Secaucus, New Jersey - August 4, 1999 - The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) today announced record sales of $73.9 million for the second quarter ended July 31, 1999, a 54% increase from sales of $48.0 million for the same period last year. Comparable store sales for the second quarter increased 19%, as compared with an 8% increase for the second quarter of 1998.

For the twenty-six weeks ended July 31, 1999, the Company's sales were $166.5 million, a 60% increase over sales of $104.0 million for the same period in 1998. The Company's year-to-date comparable store sales increased 26% compared to a 7% increase in the prior-year period.

The Company also announced that it expects to report a second quarter profit for the first time in its history. The Company anticipates that earnings for the quarter ended July 31, 1999 will be at least $0.03 per diluted share. The Company plans to report full results for the quarter on August 12, 1999.

During the second quarter, the Company opened 22 stores. As stated in the Company's Registration Statement filed with the Securities and Exchange Commission on July 23, 1999, the Company expects to open approximately 80 stores in fiscal 1999 and approximately 100 stores in fiscal 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 31, 1999, the Company operated 261 stores located primarily in regional shopping malls in the eastern half of the United States.

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 no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof.