Federated Department Stores, parent of Macy's and Bloomingdale's department stores, and America Online, the interactive services company, announced last week that they have significantly expanded their e-commerce relationship, giving Federated's e-commerce brands wider placement across several categories of the Shop@AOL online shopping destinations.

Macy's and Bloomingdale's, which are among the world's best known department stores, also comprise Federated's primary e-commerce national brand extensions - macys.com and bloomingdales.com. This agreement represents an expansion of the existing relationship between AOL and Federated, initiated in October 1998.

Under this multi-million dollar agreement, Macy's and Bloomingdale's will have anchor tenancies in several Shop@AOL categories. This will give visitors access to Macy's and Bloomingdale's broad selection of apparel, housewares, jewellery and cosmetics.

Dawn Robertson, president of Federated Direct, the company's direct-to-consumer division, said: "AOL continues to be an effective channel for us to reach more and more online shoppers. We believe this deal will be a major driver of business to our sites."

Myer Berlow, president of AOL interactive marketing, said: "Macy's
and Bloomingdale's are two of the best known consumer retail brands in the market and we couldn't be more pleased that they have chosen to expand their relationship with AOL. By increasing their presence with us, Federated has indicated that AOL continues to deliver for them and that together, we can deliver for consumers."

About America Online
Founded in 1985, America Online is a leader in interactive services, web brands, Internet technologies and e-commerce services.

About Federated Department Stores
Federated is one of the US's leading department store retailers, with annual sales of more than $17.7bn. Federated currently operates more than 400 department stores in 33 states under the names of Bloomingdale's, The Bon Marche, Burdines, Goldsmith's, Lazarus, Macy's, Rich's and Stern's. Federated also operates the Fingerhut, Bloomingdale's By Mail, Macy's By Mail, macys.com and bloomingdales.com direct-to-consumer catalog and electronic commerce subsidiaries.