SECAUCUS, N.J.--(BUSINESS WIRE)--Oct. 7, 2004--The Children's Place Retail Stores, Inc. (Nasdaq: PLCE), today announced sales of $105.8 million for the five-week period ended October 2, 2004, a 20% increase compared to sales of $88.4 million reported for October 2003. Comparable store sales for the five-week period increased 12%, on top of a 30% increase in the prior year period. During the month, the Company opened four stores.

Total sales for the thirty-five weeks ended October 2, 2004, increased 23% to $607.3 million from $495.2 million last year. Comparable store sales increased 14% versus flat comparable store sales for the same period last year. Year-to-date, the Company has opened 36 stores, and closed two.

The Company stated that based on its September sales results and expectations for October, it anticipates reporting earnings per share of approximately $0.58 for the third quarter ending October 30, 2004, compared to $0.43 per share for the same period last year.

"We are very pleased with our sales results for the month, as our customers continued to respond favorably to our merchandise and our annual Fall Sale event," said Ezra Dabah, Chairman and Chief Executive Officer of The Children's Place. "We are particularly excited by our double-digit transaction growth during the month, which was on top of last year's 39% transaction increase. We are encouraged by our sales momentum as we head into the Holiday season."

The Company also noted that discussions are continuing with The Walt Disney Company to acquire and operate under a long-term license arrangement The Disney Store retail chain in the United States and Canada.

In conjunction with The Children's Place September sales release, you are invited to listen to the Company's pre-recorded monthly sales call, which will be available beginning at 7:30 a.m. Eastern Time today through Thursday, October 14, 2004. To access the call, please dial (402) 220-1182, or you may listen through the Investor Relations section of the Company's website, www.childrensplace.com.

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 ten. The Company designs, contracts to manufacture and sells its products under the "The Children's Place" brand name. As of October 2, 2004, the Company operated 725 stores, including 674 stores in the United States, 49 stores in Canada and two stores in Puerto Rico. The Company also sells its merchandise through its virtual store located at www.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.

    CONTACT: The Children's Place
             Seth Udasin, 201-558-2409
             or
             Heather Anthony, 201-558-2865

    SOURCE: The Children's Place Retail Stores, Inc.