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Zale announces change in auditors

03
May '08
Zale Corporation, a leading specialty retailer of fine jewelry in North America, announced that it has engaged Ernst & Young to serve as the Company's independent public accountants for the fiscal year ending July 31, 2008. Ernst & Young will replace KPMG.

The Company and KPMG did not have any disagreement on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures which disagreement, if not resolved to the satisfaction of KPMG, would have caused it to make reference to the subject matter of the disagreement in connection with its report on the Company's consolidated financial statements.

The change in auditors eliminates any issue as to whether KPMG's independence could be impacted by the service of Richard C. Breeden and James Cotter as members of the Company's Board of Directors. Mr. Breeden serves as KPMG's Monitor, and Mr. Cotter is a member of Mr. Breeden's monitoring team.

Zale Corporation


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