Saks Incorporated Amends Revolving Credit Facility

  Saks Incorporated Amends Revolving Credit Facility

  Amendment adds availability, extends maturity, and lowers borrowing rates

Business Wire

NEW YORK -- March 28, 2013

Retailer Saks Incorporated (NYSE: SKS) (the “Company”) today announced that it
has entered into an amendment to its existing revolving credit agreement. The
amendment increases the maximum availability from $500 million to $600 million
and extends the maturity date of this facility to March 28, 2018 from March
29, 2016 previously.

Kevin Wills, Executive Vice President and Chief Financial Officer of the
Company, noted, “We are very pleased to complete the amendment to our
revolving credit facility. Over the last few years, we have taken a number of
actions to strengthen our capital structure and our overall financial
flexibility, and this amendment is a continuation of that process. The
amendment extends the facility’s maturity to five years and includes more
favorable terms. We appreciate the continued support of our bank group and
their participation in this enhanced facility.”

The amendment favorably revises certain terms of the existing revolving credit
facility, including the interest rates and unused line fees. The new interest
rates vary with usage and are in the range of LIBOR plus 1.5% to 2.0% compared
to LIBOR plus 2.0% to 2.5% previously. The unused line fees also vary with
usage and decrease to 0.25% to 0.375% per annum from 0.375% to 0.50% per annum
previously. The amendment also increases the advance rate for eligible
inventory that is included in the borrowing capacity formula to 90% from 85%
previously.

On March 15, 2013, the Company announced its planned April 15, 2013 redemption
of its $230.0 million 2% Convertible Senior Notes. The Company plans to use a
combination of cash on hand and a draw on the revolving credit facility for
the redemption.

Saks Incorporated currently operates 43 Saks Fifth Avenue stores, 65 Saks
Fifth Avenue OFF 5TH stores, and saks.com. Saks Fifth Avenue is proud to be
named a J.D. Power and Associates 2012 Customer Service Champion and is only
one of 50 U.S. companies so named.

Forward-looking Information

The information contained in this press release that addresses future results
or expectations is considered “forward-looking” information within the
definition of the Federal securities laws. Forward-looking information in this
document can be identified through the use of words such as “may,” “will,”
“intend,” “plan,” “project,” “expect,” “anticipate,” “should,” “would,”
“believe,” “estimate,” “contemplate,” “possible,” and “point.” The
forward-looking information is premised on many factors, some of which are
outlined below. Actual consolidated results might differ materially from
projected forward-looking information.

The forward-looking information and statements are or may be based on a series
of projections and estimates and involve risks and uncertainties. These risks
and uncertainties include such factors as: the level of consumer spending for
luxury apparel and other merchandise carried by the Company and its ability to
respond quickly to consumer trends; macroeconomic conditions and their effect
on consumer spending; the Company’s ability to secure adequate financing;
adequate and stable sources of merchandise; the competitive pricing
environment within the retail sector; the effectiveness of planned
advertising, marketing, and promotional campaigns; favorable customer response
to relationship marketing efforts of proprietary credit card loyalty programs;
appropriate inventory management; effective expense control; successful
operation of the Company’s proprietary credit card strategic alliance with
Capital One Financial Corporation; geo-political risks; weather conditions and
natural disasters; the performance of the financial markets; changes in
interest rates; and fluctuations in foreign currency and exchange rates. For
additional information regarding these and other risk factors, please refer to
the Company’s filings with the SEC, including its Annual Report on Form 10-K
for the fiscal year ended February 2, 2013, its Quarterly Reports on Form
10-Q, and its Current Reports on Form 8-K, which may be accessed via the
Internet at www.sec.gov.

The Company undertakes no obligation to correct or update any forward-looking
statements, whether as a result of new information, future events, or
otherwise.

Contact:

Saks Incorporated
Julia Bentley, 865-981-6243
www.saksincorporated.com