Margaret Whitfield (Sterne Agee): The girl''s area has been a subject of fashion issues. What have you missed out on and what do you expect in forward deliveries to limit this problem?

Jill Kronenberg: A lot of challenges have affected girls more than other areas. The increase in AURs driven by our good, better, and best mix has affected big girls more than the other divisions. Our lack of focus and depth has also affected big girls more dramatically than the rest. Again, compounding this with our decision to ship some of our floor set and sale dates out and again, the later back-to-school in past we shipped as well.

Margaret Whitfield (Sterne Agee): How about the holiday delivery?

Jill Kronenberg: For holiday our dressy collection is based on plaids. You will see it in our windows in October. You will see it in the front of out store in the first shop it is all about plaids. We feel we have a much bigger statement in plaid for the holiday. In addition, we have a much bigger penetration of dresses as well for holiday, which we feel good about. As we move into the back half of the year and into holiday in particular, we are well positioned in gift-giving items, which we feel becomes a more important piece of the business at the time of year.

Margaret Whitfield (Sterne Agee): What might you be offering for gift items this year that differ from the past?

Jill Kronenberg: Not at this point.

Dorothy Lakner (CIBC World Markets): Could you expand on the size of the new Children''s Place Stores that you are opening this year?

Neal Goldberg: The size of The Children''s Place Stores is 5500 the cost of addition of shoes to new stores. The remodel is projected to take approximately 12 weeks.

Dorothy Lakner (CIBC World Markets): Are there any new Disney Stores openings?

Ezra Dabah: We are opening new Disney Stores, primarily outlet stores this year.

Dorothy Lakner (CIBC World Markets): When the remodels take 12 weeks, what happens with employees in those stores?

Tara Poseley: We have plans for all of our cast members during those times. Some of them are redeployed to other stores in the area. You redeploy them as our full-time employees. We want to make sure we are retaining them. We have got great tenure in our cost members out there, so it is important for us to not lose them during that 12-week period when we are going either through a remodel and with a new store you do not have that issue, because if it is a brand new store in the market then ramp up accordingly.

Dorothy Lakner (CIBC World Markets): What is your projected CapEx for 2008?

Susan Riley: We will be guiding CapEx for 2008 on in the fourth quarter call.

Jim Rice (Avenue Capital): Why are you not firing those executives that were responsible for potential breaches?

Ezra Dabah: It is important to understand the issues before making any judgments. As the Board reviews it and makes its decision and it was not big a material and it is expected that these executives will stay on.

John Morris (Wachovia): In the agreement with Disney, why has the company agreed to the original calendar timing of those remodels in June?

Ezra Dabah: As it relates to obligation in the June agreement, all of us, including the team in charge felt that the dates that we obligate ourselves to are executable. Unfortunately, we encountered certain things behind our control. An example would be a tenant did not vacate the store that we needed to remodel, and that is on one end. Other end, we just wanted to make sure both us and Disney is the quality of the stores that we do is absolutely 100% and perfect. We both felt that taking more time and we leaving some of those date obligations will be best suited for both of us. That is why we are working together to extend a few days.

John Morris (Wachovia): Is the non-executive officer, who is in violation, still at the company?

Susan Riley: Yes. That person still is at the company.

John Morris (Wachovia): Why is the Disney agreement connected to the inability to make the filings?