Burlington Coat Factory Announces Second Quarter Fiscal 2008 Results

BURLINGTON, N.J.--(Business Wire)--Burlington Coat Factory Investments Holdings, Inc. and its
operating subsidiaries (the "Company"), a nationwide retailer based in
Burlington, New Jersey, today announced its results for the second
quarter ended December 1, 2007.

For the three months ended December 1, 2007 compared with the
three months ended December 2, 2006, net sales decreased $38.2 million
(3.9%) to $946.6 million. Comparative store sales decreased 8.0%
during the three month period ended December 1, 2007. The decrease in
comparative store sales is primarily attributed to unseasonably warm
weather in September and October and weakened consumer demand for the
three month period ended December 1, 2007.

For the three month period ended December 1, 2007, net income
amounted to $23.2 million compared with $11.7 million during the three
month period ended December 2, 2006. The increase in net income is
primarily attributable to improved markup on new purchases and
decreases in depreciation expense, selling and administrative expense
and interest expense offset in part by lower other revenue income and
an increase in impairment charges for the three month period ended
December 1, 2007.

Consolidated net sales decreased $16.3 million (1.0%) to
$1,625.3 million for the six month period ended December 1, 2007
compared with the six month period ended December 2, 2006. Comparative
stores sales decreased 5.6% for the six month period ended December 1,
2007 due primarily to unseasonably warm weather during September and
October, the impact of the implementation of the Company's cash-back
merchandise return policy after the close of the first fiscal quarter
of fiscal 2007, and weakened consumer demand throughout the six months
ended December 1, 2007.

Net Loss amounted to $27.2 million for the six month period ended
December 1, 2007 compared with a net loss of $40.1 million for the
comparative period of last year. The decrease in net loss of $12.9
million is due primarily to improved markup on new purchases and
decreases in depreciation expense, selling and administrative expense
and interest expense, offset in part by lower other revenue income and
an increase in impairment charges for the six month period ended
December 1, 2007.

During the first six months of fiscal 2008, the Company opened
fifteen Burlington Coat Factory Stores and relocated three Burlington
Coat Factory Stores to locations within the same trading market. As of
December 1, 2007, the Company operated 394 stores under the names
"Burlington Coat Factory Warehouse" ("BCF") (374 stores), "Cohoes
Fashions"(2 stores), "MJM Designer Shoes" (17 stores), and "Super Baby
Depot" (1 store). The Company plans to open five Burlington Coat
Factory Warehouse Stores during the remainder of fiscal 2008.

Second Quarter Fiscal 2008 Conference Call

The Company will hold a conference call for investors on Friday,
January 18, 2008 at 10:00 a.m. eastern time to discuss the Company's
second quarter Fiscal 2008 operating results. To participate in the
call, please dial 800-935-1518. This conference call will be recorded
and available for replay beginning one hour after the end of the call
and will be available through January 19, 2008 at 12:00 p.m. eastern
time. To access the replay, please dial 800-633-8284, then the access
number, 21372611.

About Burlington Coat Factory

Burlington Coat Factory is a nationally recognized retailer of
high-quality, branded apparel at every day low prices. We opened our
first store in Burlington, New Jersey in 1972, selling primarily coats
and outerwear. Since then, we have expanded our store base to 394
stores in 44 states, and diversified our product categories by
offering an extensive selection of in-season, fashion-focused
merchandise, including: ladies sportswear, menswear, coats, family
footwear, baby furniture and accessories, as well as home decor and
gifts. All stores are company-operated, and nearly all are located in
high traffic areas such as strip malls and shopping centers in various
locations.

Safe Harbor for Forward-Looking and Cautionary Statements

This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. As
such, final results could differ from estimates or expectations due to
risks and uncertainties, including among others, changes in customer
demand for products, changes in raw material and equipment costs and
availability, seasonal changes in customer demand, pricing actions by
competitors and general changes in economic conditions, and other
risks. For any of these factors, the Company claims the protection of
the safe harbor for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995, as amended.

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BURLINGTON COAT FACTORY INVESTMENTS HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(All amounts in thousands)

Six Months Ended Three Months Ended
---------------------- ------------------

December December December December
1, 2007 2, 2006 1, 2007 2, 2006
---------- ---------- -------- --------

REVENUES:
Net Sales $1,625,335 $1,641,613 $946,566 $984,767
Other Revenue 15,863 19,554 9,085 12,134
---------- ---------- -------- --------
1,641,198 1,661,167 955,651 996,901

