Exhibit 99.1

             Zale Announces Comparable Store Sales Increase of 3.5%



    DALLAS--(BUSINESS WIRE)--May 5, 2005--Zale Corporation (NYSE:ZLC),
North America's largest specialty retailer of fine jewelry, today
reported that for the third quarter ended April 30, 2005, comparable
store sales increased 3.5%. Total revenues for the period were $516
million compared to last year's third quarter revenues of $483
million, an increase of 6.7%.
    For the fiscal year-to-date, total revenues increased 3.3% to
$1.911 billion, compared to $1.849 billion for the same period last
year. On a year-to-date basis, comparable store sales increased 0.4%.
    "These sales results reflect the momentum in the business as we
position our brands appropriately to capture their share of the
market," commented Mary L. Forte, President and Chief Executive
Officer. "During the quarter, each brand had a positive comparable
store sales increase and capitalized on its opportunities beginning
with the Valentine's Day period. Supported by a solid bridal category,
we maintained this performance throughout the remainder of the
period."
    Zale Corporation will announce its third quarter fiscal 2005
earnings results on May 17, 2005. A conference call will be held at
9:00 a.m. Eastern Time. 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 2,330 retail locations throughout
the United States, Canada and Puerto Rico, as well as online. Zale
Corporation's brands include Zales Jewelers, Zales 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 results of operating and
merchandising and marketing strategies. 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
results expressed in the forward-looking statements. These factors
include, but are not limited to: 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; changes in
regulatory requirements or in the Company's private label credit card
arrangement with Citi may increase the cost of or adversely affect the
Company's operations and its 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. For other factors, see the
Company's filings with the Securities and Exchange Commission,
including its 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
             Vice President and Treasurer
             972-580-5047