NEW YORK, Jul 16, 2008 (BUSINESS WIRE) -- Saks Incorporated (NYSE: SKS) ("Saks" or the "Company") today
announced it plans to expand its existing 50,000 square foot Saks
Fifth Avenue store in The Gardens of El Paseo in Palm Desert,
California. Work on the 27,000 square foot expansion will commence in
early 2009 and is expected to be completed in November 2009.

Steve Sadove, Chairman and Chief Executive Officer of Saks,
commented, "The planned expansion of our Saks Fifth Avenue Palm Desert
store is consistent with our strategy of focusing our resources on
existing stores in order to enhance our sales productivity. Palm
Desert is a great market for us, and we are eager to increase our
presence there. With a 77,000 square foot showcase store, we will be
able to enhance our distinctive roster of designer collections and
service offerings to better serve our many loyal customers in the
area."

Saks Fifth Avenue has six additional stores in California -
Beverly Hills, Costa Mesa (South Coast Plaza), Mission Viejo, San
Diego, San Francisco, and Santa Barbara.

Saks Incorporated currently operates Saks Fifth Avenue, which
consists of 54 Saks Fifth Avenue stores, 48 Saks Off 5th stores, and
saks.com. The Company also operates Club Libby Lu specialty stores.

Forward-looking Information

The information contained in this press release that addresses
future results or expectations is considered "forward-looking"
information within the definition of the Federal securities laws.
Forward-looking information in this document can be identified through
the use of words such as "may," "will," "intend," "plan," "project,"
"expect," "anticipate," "should," "would," "believe," "estimate,"
"contemplate," "possible," and "point." The forward-looking
information is premised on many factors, some of which are outlined
below. Actual consolidated results might differ materially from
projected forward-looking information if there are any material
changes in management's assumptions.

The forward-looking information and statements are or may be based
on a series of projections and estimates and involve risks and
uncertainties. These risks and uncertainties include such factors as:
the level of consumer spending for apparel and other merchandise
carried by the Company and its ability to respond quickly to consumer
trends; adequate and stable sources of merchandise; the competitive
pricing environment within the retail sector; the effectiveness of
planned advertising, marketing, and promotional campaigns; favorable
customer response to relationship marketing efforts of proprietary
credit card loyalty programs; appropriate inventory management;
effective expense control; successful operation of the Company's
proprietary credit card strategic alliance with HSBC Bank Nevada,
N.A.; geo-political risks; changes in interest rates; and fluctuations
in foreign currency and exchange rates. For additional information
regarding these and other risk factors, please refer to the Company's
filings with the SEC, including its Annual Report on Form 10-K for the
fiscal year ended February 2, 2008, its Quarterly Reports on Form
10-Q, and its Current Reports on Form 8-K, which may be accessed via
EDGAR through the Internet at www.sec.gov.

Management undertakes no obligation to correct or update any
forward-looking statements, whether as a result of new information,
future events, or otherwise. Persons are advised, however, to consult
any further disclosures management makes on related subjects in its
reports filed with the SEC and in its press releases.

SOURCE: Saks Incorporated

Saks Incorporated
Julia Bentley, 865-981-6243
www.saksincorporated.com

Copyright Business Wire 2008