Saks Fifth Avenue Announces the Fall Debut of the Saks Fifth Avenue World Elite(TM) MasterCard(R) Card from HSBC

NEW YORK, Sept. 7 /PRNewswire-FirstCall/ -- Saks Fifth Avenue , one of the world's pre-eminent specialty retailers, announced today the launch of The Saks Fifth Avenue World Elite MasterCard card, its first co-branded credit card, issued by HSBC. Created specially for the Saks Fifth Avenue customer and offering the highest level of service, benefits and rewards, The Saks Fifth Avenue World Elite MasterCard card provides an enhanced rewards program that can be used at any of Saks Fifth Avenue's 54 stores nationwide, at the 50 OFF 5th Outlet Stores, on http://www.saks.com/ and anywhere MasterCard is accepted throughout the world.

The Saks Fifth Avenue World Elite MasterCard card, with no annual fee, debuts exclusively at Saks Fifth Avenue stores at a select number of locations around the country on September 13, 2006 in conjunction with the Saks Fifth Avenue Want It! campaign of the most coveted, must-have items of the fall 2006 season. Applications for the Saks Fifth Avenue World Elite MasterCard card will be available at all Saks Fifth Avenue locations in mid-October.

Steve Sadove, Chief Executive Officer of Saks Incorporated, noted, "We have a valued and long-standing strategic alliance with HSBC, and we are delighted to once again team up with them and to work with MasterCard Worldwide to introduce The Saks Fifth Avenue World Elite MasterCard card. This card exemplifies what is already one of the retail industry's most rewarding programs, SaksFirst, and enhances our customers' benefits. It allows us to extend our relationship with our best customers and provide them with rewards and benefits that solidify their loyalty to Saks.

"Saks Fifth Avenue's customers have a variety of interests, including a passion for international travel, and MasterCard has an unparalleled global presence. The World Elite MasterCard card has worldwide acceptance and travel benefits that deliver on our customers' expectations for premium service," Sadove added.

"We are pleased to launch this unique co-brand card with such world-class companies as Saks Fifth Avenue and MasterCard," said Joe Hoff, CEO of Retail Services for HSBC. "This card builds on the success we have had in growing the Saks private label card for years, and the great business relationship we also have with MasterCard. We look forward to working closely together to deliver compelling new card services for Saks customers."

"At MasterCard, we evolve our product offerings through a deep understanding and appreciation for the diverse attributes of consumers," said Walt Macnee, President, The Americas, MasterCard Worldwide. The World Elite program is the culmination of extensive planning and research to understand the mindset of today's affluent cardholder. The triumvirate of brands that have come together will provide a truly priceless experience for the Saks customer."

The Saks Fifth Avenue World Elite MasterCard card maintains an affiliation with Saks Fifth Avenue's SaksFirst loyalty rewards program, with added benefits. Customers who qualify for the card will be automatically enrolled in SaksFirst once they acquire the Saks Fifth Avenue World Elite MasterCard card versus having to spend $1,000 in the calendar year on their current Saks Fifth Avenue card.

SaksFirst cardholders enjoy some of the richest rewards found in any loyalty program. SaksFirst members will earn even more SaksFirst rewards by using their Saks Fifth Avenue World Elite MasterCard card for all their purchases anywhere MasterCard is accepted. Customers will enjoy up to 6% back on their Saks Fifth Avenue purchases and 1% back on all other purchases outside of Saks Fifth Avenue. Customers' points will be converted automatically into Saks Fifth Avenue Electronic Gift Cards good for merchandise at Saks.

The rewards and benefits go far beyond SaksFirst points. In keeping with Saks Fifth Avenue's tradition of offering superlative customer service, Saks Fifth Avenue World Elite MasterCard cardholders will have the following travel benefits:

