SECAUCUS, N.J.--(BUSINESS WIRE)--Oct. 11, 2001--The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) today reported sales of $70.0 million for the five-week period ended October 6, 2001, a 4% increase over sales of $67.6 million reported for September 2000.

Excluding sales of the Company's folding scooter, sales for September 2001 increased 8% over the prior year period. Comparable store sales for the five-week period decreased 11% as compared to a 13% increase for the restated five-week period ended October 7, 2000. Excluding sales of the folding scooter, comparable store sales for September decreased 8% from the prior year period. The Company opened 7 new stores during the month of September and lost its World Trade Center store as a result of the tragic events of September 11th.

Sales for the thirty-five weeks ended October 6, 2001 increased 13% to $402.9 million from $356.2 million reported in the year-ago period. Excluding sales of the Company's folding scooter, sales for the thirty-five-week period increased 16% over the prior year period. Year-to-date, comparable store sales decreased 9% versus a 6% increase in the prior year restated period. Excluding sales of the folding scooter, comparable store sales for the thirty-five-week period decreased 7% from the prior year period. The Company has opened 97 stores and closed one in the year-to-date period.

"We are comfortable with the current consensus earnings per share estimate of $0.64 for the third quarter," commented Ezra Dabah, Chairman and Chief Executive Officer. "While we continue to expect third quarter comparable store sales to be in the negative high single digit range, we look forward to an improvement in our gross margin versus last year due to lower product costs from our manufacturers," concluded Mr. Dabah.

In conjunction with The Children's Place September sales release, you are invited to listen to the Company's pre-recorded September sales call with Seth Udasin, Chief Financial Officer, which will be available beginning at 8:00 a.m. Eastern Time today through October 18, 2001. To access the call, please visit the following web address: www.childrensplace.com/CompanyFrame.jsp or dial (402) 220-1549.

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 October 6, 2001, the Company operated 496 stores in 46 states. The Company also sells its merchandise through its virtual store located at childrensplace.com.

This press release and above referenced call may contain certain forward-looking statements regarding future circumstances. These forward-looking statements are based upon the Company's current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements including, in particular, the risks and uncertainties described in the Company's filings with the Securities and Exchange Commission. Actual results, events, and performance may differ. Readers or listeners (on the call) are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to release publicly any revisions to these forward looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by The Children's Place or any other person that the events or circumstances described in such statement are material.