--  Company Now Anticipates Full Year EPS Growth of Approximately
        50%

    --  Company Signs Lease for New State-of-the-Art Distribution
        Center

SECAUCUS, N.J.--(BUSINESS WIRE)--Sept. 2, 2004--The Children's Place Retail Stores, Inc. (Nasdaq: PLCE), today announced sales of $86.5 million for the four-week period ended August 28, 2004, a 30% increase compared to sales of $66.7 million reported for August 2003. Comparable store sales for the four-week period increased 21%, as compared to a 1% increase in the prior year period. During the month, the Company opened six stores.

Total sales for the thirty weeks ended August 28, 2004, increased 23% to $501.5 million from $406.8 million last year. Comparable store sales increased 15% versus a 5% decrease last year. Year-to-date, the Company has opened 32 stores, and closed two.

The Company stated that based on quarter-to-date sales trends, it now anticipates fiscal 2004 earnings growth of approximately 50% over fiscal 2003.

"Our strong August sales reflect broad customer acceptance of our merchandising, marketing and customer experience strategies," said Ezra Dabah, Chairman and Chief Executive Officer of The Children's Place. "Our inventory strategy enabled us to meet customer demand and contributed to double-digit comparable store sales across all departments. Our customers are embracing our unique brand positioning of fashion, quality and value and we look forward to continuing our positive momentum."

Separately, the Company stated that it has signed a lease for a new, automated, state-of-the-art distribution center in South Brunswick, New Jersey, to replace its existing distribution center in Secaucus, New Jersey. The half million square foot distribution center, which will support the Company's future growth, provide increased productivity and greater efficiency, is scheduled to commence operations during the second quarter of fiscal 2005.

The Company also noted that discussions are continuing with The Walt Disney Company to acquire and operate under a long-term license arrangement The Disney Store retail chain in the United States and Canada.

In conjunction with The Children's Place August sales release, you are invited to listen to the Company's pre-recorded monthly sales call, which will be available beginning at 7:30 a.m. Eastern Time today through Thursday, September 9, 2004. To access the call, please dial (402) 220-1182, or you may listen through the Investor Relations section of the Company's website, www.childrensplace.com.

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 ten. The Company designs, contracts to manufacture and sells its products under the "The Children's Place" brand name. As of August 28, 2004, the Company operated 721 stores, including 671 stores in the United States, 48 stores in Canada and two stores in Puerto Rico. The Company also sells its merchandise through its virtual store located at www.childrensplace.com.

This press release and above referenced call 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 or listeners (on the call) 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.

    CONTACT: The Children's Place
             Seth Udasin, 201-558-2409
             Heather Anthony, 201-558-2865

    SOURCE: The Children's Place