Why is Federated changing to Macy's, Inc.?
Federated believes that the new name more accurately reflects the transformation of our business in recent years. Today we are a brand-driven company focused on Macy's and Bloomingdale's, not a federation of department stores. By aligning our corporate name with our largest brand, we will increase the visibility of the company with customers, leverage the world-famous Macy's brand name, and get more credit for our accomplishments in the marketplace.

When does the change take place?
If the shareholders approve the proposal at the annual shareholders meeting on May 18, 2007, the name change will become effective on June 1, 2007.

Will the stock still trade on the NYSE?
Yes, the stock will continue to trade on the NYSE. The only things changing are the name and the ticker symbol to "M".

Do I need to take any action?
You do not need to take any action regarding your stock registration or dividends.

Do I need to get new stock certificates?
You do not need to get a new stock certificate if you have a Federated Department Stores certificate. The name change does not affect the validity or transferability of the stock certificate at all.

Can I get new stock certificates?

• After the effective date, you can return your FD stock certificate and we will issue you a new Macy's, Inc. certificate.
• However, we cannot date the new stock certificate as of the date on the current FD certificate.
• We strongly recommend that you keep your current FD certificate so that you have the issuance date for reference in the future to determine your tax basis in the stock if you should decide to sell.

Will I have the same number of shares?
Yes. The name change will not affect the number of shares that you currently own.

Does this change impact my dividends?
The name change will not impact the amount of the dividends.

Does this impact my Dividend Re-Investment Plan status?
If you are already enrolled in the DRIP this name change has no impact. If you would like to enroll at this time, see the DRIP/Stock Purchase section of the website.

If I have ACH dividend payments, will this affect how I receive my dividends?
It will not affect your dividend payments. They will appear in the specified account as usual without any need for action on your part.

Do I as a shareholder residing in the U.S. have any tax consequences resulting from this change?
Neither the Bank of New York nor Federated provides tax advice to others. Please consult your personal tax advisor.

Does this impact the exchange offer for May shareholders?
This does not change the number of shares that former May shareholders will receive when they exchange for Macy's, Inc. stock.

Please refer to the 2/27/07 and 3/28/07 press releases for more information, in the Press Releases section of the web site.