Urges Shareholders to Vote FOR the Committee's Nominees on the GOLD Proxy Card Today

NEW YORK, July 20 /PRNewswire/ -- The Committee of Concerned Shareholders of The Children's Place (the "Committee"), which collectively owns approximately 22% of the outstanding shares of The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) ("The Children's Place" or the "Company"), today announced that it is mailing a letter to the Company's shareholders in connection with its nomination of three independent, highly-qualified and proven individuals for election to the Board of Directors at the Company's 2009 Annual Meeting of Shareholders, scheduled for July 31, 2009. Shareholders of record as of June 30, 2009 are entitled to vote at the meeting.

The Committee urges shareholders to vote FOR its three director nominees on the GOLD proxy card today - by telephone, Internet or by signing, dating and returning the GOLD proxy card. Consider the following:

• We believe the Committee's nominees are far more qualified than the Company's incumbent directors. The Company's nominees lack the qualifications that should be required of board members who will protect and grow your investment.
• The Company's recent performance has been poor. As the largest shareholder of The Children's Place, the Committee is extremely concerned about the near- and long-term future of the Company. We do not want to see the value of our investment deteriorate.
• There is no issue regarding Board control, and if the Committee's nominees are elected, they will not constitute a majority of the Board. The Committee's three nominees are independent for all purposes and even if they are elected to the Board, they will not even theoretically control the Company.
• Ezra Dabah is not a nominee for election. Mr. Dabah was elected to the Board by shareholders last year following a unanimous nomination by the same Board that now is engaged in personal and misleading attacks on him. In fact, earlier this year, the Company's Board offered Mr. Dabah the position of Vice-Chairman.
• The Company cannot afford to continue bleeding talent. Under the current Board and interim management, the Company has lost intellectual and creative talent and the Company has been unable to retain key management talent. Without an experienced team with know-how and a collaborative spirit, the Committee is concerned the Company will lose market share.
  

The Committee today sent the following letter to all shareholders:

July 20, 2009

Dear Fellow Shareholder,

Immediate change is needed at The Children's Place and you, the true owners of the Company, have the power to effect that change. At the July 31st Annual Meeting, you can elect three extremely qualified, independent director nominees with relevant expertise - Raphael Benaroya, Jeremy Fingerman and Ross Glickman - who we believe are far more qualified to protect and grow shareholder value than the Company's three incumbent candidates. The Committee of Concerned Shareholders of The Children's Place - the Company's largest shareholder - urges you to vote the GOLD proxy card TODAY for our three nominees by telephone, Internet, or by signing, dating and returning the enclosed GOLD proxy card in the postage-paid envelope provided.

WHAT YOU NEED TO KNOW BEFORE YOU VOTE

We urge you to consider the following:

1. THE COMPANY'S RECENT PERFORMANCE HAS BEEN POOR: Since November 2008, the first month under which current management had "sole influence" on the merchandising and planning decisions, the Company has reported only one month of comparable store sales growth. Comparable sales declined 9% in May 2009 and 12% in June 2009, which is 11% and 10% lower than median comparable store sales for other value retailers, respectively, and the Company's two weakest monthly results during the past three years. In addition, May and June 2009 comparable store sales missed consensus estimates by 9.5% and 3%, respectively.

2. THE COMPANY'S DIRECTOR NOMINEES DO NOT HAVE THE QUALIFICATIONS WE AS SHAREHOLDERS SHOULD DEMAND OF OUR DIRECTORS: The Company's nominees lack the qualifications that should be required of board members who will protect and grow your investment:

-- Sally Frame Kasaks was recently replaced as Chairman and CEO of Pacific Sunwear following a contentious proxy fight and after overseeing a disastrous stock price decline of almost 84%. Ms. Kasaks also oversaw a 27% decline in Ann Taylor's stock price when she served as CEO. (1)

-- Norman Matthews, a recent Board appointee at the age of 76, served on the boards of Levitz, Lechters and Loehmann's, each of which went bankrupt.