We are confident that these decisions are right for Mervyn?s future growth and success, and are consistent with the strategy that we announced in September 2005.

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Customers are shopping with us. They love our merchandise and the value we offer. They are responding to the enhancements we've made to our stores and our increased marketing and promotional events. This response tells us that our strategy is right on track.

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Exiting the underperforming markets of Oregon and Washington will allow us to make investments that better serve our customers and Mervyns' future. We are confident that these decisions are right for Mervyns' future growth and success.

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