING) FROM CORPORATE COMMUNICATIONS - THE JULY ISSUE OF “THE CORNERSTONE” PROFILES SALES MANAGERS INCLUDING HOW THEY DRIVE BUSINESS, MANAGE STRESS AND BALANCE MULTIPLE RESPONSIBILITIES. THIS ISSUE ALSO OFFERS ORGANIZATIONAL AND MOTIVATIONAL TIPS FOR ENHANCING PRODUCTIVITY. AND FINALLY, THE JULY ISSUE ANNOUNCES THE WINNER OF THE $250 “CORNERSTONE” SURVEY CONTEST. (SWING) SAKS INCORPORATED HAS SIGNED AN AGREEMENT TO BUILD A 180,000 SQUARE FOOT STATE-OF-THE-ART DISTRIBUTION FACILITY IN STEELE, ALABAMA. CONSTRUCTION OF THE APPROXIMATELY $30 MILLION CENTER IS EXPECTED TO BEGIN LATER THIS YEAR. THE FACILITY SHOULD TO BE OPERATIONAL BY MID-YEAR 2001. THE NEW D.C. WILL EMPLOY APPROXIMATELY 220 PEOPLE AND WILL SUPPORT THE PARISIAN, PROFFITT’S AND MCRAE’S DIVISIONS (SWING) WE END THIS EDITION OF “NEWS FLASH” WITH ANNOUNCEMENTS ABOUT GREAT SAKS INCORPORATED LEADERS. SENIOR VICE PRESIDENT OF PRIVATE LABEL AND BRAND DEVELOPMENT PEGGY ESKENASI WAS RECENTLY HONORED BY THE UNITED JEWISH APPAREL FEDERATION AS THE CHILDREN’S RETAILER OF THE YEAR. ESKENASI WAS SIGHTED FOR HER PROFESSIONALISM, DEDICATION AND COMPASSION. SAKS INCORPORATED CHAIRMAN AND C.E.O. BRAD MARTIN WAS HONORED RECENTLY AS WELL. MARTIN RECEIVED THE MASTER

ENTREPRENEUR AWARD OF THE YEAR FROM THE SOCIETY OF ENTREPRENEURS AND JUNIOR ACHIEVEMENT OF MEMPHIS. THE ANNUAL AWARD RECOGNIZES A PERSON WHO BEST SHOWS THE VALUES OF ENTREPRENERIALSHIP BOTH DURING THE YEAR AND THROUGHOUT THEIR CAREER. CONGRATULATIONS TO BOTH OF OUR HONOREES. (SWING) IT’S NOW TIME TO OPEN OUR PHONE LINES FOR YOUR QUESTIONS AND COMMENTS REGARDING I.T. INITIATIVES INCLUDING ANY Y2K CONCERNS YOU MIGHT HAVE. THE NUMBER IS 800-249-7259. I’LL BE BACK WITH OUR GUESTS WHO WILL ANSWER YOUR CALLS, BUT FIRST, IN KEEPING WITH OUR THEME, LET’S TAKE A LOOK AT SOME WAYS TO STAY HEALTHY WHEN DEALING WITH TECHNOLOGY IN THIS MONTH’S EDITION OF “FROM THE EXPERTS.” *** TAPE (FROM THE EXPERTS) *** *** DENISE *** I’VE BEEN JOINED IN THE STUDIO BY BARB DE YOUNG, DIRECTOR OF SYSTEMS ASSURANCE FOR I.T., AND JOINING US LIVE VIA SATELLITE VIDEO CONFERENCE IS E.V.P./C.I.O. DAN SMITH. THESE FOLKS ARE HERE TO TAKE YOUR COMMENTS AND QUESTIONS REGARDING I.T. THE NUMBER IS 800-249-7259. DAN WHILE WE’RE WAITING FOR CALLS - I KNOW YOU AND THE TEAM HAVE BEEN ON AN INCREDIBLE JOURNEY IN TERMS OF CONVERSIONS AND UPGRADES - TELL US ABOUT THE STRENGTH OF YOUR TEAM AND HOW THE COMPANY WILL BENEFIT FROM THEIR DILIGENCE. *** LIVE CALLERS *** *** DENISE *** THAT’S ALL THE TIME WE HAVE FOR TODAY - MARK YOUR CALENDARS FOR THE JULY 29 CORPORATE SHOW FEATURING SOME EXCITING INFORMATION FROM BRAD MARTIN. I’LL SEE YOU NEXT TIME ON SAKS TV. *** TAPE (CLOSE) ***

TITLE: 1999 Saks Incorporated Initiatives LENGTH: 10 minutes EDIT DATE: Feb. 18 - 24

