Federated
                             -----------------------
                             DEPARTMENT STORES, INC.

                                                  Contacts:
                                                    Media - Mary Ann Shannon
News Release                                                513-579-7292

                                                 Investor - Susan Robinson
                                                            513-579-7780


FOR IMMEDIATE RELEASE

                    FEDERATED PRICES CONVERTIBLE NOTE OFFERING


     CINCINNATI, OHIO, SEPTEMBER 22, 1995 - Federated Department Stores, Inc.
announced today that it has entered into an agreement providing for an 
underwritten public offering by the Company of $350 million aggregate principal 
amount (including the exercise of the underwriters' over-allotment option) of 5
percent Convertible Subordinated Notes due 2003.

     The Notes will initially be offered to the public at a price equal to 100
percent of the principal amount thereof, and will be convertible into 29.2547
shares of Common Stock per $1,000 of Notes (equivalent to a conversion price
of approximately $34.18 per share), subject to adjustment in certain
circumstances.

     Goldman, Sachs & Co. and CS First Boston are the managers of the 
underwriting.

     The net proceeds of the offering are expected to be used for general
corporate purposes, which may include refinancings and expenditures associated
with the Company's pending acquisition of Broadway Stores, Inc.

     The Notes will be offered only by means of a written prospectus. Copies
of such prospectus may be obtained from Goldman, Sachs & Co., 85 Broad Street,
New York, New York 10004 or CS First Boston Corporation, Park Avenue Plaza,
55 East 52nd Street, New York, New York 10055.

     Federated, with corporate offices in Cincinnati and New York, is one of
the nation's leading department store retailers, with annual sales of more than
$14 billion. Federated currently operates 358 department stores and more than 
100 specialty and clearance stores in 35 states under the names of 
Bloomingdale's, The Bon Marche, Bullock's, Burdines, Goldsmith's, Jordan Marsh,
Lazarus, Macy's, Rich's and Stern's, as well as Aeropostale, Charter Club, and
Macy's Close Out.

                                    # # #

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  Bloomingdale's  The Bon Marche  Bullock's           Aeropostale  Charter Club
Burdines  Goldsmith's  Jordan Marsh  Lazarus               Macy's Close-Out
         Macy's  Rich's  Stern's                        Bloomingdale's By Mail