Federated Pilots In-Store Partnerships With LensCrafters &

 American Greetings  Business Editors CINCINNATI--(BUSINESS WIRE)--Nov. 7, 2003 Federated Department Stores, Inc. (NYSE:FD)(PCX:FD) today said it is piloting in-store boutiques with two leading consumer brand companies to offer categories of merchandise not currently available in most department stores. Focused merchandise areas initially being developed with LensCrafters and American Greetings are designed to maximize customer convenience and enhance the Federated shopping experience for the holidays and beyond.  "Customers tell us they want to buy a wider range of merchandise within our stores, and with brands they know and trust," said Federated Vice Chairman Tom Cole. "Through these partnerships, Federated strengthens its role as a one-stop shopping destination better able to meet the needs of our customer."  The first optical boutique, designed with LensCrafters, opens today in Tacoma, WA at Bon-Macy's Tacoma Mall location. Additional optical boutiques are planned for:  --  Ft. Myers, FL: Burdines, Edison Mall - opening November 19  --  Scottsdale, AZ: Macy's West, Scottsdale Fashion Square -  opening November 21  --  Sacramento, CA: Macy's West Downtown Shopping Plaza - opening  February, 2004  --  Concord, CA: Macy's West Sun Valley Mall - opening February,  2004  The 1,500-square-foot optical boutiques will be located adjacent to accessories or apparel areas and will blend seamlessly with Macy's store design. The merchandise assortment also will be tailor-made for Macy's customers - more than 1,000 prescription and sunglass frames from designer brands such as Ray-Ban, Prada, Versace, Brooks Brothers, Kenneth Cole and Persol, as well as an exclusive Tommy Hilfiger collection. In addition to free eyewear fashion consultations, Macy's customers will enjoy free cleaning and adjustments to glasses anytime.  The optical boutiques will be full-service, open during store operating hours. A Doctor of Optometry will be available 40 hours a week to give complete eye exams. Contact lens customers will be able to choose among a full range of contact lens products, including daily disposables and color contacts.  The upscale Winking Moon Press line from American Greetings will be available in kiosks in forty-one Federated stores including Bloomingdale's, Macy's East, Rich's/Lazarus/Goldsmith's-Macy's, Bon-Macy's and Burdines. The cards are featured in gift locations throughout the store, primarily home, bridal and children's departments, complementing the stores' positioning as prime locations for gift giving.  "We will carefully monitor results of these pilots and roll out concepts that are successful with our targeted customer," Cole said. "Based on results, we also plan to identify other partners that can make shopping our stores more interesting, exciting and productive."  Federated, with corporate offices in Cincinnati and New York, is one of the nation's leading department store retailers, with annual sales of more than $15 billion. Federated currently operates more than 460 stores in 33 states, Guam and Puerto Rico, under the names of Macy's, Bloomingdale's, Bon-Macy's, Burdines, Goldsmith's-Macy's, Lazarus-Macy's and Rich's-Macy's, as well as macys.com and Bloomingdale's By Mail.  (NOTE: Information on Federated and its operating divisions is available on the Internet at www.fds.com.)  CONTACT: Federated Jean Coggan, 513-579-7315 or LensCrafters Kathy Clark, 513-765-6242