EXHIBIT 99.1

                        FEDERATED DEPARTMENT STORES, INC.

                                              Contacts:
                                                 Media - Carol Sanger
                                                   513/579-7764
                                                 Investor - Susan Robinson
                                                   513/579-7780

FOR IMMEDIATE RELEASE

          FEDERATED ANNOUNCES STRATEGIC CREDIT ALLIANCE WITH CITIGROUP;
         TRANSACTIONS ENCOMPASS RECEIVABLES SALE AND ONGOING PARTNERSHIP

      CINCINNATI--(BUSINESS WIRE)--June 2, 2005--Federated Department Stores,
Inc. (NYSE:FD) today announced that it has entered into a strategic alliance
with Citigroup (NYSE:C) to operate Federated's proprietary and co-branded Visa
credit card businesses.

      Under the terms of this agreement, it is anticipated that Citigroup will
purchase all receivables of Federated and The May Department Store Company
(NYSE:MAY) (after its acquisition by Federated) in three separate transactions
for an upfront premium of approximately 11.5 percent. In total, these
transactions are expected to produce after-tax proceeds of approximately $4.5
billion.

      Additionally, Federated and Citigroup have entered into a multi-year
agreement that provides for Federated to receive future ongoing payments. These
payments will be based on credit (proprietary and Visa) sales and certain other
performance metrics of the credit portfolio after the receivables sale is
completed. Federated and Citigroup also have agreed to work together on various
marketing initiatives designed to accelerate Federated's same-store sales gains,
as well as on initiatives to further enhance credit growth and profitability,
particularly as it relates to the co-branded Visa portfolio.

      Federated's Financial, Administrative and Credit Services (FACS) division,
headquartered in suburban Cincinnati, will continue to manage key customer
service functions, and no job losses are expected as a result of the
transactions. No changes are planned to Federated's credit card or loyalty
reward programs, and customers should continue to use their cards in the same
manner as they do today.

      "We are very excited to be joining forces with a leader in the credit card
business through this new alliance with Citigroup," said Terry J. Lundgren,
Federated's chairman, president and chief executive officer. "We are
exceptionally proud of the credit operation at FACS and pleased with the value
that has been created in this business as a result of those efforts. We now look
forward to working together with Citigroup to continue to enhance our
relationship with our very best customers, while also building on our success in
the credit business by capitalizing on Citigroup's great expertise and
commitment to the credit business."

      Marge Magner, chairman and chief executive officer of Citigroup's Global
Consumer Group, said: "With nearly 140 million accounts worldwide, Citigroup is
a global leader in credit cards. This relationship is part of our continuing
effort to leverage our core strengths in partner alliances in the credit card
market. We look forward to applying out innovative, world-class capabilities to
help assure the ongoing success of the Federated and May retail partner programs
and drive sustainable growth within our business."



      The initial closing, which includes Federated's owned proprietary and Visa
receivables (totaling $3.2 billion at the end of fiscal 2004), is subject to
regulatory approvals and other customary closing conditions, and is expected to
occur by early in Federated's fiscal third quarter. Federated expects to receive
approximately $2.3 billion in after-tax proceeds after paying $1.2 billion of
outstanding asset-backed securities.

      A portion of the receivables generated by Federated's retail operations
currently is owned by General Electric Capital Corporation (GECC). The GECC
portfolio, with $1.2 billion in receivables at the end of Federated's fiscal
2004, is expected to be transferred to Citigroup in late April of 2006. At that
time, Federated will repurchase the portfolio from GECC and sell it to Citigroup
on the same terms as the initial Federated portfolio sale.

      Following a successful conclusion of Federated's pending acquisition of
The May Department Stores Company, which is expected to be finalized in the
third quarter of this fiscal year, Federated anticipates that within 12 months
following the May closing it will sell the May credit portfolio, which included
$2.2 billion in receivables at yearend 2004, to Citigroup on essentially the
same terms as the initial Federated portfolio sale.

      The company anticipates using the proceeds from these transactions either
to fund the May Co. acquisition or to repay acquisition-related debt, depending
on the timing of the closings. Upon elimination of this debt, cash flow from the
transactions may be used to repurchase Federated stock.

      Assessing the benefits for Federated, Karen Hoguet, Federated's executive
vice president and chief financial officer, noted that these transactions
"convert our receivables to cash, with a premium, and allow us to continue to
participate in the ongoing growth and profitability of our credit business. On a
pro-forma basis, had this partnership been in place in 2004 and were the May
merger completed, these transactions would have been accretive to earnings and
at the same time our balance sheet would have been materially strengthened."

      Federated was advised in the transactions by Credit Suisse First Boston
LLC, First Annapolis Consulting, Inc. and Simpson Thacher & Bartlett LLP. Jones
Day and Sidley Austin Brown & Wood LLP also provided assistance on the
transactions.

Safe Harbor

      This document contains statements about expected future events that are
forward-looking within the meaning of the Private Securities Litigation Reform
Act of 1995. Such statements include, but are not limited to, Federated's
expectations regarding the anticipated closings of the various credit portfolio
transactions and Federated's acquisition of The May Department Stores Company,
statements about the benefits of the credit portfolio sales and the marketing
initiatives, including future financial and operating results, the company's
plans, objectives, expectations and intentions and other statements that are not
historical facts. Such statements are based upon the current beliefs and
expectations of Federated's management and are subject to significant risks and
uncertainties. Actual results could differ materially from those expressed in
the forward-looking statements contained in this document because of a variety
of factors, including the conditions to closing of the proposed transactions
contained in the transaction agreements, a significant change in the timing of,
or the imposition of any government conditions or legal impediments to, the
closing of the proposed transactions. Additional factors that may affect the
future results of Federated are set forth in its filings with the SEC, which are
available at www.fds.com.



      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
$15.6 billion. Federated operates more than 450 stores in 34 states, Guam and
Puerto Rico under the names of Macy's and Bloomingdale's. The company also
operates macys.com and Bloomingdale's By Mail.

      (NOTE: A call with analysts will be held at 2 p.m. today. The webcast can
be accessed through www.fds.com or by calling 866-332-6114. Pre-registration for
the webcast is requested. Federated also issued a press release today on sales
for the month of May. This release, along with past releases and other
information on Federated, is available at www.fds.com/pressroom.)