On a reported (GAAP) basis, first quarter net loss from continuing operations was $18.8 million or $0.35 per share, including restructuring and impairment charges of $6.4 million, or $0.12 per share, compared to last year's net income of $18.5 million or $0.35 per share for the thirteen week-period ended May 3, 2008, including restructuring and impairment charges of $3.8 million or $0.07 per share.

Also included in the Company's first quarter net loss from continuing operations is a tax benefit in the amount of $10.6 million or $0.20 per share. In accordance with SFAS No.109, paragraph 140, the Company allocated a tax benefit to its loss from continuing operations, offset by a tax provision of an equal amount charged to other comprehensive income, a component of shareholder equity.

On an adjusted basis, including the tax benefit and excluding restructuring and impairment charges, the Company's first quarter net loss from continuing operations was $12.4 million or $0.23 per share, compared to last year's net income of $22.3 million or $0.42 per share on a comparable basis.

Total sales from continuing operations for the thirteen weeks ended May 2, 2009 were $306.2 million compared to last year's sales of $414.8 million. Retail store sales for the thirteen weeks were $256.4 million compared to $345.1 million last year. Comparable store sales declined 26.9% for the thirteen week period.

Direct marketing sales for the thirteen-week period were $49.8 million, including catalog and Internet, compared to $69.7 million last year.

Trudy F. Sullivan, Talbots President and Chief Executive Officer, commented, "We are making steady progress in implementing our strategic initiatives to better position our company for long-term success. This includes the announced signing of an asset sale agreement for J Jill, the opening of eight upscale outlet stores, and additional actions that will further contribute to achieving our goal of $150 million in annualized cost reduction."

"Looking at our first quarter results, sales remained difficult and while in-line with our expectations, we are not satisfied. We did have a substantial rebound in merchandise margin from the fourth quarter, and believe our merchandise assortments are getting stronger in our key item categories, including casual knits, sweaters, pants and accessories. That said, we are working quickly to incorporate our learnings and make the appropriate adjustments to our overall merchandise mix. Inventories remained tightly managed and we ended the quarter down 21% per square foot compared to first quarter last year."

Progress on $150 Million Expense Reduction Program

Talbots also announced that as part of its $150 million expense reduction program, it is further reducing corporate headcount across all locations by approximately 20%, including the elimination of open positions, for an annualized savings of approximately $21 million.

Net expense associated with the reduction, which is primarily for severance and severance benefits, is approximately $5.4 million. This amount has been recorded in the Company's continuing operations restructuring charge in the first quarter of fiscal 2009.

As a result of this and other actions, Talbots has now identified $125 million of annualized cost reductions, an increase from the $100 million the Company announced in April.

Update on Corporate Initiatives

As Talbots continues to execute on the strategic long-range plan, the Company has launched its Talbots Upscale Outlet concept. With a plan to open 12 stores in fiscal 2009, the first eight stores opened across the country in May in highly trafficked, highly visible outlet destinations, including Clinton Crossing in Connecticut and St. Augustine Premium Outlets in Florida. The Company believes Talbots Upscale Outlet concept represents a significant opportunity to generate revenue and introduce new customers to the brand.

As announced on June 8, 2009, the Company signed a definitive agreement to sell substantially all of the J. Jill brand assets to Jill Acquisition, LLC an affiliate of Golden Gate Capital, a San Francisco-based private equity investment firm, for approximately $75 million. The closing of the proposed transaction is anticipated to occur in the second quarter of fiscal 2009 and is subject to customary closing conditions, including the expiration of the antitrust waiting period. The Board of Directors of The Talbots, Inc. has unanimously approved the transaction. The transaction is not conditioned upon financing and no Company shareholder approval is required.

We continue to work through our due diligence process with Li & Fung Limited, the global sourcing and trading firm based in Hong Kong. As previously announced, the Company has signed a non-binding letter of intent to mutually explore a potential relationship for Li& Fung Limited to become Talbots primary global sourcing agent.

Results from Discontinued Operations

First quarter net loss from discontinued operations was $4.8 million or $0.09 per share, compared to last year's net loss of $16.9 million or $0.32 per share on a comparable basis.

Outlook

Talbots continues to approach the management of its business conservatively with lean inventories and ongoing disciplined cost management. The Company expects to report a loss from continuing operations in the second quarter in the range of approximately $0.50 to $0.58 per share, excluding any restructuring and impairment charges.

Conference Call Details

As previously announced, Talbots will host a conference call today, June 9, 2009 at 10:00 a.m. local time to discuss first quarter 2009 results. To listen to the live call, please dial 866-336-2423, passcode "TLB" or log on to www.thetalbotsinc.com/ir/ir.asp. The call will be archived on its web site www.thetalbotsinc.com for a period of twelve months. In addition, an audio replay of the call will be available shortly after its conclusion and archived through June 11, 2009. This archived call may be accessed by dialing (800) 642-1687; passcode 97990987.

The Talbots, Inc. is a leading specialty retailer and direct marketer of women's apparel, shoes and accessories. At the end of first quarter 2009, the Company operated 586 Talbots brand stores in 47 states, the District of Columbia, and Canada. Talbots brand on-line shopping site is located at www.talbots.com.

Cautionary Statement and Certain Risk Factors to Consider

In addition to the information set forth in this press release, you should carefully consider the risk factors and risks and uncertainties included in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as well as in this press release below.

This press release contains forward-looking information within the meaning of The Private Securities Litigation Reform Act of 1995. These statements may be identified by such forward-looking terminology as "expect," "achieve," "plan," "look," "believe," "anticipate," "outlook," "will," "would," "should," "guidance," or similar statements or variations of such terms.

Our forward-looking statements are based on a series of expectations, assumptions, estimates and projections about our Company, are not guarantees of future results or performance, and involve substantial risks and uncertainty, including assumptions and projections concerning our regular-price and markdown selling, operating cash flows, liquidity, and funds available under our credit facilities for all forward periods. All of our forward-looking statements are as of the date of this release only.

The Company can give no assurance that such expectations or forward-looking statements will prove to be correct. Actual results may differ materially. The Company does not undertake or plan to update or revise any such forward-looking statements to reflect actual results, changes in plans, assumptions, estimates or projections, or other circumstances occurring after the date of this release, even if such results, changes or circumstances make it clear that any forward-looking information will not be realized.

An occurrence of or any material adverse change in one or more of the risk factors or risks and uncertainties referred to in this press release or included in our periodic reports filed with the Securities and Exchange Commission could materially and adversely affect our continuing operations and our future financial results, cash flows, prospects, and liquidity.

Our business and our forward-looking statements involve substantial known and unknown risks and uncertainties, including the following risks and uncertainties:

the material impact on our business, continuing operations and financial results of the significant deterioration in the U.S. economic environment, including continued substantial negative impact on consumer discretionary spending and , if such economic conditions continue or worsen, can be expected to continue to have an increasing impact on our business, continuing operations, liquidity, and results of operations;

the risks and uncertainties associated with the sale of the J.