Shoppers Give U.S. Troops Free Phone Calls Home

Saks Department Store Group to raise up to one million minutes of call time for U.S. soldiers

Birmingham, Ala. (May 2, 2005) - A recent study indicates that U.S. troops would prefer receiving a chance to call home more than some traditional care package items. In fact, 78 percent of Americans surveyed said that U.S. soldiers would appreciate a free phone call home more than items such as toiletries, baked goods or money. Additionally, 95 percent believe that allowing U.S. troops to speak to their families on a regular basis is an important morale booster¹.

In response to these findings and in celebration of National Military Appreciation Month in May, Saks Department Store Group (SDSG) is supporting U.S. troops with a special program that will make it easier for soldiers to connect with their loved ones. During the "Let Freedom Ring" campaign, which kicked off the weekend before Mother's Day and runs through July 4th, SDSG will provide U.S. soldiers with a free call home for every $25 shoppers charge to their SDSG store credit cards. The company has set a goal of raising one million minutes of call time for the troops. The following stores are included in the program: Carson Pirie Scott, Bergner's, Boston Store, Herberger's, Proffitt's, McRae's, Parisian and Younkers.

"We're pleased to be able to bring a piece of home to our soldiers," said George Jones, president and CEO of Saks Department Store Group. "Our troops demonstrate tremendous courage and strength everyday. We believe that giving them an opportunity to speak with their loved ones will only make them stronger and help boost their morale as they fulfill their duties."

"With Mother's Day being the No. 1 'call home' holiday of the year, we felt it was a natural time to kick off our program. It's our hope that when shoppers are in our stores looking for the perfect Mother's Day gift, they'll also keep our troops in mind with a token of appreciation - the opportunity to connect with their mothers and families back home," added Jones.

MCI is partnering with SDSG and HSBC Retail Services, issuer of SDSG's private label credit cards, to provide a network for the free calls, which will be coordinated directly through MCI's Government Markets division.

"MCI is proud to partner with SDSG in this meaningful program in an effort to raise one million minutes of free phone calls for U.S. troops," said Jerry Edgerton, senior vice president of MCI Government Markets. "Allowing families the opportunity to connect with the men and women of the armed forces who are deployed all over the world is one way for us to show our appreciation for their sacrifices."

About Saks Department Store Group

Saks Incorporated operates Saks Department Store Group (SDSG) with 232 department stores under the names of Parisian, Proffitt's, McRae's, Younkers, Herberger's, Carson Pirie Scott, Bergner's and Boston Store, as well as 43 Club Libby Lu specialty stores. The Company also operates Saks Fifth Avenue Enterprises (SFAE), which consists of 57 Saks Fifth Avenue stores, 52 Saks Off 5th stores and saks.com.

About MCI

MCI, Inc. (NASDAQ: MCIP) is a leading global communications provider, delivering innovative, cost-effective, advanced communications connectivity to businesses, governments and consumers. With the industry's most expansive global IP backbone, based on the number of company-owned points of presence, and wholly-owned data networks, MCI develops the converged communications products and services that are the foundation for commerce and communications in today's market. For more information, go to www.mci.com.

About HSBC Retail Services

HSBC Retail Services is a leading issuer of private label (merchant branded) credit cards in the United States. This business provides flexible, customized credit card solutions for the world's premier retailers and manufacturers. For more information, visit www.hsbcretailservices.com.

¹National survey of 1,008 adults conducted by Opinion Research Corporation, April 2005.

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Note: SDSG will donate up to a maximum of one million minutes of call time distributed through MCI to U.S. Military personnel. Each $25 spent on a store credit card will generate 25 minutes of time. The offer concludes on July 4, 2005; however, phone time will be available until all minutes generated from this offer are used.