Bank of America Securities 2008 Credit Conference November 20, 2008

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1 Bank of America Securities 2008 Credit Conference November 20, 2008

Forward Looking Statements Disclaimer The following information contains, or may be deemed to contain, forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995).

2 Forward Looking Statements Disclaimer The following information contains, or may be deemed to contain, forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995). By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The future results of the company may vary from the results expressed in, or implied by, the following forward-looking statements, possibly to a material degree. For a discussion of some of the important factors that could cause the company s results to differ from those expressed in, or implied by, the following forward-looking statements, please refer to the company s Offering Circular. The company undertakes no obligation to update or revise any forward-looking statements.

3 Company Overview Specialty Retail Neiman Marcus Direct 40 Full Line NM Stores 2 BG Stores 5 Cusp Stores $3.85B $748M LTM Revenue: $4.6 Billion* * Note: LTM revenue is as of July 2008.

4 Responses to a Downturn Revenue Levers Hold additional selling and promotional events Increase discount levels Develop additional programs to incentivize sales force Margin and Expense Levers Work with vendors to reduce inventory commitments, return products and obtain additional vendor markdown participation Experienced buying group able to implement strict buying plans to reduce future purchases Implement disciplined expense controls Capital Levers Delay projects Increase scrutiny of all projects

5 Competitive Advantages Attractive Market & Customer Demographics Professional, Relationship-Focused Salesforce Unique Customer Loyalty Program Strong Relationships with Diverse Group of Vendors

6 Specialty Retail Initiatives Merchandise Productivity Customer Service Inventory Management Return on Full Line Stores Maintaining and Expanding our Leadership Position

7 Focused Expansion Strategy STATE COMPLETION DATE SQ. FOOTAGE New Stores Topanga California September 2008 (Opened) 120,000 Bellevue Washington Fall ,000 Sarasota Florida Fall ,000 Walnut Creek California Fall ,000 San Jose California Fall ,000 Princeton New Jersey Fall ,000 Long Island New York TBD 150,000 Remodels Atlanta Georgia Spring 2008 (Completed) Additional 50,000 Westchester New York Summer 2008 (Completed) No additional sq. footage Cusp Chestnut Hill Massachusetts August ,000

8 1 Prime Store Locations Bellevue 1 Minneapolis Chicago Northbrook, Oakbrook Troy Long Island Westchester, NYC - BG (2) LA, SF, Palo Alto, San Diego, Newport Beach, Topanga Walnut Creek, San Jose King of Prussia Short Hills, Paramus Princeton Washington D.C. Tyson s Corner Charlotte Boston, Natick 1 Honolulu Las Vegas Scottsdale Denver Atlanta Northpark, Houston, Dallas, Plano, Ft. Worth, San Antonio, Austin St. Louis Bal Harbour, Coral Gables, Ft. Lauderdale, Tampa Bay, Orlando, Palm Beach, Boca Raton, Sarasota Geographically diverse store base in premier locations in the nation s most affluent markets

9 Topanga, CA Topanga Plaza Opened: September ,000 square feet

10 Bellevue, WA The Bravern Scheduled opening: Fall ,000 square feet

11 Sarasota, FL University Town Center Scheduled opening: Fall ,000 square feet

12 CUSP

13 CUSP

14 Neiman Marcus Direct

15 NeimanMarcus.com

16 BergdorfGoodman.com

17 Horchow.com

18 Cusp.com

19 Neiman Marcus Direct Growth of Internet FY 2002 $355M FY 2008 $748M 17% 24% 83% 76% Catalog Internet

20 Neiman Marcus Direct Innovative marketing

21 Neiman Marcus Direct Designer sites

22 Neiman Marcus Direct Customer personalization

23 Financial Overview

24 Historical Financial Performance Historical Financial Performance ($ in millions) $2,580 $1,888 $2,181 $2,338 $2,042 $150 $159 $183 $199 $183 7% Revenue CAGR 10% EBIT CAGR $2,913 $2,998 $2,861 $248 $203 $173 $3,001 $214 $3,421 $336 $3,695 $407 $4,030 $447 $4,390 $550 $4,601 $ Fiscal Years Ending July Revenue EBIT Consistent growth through multiple business and economic cycles highlighted by 13 year Revenue and EBIT CAGRs of 7% and 10%, respectively Note: All information for 2000 and thereafter reflects the change in classification of revenues deferred in connection with the Company s loyalty programs. EBIT figures exclude non-recurring items. FY 2002 and FY 2008 reflect 53 weeks. 1 Operating earnings are adjusted to exclude amortization of customer lists and favorable lease commitments, purchase accounting adjustments, transaction and other costs and other non-recurring items.

