Exhibit 99.1

FOR IMMEDIATE RELEASE

Gary Muto Named President of Ann Taylor LOFT

New York, NY, November 3, 2008 – AnnTaylor Stores Corporation (NYSE: ANN) today announced the appointment of Gary Muto to the position of President, Ann Taylor LOFT, effective November 11, 2008. Mr. Muto, 49, a seasoned retail executive with more than 25 years of experience, will lead all aspects of the Company’s LOFT division and report directly to Kay Krill, President and CEO of the Company.

Commenting on the announcement, Ms. Krill stated, “I am thrilled to welcome Gary to Ann Taylor as President of LOFT. Selecting the right leader for our largest division has been a critical area of focus for me, and the search process was very comprehensive. I am delighted that Gary is joining the Company and confident that his extensive retail experience and strong leadership qualities will add significant value to not only the LOFT division but also the entire Ann Taylor leadership team.”

Added Mr. Muto, “I am extremely pleased to be joining Ann Taylor and honored to be given stewardship of the LOFT division. I look forward to working with the entire team to meet the changing needs of LOFT clients, while evolving the positioning of the brand for long-term success.”

Mr. Muto joins Ann Taylor from Gap, Inc., where he served in various leadership roles over the past two decades, most recently as President of Gap Adult & GapBody. Prior to that, he held the positions of President of Banana Republic, President of Gap N.A., and President of Forth & Towne.

About Ann Taylor

Ann Taylor Stores Corporation is one of the leading women’s specialty retailers for fashionable clothing in the United States, operating 959 Ann Taylor, Ann Taylor LOFT, Ann Taylor Factory, and LOFT Outlet stores in 46 states, the District of Columbia and Puerto Rico, as well as online at AnnTaylor.com and AnnTaylorLOFT.com. Visit AnnTaylorStoresCorp.com for more information (NYSE: ANN).

Contact:

Judith A. Pirro

Director of Investor Relations

Ann Taylor Stores Corporation

212-541-3300, ext. 3598

FORWARD-LOOKING STATEMENTS

Certain statements in this press release are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements may use the words “expect”, “anticipate”, “plan”, “intend”, “project”, “may”, “believe” and similar expressions. Forward-looking statements also include representations of the expectations or beliefs of the Company concerning future events that involve risks and uncertainties, including:

• the Company’s ability to predict accurately client fashion preferences;

• competitive influences and decline in the demand for merchandise offered by the Company;

• the Company’s ability to successfully execute brand extensions and new concepts;

• effectiveness of the Company’s brand awareness and marketing programs, and its ability to maintain the value of its brands;

• the Company’s ability to secure and protect trademarks and other intellectual property rights in the United States and/or foreign countries;

• general economic conditions, including the impact of higher fuel and energy prices, interest rates, a downturn in the retail industry or changes in levels of store traffic;

• fluctuation in the value of the U.S. dollar against foreign currencies or restrictions on the transfer of funds;

• fluctuation in the Company’s level of sales and earnings growth;

• the Company’s ability to locate new store sites or negotiate favorable lease terms for additional stores or for the lease renewal or expansion of existing stores;

• risks associated with the performance and operations of the Company’s Internet operations;

• a significant change in the regulatory environment applicable to the Company’s business;

• risks associated with the possible inability of the Company, particularly through its sourcing and logistics functions, to operate within production and delivery constraints and the Company’s dependence on a single distribution facility;

• the uncertainties of sourcing associated with the current quota environment, including changes in sourcing patterns resulting from the elimination of quota on apparel products and the re-imposition of quotas in certain categories, and other possible trade law or import restrictions;

• risks associated with the Company’s reliance on foreign sources of production, including financial or political instability in any of the countries in which the Company’s goods are manufactured;

• risks associated with a failure by independent manufacturers to comply with the Company’s quality, product safety and social practices requirements;

• the potential impact of natural disasters and public health concerns, particularly on the Company’s foreign sourcing offices and manufacturing operations of the Company’s vendors;

• acts of war or terrorism in the United States or worldwide;

• work stoppages, slowdowns or strikes;

• the Company’s ability to hire, retain and train key personnel;

• the Company’s ability to successfully upgrade and maintain its information systems, including adequate system security controls;

• the Company’s ability to continue operations in accordance with its business continuity plan in the event of an interruption;

• the Company’s ability to achieve the results of its restructuring program, including the risk that the benefits expected from the restructuring program will not be achieved or may take longer to achieve than expected; and

• changes in management’s assumptions and projections concerning costs and timing in execution of the restructuring program.

Further description of these risks and uncertainties and other important factors are set forth in the Company’s latest Annual Report on Form 10-K, including but not limited to Item 1A – Risk Factors and Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations therein, and in the Company’s other filings with the SEC. Although these forward-looking statements reflect the Company’s current expectations concerning future events, actual results may differ materially from current expectations or historical results. The Company does not assume any obligation to publicly update or revise any forward-looking statements at any time for any reason.

Page 2 of 2