MIRA INFORM REPORT

Report Date :

13.11.2007

IDENTIFICATION DETAILS

Name :	ZALE CORPORATION
Registered Office :	901, W Walnut Hill LN, Irving, TX 75038 – 1001
Country :	United States
Date of Incorporation :	02 / 14 / 1886
Com. Reg. No.:	852710803
Legal Form :	Institutors
Line of Business :	Jewelry Stores

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow by 5 days
Litigation :	Clear

Company Information

ZALE CORP
901 W WALNUT HILL LN
IRVING, TX 75038-1001
(972) 580-4000

Business Identification Number:

852710803

File Established:

01/1984

Date of Incorporation:

02/14/1886

SIC code:

JEWELRY STORES - 5944

Executive Summary

  Intelliscore for ZALE CORP

15.46

0-32.47

32.48-58.63

58.64-70.19

70.2-77.71

77.72-100

0

100

High risk

Low risk

HIGH RISK
8% of businesses indicate a higher risk of becoming seriously delinquent than this business

Key score factors:

	NUMBER OF DELINQUENT OR DEROGATORY ACCOUNTS
	NUMBER OF RECENT COLLECTION ACCOUNTS
	BALANCE ON HIGH CREDIT
	NUMBER OF DEROGATORY PUBLIC RECORD ACCOUNTS

  Current DBT range compared to all industries*

5 DBT
($282,200 Balance)

0-15

16-50

51+

80%

11%

9%

% of US businesses falling within DBT range

DBT Norms:
All industries: 6 DBT        Same industry: 7 DBT

Legal Filings and Collections

Bankruptcy filings:

0

Tax lien filings: details (FILED 03/02-06/05)

2

Judgment filings: details (FILED 09/02-04/07)

2

Total collections: details (PLACED 02/03-07/07)

10

Sum of legal filings:

$3,392

UCC filings: details (FILED 06/99-10/07)

329

Cautionary UCC filings present?

Yes**

Trade Information

Monthly average DBT:

20

Highest DBT previous 6 months:

32

Highest DBT previous 5 quarters:

32

Total continuous trades:

46

Current continuous trade balance:

$282,200

Trade balance of all trades (88):

$603,700

Average balance previous 5 quarters:

$225,420

Highest credit amount extended: details

$104,200

6 month balance range:

$176,100 - $288,100

* Days Beyond Terms (DBT) is a dollar weighted calculation of the average number of days that payment was made beyond the invoice due date based on trades on file that have been updated in the previous 3 months.

** Cautionary UCC Filings include one or more of the following collateral: Accounts, Accounts Receivable, Contracts, Hereafter Acquired Inventory, Leases, Notes Receivable or Proceeds.

  7 month DBT trends

90+

60

30

18

24

28

32

9

9

5

0

Apr07

May07

Jun07

Jul07

Aug07

Sep07

Current

  Quarterly DBT trends (previous 5 quarters)

90+

60

30

10

6

14

24

17

0

3Q06

4Q06

1Q07

2Q07

3Q07

Performance Analysis

Predicted DBT for 01/09/2008: 5 DBT

Payment Trend Indication:
Are Improving Toward Term Requirements

Industry payment comparison:
Has paid slower than 75% of similar firms

Most Frequent Industry Purchasing Terms:
NET 30, CONTRCT, and CREDIT

Legal Filings and Collections

Collections
Date Placed	Status	Original Balance	Outstanding Balance	Date Closed	Agency	Agency Phone
07/2007	Open Account	$144	$144		RECEIVABLE MANAGEMENT SERVICES	(484) 242-4000
11/2006	Open Account	$80	$80		RECEIVABLES PERFORMA	(425) 984-2252
10/2006	Open Account	$56	$56		RECEIVABLE MANAGEMENT SERVICES	(000) 000-0000
10/2006	Open Account	$101	$101		RECEIVABLE MANAGEMENT SERVICES	(000) 000-0000
07/2006	Open Account	$58	$58		RECEIVABLE MANAGEMENT SERVICES	(000) 000-0000
01/2006	Closed, Uncollected	$127	$127	01/2006	RECEIVABLE MANAGEMENT SERVICES	(000) 000-0000
12/2005	Paid in Full	$143	$0	10/2006	A.G. ADJUSTMENTS LTD	(516) 752-3000
09/2003	Closed, Uncollected	$724	$724	04/2004	A.G. ADJUSTMENTS LTD	(516) 752-3000
09/2003	Paid in Full	$0	Undisclosed	09/2003	FIDELITY NATIONAL CREDIT SERVI	(800) 648-9341
02/2003	Open Account	$10,533	$10,533		CAINE & WEINER CO.	(818) 908-2121

Tax Liens
File Date	Filing Type	Status	Amount	Filing Number	Jurisdiction
06/28/2005	State Tax Lien	Filed	$1,686	X0411641	ALBANY COUNTY CLERK
11/21/2002	State Tax Lien	Released	$751	B81P232009	HINDS COUNTY CIRCUIT
03/01/2002	State Tax Lien	Filed	$751	B81P232009	HINDS COUNTY CIRCUIT

Judgments
File Date	Filing Type	Status	Amount	Plaintiff	Filing Number	Jurisdiction
04/16/2007	Judgment	Filed	$680	TAWNY NANCE	07SC000925	MARATHON COUNTY CIRC
05/01/2003	Judgment	Satisfied	$275	NYC DEPARTMENT OF FINANCE	001600290	NEW YORK COUNTY REG
09/09/2002	Judgment	Filed	$275	NYC DEPARTMENT OF FINANCE	001600290	NEW YORK COUNTY REG