AIR DATE: Feb. 25 Corporate show VIDEO AUDIO TIME DISSOLVEFROMBRAD’S1999SPEECHTO:ScottinSaksTVstudioDipfromScotttoblackandthenfirstimageswhileGFXcrawlsaccrossrighttoleft1999FORECASTFORSUCCESSGFX(ProvidedbyCasey)C1DCfootageC2ShowtimeimageC3ShowtimeC4DCfootagehalfdissolveoverPrivatebrandimages(C5,C6,)

SCOTT:Aswemoveaggressivelyinto1999,it’simportanttorememberthatourcompany’ssuccessisdependentonanumberoffactors:solidgrowthinourexistingstores,successfulopeningsofnewunits,improvedmerchandisemarginsandloweroperatingcosts.Andnomatterwhereweworkinthiscompany,customerserviceiseveryone’sjob.Embracingthatphilosophy,teamsthroughoutourvariouscorporateofficesarecontinuallyplanningwaystomakeourcompanymoresuccessfulasweheadintothemillennium.MUSICUPANDUNDERB1V/OWebeginourforecastforsuccesswithOperationsandLogistics.In1998,theOperationsandLogisticsdivisionmadegreatstridesinkeepingthingsmovingthroughoutthecompany.TheOperationsdivisionfinetunedtheprocessofmovingmerchandisefromourvendorstoourcustomers,Withthedevelopmentandimplementationof“Showtime”intheProffitt’s,McRae’s,YounkersandParisiandivisionslastyear,

GFXFloatoverabovelistedshotsGFX:“negotiatingoceanandairtransportationrates”GFX“customsandclearingagents”ScottwalksintheDCScottinDCC7ManinstoreplanningGFX“13newstores”floatsoverfootageC8variousconstructionfootagehalfdissolvedoverstorefrontshots(Milwhasthese)YounkersMcRae’sCarson’sParisianSaksC9ShotofdrawingboardwithstoreplansCUofplans,Scottpullsthemawayandbeginstotalk

B2Thisyear,amajoreffortofOperationsandLogisticswillbetosupportthedeliveryofourprivatebrandproductsfrommanufacturerslocatedaroundtheworld.Thisendeavorincludesnegotiatingoceanandairtransportationrates,andworkingthroughcustomsandclearingagents‐A8SCOTT(oncamera)allsothatmerchandiseismovedswiftlythroughthedistributioncenterstoourstores.A9Anotherdivisiononthemoveisstoreplanning.B3V/O:Layingthegroundworkforanexpansiveyearforourcompany,StorePlanninginitiativesfor1999includethedesignandconstructionof13newstores.B4AsamplingofnewlocationsincludesaYounkersinGrandville,Michigan;anewMcRae’sforMcComb,Mississippi;threenewHerberger’slocationsMinnesota;Carson’swilladdanewstoreandfurnituregallery;theParisiandivisionwillseenewstoresinGeorgiaandSouthCarolina;andSaksFifthAvenuewillnewopenstoresinCalifornia,IllinoisandNewYork.Inadditiontothenewstores,expansionsandremodelsof12existinglocationsareonthedrawingboard.

C10gardenshopsalesfloorShotofavisualpresentationinthestorepullsouttorevealScottC11ShotofBetterdept.GFX“Better&ModeratefixturesforCarson’s”floatsoverimagesGFX“Ready‐to‐wear”fixturesatParisian”floatsoverimagesScottwalkingdowntheisleofthestoreScottstaysinthesameplacebuttheshotisnowintheLPmonitorroomandwetapeScott’simageontheTVhalfdissolvedoverC12LPbooksGFX“mini‐workshops”floatsoverimagesGFX“monthlymeetings”floatsoverimages

A10SCOTT(oncamera)Theseplanswillnotonlycreatenewemploymentopportunitieswithinthecompany,butwillhelptoboostsalesbyattractingnewcustomerstoconvenient,qualityshoppingenvironments.B5V/O:VisualMerchandisingisanotherdivisionkeenoncreatingqualityshoppingenvironmentsforourcustomers.A1SCOTT(oncamera)ThemissionofVisualMerchandisingistoactasliaisonbetweenthemerchantsandthestoresinordertoprovideconsistent,focusedandwell‐executedvisualpresentations.In1999,VisualMerchandisingplanstomeetourcustomer’sexpectationsandprovideSaksIncorporatedstoreswithavisualedgeoverourcompetition.B6V/O:PlansincluderollingoutBetterandModeratefixturepackagesintheCarson’sdivision,rollingoutreadytowearfixturesatParisiananddevelopingandexecutingprivatebrandfixturingandbrandidentificationcollateralthroughoutthecompany.A4SCOTT(oncamera)Anumberofsupportdivisionshaveinitiativesgoingon“behindthescenes”inordertomake1999asuccessfulyearforourcompany.Forexample,onemajor

