Jones Apparel Receives Proposal for Barneys New York

Jones Apparel Group Inc. receives an unsolicited non-binding proposal from Fast Retailing Co. Ltd., a Japan-based company, to acquire the company's wholly owned subsidiary Barneys New York Inc. for $900 million in cash. The proposal is subject to due diligence and other conditions. Jones Apparel's Board of Directors made the requisite determination under the company's stock purchase agreement with affiliates of Istithmar that will enable Jones to provide information to Fast Retailing and enter into discussions with Fast Retailing regarding its proposal. In the event that Jones were to terminate the Istithmar Agreement to enter into an agreement with Fast Retailing, it would be required to pay to an affiliate of Istithmar a termination fee of $20.6 million (or $22.7 million if Jones terminates the Istithmar Agreement after July 22, 2007).