Comprehensive programs designed to ensure compliance with Company policies and the legal requirements under which we operate our businesses are of paramount importance to Macy's, Inc. Therefore, the Company has established the Office of Compliance under the direction of Macy's, Inc.'s General Counsel.

Since its inception in February 1992, the Office of Compliance has been responsible for overseeing the establishment of appropriate compliance programs across the Company. In fulfilling its mission, the Office is responsible for the dissemination of written compliance materials, a legal audit of compliance programs and the conduct of various compliance seminars across the Company.

The Office of Compliance issues regular reports on significant developments and Company compliance activities to Macy's, Inc.'s Chairman and Chief Executive Officer. In addition, the Office of Compliance reports periodically to the Audit Review Committee of the Board of Directors, and annually to the full Board.