C14LPmonitorroomhalfdissolvedoverC13customerservicefootage.LPmonitorroomshotpullsouttorevealScottsittingthere,hegetsupandleavestheroom.C15CUofstacksofclothingonsalesfloorthisimageishalfdissolvedoverC16computerscreenswithinventorynumbersGFX:“establishdedicatedreplenishmentresources”floatsoverimagesGFX:“state‐of‐the‐artsystem”floatsoverimagesShotofproductbeingplacedontablepansovertorevealScotttalkingashestocks.C18advertisingdept.signhalfdissolvedoverC17ImagesofcustomersshoppinghalfdissolvedoverC19advertisingassociates/overshoppersC18C20advertisingassociates/over

goalforLossPreventionistohaveallSaksIncorporatedassociatesmoreinvolvedinpreventingloss.A5Byconductingdailyinspectionsandaudits,providingweeklymini‐workshopsandmonthlyshortageandsafetymeetingsLossPreventionhopestoreducecashandmerchandiseshortagesaswellaspreventassociateandcustomeraccidents.B7V/O:Reducingshortageincreasesthemerchandiseselectionforourcustomerswhichultimatelymeansamoreprofitableyearforbothassociatesandthecompanyasawhole.A6SCOTT(oncamera)Workingbehindthescenesbyproducingmerchandiseplansthatadvancethestrategicobjectiveofthecorporation,theMerchandisePlanningandInventorycontrolteamworkstoinsurethattheproperamountofinventoryisinvestedinrelationtoplannedandprojectedsales.B8V/O:Thisyeartheteamhasaggressiveplanstoimprovestore‐by‐storeinventoryallocationbydevelopingaframeworktodetermineproperinventoryallocationandthenmonitoringthestore’sprogress.Intheworksfor1999:establishingdedicatedreplenishmentresourcesintheMcRae’sandHerberger’sdivisions;andimplementationofastate‐of‐the‐artreplenishmentsystemthroughoutthecompany.

shoppersC18GFX:“LoyaltyProgram”“McRae’s”“Younkers”“Proffitt’s”“Parisian”floatsoveraboveimagesScottwalksintotheshotC21Shotofworkingoncomputerhalfdissolvedoverelevator,assocate,taperoll,computers(C22,C41,C42,C23)GFX:“elevators”floatsoveraboveimagesGFX:“personalcomputers”floatsoveraboveimagesGFX:“securitycameras”floatsoveraboveimagesaboveimagescarryoutuntiltheendofthispassageScott’atcomputersinITC24CUof“Cornerstone”pagesflippinghalfdissolvedoverSaksTVshow.(GRABINMILW)

A2SCOTT:(oncamera)Theseinitiativesmaximizecustomerserviceandsalesopportunitiesbysteadilyimprovingourinstock‐levelsonbasicreplenishmentmerchandise.B9V/O:Throughout1998,MarketingandSalesPromotionshifteditsfocusfromefficiencytoeffectiveness.Bycontinuallyresearchingcustomer’sspendinghabits,in1999thedivisionwillusedatatofocusoncustomerloyalty.Whileconstantlyanalyzinganddevelopingprintandbroadcastmaterialtodrawshopperstoourstores,in1999Marketingwillimplementthe“LoyaltyProgram”atProffitt’s,McRae’s,YounkersandParisianinordertoattractandretaintop‐dollarcustomers.A3SCOTT:(Oncamera)Wecan’thaveadiscussionaboutheadingintothemillenniumwithoutdiscussingtheInformationTechnologyDivision.B10V/O:Year2000compliancehasbeenandwillcontinuetobeamajorfocusofITthroughouttheyear.ManysystemshavealreadybeenassessbyITandtheteamwillcontinuetolookatthetechnologyofeverythingfromelevatorstosecuritysystemswithinthecompany.B11Theteamisalsolookingatsystemsusedbyouroutsidevendorsaswell.B12Becauseyear2000problemseffectassociatesthroughoutSaksIncorporated,I.T.stresstheimportanceofeveryonetakingapro‐

C25CUofWebpageonscreenhalfdissolvedoverC26handclickingamouseGFX:“internalIntranet”floatsoverimagesGFX:“Internetredesign”floatsoverimagesScottatacomputerscreenlookingattheSakspage.C27ShotsofcreditassociateshalfdissolvedoverSaksstorefront(MILW.HASSHOT)halfdissolvedoverC28Sakscreditcard.C29Shotsofcreditdept.halfdissolvedoverC30variousCUofcreditcards.halfdissolvedoverC31ShotsofcreditdeptShotofScotthandingasalesassociateacardasiftomakeapurchase

