Secaucus, New Jersey - January 6, 2000 - The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) today announced sales of $72.6 million for the December five week period ended January 1, 2000, an increase of 44% from sales of $50.5 million for the same period last year. Comparable store sales for the period increased 9%, on top of a 16% increase during the 1998 five-week December period ended January 1, 2000, reached $113.4 million, an increase of 39% from sales of $81.3 million for the same period last year. Comparable store sales for the period increased 6%, on top of a 17% increase during last year's holiday season.

For the forty-eight weeks ended January 1, 2000, the Company's sales were $399.4 million, an increase of 49% from sales of $267.8 million for the fiscal 1998 period. Comparable store sales year-to-date have increased 16%, on top of a 13% increase during the same period last year.

"We are pleased with our comp store sales results for the holiday season and with the positive customer reaction to our recent holiday line, which featured casual and brightly colored polar fleece merchandise," said Ezra Dabah, Chairman and Chief Executive Officer. "In addition to reporting strong comp store sales for the period, we are excited by the performance of our new stores, and by the entry of The Children's Place into several new markets that included Colorado, Utah, and northern Florida. We are equally pleased to report that the 84 new stores opened in 1999 are tracking ahead of our plan. The projected opening of 100 new stores in 2000, combined with our online presence at www.childrensplace.com, will provide the Company with a nationwide 'click and mortar' business model designed to service our expansion into new geographic areas."

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 1, 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 no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof.