West Caldwell, New Jersey - August 6, 1998 - The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) today announced sales of $48.0 million for the second quarter ended August 1, 1998, an increase of 43% from sales of $33.5 million for the same period last year. Comparable store sales for the second quarter increased 8%, as compared with a 1% decrease for the second quarter of 1997.

For the twenty-six weeks ended August 1, 1998, the Company's sales were $104.0 million, an increase of 43% over sales of $72.7 million for the same period in 1997. The Company's year to date comparable store sales increased 7% compared to a 2% increase in the prior-year period.

The Children's Place Retail Stores, Inc. is a leading specialty retailer of high quality, value-priced apparel and accessories for children, newborn to age twelve. The Company designs, contracts to manufacture, and sells its products under the "The Children's Place" brand name. As of August 1, 1998, the Company operated 189 stores located primarily in regional shopping malls in the eastern half of the United States.