Destination Maternity Announces Planned Retirement of Rebecca Matthias in September 2010

PHILADELPHIA, Nov. 9 /PRNewswire-FirstCall/ -- Destination Maternity Corporation (Nasdaq: DEST), the world's leading maternity apparel retailer, today announced that Rebecca Matthias, the Company's President and Chief Creative Officer, will retire at the end of its current fiscal year, ending September 30, 2010. Ms. Matthias will continue to serve the Company in a full-time capacity until June 15, 2010, at which time she will be available to the Company on a part-time basis until September 30, 2010. After her retirement in September, Ms. Matthias will remain available to management in an advisory capacity through September 30, 2012. Ms. Matthias continues to serve as a director of the Company.

Ed Krell, Chief Executive Officer and Director of Destination Maternity, commented on behalf of the Board of Directors, "The Board greatly appreciates Rebecca's contributions to Destination Maternity as a co-founder from its inception as a small catalog business over 25 years ago to its current position as the leader in maternity apparel. Rebecca's service to the Company and its stockholders has been invaluable and our Company is a reflection of her dedication and entrepreneurial spirit. We are happy that Rebecca will stay with us through our fiscal year ending September 30, 2010 as an employee, and, thereafter, will remain available to us as an advisor."

Mr. Krell further noted, "I have greatly enjoyed working with Rebecca over the past nearly eight years, and especially over the past year since I became CEO. Rebecca has been a valued resource for me and the Company, and I look forward to her continued contributions during the next year in her management capacity, and thereafter as an advisor. I especially want to thank Rebecca for her strong support over the past year, as we have made significant progress in improving the core profitability of our business and positioning our Company for future growth, as shown by our strong financial results this past year and our strong outlook for future earnings. We have a strong team in place here at Destination Maternity, and I am very confident that we will continue to build and enhance our leadership in the maternity apparel business that Rebecca started more than 25 years ago."

Ms. Matthias commented, "Following Dan's departure as CEO a bit over a year ago, we have had an extremely smooth transition led by Ed Krell as our CEO, and we have taken significant actions to improve the profitability of our business and position it for future growth. I am confident in the future of the Company under Ed's leadership, both in the near term and in the long-term, and feel the Company is in a very strong position with a very strong team in place. Thus, with the Company's strong position and with my husband Dan's upcoming retirement from our Board of Directors this coming January, I now feel it is time to plan my own transition from Destination Maternity so that I can spend more time with my family. I am committed and excited to assist Ed and the team over the next year and even beyond, as we continue to grow the Company's position as the leading maternity apparel company in the world."

In connection with her retirement, Ms. Matthias will be paid a pro-rata base salary and have a pro-rata bonus opportunity for fiscal 2010, certain equity held by Ms. Matthias will vest on September 30, 2010, and Ms. Matthias' supplemental pension benefits under her Supplemental Retirement Agreement will vest by 15% in fiscal 2010 (which is the amount of vesting that would have occurred if Ms. Matthias remained employed by the Company on a full-time basis through fiscal 2010) for a total vested percentage of 93 1/3%.

Destination Maternity Corporation is the world's largest designer and retailer of maternity apparel, using its quick response replenishment system to "give the customer what she wants, when she wants it." In the United States and Canada, Destination Maternity operates, as of October 31, 2009, 1,698 retail locations, including 722 stores, predominantly under the tradenames Motherhood Maternity®, A Pea in the Pod®, and Destination Maternity®, and sells on the web through its DestinationMaternity.com and brand-specific websites. Destination Maternity also distributes its Oh Baby by Motherhood® collection through a licensed arrangement at Kohl's® stores throughout the United States and on Kohls.com, and, beginning in October 2009, re-launched its Two Hearts Maternity® by Destination Maternity collection in Sears® stores and certain Kmart® stores through a leased department relationship with Sears. In addition, Destination Maternity is expanding internationally and has entered into exclusive store franchise and product supply relationships in India and the Middle East.

The Company cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or made from time to time by management of the Company, including those regarding management transition and various business initiatives, involve risks and uncertainties, and are subject to change based on various important factors. The following factors, among others, in some cases have affected and in the future could affect the Company's financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any such forward-looking statements: the impact of the current global economic slowdown on the retail industry in general and on apparel purchases in particular, our ability to successfully manage our various business initiatives, our ability to successfully implement our merchandise brand and retail nameplate restructuring, the success of our international expansion, our ability to successfully manage and retain our leased department and licensed relationships and marketing partnerships, future sales trends in our existing store base, unusual weather patterns, changes in consumer preferences and spending patterns, demographics and other macroeconomic factors that may impact the level of spending for maternity apparel, overall economic conditions and other factors affecting consumer confidence, expense savings initiatives, the impact of competition and fluctuations in the price, availability and quality of raw materials and contracted products, availability of suitable store locations, continued availability of capital and financing, goodwill impairment charges, ability to hire and develop senior management and sales associates, ability to develop and source merchandise, ability to receive production from foreign sources on a timely basis, potential stock repurchases, potential debt prepayments, changes in market interest rates, war or acts of terrorism and other factors set forth in the Company's periodic filings with the Securities and Exchange Commission, or in materials incorporated therein by reference.

SOURCE Destination Maternity Corporation