Zale Completes Sale of Bailey Banks & Biddle and Announces $200 Million Stock Repurchase Program



    DALLAS, November 12 /CNW/ - Zale Corporation (NYSE:  ZLC), a leading
specialty retailer of fine jewelry in North America, today announced that it
has completed the sale of its Bailey Banks & Biddle brand to Finlay Fine
Jewelry Corporation for a purchase price of $200 million. The Company expects
to realize estimated after-tax proceeds, net of transaction expenses and
outstanding payables, of approximately $175 million from the sale.

    Additionally, the Company's Board of Directors has approved a stock
repurchase program of up to $200 million of Zale common stock. Further details
related to the structure of the repurchase program will be provided in the
first quarter earnings release scheduled for November 20, 2007.

    Betsy Burton, Chief Executive Officer, commented, "The use of proceeds to
repurchase stock is a way to return value to shareholders, and reflects
confidence in the future as we execute our strategic plan. On behalf of Zale
Corporation, I would like to thank the entire team of associates at Bailey
Banks & Biddle for their hard work, dedication and commitment to building a
great brand."

    Zale Corporation is a leading specialty retailer of fine jewelry in North
America operating approximately 2,200 retail locations throughout the United
States, Canada and Puerto Rico, as well as online. Zale Corporation's brands
include Zales Jewelers, Zales Outlet, Gordon's Jewelers, Peoples Jewellers,
Mappins Jewellers and Piercing Pagoda. Zale also operates online at
www.zales.com and www.gordonsjewelers.com. Additional information on Zale
Corporation and its brands is available at www.zalecorp.com.

    This release contains forward-looking statements, including statements
regarding the proposed stock repurchase program and the expected proceeds from
the sale of Bailey Banks & Biddle. Forward-looking statements are not
guarantees of future performance and a variety of factors could cause the
Company's actual results to differ materially from the results expressed in
the forward-looking statements. These factors include, but are not limited to:
the final payments with respect to the sale of Bailey Banks & Biddle are
dependent upon the final inventory counts and the valuation of the inventory
and the repurchase of shares depends upon the level of the price for Company
stock and the general performance of its business. For other factors, see the
Company's filings with the Securities and Exchange Commission, including its
Annual Report on Form 10-K for the fiscal year ended July 31, 2007. The
Company disclaims any obligation to update or revise publicly or otherwise any
forward-looking statements to reflect subsequent events, new information or
future circumstances.




For further information:

For further information: Zale Corporation David H. Sternblitz,
972-580-5047 Vice President and Treasurer

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ZALE CORPORATION

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