activeapproachinlookingfor,andworkingthroughyear2000issues.A11SCOTT:(oncamera)Pro‐activeisthebuzzwordofthecommunicationsDivisionin1999aswell.Excitingnewinitiativesareplannedbythedivisionfortheyear.ContentoftheCornerstoneandSaksTVwillbeformattedtofitassociateseverchangingneedsandbusylifestyles.B13V/O:Programsandarticleswillfeatureinformationassociatesaskfor.Articleswillbeshortandsuccinctandshowswillneverexceed30minutes.B14Newinitiativesforcommunicationsincludedevelopmentofthecompany’sinternalwebsitecommonlyknownasanIntranet.TheIntranetwillallowassociatesthroughoutthecompanytoaccessinformationaboutvariouscompanyprograms,policiesandbestpractice.AtotalredesignoftheSaksIncorporateInternetwebsiteisunderwayaswell.A13SCOTT(oncamera)Corporatecredithasaggressiveplansfor1999aswellwiththeconversionoftheSaksFifthAvenuecardfromanoutsidecompanytoourin‐housecreditdepartmenttopingthelist.B15V/O:Thisinitiativeisimportantforanumberofreasons:notonlywilltheSaksFifthAvenueconversionsavethecompanymorethantenmilliondollars,bymanagingtheprocessinternallywehavegreatercontrol

C32ShotsofcustomersshoppinghalfdissolvedoverCU’sofvariousapparellabelsandproductsC33,C34,C35,C37AbovetheseimagescontinueGFX:“10%privatebrandpenetration”floatsoverimagesGFX:“designers,technicians,planners”floatsoverimagesCUofHRdoorsignpansovertorevealScottC38visualmerchandisinghalfdissolvedoverC39DCassociateshalfdissolvedoverC40cosmeticassociateshalfdissolvedoverC43officeassocateshalfdissolvedoverC44storemeetinghalfdissolvedoverC45shotofcornerstones:GFX:“Style”“Quality”“Service”“Integrity”floatovershots‐

overhowwedealwithcustomers.AnothersignificantinitiativeistheinstillationofanewtelephoneswitchintheJacksoncreditoffice,providingmorestabilityandgreaterflexibilitythantheexistingsystem.Andin1999we’llseethelaunchoftheHerberger’sloyaltyprogram‐aprogramsimilartotheMcRae’sandProffitt’sFirstPlaceprogram,theYounkersgoldcard,theParisianSignatureGoldprogramandtheSaksFirstprogram.TheCreditdivisionhopestobeginasimilarprogramfortheCarson’sdivisionin1999aswell.A7SCOTT:(oncamera)Oncecustomershave“our”creditcardinhand,theProffitt’sMerchandisingGrouphasgreatplanstoensurecustomersarepurchasingourprivatebrandmerchandise.B16V/O:PMGbuildsequitybrandsfortheProffit’s,McRae’s,Younkers,Parisian,Herberger’sandCarsonPirieScottdivisions.ThePMGstrategyistobuildequitybrandstargetedtospecificcustomerprofilesinordertodifferentiateourstoresfromourcompetitors.B17TheSaksFifthAvenuedivisionalsohasitsownuniqueprivatebrandsinavarietyofdepartmentsandstyles.In1999thePMGteamhopestoachieve10%privatebrandpenetrationbycloselymonitoringproductdesignandquality;respondingtoseasonalandemerging

enoughpadofb‐rolltorunintheTVsetGFX“1999”stillScottonmonitorsetofSaksTV,withperviousshotsintheTVmonitor.Swing

opportunities;andfinally,buildingateamofdesigners,techniciansandplannerstofocusspecificallyonprivatebranddevelopment.A12SCOTT:(oncamera)Finally,HumanResourceswillbeheretoprovideassociateswiththetrainingtoolsandbenefitsthatwillhelpSaksIncorporatedbethekindofcompanywewantittobe.B18V/O:In1999,HumanResources’majorthrustistobuildthecompany’suniqueculture.Realizingthatmostpeopledon’twanttocommittheirprecioustimeandenergytoworkingfor“justanyoldcompany,”H.R.hasdozensofprojectsintheworksthisyearwhichallowassociatestocreateandbeapartofouruniqueculture.ThroughH.R.,SaksIncorporatedwillmakeameaningfulrecommitmenttothefourcornerstones‐service,style.quality,integrity‐givingthecompanyastrongpointofviewandmeaningfulsetofvalues.B19Afterall,SaksIncorporatedisthekindofplaceworthyofassociateandcustomerloyalty.****SHOTLIVEINSTUDIOONFEB24SCOTT:(oncamera)Bystayingfocusedonachievingourbusinessplans,byexecutingthesestrategicinitiativesandbycontinuingtoseekoutandbuildrelationshipswithcustomersandwitheachother,wecanalltakeanactiverollinmaking1999anoutstandingyearforSaks

Incorporated.Nowlet’sfocusourforecastforsuccessinadifferentdirectionbylearninghowthefolksinthefashionofficeforecasttheseason‐here’sArleneGoldsteinwiththismonth’seditionofFashionBuzz.