Federated Announces Plan to Close and Convert Local Strawbridge's Department Stores Following Merger

PHILADELPHIA, PA – July 28, 2005―Federated Department Stores, Inc. (NYSE:FD)(PCX:FD) today announced that is will close and convert all Strawbridge's nameplate locations located throughout Pennsylvania, New Jersey and Delaware.

"It is disheartening and disappointing that Federated's has decided to dilute the Strawbridge's brand, "says Steven Gartner, President of Philadelphia Based Metro Commercial Real Estate", "Strawbridge's is an important part of Philadelphia's rich retail history ― this is truly the end of an era".

With these conversions, Macy's will operate about 730 stores, which will represent virtually every major market throughout the United States. Says Gartner, "Federated is slowly gaining the reputation of having a Wal-Mart mentality ― with this latest announcement, the chapter has closed on the days of the independent department store, even if it was in name only".

Local Strawbridge's stores will be renamed Macy's sometime in fall 2006.

Media Contact:
Metro Commercial Real Estate
Jamie Joffe
+610 260 2671
jjoffe@metrocommercial.com