Secaucus, New Jersey - September 10, 1999 - The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) today announced that based on current price levels of PLCE common stock, the Company has decided to withdraw the registration statement previously filed with the Securities and Exchange Commission for a proposed offering of three million shares of its common stock that were to be sold by selling stockholders.

Ezra Dabah, Chairman and Chief Executive Officer, commented, "The selling stockholders reached this decision after assessing the decline of our stock price since the filing of the registration statement. The Company's current profitability and future growth potential represent a significantly higher value than what is now reflected in the stock price. The decision will have no effect on our capital structure or on our ability to continue our growth and expansion plans since the Company would not have received any proceeds from the offering."

Mr. Dabah added, "1999 is shaping up to be another very successful year for The Children's Place, as we have already reported two strong quarters of record results with comparable store sales increasing 26% in the first six months of 1999 over a 7% increase in the first half of last year. We remain excited about moving our company forward through strong internal growth, new store openings and the subsequent leveraging of our larger store base, and through enhanced marketing and sales initiatives."

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. The Company currently operates 266 stores located primarily in regional shopping malls in the eastern half of the United States.

This press release contains 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. The Company undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof.