Marcus to Succeed DiNicola as Zale Chairman

March 11, 2004

Marcus to Succeed DiNicola as Zale Chairman

Zale Corp. said longtime board member Richard C. Marcus would replace Robert J. DiNicola as Zale's chairman of the board of directors when DiNicola leaves his position at the close of the fiscal year on July 31, 2004.

Marcus has served as a Zale board member since 1993 and is currently chairman of Zale's compensation committee. He is the former chairman and CEO of Neiman Marcus and has been a jewelry industry consultant in recent years.

DiNicola has served as the chairman of the board for the past two years. Prior to that he was the chairman and CEO.

"After two years of a successful management transition, it is now time to complete the process," said DiNicola.

Mary Forte, Zale president and CEO added, "We want to thank Bob for all that he has achieved going back to 1994 as he rebuilt Zale from Chapter 11 to the industry leader that it is today."

DiNicola indicated he would continue as a consultant within the jewelry industry. Zale Corp. is North America's largest specialty retailer of fine jewelry operating approximately 2,230 retail locations throughout the U.S., Canada and Puerto Rico, as well as online. Its brands include Zales Jewelers, Zales Outlet, Zale Direct at, Gordon's Jewelers, Bailey Banks & Biddle Fine Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda.

by Michael Thompson

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