EXHIBIT 99.1

        Zale Corporation Announces First Quarter Sales Results

    DALLAS--(BUSINESS WIRE)--Nov. 4, 2004--Zale Corporation
(NYSE:ZLC), North America's largest specialty retailer of fine
jewelry, reported today that for the first quarter ended October 31,
2004, comparable store sales, which include the effects of the recent
hurricanes, decreased 0.9%. Total revenues for the period were $423
million compared to last year's first quarter revenues of $417
million, an increase of 1.4%.
    "These first quarter sales results met our expectations, excluding
the effect of the recent hurricanes," commented Mary L. Forte,
President and Chief Executive Officer. "As we now approach the
critical holiday period, we are well-positioned to maximize
opportunities through the continued execution of our business plan. We
are enhancing the entire customer experience through a more targeted
marketing campaign and an increased dedication to training that will
complement an array of new merchandise offerings this holiday season."
    Zale Corporation will announce its first quarter fiscal 2005
earnings results on November 16, 2004. A conference call will be held
at 9:00 a.m. EST. Parties interested in participating should dial
706-643-7467 five minutes prior to the scheduled start time. A webcast
of the call, as well as a replay, will be available on the Company's
Web site at www.zalecorp.com. For additional information, contact
Investor Relations.
    Zale Corporation is North America's largest specialty retailer of
fine jewelry operating approximately 2,315 retail locations throughout
the United States, Canada and Puerto Rico, as well as online. Zale
Corporation's brands include Zales Jewelers, Zales Fine Jewelry
Outlet, Gordon's Jewelers, Bailey Banks & Biddle Fine Jewelers,
Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. Through its
ZLC Direct organization, Zale also operates online at www.zales.com
and www.baileybanksandbiddle.com. Additional information on Zale
Corporation and its brands is available at www.zalecorp.com.

   This release contains forward-looking statements, including
statements regarding the Company's merchandising and marketing
strategies and results of operations which are based upon management's
beliefs as well as on assumptions made by and data currently available
to management. These forward-looking statements are not guarantees of
future performance and a variety of factors could cause the Company's
actual results to differ materially from the anticipated or expected
results expressed in these forward-looking statements. The following
list, which is not intended to be an all-encompassing list of risks
and uncertainties affecting the Company, summarizes several factors
that could cause the Company's actual results to differ materially
from those anticipated or expected in these forward-looking
statements: if the general economy performs poorly, discretionary
spending on goods that are, or are perceived to be, "luxuries" may not
grow and may even decrease; the concentration of a substantial portion
of the Company's sales in three, relatively brief selling seasons
means that the Company's performance is more susceptible to
disruptions; most of the Company's sales are of products that include
diamonds, precious metals and other commodities, and fluctuations in
the availability and pricing of commodities could impact the Company's
ability to obtain and produce products at favorable prices; the
Company's sales are dependent upon mall traffic; the Company operates
in a highly competitive industry; any failure by the Company to manage
its inventory effectively will negatively impact sales and earnings;
because of the Company's dependence upon a small number of landlords
for a substantial number of the Company's locations, any significant
erosion of the Company's relationships with those landlords would
negatively impact the Company's ability to obtain and retain store
locations; changes in regulatory requirements relating to the
extension of credit may increase the cost of or adversely affect the
Company's operations; any disruption in, or changes to, the Company's
private label credit card arrangement with Citi may adversely affect
the Company's ability to provide consumer credit and write credit
insurance; acquisitions involve special risks, including the
possibility that the Company may not be able to integrate acquisitions
into its existing operations; and certain other factors described from
time to time in the Company's filings with the Securities and Exchange
Commission, including the Company's Annual Report on Form 10-K for the
fiscal year ended July 31, 2004. The Company disclaims any obligation
to update or revise publicly or otherwise any forward-looking
statements to reflect subsequent events, new information or future
circumstances.

    CONTACT: Zale Corporation, Dallas
             David H. Sternblitz, 972-580-5047
             Vice President and Treasurer