West Caldwell, New Jersey - August 12, 1999- The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) today reported record sales and earnings for the second quarter and six months ended July 31, 1999.

Second Quarter
Net sales for the quarter increased 54% to $73.9 million from $48.0 million in the same period in 1998.
Comparable store sales increased 19% for the quarter compared with an 8% increase for the same period last year.
Net earnings were $1.4 million compared to a loss of $0.5 million a year earlier.
The Company opened 22 new stores during the second quarter.

Six Months
Net sales for the six-month period increased 60% to $166.5 million from $104.0 million in the same period in 1998.
Comparable store sales increased 26% for the period compared with a 7% increase for the same period last year.
Net earnings were $8.8 million, up 294% from $2.2 million a year earlier.
Diluted earnings per share increased to $0.33 compared with $0.09 per share in the 1998 period.
The Company opened 52 new stores during the six-month period.

Ezra Dabah, Chairman and Chief Executive Officer, commented, "We are especially excited by the Company's record performance during the second quarter which represents the first time that we were profitable in this seasonally slower period. Record sales were driven by many new customers discovering our brand, as well as strong response to our summer and early back-to-school lines."

Mr. Dabah noted that the second quarter also marked the completion of the Company's move to a new distribution center and corporate headquarters in Secaucus, New Jersey. The Company is now distributing merchandise to its stores with its new automated warehouse management system.

Mr. Dabah concluded, "This new facility will support our future growth while providing efficient and economic store replenishment, inventory control, and receiving and distribution economies. We have already opened 52 of the approximately 80 new stores planned for 1999 and anticipate opening approximately 100 new stores in fiscal 2000. We are very excited about the opportunity to expand our presence nationally in both new and existing markets."

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 July 31, 1999, the Company operated 261 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.