Zale Changes Accountants

Zale Corp. said Thursday that it has engaged Ernst & Young to serve as the company’s independent public accountants for the fiscal year ending July 31, 2008. Ernst & Young will replace KPMG.

The change in auditors eliminates any issue as to whether KPMG’s independence could be impacted by the service of Richard C. Breeden and James Cotter as members of the company’s board of directors, Zale said in a statement. Breeden serves as KPMG’s monitor, and Cotter is a member of Mr. Breeden’s monitoring team.

The Dallas-based specialty retailer of fine jewelry said it did not have any disagreement with KPMG on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures.

On Wednesday, the company’s Zales.com division said it is offering a variety of religious jewelry and special gifts designed to honor a loved one’s special day.

“Our team has created an exceptional assortment of fine jewelry for all types of religious occasions,” said Steve Larkin of Zales.com. “We offer over 250 religious gifts, each a lasting remembrance of such an important event.”

Many of Zales.com religious gifts can be engraved with a personalized message or monogram to mark the special occasion. Personalized items are only available at the Zales.com Web site.

Items suitable for a young lady’s Confirmation or First Holy Communion include a large selection of crosses, pendants, lockets, rings, earrings, charm bracelets and watches in gold or sterling silver, many featuring fancy detailing or jewel enhancements.

Young men’s inspirational jewelry includes pendants, cufflinks, key rings, bracelets and watches, and come in gold, sterling silver or stainless steel.

Zales.com is operated by the Zale Corp., which operates about 2,170 retail locations in the United States, Canada, and Puerto Rico. Zale Corp.’s brands include Zales Jewelers, Zales Outlet, Gordon’s Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. In addition to Zales.com, the company also operates online at www.gordonsjewelers.com.

Additional information on Zale Corporation and its brands is available at .