COSTS AND EXPENSES:
Cost of Sales (Exclusive
of Depreciation and
Amortization) 1,000,938 1,027,383 557,163 600,469
Selling and Administrative
Expenses 529,288 534,641 278,401 287,581
Depreciation 61,602 69,574 30,845 34,590
Amortization 21,380 21,822 10,629 10,889
Interest Expense 66,910 70,630 33,685 35,216
Impairment Charges 7,379 3,677 6,826 3,677
Other (Income), Net (2,501) (1,663) (1,849) (682)
---------- ---------- -------- --------
1,684,996 1,726,064 915,700 971,740
---------- ---------- -------- --------

(Loss) Income Before
Income Tax (Benefit)
Expense (43,798) (64,897) 39,951 25,161

Income Tax (Benefit)
Expense (16,576) (24,836) 16,778 13,414
---------- ---------- -------- --------

Net (Loss) Income $ (27,222) $ (40,061) $ 23,173 $ 11,747
========== ========== ======== ========
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EBITDA and Adjusted EBITDA

The following table calculates the Company's EBITDA (earnings from
continuing operations before interest, taxes, depreciation,
amortization and impairment) and Adjusted EBITDA, both of which are
considered Non-GAAP financial measures. Generally, a Non-GAAP
financial measure is a numerical measure of a company's performance,
financial position or cash flows that either excludes or includes
amounts that are not normally excluded or included in the most
directly comparable measure calculated and presented in accordance
with GAAP. The Company believes that EBITDA and Adjusted EBITDA
provide investors helpful information with respect to our operations
and cash flows. The Company has included them to provide additional
information with respect to our ability to meet our future debt
service, fund our capital expenditures and working capital
requirements and to comply with various covenants in each indenture
governing our outstanding notes, as well as various covenants related
to our senior secured credit facilities. The adjustments to EBITDA are
not in accordance with regulations adopted by the SEC that apply to
periodic reports presented under the Exchange Act. Accordingly, EBITDA
and Adjusted EBITDA may be presented differently in filings made with
the SEC than as presented in this report or not presented at all.

EBITDA and Adjusted EBITDA are calculated as follows:

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Six Six Three Three
Months Months Months Months
Ended Ended Ended Ended
December December December December
1, 2, 1, 2,
2007 2006 2007 2006
-------- -------- -------- --------
Net Income (Loss) $(27,222) $(40,061) $ 23,173 $ 11,747
Interest Expense 66,910 70,630 33,685 35,216
Provision (Benefit) for Income
Tax (16,576) (24,836) 16,778 13,414
Depreciation 61,602 69,574 30,845 34,590
Amortization 21,380 21,822 10,629 10,889
Impairment 7,379 3,677 6,826 3,677
-------- -------- -------- --------
EBITDA 113,473 100,806 121,936 109,533
Other (Income), Net (a) (958) (2,031) (585) (1,166)
Transaction Related Expenses
(b) -- 62 -- --
Non-Cash Straight-line Rent
Expense (c) 4,093 4,972 1,120 1,984
Retention Bonus (d) -- 8,247 -- 3,863
Stock Option Expense (e) 532 1,545 281 775
Advisory Fees (f) 2,075 2,017 1,050 1,036
SOX Compliance (g) 479 -- 479 --
-------- -------- -------- --------
Adjusted EBITDA $119,694 $115,618 $124,281 $116,025
======== ======== ======== ========
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(a) Beginning with the quarter ended September 1, 2007, the Company
changed its methodology of calculating Adjusted EBITDA and has
shown that change retrospectively in the Adjusted EBITDA
calculations above for both the six and three month periods ended
December 1, 2007 and December 2, 2006. In accordance with our
credit agreements, the Company has only reflected interest income
as opposed to all other income in the calculation of adjusted
EBITDA. The impact of this change resulted in increases to
Adjusted EBITDA of $1.5 million and $1.3 million, respectively,
for the six and three month periods ended December 1, 2007. The
impact on the three and six month periods ended December 2, 2006
was a decrease to Adjusted EBITDA of $0.4 million and $0.5
million, respectively.

(b) Represents third party costs (primarily legal) incurred in
connection with the Merger Transaction that took place on April
13, 2006.

(c) Represents the difference between the actual base rent and rent
expense calculated in accordance with GAAP (on a straight line
basis).

(d) Represents the accrual of retention bonuses to be paid to certain
members of management on the first anniversary of the Merger
Transaction for services rendered to the Company during the post-
Merger period.

(e) Represents expenses recorded as a result of the Company's adoption
of SFAS No. 123(R), Share Based Payments, effective June 4, 2006.

(f) Represents the annual advisory fee to be paid to Bain Capital.

(g) As a non accelerated filer, the Company is required to file its
initial management report on Internal Controls Over Financial
Reporting in its annual report on form 10-K for the fiscal year
ended May 31, 2008. These costs represent professional fees
related to this compliance effort.
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Burlington Coat Factory Investments Holdings, Inc.
Robert L. LaPenta, Jr.
Vice President - Treasurer
609-387-7800 ext. 1216

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