* Access to unparalleled global travel expertise provided by Virtuoso, a widely acclaimed network of more than 6,000 member travel consultants that specialize in connecting the world's most discerning travelers with the world's finest vacation destinations. Virtuoso provides travel benefits exclusively for World Elite MasterCard, including the Saks Fifth Avenue World Elite MasterCard card. Cardholders will receive unparalleled services and counsel by a designated Virtuoso member consultant while enjoying exclusive travel benefits, value-added amenities and one-of-a-kind experiences. * Complimentary companion tickets with the purchase of full fare Business Class tickets for international travel (depending on the airline and space permitting with no blackout dates). * Tailored shore excursions and private cocktail receptions on four premier cruise lines. * Preferred rates and availability at over 650 of the finest hotels, resorts, lodges, and villas in the world. Value-added amenities including complimentary daily breakfast for two, room upgrades (based on availability at time of check-in), late check-in, late check-out, hotel dining credits and customized offerings that are unique to the destination and VIP status. Additional suite promotions at 150 Five-Star properties, including priority availability, preferred rates and customized amenities. * Complimentary subscriptions to dynamic, award-winning travel publications, Virtuoso Life and the Best of the Best hotel directory. * Special event access and tickets to performing arts and theater events; restaurants; art galleries; and spas in ten major U.S. cities including: New York, Chicago, Miami, San Francisco, Atlanta, Dallas, Houston, Los Angeles, Seattle and Washington D.C. * Airport lounge access for a nominal fee in over 500 lounges around the world; and complimentary value-added benefits at hotels, resorts and cruise lines.

Pre-registration for a card application is available immediately for current Saks Fifth Avenue private label cardholders as well as for all new customers.

About Saks Fifth Avenue

Saks Fifth Avenue Enterprises, owned by Saks Incorporated , operates 54 Saks Fifth Avenue stores in 26 states, two licensed stores in the Middle East, 50 OFF 5th Outlet Stores and http://www.saks.com/, the company's online store. Saks Fifth Avenue is one of the world's pre-eminent specialty retailers and is renowned for its superlative American and international designer collections; its expertly edited assortment of handbags, shoes, jewelry, cosmetics and gifts; and its first-rate fashion expertise and the exemplary customer service.

About HSBC About HSBC Retail Services

HSBC Retail Services is a leading issuer of private label (merchant branded) credit cards in the United States. This business provides flexible, customized credit card solutions for many of the world's premier retailers and manufacturers and has more than 60 active merchant relationships. For more information, visit http://www.hsbcretailservices.com/.

About HSBC - North America

HSBC - North America comprises all of HSBC's U.S. and Canadian businesses, including the former Household International businesses. The company's businesses serve nearly 60 million customers in five key areas: personal financial services, consumer finance, commercial banking, private banking and corporate investment banking and markets. Financial products and services are offered under the HSBC, HFC and Beneficial brands. For more information, visit http://www.hsbcusa.com/.

About MasterCard Worldwide

MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes more than 14 billion payments each year, and provides industry-leading analysis and consulting services to financial institution customers and merchants. Through its family of brands, including MasterCard(R), Maestro(R) and Cirrus(R), MasterCard Worldwide serves consumers and businesses in more than 210 countries and territories. For more information go to http://www.mastercardworldwide.com/.

About Virtuoso

Virtuoso is a by-invitation-only luxury travel network comprising more than 6,000 elite travel consultants, associated with over 300 agencies in 22 countries throughout North and South America, the Caribbean, Australia and New Zealand. With $3.8 billion in travel sales generated annually, Virtuoso's member agencies make the group the most powerful in the luxury travel segment. Relationships with the world's best travel companies -- 400 of which are completely exclusive to Virtuoso -- provide the network's affluent clientele with incredible values and rare experiences, from complimentary upgrades and amenities, to special recognition and privileged access. For more information, please visit http://www.virtuoso.com/.

Saks Fifth Avenue 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 ("Saks Incorporated")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; the outcome of the formal investigation by the Securities and Exchange Commission and the inquiry the Company understands has been commenced by the Office of the United States Attorney for the Southern District of New York into the matters that were the subject of the investigations conducted during 2004 and 2005 by the Audit Committee of the Company's Board of Directors and any related matters that may be under investigation or the subject of inquiry; the ultimate amount of reimbursement to vendors of improperly collected markdown allowances; the ultimate impact of improper timing of recording of inventory markdowns; the ultimate impact of incorrect timing of recording of vendor markdown allowances; the outcome of the shareholder litigation that has been filed relating to the matters that were the subject of the Audit Committee's initial investigation; and the successful consummation of the Parisian transaction. For additional information regarding these and other risk factors, please refer to Exhibit 99.1 to the Company's Form 10-K for the fiscal year ended January 28, 2006 filed with the SEC, which may be accessed via EDGAR through the Internet at http://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.