Secaucus, New Jersey - May 16, 2001 - The Children's Place Retail Stores, Inc. (Nasdaq: PLCE), today announced commencement of operations in the Company's 250,000 square foot distribution center located in southern California. This state-of- the-art facility will be utilized to support the Company's aggressive westward expansion and service the Company's stores west of the Mississippi. The distribution center is capable of servicing more than 500 stores and is expected to supply 120 stores by the end of this year and approximately 200 stores by the end of 2002.

"Commencement of operations in our new distribution center marks an important step toward building our infrastructure to achieve our goal of operating over 1,000 stores across the United States," stated Ezra Dabah, Chairman and Chief Executive Officer. "We have experienced a smooth start-up in our distribution center since we began testing systems and receiving merchandise earlier this year. Our fully automated warehouse management systems and material handling equipment have been successfully integrated into our East Coast distribution center and corporate headquarters' information systems."

Mr. Dabah continued, "In addition to faster replenishment of our West Coast stores, we expect to realize other operating efficiencies including lower freight costs to our stores and shorter transit times from the majority of our overseas manufacturers. We believe these efficiencies strategically position The Children's Place to become the number one retailer of children's apparel in the nation."

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. Currently, the Company operated 449 stores in 44 states. The Company also sells its merchandise through its virtual store located at www.childrensplace.com.

This press release 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 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