Exhibit 99.1

Zale Corporation Announces Fourth Quarter Comparable Sales Increase of 1.7%

    DALLAS--(BUSINESS WIRE)--Aug. 7, 2003--Zale Corporation
(NYSE:ZLC), North America's largest specialty retailer of fine
jewelry, reported today that for the fourth quarter ended July 31,
2003, comparable store sales increased 1.7%. Total revenues for the
period were $442.4 million compared to last year's total revenues of
$435.6 million, an increase of 1.6%.
    For the fiscal year, total revenues increased 0.9% to $2.212
billion, compared to $2.192 billion for the prior fiscal year. On a
comparable store basis, sales increased 0.8% for the year.
    "We are pleased with our execution as demonstrated by these sales
results," commented Mary L. Forte, President and Chief Executive
Officer.
    Ms. Forte continued, "Over the past fiscal year, we remained
focused on our long-term goals, kept the business stable and on track
and maintained strong business disciplines. We maximized our
opportunities during the key gift-giving periods and continued the
development of our bridal category, further illustrating our ability
in a difficult retail environment to use the strength of our brands to
increase market share."

    Zale Corporation will announce its fourth quarter and fiscal 2003
earnings results on August 28, 2003. A conference call will be held at
9:00 a.m. EST. Parties interested in participating should dial
706-643-7467 five minutes prior to the scheduled start time. A webcast
of the call, as well as a replay, will be available on the Company's
Web site at www.zalecorp.com. For additional information, contact
Investor Relations.

    Zale Corporation is North America's largest specialty retailer of
fine jewelry operating approximately 2,235 retail locations throughout
the United States, Canada and Puerto Rico, as well as online. Zale
Corporation's brands include Zales Jewelers, Zales Outlet, Zale Direct
at www.zales.com, Gordon's Jewelers, Bailey Banks & Biddle Fine
Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda.
Additional information on Zale Corporation and its brands is available
on the Internet at www.zalecorp.com.

    This release contains forward-looking statements, including
statements regarding the Company's objectives and expectations
regarding its merchandising and marketing strategies and results of
operations, which are based upon management's beliefs as well as on
assumptions made by and data currently available to management. These
forward-looking statements are not guarantees of future performance
and a variety of factors could cause the Company's actual results to
differ materially from the anticipated or expected results expressed
in these forward-looking statements. The following list, which is not
intended to be an all-encompassing list of risks and uncertainties
affecting the Company, summarizes several factors that could cause the
Company's actual results to differ materially from those anticipated
or expected in these forward-looking statements: that low or negative
growth in the economy or in the financial markets will occur and
reduce discretionary spending on goods that are, or are perceived to
be, "luxuries"; that levels of mall traffic may decline as a result of
economic or other factors; that warehousing and distribution
productivity and capacity can be further improved to support the
Company's distribution requirements; that strong competitive responses
may impact the Company's efforts to leverage its brand power with its
marketing, merchandising and promotional efforts; that seasonality of
the retail jewelry business or downturns in consumer spending during
the fourth calendar quarter may adversely affect the Company's
results; that the Company may not be able to continue to manage its
inventory and product supply effectively to respond to consumer
demand; that fluctuations in diamond prices may negatively affect the
business; that legal or governmental proceedings may have an adverse
effect on the financial results or reputation of the Company; that key
personnel who have been hired or retained by the Company may depart;
that any disruption in the Company's private label credit card
arrangement may adversely affect the Company's ability to provide
consumer credit; or that changes in government or regulatory
requirements may increase the cost of or adversely affect the
Company's operations. The Company disclaims any obligation to update
or revise publicly or otherwise any forward-looking statements to
reflect subsequent events, new information or future circumstances.

    CONTACT: Zale Corporation, Dallas
             David H. Sternblitz, 972-580-5047
             Senior Director, Investor and Public Relations