Macy's Names Starcom as Its National Media Agency

Starcom's assignment includes more than $200 million a year inmedia planning and buying for Macy's television, radio, print, out ofhome and internet advertising in the U.S. It was selected from a groupof finalists that also included Initiative and MPG.

"All of the agencies in the final phase of our review did afantastic job providing strategic insights and compelling media ideasto take the Macy's brand to the next level of success on our newnational platform," said Peter Sachse, president of Macy's CorporateMarketing. "Starcom in particular brought some very exciting conceptsto the table, and we look forward to working with the Starcom team aswe launch Macy's nationwide this fall."

"The team at Starcom USA is excited for this opportunity to helpfuel Macy's business with insightful media strategy and boldactivation of that strategy in the marketplace," said Starcom USA CEOJohn Muszynski. "Macy's is a brand with a great heritage and iconicstrength, and we look forward to leveraging the brand and delivering astrong return on our client's marketing objectives."

Starcom clients include leading global marketers such as theProcter & Gamble Company, Kellogg's and the Walt Disney Company.

Joanne Davis Consulting Inc. and Jane Twyon Inc. assisted in theidentification of potential agencies, development and management ofthe process, and final negotiations.

Starcom is a full-service media division of Starcom MediaVestGroup (www.smvgroup.com), which is ranked as one of the largest mediacommunications agencies in the world and encompasses an integratednetwork of highly specialized consumer contact companies. Starcom'sglobal organization includes strategic marketing communicationarchitects who are highly specialized in media management, responsemedia, internet and digital communications, as well as multicultural,entertainment, sports sponsorship and event marketing and media. Withnearly 3,500 employees in 89 markets worldwide, Starcom deliversbrand-building results for many of the world's leading companies.

Federated, with corporate offices in Cincinnati and New York, isone of the nation's premier retailers, with fiscal 2006 sales expectedto be more than $27 billion. Federated operates more than 850department stores and more than 720 bridal and formalwear stores in 49states, the District of Columbia, Guam and Puerto Rico under the namesof Macy's, Bloomingdale's, Famous-Barr, Filene's, Foley's, Hecht's,Kaufmann's, Lord & Taylor, L.S. Ayres, Marshall Field's, Meier &Frank, Robinsons-May, Strawbridge's, The Jones Store, David's Bridal,After Hours Formalwear and Priscilla of Boston. The company alsooperates macys.com and Bloomingdale's By Mail.

(NOTE: Additional information on Federated, including past newsreleases, is available at www.fds.com/pressroom)