SEATTLE - (March 2, 2000) Nordstrom Inc announced it has converted its wholly-owned subsidiary Nordstrom National Credit Bank to a federally chartered savings bank (thrift institution) named Nordstrom fsb, effective March 1, 2000. The Office of Thrift Supervision granted approval to proceed with the conversion on December 17, 1999.

"As a federal savings bank, we are better equipped to meet the needs of our customers and strengthen our competitive position," said Kevin Knight, chairman of Nordstrom fsb.

Nordstrom fsb, like its predecessor credit card bank, will focus primarily on issuing and servicing Nordstrom private label cards and co-branded VISA® credit cards. Its existing product lines include Nordstrom VISA and Nordstrom VISA Platinum credit cards, and a proprietary Nordstrom credit card which will offer enhanced benefits, including a new rewards program and cash access, later this spring.

The new charter enables Nordstrom to extend new payment product and service offerings to its customers such as a co-branded VISA debit card and checking accounts. "We're in a unique position to offer our customers products and services that typically aren't available through traditional retailers," said Knight. A negotiable order of withdrawal (NOW) account, paying a competitive interest rate and accessed by a debit card, may be offered as early as May 2000, and a home equity line of credit may be offered this fall. The savings bank also plans to offer, within the Phoenix Metropolitan Statistical Area (MSA), a number of mortgage and credit products designed to meet the needs of low- and moderate-income borrowers and neighborhoods.

Nordstrom fsb is headquartered in Scottsdale, Ariz. Nordstrom National Credit Bank was originally established in 1991.

Nordstrom, Inc. is one of the nation’s leading fashion specialty retailers, with 104 stores located in 23 states, including 71 full-line stores, 27 Nordstrom Racks, three Façonnable boutiques, two free-standing shoe stores, and one clearance store. The company also seeks to serve customers through its online presence at http://www.nordstrom.com, as well as direct mail catalogs. Nordstrom, Inc. is publicly traded on the NYSE under the symbol JWN.

Contact:

Brooke White, Nordstrom Inc.
(206) 373-3030