Zale Corporation Names Betsy Burton President and Chief Executive Officer

IRVING, Texas, July 23 /PRNewswire-FirstCall/ -- Zale Corporation , the largest specialty retailer of fine jewelry in North America, today announced that Betsy Burton has been named President and Chief Executive Officer, effective immediately.

Ms. Burton, who will continue as a member of the Board of Directors, has served as acting CEO since February 2006. Following a comprehensive search to identify highly qualified candidates for the position of CEO, the Board reached the conclusion that Ms. Burton is the ideal person to lead the Company.

Richard C. Marcus, Chairman of the Board of Directors, said, "Betsy has done a superb job running the Company since February. Under her leadership, we are moving forward with a customer-centric strategy that leverages our fundamental strengths to regain market share, improve profitability and create value for shareholders. Betsy is an experienced executive with an outstanding record of leadership and a deep knowledge of Zale. Along with the strong management team we have put in place in recent months, Zale now has the right leadership to realize our long-term growth potential."

Ms. Burton said, "I'm excited about the opportunity to continue the work we've begun. We are already seeing tangible evidence of progress across all brands, and I look forward to building on that momentum through the important Holiday Season, while laying a foundation for long-term success. We've got great brands and a team of associates who are dedicated, enthusiastic and proud to be a part of Zale. We've intensified our focus on enhancing the customer experience in our stores and giving our customers what we know they want -- knowledgeable and friendly salespeople, a broad assortment of quality product and good value. We are also working hard to identify and implement new ways to improve productivity and profitability. Our strategy is in place, the team is in place, and I look forward to being part of our future success."

Ms. Burton, 54, has been a member of the Zale Board of Directors since 2003. She has formerly served as Chief Executive Officer at Supercuts, PIP Printing, and the Cosmetic Center. Ms. Burton is also a member of several public company boards, including Staples, Aeropostale and Rent-A-Center.

About Zale Corporation

Zale Corporation is North America's largest specialty retailer of fine jewelry, operating more than 2,345 retail locations throughout the United States, Canada and Puerto Rico, as well as online. Zale Corporation's business units include Zales Jewelers, Zales Outlet, Zale Direct at http://www.zales.com/, Gordon's Jewelers, Bailey Banks & Biddle Fine Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. Additional information on Zale Corporation and its brands is available at http://www.zalecorp.com/.

Forward-Looking Statements

This release contains forward-looking statements, including statements regarding management's strategies and goals for the Company's business. Forward-looking statements are not guarantees of future performance and a variety of factors could cause the Company's actual results to differ materially from the results expressed in the forward-looking statements. These factors include, but are not limited to: if the general economy performs poorly, discretionary spending on goods that are, or are perceived to be, "luxuries" may not grow and may even decrease; the concentration of a substantial portion of the Company's sales in three, relatively brief selling seasons means that the Company's performance is more susceptible to disruptions; most of the Company's sales are of products that include diamonds, precious metals and other commodities, and fluctuations in the availability and pricing of commodities could impact the Company's ability to obtain and produce products at favorable prices; the Company's sales are dependent upon mall traffic; the Company operates in a highly competitive industry; changes in regulatory requirements or in the Company's private label credit card arrangement with Citi may increase the cost of or adversely affect the Company's operations and its ability to provide consumer credit and write credit insurance; acquisitions involve special risks, including the possibility that the Company may not be able to integrate acquisitions into its existing operations. For other factors, see the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended July 31, 2005. The Company disclaims any obligation to update or revise publicly or otherwise any forward-looking statements to reflect subsequent events, new information or future circumstances.

CONTACT: David Sternblitz Zale Corporation 972-580-5047