ZALE Securities Litigation Settlement

Further information regarding this action and the Notice may be obtained from Lead Plaintiffs' Counsel:

The Court will hold a Settlement Hearing at 10:30 a.m. on June 9, 2008, at the United States District Court for the Northern District of Texas, United States Courthouse, 1100 Commerce Street, Dallas, Texas to determine whether the proposed Settlement is fair, reasonable and adequate. The hearing on the Proposed Settlement and related applications was held on June 9, 2008, at which time the Court entered an Order approving the Settlement, and proposed fees and expenses.

If you wish to remain a member of the Class, you may share in the proceeds of the Settlement, provided that you submit an acceptable Proof of Claim form by following the instructions in the Notice (See Notice, Question 10). If you submit a valid Proof of Claim form, you WILL be bound by this Settlement and you WILL be entitled to a share of the Settlement Fund. In order to be eligible to receive any distribution from the Settlement Fund, you must send a properly executed Proof of Claim form by first class mail postmarked and mailed no later than July 2, 2008 to the Claims Administrator.The deadline to file the Proof of Claim has passed.
If you do not wish to remain a member of the Class, you may exclude yourself from the Class by following the instructions in the Notice (See Notice, Question 13). Persons or entities who exclude themselves from the Class will NOT be bound by this Settlement, but will NOT receive any share of the Settlement Fund. If you are a Class Member and you do not properly exclude yourself from the Class, you will be bound by the Settlement and the Order and Final Judgment of the Court, even if you do not submit a Proof of Claim form. To exclude yourself from the Class, you must send a signed letter by mail to the Claims Administrator received no later than May 13, 2008. The time to exclude yourself from the settlement has passed. Written requests to the Claims Administrator had to be received no later than May 13, 2008.
If you object to the Settlement or to Lead Plaintiffs' Counsel's application for fees and expenses, but do not exclude yourself from the Class, you may present your objections under the procedures described in the Notice (See Notice, Question 18). To object, you must submit a signed letter which must be filed with the Court and received by counsel on or before May 13, 2008. The time to file an objection has expired. All requests for an objection had to be filed by May 13, 2008.

If you hold any Zale common stock purchased or acquired between February 18, 2005 and May 5, 2006, inclusive, as nominee for a beneficial owner, then, within ten (10) days after you receive the Notice, you must either: (1) send a copy of the Notice by first class mail to all such Persons; or (2) provide a list of the names and addresses of such Persons to the Claims Administrator at the address below.

If you choose to mail the Notice and Proof of Claim form yourself, you may obtain from the Claims Administrator (without cost to you) as many additional copies of these documents as you will need to complete the mailing.

Regardless of whether you choose to complete the mailing yourself or elect to have the mailing performed for you, you may obtain reimbursement for or advancement of reasonable administrative costs actually incurred or expected to be incurred in connection with forwarding the Notice and which would not have been incurred but for the obligation to forward the Notice, upon submission of appropriate documentation to the Claims Administrator.