SECAUCUS, N.J., Oct 24, 2007 (PrimeNewswire via COMTEX News Network) -- The Children's Place Retail Stores, Inc. (Nasdaq:PLCE) today announced that its Board of Directors has engaged Lehman Brothers to act as its financial advisor in undertaking a review of the Company's strategic alternatives to improve operations and enhance shareholder value. The Board of Directors and the management team are assessing in this review a wide variety of options to improve the Company's business and competitive position, and these may include potential organizational and operational improvements, a recapitalization, or other transactions.

Chuck Crovitz, Interim Chief Executive Officer of The Children's Place Retail Stores, Inc., stated, "The Board of Directors and management team are focused on strengthening the organization and positioning the Company to take advantage of long-term growth opportunities through its Children's Place and Disney Store brands. We believe it is in the best interest of the Company, our shareholders, and employees to initiate a comprehensive review of strategic alternatives for the business and to evaluate a variety of different options for enhancing shareholder value."

The Board has not set any specific timeline for the completion of this strategic review. Further, there is no assurance that this review process will result in any changes to the Company's current operating or organizational structure or lead to any specific transaction.

The Children's Place Retail Stores, Inc. is a leading specialty retailer of children's merchandise. The Company designs, contracts to manufacture and sells high-quality, value-priced merchandise under the proprietary "The Children's Place" and licensed "Disney Store" brand names. As of October 6, 2007, the Company owned and operated 899 The Children's Place stores and 328 Disney Stores in North America and its online stores, www.childrensplace.com and www.disneystore.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, as well as the risks and uncertainties relating to the Company's stock option granting practices and the completed investigation by the special committee of the Company's Board of Directors, the previously announced pending restatement of the Company's historical financial statements, the delays in filing the Company's periodic reports with the Securities and Exchange Commission, the pending NASDAQ proceedings regarding the Company's continued listing, the outcome of the informal investigation of the Company being conducted by the Securities and Exchange Commission, potential other governmental proceedings, the shareholder litigation commenced against the Company and certain of its officers and directors, and the potential impact of each of these matters on the Company. 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. The Company undertakes 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 Company or any other person that the events or circumstances described in such statement are material.

This news release was distributed by PrimeNewswire, www.primenewswire.com

SOURCE: The Children's Place Retail Stores, Inc.

The Children's Place Retail Stores, Inc.
Investors:
Susan Riley, EVP, Finance & Administration
201/558-2400
Heather Anthony, Senior Director, Investor Relations
201/558-2865

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Media:
Melissa Merrill
Leigh Parrish
212/850-5600