2008-07-31 23:42:02 -

- Mervyns Roy Berces, 510-727-5729 or Joele Frank, Wilkinson Brimmer Katcher Andrew Siegel / James Golden, 212-355-4449 Mervyns, the leading mid-tier department store chain in California and the Southwest, today announced the approval of all of its "first day" motions by the U.S. Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"). The Company received interim Bankruptcy Court approval

of its $465 million debtor-in-possession (DIP) financing facility, provided by Wachovia Capital Finance Corporation (Western) as agent. The Company will use the interim DIP financing and cash generated from its operations to continue to pay vendors and to provide operational and financial stability as it proceeds with its restructuring. The final DIP hearing is scheduled for August 26, 2008.

In connection with the interim approval of its DIP financing facility, Mervyns also reached an agreement with its existing lenders on the terms of the consensual use of its cash collateral during the Company's Chapter 11 cases.

The Company also announced that it received Bankruptcy Court approval to, among other things, pay pre-petition employee wages, health benefits, and other employee obligations during its restructuring under Chapter 11. Additionally, the Company is authorized to pay ordinary course post-petition expenses and to continue to honor all of its current customer policies regarding merchandise returns and all of its outstanding gift cards and loyalty programs without seeking further Bankruptcy Court approval.

"With the Bankruptcy Court's prompt approval of our DIP financing and first day motions, we are moving forward with our reorganization under Chapter 11 while maintaining normal operations in our stores," said John Goodman, Chief Executive Officer of Mervyns. "We are pleased that we can continue to serve our customers and purchase goods and services from our vendors as we seek to implement strategies to restructure our operations, strengthen our balance sheet and position Mervyns to compete more effectively."

Mervyn's LLC (which operates the Mervyns business), together with Mervyn's Holdings, LLC (parent of Mervyn's LLC) and Mervyn's Brands, LLC (subsidiary of Mervyn's LLC), filed voluntary Chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware on July 29, 2008. The main case has been assigned case number 08-11586.

Additional information about the Mervyns restructuring is available at the Company's Web site, www.mervyns.com, or via the Company's restructuring information line, 888-251-2679. For access to Bankruptcy Court documents and other general information about the Chapter 11 cases, please visit www.kccllc.net/mervyns.

About Mervyns

Mervyn's LLC, headquartered in the San Francisco Bay Area, is a family-friendly promotional neighborhood department store offering trend-right fashions and home decor for the entire family at affordable prices. Mervyns has a well-earned reputation for its extensive selection of national and private-label fashions and housewares. Community giving has been a cornerstone of the company's business since 1949, with a focus on improving the lives of children and families by giving back to its communities by way of volunteerism and through its award-winning ChildSpree(R) program. Mervyns has 176 locations in seven states. For more information, go to www.mervyns.com.

Obtains Interim Approval of $465 Million DIP Financing Facility

Court Authorizes Payment of All Post-Petition Expenses and Vendor
Obligations

Court Approval Assures Continued Payment of Employee Wages and
Benefits and Continuation of All Current Customer Programs