25 Financial Metrics Specialty Retail Revenue ($ in millions) ($ in millions) Specialty Retail EBIT $2,442 $2,487 $2,417 6% CAGR $2,507 $2,850 $3,103 $3,375 $3,675 $3,853 $ % $ % 9% CAGR $ % $198 $ % 7.1% $ % $404 $491 $ % 13.4% 12.4% NMD Revenue ($ in millions) ($ in millions) $405 $438 $444 8% CAGR $494 $571 $592 $655 $715 $ EBIT EBIT Margin NMD EBIT EBIT EBIT Margin Note: Specialty Retail revenue reflects the change in classification of revenues deferred in connection with the Company s loyalty programs. $2 $11 $23 2.5% 5.1% 67% CAGR $46 9.3% $ % $ % $98 $116 $ % 16.2 % 15.8 %

26 Superior Performance $700 $600 $500 $400 $300 $200 $100 Sales Per Square Foot Note Figures are from LTM ending August 2, NMG data is for the Specialty Retail segment only (Full line Neiman Marcus Stores and Bergdorf Goodman). SFAE is estimated Saks Fifth Avenue stores and internet sales (excludes estimated clearance center sales).

27 FY 2008 Financial Highlights NMG FY '07 FY '08 % change Total Sales $4.4B $4.6B 4.8% Comparable Sales Increase 6.7% 1.7% Adjusted Operating Earnings ($M)* $550 $ % Adjusted Operating Margin 12.5% 11.7% Merchandise Inventories ($M) $918 $ % Capital Expenditures ($M) $148 $183 Source Neiman Marcus, Inc. FY2008 Q4 Earnings Release (for the fiscal period ended August 2, 2008). *Adjusted Operating earnings represents operating earnings excluding amortization of customer lists and favorable lease commitments and other income/expense.

28 Comparable Store Sales Q4 FY '08 Q1 FY '09 Neiman Marcus Group -1.4% -14.5% Specialty Retail -1.8% -15.8% Neiman Marcus Direct 0.7% -7.0% Saks Fifth Avenue -4.0% -11.5% Nordstrom -6.0% -11.1%

29 Other Financial Information ($M) Q1 FY '06 FY '06 FY '07 FY '08 Cash $192 $224 $141 $239 Debt Paydown $0 $250 $250 $0 Revolver Availability $434 $571 $573 $576 Leverage Ratio 6.5x 5.6x 4.3x 4.3x

30 Reconciliation of Adjusted Operating Earnings Fiscal Year Ended August 2, July 28, (dollars in millions) OPERATING EARNINGS: Specialty Retail Stores $ 477 $ 491 Direct Marketing Corporate expenses (57) (56) ADJUSTED OPERATING EARNINGS $ 537 $ 550 Amortization of intangible assets (72) (72) Other income (expense) 1 (1) OPERATING EARNINGS $ 466 $ 477 Depreciation & Amortization Source Neiman Marcus, Inc. 10-K (For the fiscal period ended Aug 2, 2008).

31 EBITDA Reconciliation ($ in millions) Q4 FY '08 Q4 FY '07 Q4 FY '06 Q1 FY '06 LTM EBITDA (Reported) $ 687 $ 686 $ 515 $ 509 Adjustments: Inventory purchase price adjustment Transaction costs Gain on credit card transaction (6) Other (income) expense (1) Total EBITDA adjustments (1) LTM EBITDA (Adjusted) $ 686 $ 687 $ 577 $ 534 Debt/LTM EBITDA (Adjusted)

Deutsche Bank Leveraged Finance Conference September 25, 2008

Deutsche Bank Leveraged Finance Conference September 25, 2008 Forward Looking Statements Disclaimer The following information contains, or may be deemed to contain, forward-looking statements (as defined