The Neiman Marcus Group To Appoint Tansky As CEO - Tansky and Stern To Join Board

February 21, 2001 at 12:00 AM EST

CHESTNUT HILL, Mass., February 21, 2001 ---- The Neiman Marcus Group, Inc. (NYSE: NMG/A, NMG/B) today announced that effective May 15, 2001, Burton M. Tansky will become chief executive officer, succeeding Robert A. Smith and Brian J. Knez, who will become vice chairmen of the board.

Mr. Tansky will join the board of directors on that date as will Paula Stern, Ph.D., president of The Stern Group, Inc., an economic analysis and trade advisory firm, and former chairwoman, U.S. International Trade Commission. With these appointments, the board will increase to nine members. As chief executive, Mr. Tansky will report to the board of directors.

Mr. Tansky, 63, is currently the company’s president and chief operating officer, a position he has held since 1999. He served as chairman and chief executive officer of Neiman Marcus Stores, the $2.14 billion retail operating division of the company, from 1994 to 2000. Mr. Tansky joined the company in 1989 as chairman and chief executive officer of Bergdorf Goodman, and earlier served as president of Saks Fifth Avenue.

“Burt is a superb merchant and a great leader and developer of retail talent,” said Robert Smith. “This promotion recognizes his contributions in positioning The Neiman Marcus Group as the leading specialty retailer of fine apparel and luxury goods.”

“Under his leadership as president and chief operating officer, each of the business units achieved record levels of financial performance last year,” said Brian Knez. “Most importantly, Burt has a track record of success at every level of responsibility he has assumed at NMG. We have great confidence in his ability to continue to deliver superior results for shareholders in the future.”

Chairman Richard Smith said, “We are also fortunate to have the benefit of Paula Stern’s global perspective and breadth of experience in business as well as in trade and international economic matters, and we look forward to working with her as a new member of The Neiman Marcus Group board.” Dr. Stern currently serves as a director of Wal-Mart Stores, Inc., Avon Products, Inc., and Harcourt General, Inc.

At the company’s next annual meeting, The Neiman Marcus Group board of directors anticipates that it will further expand the board with additional independent directors, subject to shareholder approval.

The appointments will become effective after the termination of the Company’s inter-company services agreement on May 14, 2001 with Harcourt General, Inc., a global publishing company expected to be acquired in the first calendar quarter of this year.

Richard Smith further commented, “This transition flows naturally out of the termination of the Harcourt management services agreement, and will be nearly transparent to the operating business. Robert, Brian and I remain wholly committed to the continuing success of NMG.”

After the service agreement is terminated, the Company’s corporate headquarters will be located in Dallas, Texas, where Neiman Marcus was founded in 1907.

In October 1999 Harcourt General completed the spin-off of its controlling equity position in The Neiman Marcus Group in a tax-free distribution to its shareholders. Under an inter-company agreement, Harcourt General has continued to provide certain management, accounting, financial, legal, tax and other corporate services to the Company.

The Neiman Marcus Group includes the specialty retail stores segment, which consists of Neiman Marcus Stores and Bergdorf Goodman, and the direct marketing segment, Neiman Marcus Direct.

CONTACT:
Jonna Manes
Director
Corporate Relations
(617) 232-0760