Secaucus, New Jersey - February 3, 2000 - The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) today announced sales of $135.5 million for the fourth quarter ended January 29, 2000, an increase of 39% from sales of $97.3 million for the same period last year. Comparable store sales for the period increased 5%, on top of an 18% increase for the fourth quarter of 1998.

For the fiscal year ended January 29, 2000, the Company's sales were $421.5 million, an increase of 48% over sales of $283.9 million for the prior fiscal year. The Company's comparable store sales increased 15% for the fiscal year ended January 29, 2000, compared to a 14% increase in the prior fiscal year.

"Our fourth quarter performance caps an exciting year of growth for our Company," said Ezra Dabah, Chairman and Chief Executive Officer. "In 1999, we succussfully implemented the infrastructure for our future growth, while at the same time achieved outstanding financial results."

Mr. Dabah noted that the Comany's major accomplishments in fiscal 1999 included the following:

Operations
• Opened 84 new stores (a 43% square footage increase);
• Achieved sales revenues of $421 million (representing 48% growth);
• Produced a comp store sales increase of 15%;
• Increased store sales productivity to $414 per gross square foot (an 8% increase);
• Reached annualized sales in new stores in excess of $1.3 million;

Infrastructure
• Relocated the Company's corporate headquarters and distribution center;
• Implemented a new automatic warehouse management system;
• Re-fixtured 161 stores to reflect the new prototype;
• Expanded into new markets; and
• Launched the online store at www.childrensplace.com.

Mr. Dabah concluded, "We are confident that the strategic initiatives we implemented in 1999, combined with our sales growth and increased stor productivity, give us the foundation to support the Company's growth strategy. We are also happy to report that the sites for the 100 new stores scheduled to open in 2000 have all been identified."

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 January 29, 2000 the Company operated 293 stores located primarily in regional shopping malls in the eastern half of the United States and sells merchandise through its World Wide Web site located at www.childrensplace.com.

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 to obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof.