Express Parent LLC (EXPR), scheduled $304mm (at price range mid-point) IPO scheduled for Thursday May 13

SUMMARY

Private equity sponsored specialty retailer showing with strong recent quarterly performance

Overpriced relative to comparable book & tangible book values, the result of being ‘private equitied’

Compare & Contrast	Mrkt	Price /	Price /	Price /	Price /	Price/
annualized trl-12months	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	EBIDTA
Express (EXPR)	$1,685	1.0	22	15.5	-17.1	6.9
Liimited Brands (LTD)	$8,190	1.0	19	4.0	44.5	9.4
Bebe Stores, (BEBE)	$665	1.3	-94	1.5	1.8	25.6
J. Crew Group (JCG)	$2,790	1.8	23	7.4	7.4	12.3

BUSINESS

. Sixth largest specialty retail apparel brand in the United States . Targets an attractive and growing demographic of women and men between 20 and 30 years old. . As of January 30, 2010, operated 573 stores. Stores are located primarily in high-traffic shopping malls, lifestyle centers and street locations across the United States, and average approximately 8,700 square feet. . Also sells products through an e-commerce website, express.com. . Poduct offering includes both women’s and men’s apparel and accessories, of which women’s represented 67% of net sales and men’s represented 33% of net sales during fiscal 2009.

SEASONAL

. Historically realized a higher portion of net sales and net income in the third and fourth fiscal quarters due primarily to early Fall selling patterns as well as the impact of the holiday season. . Generally, the annual sales split is 45% for the Spring season (February through July) and 55% for the Fall season (August through January

MAY 1 QUARTER

. Expects net sales for the fiscal quarter ended May 1, 2010 to be approximately 11% to 13% higher than the net sales for the fiscal quarter ended May 2, 2009. . Expects comparable store sales for the fiscal quarter ended May 1, 2010 to increase by approximately 10% to 12%, with e-Commerce sales growth of approximately 50% to 60% compared to the same period last year.

EQUITY SPONSOR

. Golden Gate Private Equity, Inc. is a San Francisco-based private equity investment firm with approximately $8 billion of assets under management . Golden Gate acquired a 75% interest in the business from an affiliate of Limited Brands on July 6, 2007 for aggregate cash payments of $484.9 million. . In addition, on the closing of the Golden Gate Acquisition, distributed to an affiliate of Limited Brands $117.0 million in loan proceeds (which amount includes an expense reimbursement paid to Limited Brands) from a $125.0 million term loan facility that is entered into in connection with the Golden Gate Acquisition

COMPETITION

Aéropostale, American Eagle Outfitters, Banana Republic, Bebe, Forever21, Gap, Guess?, J. Crew, Macy’s and Zara

PRE-IPO OWNERSHIP

. Golden Gate (indirectly through a limited liability company) will hold 67.3% of the common stock, . Limited Brands (indirectly through a wholly-owned subsidiary) will hold 22.4% of the common stock and . Members of management will hold 10.3%

DIVIDENDS PAID TO SPONSOR PRE-IPO

As of April 27, 2010 Golden Gate had been paid an aggregate of $556.1 million in these distributions, including distributions for taxes

Recent developments

On March 5, 2010, Express, LLC and Express Finance Corp., each of which is an indirect wholly-owned subsidiary, jointly issued, in a private placement, $250.0 million of 8¾% senior notes due 2018 (the "Senior Notes") at an offering price of 98.599% of the face value of the Senior Notes. The proceeds from the offering of Senior Notes of $246.5 million, together with cash on hand of $153.8 million, were used to (1) prepay all of the Term C Loans outstanding under the term loan facility (the "Topco credit facility") of the wholly-owned subsidiary, Express Topco, plus accrued and unpaid interest and prepayment penalties, in an aggregate amount equal to $154.9 million, (2) make a distribution to the equity holders of Express Parent in an aggregate amount equal to $230.0 million and (3) pay related transaction fees and expenses, including discounts and commissions to the initial purchasers of the Senior Notes, in an aggregate amount equal to $15.4 million.

USE OF IPO PROCEEDS

$186.5mm from sale of 10.5shares, shareholder intend to sell 5.5mm shares

Repay debt

Express	EXPR, C+, 7					Post-IPO shares: 89mm
Specialty retail			Jan 30 fiscal year	proforma	$mm
Columbus OH			2009	2010		IPO Mkt
Revenue ($mm\)			$1,737	$1,721		Cap (mm)
Gross profit %			26%	32%		$1,685
Operating income %			0.2%	8%		@$19
Interest % of operating inc			936%	27%
Profit (loss)			$18	$63
Profit (loss) % of revenue			1%	4%
EBITDA			$137	$246
EBITDA % of reve			8%	14%
Quarterly performance	Nov 08	Jan 09	April 09	July 09	Nov 09	Jan 10
Revenue ($mm)	$410	$505	$374	$373	$426	$547
Gross profit%	39%	28%	19%	30%	34%	34%
Operating income %	1%	-2%	6%	2%	10%	11%
Profit (loss)	-$11.0	-$27.0	$7.6	-$6.8	$28.0	$46.0
Profit (loss) % of revenue	-3%	-5%	2%	-2%	7%	8%
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
trailing 12 months	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Express (EXPR)	$1,685	1.0	22	15.5	-17.1	18%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	2	2	1	7
Compare & Contrast	Mrkt	Price /	Price /	Price /	Price /	Price/
annualized trl-12months	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	EBIDTA
Express (EXPR)	$1,685	1.0	22	15.5	-17.1	6.9
Liimited Brands (LTD)	$8,190	1.0	19	4.0	44.5	9.4
Bebe Stores, (BEBE)	$665	1.3	-94	1.5	1.8	25.6
J. Crew Group (JCG)	$2,790	1.8	23	7.4	7.4	12.3