FAST RETAILING Confirms Proposal to Acquire Barneys New York for $900 Million in Cash

FAST RETAILING Confirms Proposal to Acquire Barneys New York for $900 Million in Cash

FAST RETAILING CO., LTD. (“FAST RETAILING”; “The Company”) today confirmed it has submitted a proposal to Jones Apparel Group, Inc. (NYSE: JNY; “Jones”) to acquire Barneys New York, Inc. (“Barneys”) from Jones for $900 million (approximately 110 billion yen) in cash. FAST RETAILING’s proposal represents a 9% premium to Jones’ recently announced agreement to sell Barneys to Istithmar, a Dubai-based private equity and alternative investment firm, for $825 million.

FAST RETAILING said it had previously communicated its interest in acquiring Barneys to Jones last fall and is submitting its proposal under the provisions of the Jones agreement with Istithmar, which allows Jones to consider superior proposals for Barneys if received prior to July 22, 2007. The Company is pleased that Jones’ Board of Directors has concluded that FAST RETAILING’s proposal is reasonably likely to lead to a superior offer for Barneys.

FAST RETAILING has the highest regard for the Barneys brand and management team. FAST RETAILING believes Barneys has attractive long-term growth potential through its leadership position in the luxury segment in the U.S., as well as in the affordable luxury segment through Barneys CO-OP. FAST RETAILING sees potential top-line synergies in having Barneys as a member of its global retailing group. The acquisition also would increase FAST RETAILING’s geographic and market diversification.

FAST RETAILING’s proposal is conditioned on satisfactory completion of due diligence and execution of a mutually acceptable purchase agreement. It is not subject to financing and can be consummated on an expedited basis.

ABOUT FAST RETAILING (http://www.fastretailing.com/eng/)

FAST RETAILING CO., LTD. is the leading Japanese-based apparel retailer with a presence throughout the world. Founded in 1963, it currently operates 1,800 specialty stores in over 12 countries. For the year ended August 2006, FAST RETAILING had consolidated overall net sales of 448.8 billion yen ($3.7 billion), and a consolidated operating profit of 70.3 billion yen ($586 million). FAST RETAILING has a current market capitalization of approximately 930 billion yen ($7.8 billion), and more than $1 billion of cash and cash equivalents on hand.

Among the best known global brands within the FAST RETAILING Group are UNIQLO, Theory, Comptoir des Cotonniers, and Princesse tam.tam. The UNIQLO brand of casual clothes is Japan’s largest apparel retail chain with approximately 750 stores throughout Japan, as well as stores in the US, UK, China, South Korea, and Hong Kong. The Company has substantial experience in acquiring companies in the retail sector, including Créations Nelson S.A.S., the developer of the Comptoir des Cotonniers brand (2005) and PETIT VEHICULE S.A.S., developer of the Princesse tam.tam brand (2005). FAST RETAILING acquired an equity stake in LINK THEORY HOLDINGS CO., LTD., the marketer of the Theory and Helmut Lang apparel brands in 2004.

Contacts

United States
Sard Verbinnen & Co.
George Sard/Jim Barron/Jamie Tully
212-687-8080
or
Japan
PR Dept. of FAST RETAILING: +81-(0) 3-6272-0960
IR Dept. of FAST RETAILING: +81-(0) 3-6272-0070