Upscale Brand of Children's Clothing Opens for Holiday Season

New York, NY (November, 2007) -- FAO Schwarz, the world's most famous toy retailer, announced today that children's clothing brand Zutano is opening a 500-square-foot in-store boutique at its flagship Manhattan store.

Located on the lower level of FAO Schwarz, the Zutano in-store boutique will be an anchor brand in the children's apparel category at FAO Schwarz. The space will boast a fresh and whimsical design sure to delight holiday shoppers.

"Zutano is widely regarded as one of the finest designers of children's apparel. We are thrilled the company now has a retail presence at FAO Schwarz, and are sure it will enhance the FAO Schwarz shopping experience," said Ed Schmults, CEO of FAO Schwarz.

The entire line of Zutano children's clothing and accessories will be available at FAO Schwarz. Included in this is an extensive selection of prints, stripes, and solids that layer with textures and offer the ultimate mixing and matching experience.

"The opening of our Zutano boutique at FAO Schwarz is the realization of a dream of ours. I can't imagine a better place to showcase our brand. FAO Schwarz is a New York City icon and legend. It's the place where the world comes together to shop for their children," added Michael Belenky

About Zutano Inc.
Since 1989, Zutano has become an industry leader in specialty baby and toddler fashion, and has been committed to celebrating the diversity of all children by creating exceptional, innovative, and versatile products. Zutano children's clothing is available in fine retail stores and specialty boutiques across North America. Zutano has maintained a purity of image, simplicity, and conceptual consistency that ranks among the highest in children's apparel. Zutano, Clothes Unique As Your Baby©. For more information visit http://www.zutano.com.

About FAO Schwarz
Turning 145 years old this year, FAO Schwarz has enchanted generations of children and adults with its unparalleled selection of unique toys, unmatched customer service, and famous flagship store in Manhattan, which attracts more than three million visitors annually. One of the best-known brands in the United States, FAO Schwarz has evolved into a multi-channel retailer while still remaining true to the vision of founder Frederick August Otto Schwarz.