Zale increase stock repurchase program

Zale Corporation, a leading specialty retailer of fine jewelry in North America, announced that its Board of Directors has authorized an increase of $100 million as part of the Company’s stock repurchase program.

The new authorization is in addition to the $200 million repurchase authorization disclosed in November of 2007. As previously announced, the Company expects to retire approximately 11 million shares in total once the $200 million repurchase is complete. Currently, approximately $60 million is available under the previous authorization. The new authorization is expected to be executed through open market purchases, including through 10b5-1 plans and other means.

The Company is committed to the generation of free cash flow through operational efficiencies, refinements in capital expenditures and a reduction in inventory levels. This additional authorization underscores Zale’s commitment to prudent uses of capital and is another step designed to generate value for shareholders over the long-term, said Rodney Carter, Executive Vice President, Chief Administrative Officer and Chief Financial Officer.

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