SEATTLE - Sept. 27, 2000 - Nordstrom, Inc. (NYSE: JWN) announced today it has signed a definitive agreement to acquire 100 percent of Façonnable, S.A., of Nice, France. Façonnable (pronounced "Fa-so-nah-bleh") is a designer, wholesaler and retailer of high quality men’s and women’s apparel and accessories.

The purchase price is made up of two parts: $88 million in cash, and approximately 5 million shares of newly-issued Nordstrom common stock. At the current market price for JWN common stock, the total cost to Nordstrom would be approximately $180 million. The final cost, however, depends upon the stock price at the closing of the transaction, which is expected in late October 2000. There is also the possibility of an additional cash payment after five years based on performance of the brand and the continued active involvement of the principals in Façonnable, S. A., Albert Goldberg and Jean Pierre Benaym.

"We are exceptionally pleased to be acquired by Nordstrom, which has been a partner of ours for many years," said Goldberg, who is Directeur Général of Façonnable, S. A. "Nordstrom successfully introduced our line into the US in 1989, and later helped us to expand into women’s apparel, to complement our original focus on men’s fashion. We believe Nordstrom understands our brand and our vision, and is well-positioned to grow this business further."

"Façonnable is a brand of exceptional quality," said Blake Nordstrom, president of Nordstrom, Inc. "Our sales people are proud to sell their merchandise, which has had a warm reception among our customers over the years."

"Our purchase of Façonnable is an exciting opportunity for us," said Gail Cottle, president of Nordstrom Product Group, which will oversee development of the Façonnable brand. "We have been working hard in recent years to prepare our exclusive brands and our organization to thrive beyond the four walls of our own stores. We are delighted that we will have the opportunity now to move ahead with a label of recognized quality and significant development potential."

Façonnable’s classic men’s and women’s apparel and accessories currently are sold in the US exclusively by Nordstrom, Inc. The brand also is sold by retailers in 23 other nations, primarily in Europe, but also including areas of Central and South America, the Middle East and the Far East.

Nordstrom is considering a number of potential avenues for developing Façonnable, including expanded wholesale distribution in Europe, the US and Japan; boutique expansion in the US and Europe; and brand extensions into products such as accessories and footwear. In addition, Nordstrom expects to achieve economies of scale as Façonnable, S.A.’s production process is combined with that of the Nordstrom Product Group.

Current Façonnable S.A. management and staff, including Goldberg and his business partner, Jean-Pierre Benaym, are expected to remain with the firm, which will become a subsidiary of Nordstrom, Inc. Goldberg will continue to support all design activities, which will be carried out by his current design team at their existing headquarters in Nice, France.

Nordstrom expects the transaction to dilute annual earnings per share through 2002 due primarily to the additional shares being issued as part of the purchase price. The dilutive impact is anticipated to be approximately $0.01-$0.03 per share in the 2000 fiscal year, $0.07-$0.09 per share in fiscal 2001, and $0.02-$0.04 per share in fiscal 2002. After 2002, the transaction is expected to be accretive to annual earnings per share.

Nordstrom plans a conference call with financial analysts at 8 a.m. (Pacific Daylight Time) today to discuss the purchase of Façonnable. The conference call may be heard over the internet by accessing the company’s web site at www.NORDSTROM.com, then clicking on the "About Us" and "Investor Relations" options. A replay of the call will be available on Nordstrom’s web site until approximately 4 p.m. (PDT) on Thursday, Oct. 5.

Nordstrom, Inc. is one of the nation’s leading fashion specialty retailers, with 116 stores located in 23 states, including 76 full-line stores, 34 Nordstrom Racks, three Façonnable boutiques, two free-standing shoe stores, and one clearance store. The company also serves customers online at NORDSTROM.com and NORDSTROMshoes.com, as well as through its direct mail catalogs.

Certain statements in this news release contain "forward-looking" information (as defined in the Private Securities Litigation Reform Act of 1995) that involves risks and uncertainties, including successful negotiation and closing of the described action; related financing matters; the capital markets; compliance with laws, including foreign laws; planned capital expenditures; and trends in company operations; fashion trends and consumer apparel buying patterns, and operating costs and expenses; weather conditions; hazards of nature such as earthquakes and floods; employee relations; the company’s ability to continue its expansion plans; and the impact of economic and competitive market forces. Our SEC reports may contain other information on these and other factors which could affect our financial results and cause actual results to differ from any forward-looking information we may provide.