SECAUCUS, N.J., Dec 6, 2001 (BUSINESS WIRE) -- The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) today announced sales of $64.9 million for the four-week period ended December 1, 2001, a 9% increase over sales of $59.4 million reported for November 2000. Excluding sales of the Company's Yaak folding scooter, sales for November 2001 increased 12% over the prior year period. Comparable store sales for the four-week period decreased 16% as compared to an 8% increase for the restated four-week period ended December 2, 2000. Excluding sales of the folding scooter, comparable store sales for November decreased 14% from the prior year period. The Company opened 7 new stores during November 2001.

Total sales for the forty-three weeks ended December 1, 2001 increased 13% to $523.1 million from $463.3 million reported in the year-ago period. Excluding sales of the Yaak scooter, sales for the forty-three-week period increased 16% over the prior year period. Year-to-date, comparable store sales decreased 9% versus a 6% increase in the prior year restated period. Excluding sales of the folding scooter, the comparable store sales for the forty-three-week period decreased 7% from the prior year period. The Company has opened 121 stores and closed 1 in the year-to-date period.

"The challenging retail environment continued to impact sales in November. In addition, unseasonable spring-like weather deterred our customers from purchasing their children's needs, specifically in the cold weather merchandise categories," commented Ezra Dabah, Chairman and Chief Executive Officer. "In light of recent disappointing sales and the continued slowdown in mall traffic, we now expect fourth quarter earnings to be approximately $0.60 per fully diluted share. Higher initial markups, due to our effective sourcing, will help mitigate the effect of markdowns necessary to keep our inventory clean," concluded Mr. Dabah.

In conjunction with The Children's Place November sales release, you are invited to listen to the Company's pre-recorded November sales call with Seth Udasin, Chief Financial Officer, which will be available beginning at 8:00 a.m. Eastern Time today through December 13, 2001. To access the call, please visit the following web address: http://www.childrensplace.com or dial (402) 220-0676.

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 December 1, 2001 the Company operated 520 stores in 46 states. The Company also sells its merchandise through its virtual store located at 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 Retail Stores, Inc.
                  Seth Udasin, 201/558-2409
                  or
                  Morgen-Walke Associates, Inc.
                  Suzanne Rosenberg/David Waldman
                  Media: Claudine Cornelis/Laura Novak
                  212/850-5600