Zale Corporation Names Thomas Shull to Its Board of Directors

DALLAS--()--Aug. 27, 2004--Zale Corporation (NYSE:ZLC), the largest specialty retailer of fine jewelry in North America, today announced the election of Thomas Shull to its Board of Directors. Mr. Shull is Chief Executive Officer of Meridian Ventures, LLC., a venture management firm he co-founded in 1991.

Mr. Shull recently served as Chairman and Chief Executive Officer of Hanover Direct, one of the nation's leading direct marketing companies. He held this position from 2000 through 2004. Under Mr. Shull's leadership, Hanover Direct improved profitability by over $45 million on an annualized basis and completed a major restructuring program.

Mr. Shull has also served as Chief Executive Officer of Barney's New York and Merry Go Round Enterprises. Prior to that he served as Executive Vice President of R.H. Macy Company, Inc., where he led negotiations that culminated in Macy's merger with Federated in 1994.

Mr. Shull is a graduate of the U.S. Military Academy at West Point and holds a Masters of Business Administration degree from Harvard University.

"Mr. Shull is a veteran retailer with a great level of business acumen," commented Glen Adams, Chairman of Zale's Nominating and Corporate Governance Committee. "His management insight and leadership will be a tremendous asset to our Board of Directors."

Zale Corporation is North America's largest specialty retailer of fine jewelry operating approximately 2,235 retail locations throughout the United States, Canada and Puerto Rico, as well as through the Internet at www.zales.com. Zale Corporation's brands include Zales Jewelers, Zales Fine Jewelry Outlet, Gordon's Jewelers, Bailey Banks & Biddle Fine Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. Additional information on Zale Corporation and its brands is available at www.zalecorp.com.

Contacts

Zale Corporation
David H. Sternblitz, 972-580-5047
Vice President and Treasurer

Contacts

Zale Corporation
David H. Sternblitz, 972-580-5047
Vice President and Treasurer