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Federated Chooses Lowe as Agency to Develop 4Q Advertising

From: ASAP

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Federated Department Stores, Inc. (NYSE:FD)(PCX:FD) has selected the New York-based Lowe advertising agency to create an electronic and print media campaign for its largest store brand, Macy's. This initial project will primarily focus on the television medium during the important yearend holiday period. It will be the first time that the Macy's brand - including Macy's East, Macy's West and the newly named, Atlanta-based Rich's-Macy's stores - will have a common voice.

"The search for an agency was an exciting process that reinforced for all of us the power of one of our most important and yet underutilized assets - the Macy's brand," said Terry J. Lundgren, Federated's president and chief executive officer.

"We challenged 40 agencies from around the country to demonstrate how they would position the Macy's brand nationally. The quality of the agencies we interviewed made this a difficult decision, but ultimately Lowe was awarded the Macy's project," Lundgren said, "because they are creative innovators who understand the needs and potential of our brand and have the strategic thinking which will work well in the Macy's department store culture."

"This is a fantastic opportunity to work on a truly iconic brand. Millions of Americans have grown up with the Macy's Thanksgiving Day Parade, Macy's 4th of July Fireworks, the Macy's Passport fashion extravaganza and the lighting of the Rich's-Macy's Great Tree at holiday time - this brand is a pillar of American culture," said Paul Hammersley, Lowe's chief executive officer. "We are setting the creative bar very high to match the stature of our new client."

Lundgren noted that the individual Macy's divisions would continue to create, produce, market and promote their day-to-day businesses.

Federated, with corporate offices in Cincinnati and New York, is one of the nation's leading department store retailers, with annual sales of more than $15 billion. Federated currently operates more than 450 stores in 34 states, Guam and Puerto Rico, under the names of Macy's, Bloomingdale's, The Bon Marche, Burdines, Goldsmith's, Lazarus and Rich's-Macy's, as well as macys.com and Bloomingdale's By Mail.

Lowe, New York is the flagship office of Lowe & Partners Worldwide. Lowe, New York has more than 600 employees and is a member of The Interpublic Group of Companies (NYSE:IPG), on of the world's leading organizations of advertising agencies and marketing services companies. www.loweworldwide.com

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