Secaucus, New Jersey - August 3, 2000 - The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) today announced record sales of $107.7 million for the second quarter ended July 29, 2000, a 46% increase from sales of $73.9 million for the same period last year. Comparable store sales for the second quarter increased 7%, as compared with a 19% increase for the second quarter of 1999. During the second quarter, the Company opened 36 new stores.

For the twenty-six weeks ended July 29, 2000, the Company's sales were $237.8 million, a 43% increase over sales of $166.5 million for the same period in 1999. The Company's year-to-date comparable store sales increased 6% compared to a 26% increase in the prior-year period. Year-to-date, the Company has opened 79 new stores.

The Company plans to report full results for the second quarter on August 11, 2000.

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 29, 2000, the Company operated 371 stores in 42 states and also sells its merchandise through its World Wide Website 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.