ML | Material London and Virgin Atlantic Airways Launch High-Flying Partnership; New Menswear Line Readies for Take Off with Innovative Marketing Campaign

Macy's Merchandising Group, a division of FederatedDepartment Stores, Inc., and Virgin Atlantic Airways jointly announcea strategic partnership between new menswear brand ML | MaterialLondon and Virgin Atlantic Airways. The foundation of the partnershipwill be an innovative marketing program that reaches consumers at alllevels - in-flight, in-store and in-home. Key elements include: anirreverent, co-branded advertising campaign that reflects the distinctpersonalities of both brands and targeted opportunities for each brandto reach the other's core consumers. The partnership will commence inOctober 2005.

ML | Material London, a collection of clothing that celebratesLondon's legendary influence on menswear, will be launchingexclusively at Macy's stores nationwide in Fall 2005. The collectionwill feature stylishly forward clothing with razor-sharp lines,sophisticated fabrics and a timeless fit. ML | Material London isdesigned for the man who expects the utmost in quality and appreciatesdetailing.

"ML | Material London is a new brand entering the menswear market,and aligning with Virgin Atlantic's distinct brand personality was anatural fit for our business," said Nancy Slavin, Senior VicePresident of Marketing for Macy's Merchandising Group. "Both brandsare synonymous with the smart style that is unique to London. We'rethrilled to be launching ML | Material London with this innovative,strategic marketing partnership."

Commenting on the new partnership, Chris Rossi, Virgin AtlanticVice President Sales and Marketing, North America said, "The ML |Material London line of clothing captures what is best of bothAmerican and British fashion, resulting in a distinct style andpersonality that is often found on Virgin Atlantic flights, makingthis a custom tailored partnership."

The partnership will launch with a multi-page mini-magazine in theOctober 2005 issue of CITY magazine. This insert will blend the bestof both sides of the Atlantic, acting as an insider's guide both toLondon and to the finest British-inspired spots in the United Statesfor food, drink and fashion. It will also feature the first imagesfrom ML | Material London and Virgin Atlantic's co-branded advertisingcampaign as well as an exclusive interview with Sir Richard Branson.

The partnership will continue through Fall 2005 with a co-brandedprint advertising campaign in major newspapers, including The New YorkTimes, The Miami Herald, the Los Angeles Times, and the San FranciscoChronicle. The campaign will introduce a series of well turned outcharacters wearing ML | Material London clothing while enjoying theamenities of the high flying Virgin Atlantic flight experience. Thecampaign will feature three different scenes photographed in theaward-winning Upper Class Suite, at the Upper Class onboard bar and atthe Virgin Atlantic Clubhouse at John F. Kennedy InternationalAirport.

Additional elements include limited edition ML | Material Londongifts and online special promotions offered to select members ofVirgin Atlantic's "Flying Club" and high-profile window displays atMacy's stores in New York City, Miami and San Francisco.

About Federated Department Stores

Federated, with corporate offices in Cincinnati and New York, isone of the nation's premier retailers, with 2004 sales of more than$15.6 billion. With the May Company's 487 department stores and 710bridal and formalwear stores in 47 states, the District of Columbiaand Puerto Rico, Federated operates nearly 950 department stores andmore than 700 bridal and formalwear stores in 49 states, the Districtof Columbia, Guam and Puerto Rico under the names of Macy's,Bloomingdale's, Famous-Barr, Filene's, Foley's, Hecht's, Kaufmann's,Lord & Taylor, L.S. Ayres, Marshall Field's, Meier & Frank,Robinsons-May, Strawbridge's, The Jones Store, David's Bridal, AfterHours Formalwear and Priscilla of Boston. The company also operatesmacys.com and Bloomingdale's By Mail.

About Virgin Atlantic Airways

Posting its best profits since 1999, Virgin Atlantic Airways isflying high with service to 28 destinations in 13 countries. Alwaysmore than a means of getting from point A to point B, Virgin Atlanticis constantly looking to exceed passenger expectations with a uniquecombination of superior products and superior service. This year,Virgin Atlantic celebrates its 21st Birthday with new service toMumbai and Sydney, and increased service to Shanghai, Nigeria and fromLas Vegas. The new, award winning Upper Class Suite is scheduled to beon all flights out of the US by early 2006.