• Net sales increased 39% to $587.4 million, compared to $421.5 million in 1999.
• Comparable store sales increased 4% on top of a 15% increase in 1999.
• Net income increased 22% to $42.7 million from $35.0 million last year.
• Diluted earnings per share increased 21% to $1.60 from $1.32 in 1999.
• Opened 108 new stores and closed one for a total of 400 stores at the end of fiscal 2000.

"Our impressive growth formula and business model remain strong as we continue to gain momentum," commented Ezra Dabah, Chairman and Chief Executive Officer. "In fiscal 2000 we grew our top-line by approximately 39% and we expanded our store base by 107 stores. These new stores yielded an average sales volume of $1.2 million on an annualized basis. It is important to note that for the first time a majority of the stores opened in fiscal 2000 were in new markets, which demonstrates the strong customer acceptance of our successful concept. In addition, our class of 1999 stores, for which 2000 was their first fiscal year of operation, yielded an impressive 83% return on investment."

Mr. Dabah continued, "Despite the uncertain economic environment which may affect our sales, we are cautiously optimistic and remain comfortable with our profitability expectations. Our inventory remains very clean and well positioned for the Spring season. In 2001, we plan to open 120 new stores, all of which will be funded by internally generated cash flow, due to the outstanding returns on investment we have achieved. In addition, our second fully automated distribution center located in Ontario, California remains on track to be operational in the second quarter of 2001 to support our continued westward expansion. With our infrastructure in place and with our demonstrated strong performance across all demographics and in all retail venues, we are confident in our aggressive growth plans to operate more than 1,000 stores nationwide."

The Children's Place will host a webcast of its fourth quarter earnings conference call today at 10:00 a.m., Eastern Time. Investors and the media are invited to listen to the call at the Company's Web site at www.childrensplace.com/Info/CompanyInfo.jsp. An archive of the webcast will be available on the same site.

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 February 3, 2001, the Company operated 400 stores in 43 states.

This press release and above reference 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.