"This is the update for the third week of November 2002, including sales from Sunday November 17th through Saturday November 23rd. The fiscal month of November runs from November 3rd through November 30th this year and the combined November/December period runs through January 4th.

Sales in the third week of November continued to be disappointing. However, given the importance of the fourth week of November for the month as a whole, it is not possible to provide accurate guidance for November at this time. However, we still expect to achieve our comp store sales forecast of flat to down -2.5% for the November/December period.

The informational statements contained in this release are the exclusive property of Federated and may not be reproduced, in whole or in part, in any manner, without the prior written consent of Federated.

This release contains certain forward-looking statements that reflect current views of the financial performance and future events of Federated. The words "expect", "plan", "anticipate", "believe" and other similar expressions identify forward-looking statements. Any such forward-looking statements are subject to risks and uncertainties. Future results of the operations of Federated could differ materially from historical results or current expectations due to a variety of factors that affect Federated, including competitive pressures from specialty stores, general merchandise stores, manufacturers' outlets, off-price and discount stores, new and established forms of home shopping (including the Internet, mail-order catalogues and television) and general consumer spending levels, including the impact of the availability and level of consumer debt, and the effect of weather."