Carter`s, Inc. Announces Restatement of Financial Statements

ATLANTA--(Business Wire)--
Carter`s, Inc. (NYSE: CRI) today announced that it will restate its financial
statements for certain prior periods and, as a result, that it does not expect
to timely file its quarterly report on Form 10-Q for the period ended October 3,
2009.

On October 27, 2009, the Company announced that it was conducting a review of
its accounting for margin support provided to its wholesale customers. As a
result of a disputed amount of margin support with respect to a wholesale
customer, management initiated a review of previous margin support payments to
this customer. Following a briefing on this issue by management, the Company`s
audit committee, with the assistance of outside counsel, began a review of
accommodation payments more broadly. This review and related investigation are
in process.

As a result of this review, management concluded that the previously issued
consolidated financial statements for the fiscal years 2004 through 2008, and
the fiscal quarters from September 29, 2007 through July 4, 2009, should be
restated. Additional details are included in an 8-K filed by the Company today
with the Securities and Exchange Commission.

"We intend to file our restated financial statements and third quarter 10-Q with
the SEC as soon as possible following the completion of this review," said
Michael D. Casey, Chairman and Chief Executive Officer. "We`ve initiated a
dialogue with the SEC and informed them of this review. In addition, we are
improving internal controls and management processes to help reduce risks
inherent in this component of our business going forward."

Carter`s, Inc. is a leading provider of apparel and related products exclusively
for babies and young children. The Company owns the Carter`s and OshKoshB`gosh
brands, two of the most recognized brands in the marketplace. These brands are
sold in more than 260 department store, national chain and specialty store
accounts and through more than 400 Company-operated stores. The OshKoshB`gosh
brand is also sold in more than 30 countries worldwide. The Company`s Child of
Mine and Just One Year brands are available at Walmart and Target, respectively,
and its Genuine Kids brand is sold at Target. Carter`s is headquartered in
Atlanta, Georgia. Additional information may be found at www.carters.com.

Carter`s, Inc.
Richard F. Westenberger, 404-745-2889
Executive Vice President & Chief Financial Officer

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