Company Anticipates Fourth Quarter Earnings of Approximately $0.50
              Per Share Versus $0.09 Per Share Last Year

SECAUCUS, N.J.--(BUSINESS WIRE)--Jan. 8, 2004--The Children's Place Retail Stores, Inc. (Nasdaq:PLCE), today announced sales of $114.0 million for the five-week period ended January 3, 2004, a 16% increase over sales of $98.1 million for the same period last year. Comparable store sales for the five-week period increased 7% versus a 19% decrease in December 2002.

Sales for the nine-week holiday selling season were $194.9 million, a 20% increase from sales of $162.3 million for the same period last year. Comparable store sales increased 10% for the nine-week period versus a 19% decrease in the same period last year.

For the forty-eight weeks ended January 3, 2004, total sales increased 19% to $758.3 million from $637.1 million last year. Comparable store sales for the year-to-date period increased 3% versus a 16% decrease last year.

The Company stated that based on quarter-to-date sales and improved gross margin results it anticipates earnings per share of approximately $0.50 for the fourth quarter, compared to earnings of $0.09 per share for the comparable quarter last year.

"Strong consumer acceptance of our holiday merchandise offering resulted in increased full price selling and a substantial reduction in markdowns," said Ezra Dabah, Chairman and Chief Executive Officer of The Children's Place. "During the holiday selling season we focused on maximizing gross margin and as a result we anticipate a substantial increase in earnings for the fourth quarter compared to last year."

In conjunction with The Children's Place December 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, January 15, 2004. To access the call, please visit the Company's Web site, www.childrensplace.com, or dial (402) 220-1182.

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 10. The Company designs, contracts to manufacture and sells its products under the "The Children's Place" brand name. As of January 3, 2004, the Company operated 693 stores, including 651 stores in the United States and 42 stores in Canada. 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, Secaucus
             Seth Udasin, 201-558-2409
             Heather Anthony, 201-558-2865

    SOURCE: The Children's Place