EXHIBIT 99.1
INDEPENDENT ACCOUNTANTS'REPORT
Mr. Paul F. Gibbons Salomon Smith Barney, Inc.
Vice President and Treasurer Seven World Trade Center
The Neiman Marcus Group, Inc. New York, NY 10048
27 Boylston Street and
Chestnut Hill, MA 02167 Standard & Poor's Ratings
Group
and 25 Broadway
The Chase Manhattan Bank, N.A. New York, NY 10004-1064
4 Chase Metro Tech Center and
Brooklyn, NY 11245 Moody's Investors Services
and 99 Church Street
Credit Suisse First Boston Corporation New York, NY 10007
11 Madison Avenue, 5th Floor
New York, NY 10011
and
Annual Servicing Report
We have examined management's assertion, included in its representation letter
to Deloitte & Touche LLP, dated August 31, 1999, that The Neiman Marcus Group,
Inc. ("NMG") maintained an effective internal control structure as of July
31, 1999, insofar as such structure relates to the servicing procedures
performed by NMG, to prevent or detect errors or irregularities in amounts
that would be material in relation to the assets of The Neiman Marcus Group
Credit Card Master Trust Series 1995-1 (the "Trust") formed pursuant to the
Pooling and Servicing Agreement (the "Agreement") dated March 1, 1995.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly, included
obtaining an understanding of the internal control structure as it relates to
servicing procedures performed by NMG, testing and evaluating the design and
operating effectiveness of the internal control structure, and such other
procedures as we considered necessary in the circumstances. We believe that
our examination provides a reasonable basis for our opinion.
Because of the inherent limitations in any internal control structure, errors
or irregularities may occur and not be detected. Also, projections of any
evaluation of the internal control structure to future periods are subject to
the risk that the internal control structure may become inadequate because of
changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
In our opinion, management's assertion that NMG maintained an effective
internal control structure as of July 31, 1999, insofar as such structure
relates to the servicing procedures performed by NMG, to prevent or detect
errors or irregularities in amounts that would be material in relation to the
assets of the Trust under the Agreement, taken as a whole, is fairly stated,
in all material respects, based upon the definition of an entity's internal
control structure as defined in Statements on Auditing Standards No. 78,
"Consideration of the Internal Control in a Financial Statement Audit: An
Amendment to SAS No. 55."
We have also examined management's assertion, included in its representation
letter to Deloitte & Touche LLP dated August 31, 1999, that the servicing
procedures performed by NMG have been conducted in compliance with the terms
and conditions set forth in Article III and Article IV and Section 8.08 of the
Agreement during the year ended July 31, 1999. As discussed in that
representation letter, management is responsible for NMG's compliance with
those requirements. Our responsibility is to express an opinion on
management's assertion about NMG's compliance based on our examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly, included
examining, on a test basis, evidence about compliance with those requirements
and performing such other procedures as we considered necessary in the
circumstances. We believe that our examination provides a reasonable basis for
our opinion. Our examination does not provide a legal determination on NMG's
compliance with specified requirements.
In our opinion, management's assertion that the servicing procedures performed
by NMG have been conducted in compliance with the terms and conditions set
forth in Article III and Article IV and Section 8.08 of the Agreement for the
year ended July 31, 1999, is fairly stated, in all material respects.
This report is intended solely for the information and use of the Board of
Directors and management of NMG, The Chase Manhattan Bank, N.A., as Trustee,
Credit Suisse First Boston Corporation, Salomon Smith Barney, Inc., Standard &
Poor's Ratings Group, Moody's Investors Services and Investor Certificateholders
and is not intended to be and should not be used by anyone other than these
specified parties.
/s/ DELOITTE & TOUCHE LLP
August 31, 1999
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