In the News

Zale Corporation Names Theo Killion Chief Executive Officer and Member of the Board

- Appoints Kenneth B. Gilman to Board as Independent Director
- Announces Additional Board Changes as Company Continues Business Transformation

DALLAS, Sep 23, 2010 --Zale Corporation (NYSE: ZLC) announced today that the Board of Directors has named Theo Killion Chief Executive Officer and a Member of the Board, effective immediately. Mr. Killion has served as President and Interim Chief Executive Officer since January 13, 2010.

"Theo has successfully led Zale through the critical initial stages of our operational and financial turnaround, showing equal skill in working with vendors, customers, shareholders and employees," said John B. Lowe, Jr., Zale's Chairman. "We look forward to Theo's contributions as Chief Executive Officer and as a member of our Board as we execute on our turnaround strategy designed to rebuild the Zale franchise."

Mr. Killion joined Zale Corporation in January 2008 as Executive Vice President and was appointed President in August 2008. Previously, he held senior management positions at Tommy Hilfiger, Limited Brands, Macy's East and the Home Shopping Network.

The Company also announced the following additional changes to its Board.

- Kenneth B. Gilman, a retail industry veteran, has joined the Company's Board as an independent director. Mr. Gilman's experience includes 25 years at Limited Brands, Inc., serving in numerous capacities, including Chief Financial Officer and Chief Administrative Officer. He was also Chief Executive Officer of Asbury Automotive Group, one of the largest automobile retailers in the United States. He is currently on the Board of Liz Claiborne Inc and Internet Brands Inc.

- Richard C. Breeden and James M. Cotter have resigned from the Board having served since January 2008. They have been instrumental in helping reshape the Company to address the very difficult macroeconomic environment confronting retailers. Breeden Capital continues to be Zale's largest shareholder.

"We are extremely appreciative of the active role Richard and Jim have played on our Board," Mr. Lowe said. "We are equally fortunate to be working with Ken Gilman as a new Board member at a pivotal time for our Company," Mr. Lowe added. "Ken's experience in the retail sector is broad and deep, and he will be a tremendous asset as we move forward with the next stage of our transformation."

Mr. Killion said, "I am delighted to continue my service to the Company as Chief Executive Officer and as a member of the Board. Zale is clearly on the right track, and I am eager to move ahead with our many opportunities, working closely with a strong management team and Board."

About Zale Corporation

Zale Corporation is a leading specialty retailer of diamonds and other jewelry products in North America, operating approximately 1,900 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, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. Zale also operates online at,, and Additional information on Zale Corporation and its brands is available at