Trade Payment Information

Trade Payment Experiences (Trade Lines With an (*) after date are newly reported)						Account Status Days Beyond Terms
Business Category	Date Reported	Last Sale	Payment Terms	Recent High Credit	Balance	Cur	1-30	31-60	61-90	91+	Comments
ADVERTISNG	10/2007		NET 30		$0						CUST 4 YR
ADVERTISNG	11/2007	11/2007			$0						CUST 4 YR
+AIR TRANS	09/2007	09/2007		$34,700	$22,100	100%					CUST 10 YR
=BUREAU	09/2007	09/2007	VARIED	$97,300	$16,800	1%	99%				CUST 3 YR
-CHEMICALS	10/2007		NET 30	$100	$100		100%
-CHEMICALS	10/2007		NET 30	$1,800	$1,700		34%	18%	48%
-CHEMICALS	10/2007		NET 30	$100	<$100		95%	5%
-CHEMICALS	10/2007		NET 30	$100	<$100		100%
-CHEMICALS	07/2007		NET 30	$100	$100		100%
-CHEMICALS	09/2007		NET 30	<$100	<$100		50%	50%
-CHEMICALS	07/2007		NET 30	$100	<$100		100%
-ELEC SUPLR	10/2007		NET30	$5,700	$1,000				100%
FACTOR	09/2007		VARIED	$19,500	$0
FACTOR	10/2007	04/2004	NET 30		$0
FACTOR	10/2007	09/2005	NET 30	$38,900	$0
FACTOR	11/2007		NET 30	<$100	$0						CUST 1 YR
FINCL SVCS	11/2007	03/2002	NET 30	$300	$0
=FINCL SVCS	10/2007	09/2007	VARIED	$51,800	$12,700	99%	1%				CUST 7 YR
+FOOD DISTR	09/2007	09/2007	VARIED	$50,500	$19,600	100%
+HEATNG&A/C	10/2007		NET 30	$11,400	$11,400	100%
INDUS MACH	09/2007		NET30		$0
+INDUS SUPL	08/2007*		VARIED	$3,100	$3,100	50%	50%
INDUS SUPL	09/2007	03/2006	NET 30	$200	$0						CUST 11 YR
+INDUS SUPL	10/2007	09/2007	NET 30	$3,800	$500	100%					CUST 13 YR
INDUS SUPL	10/2007	04/2004	COD	$100	$0						CUST 11 YR
MACHINERY	10/2007	10/2007	NET 30		$0
MED SUPPLY	10/2007		VARIED	$2,000	$0
NEWSPAPERS	10/2007	05/2007	NET 30	$2,000	$0
NEWSPAPERS	09/2007	11/2005	VARIED	$4,300	$0
PACKAGING	10/2007		NET 30	$6,400	$0						CUST 7 YR
PERSNLSVCS	10/2007	11/2005	ROI	$28,200	$0
PLUMBING	08/2007	08/2001	NET30		$0						CUST 11 YR
PLUMBING	09/2007	08/2001	NET30		$0
PRNTG&PUBL	10/2007		VARIED	$200	$0
PRNTG&PUBL	10/2007		VARIED		$0
+RENTALS	10/2007	09/2007	NET 30	$4,500	$2,600	100%
+RESTR SUPL	08/2007*		NET 30	$1,500	$1,500		100%				CUST 5 YR
SAFTY PROD	09/2007		NET 30		$0
+TELECOM	10/2007		NET 30	$37,800	$21,100	100%
TEXTILES	10/2007	09/2007	COD	$300	$0						CUST 3 YR
=TRNS EQUIP	10/2007		VARIED	$104,200	$104,200	85%	15%				CUST 5 YR
+TRUCK DLR	10/2007		CONTRCT	$49,800	$49,800	80%	19%	1%
+UTILITY	09/2007		VARIED	$300	$300	100%
+UTILITY	09/2007		VARIED	$800	$800	100%
+UTILITY	09/2007		NET	$200	<$100	100%					PROMPT
-UTILITY	09/2007		VARIED	$2,000	$2,000	21%		31%		48%
-UTILITY	07/2007		NET 15	$14,900	$14,900	60%	15%	6%	4%	15%
WAREHOUSE	11/2007	07/2005	VARIED		$0						PROMPT

Trade Payment Totals

Trade Payment Experiences				Account Status Days Beyond Terms
Type	Lines Reported	Recent High Credit	Balance	Cur	1-30	31-60	61-90	91+	Comments
Continuously Reported	46	$574,600	$282,200	81%	16%	1%	1%	1%	DBT: 5
Newly Reported	2	$4,600	$4,600	34%	66%				DBT: 10
Trade Lines Totals	48	$579,200	$286,800	80%	17%	1%	1%	1%	DBT: 5

Additional Payment Experiences

Trade Payment Experiences (Trade Lines With an (*) after date are newly reported)						Account Status Days Beyond Terms
Business Category	Date Reported	Last Sale	Payment Terms	Recent High Credit	Balance	Cur	1-30	31-60	61-90	91+	Comments
=AIR TRANS	11/2006		NET 30	$125,500	$125,500	56%	22%	8%	11%	3%	COLLECTION
-BUS SERVCS	06/2007		NET 7	$134,900	$200					100%
CHEMICALS	07/2005		NET 30		$0
CHEMICALS	06/2007		NET 30	$100	$0
COMPUTERS	05/2005		CREDIT		$0						CUST 37 YR
COMPUTERS	06/2006	07/2003			$0
ELEC DISTR	12/2004		NET 30		$0
+ELEC SUPLR	04/2005		VARIED	$23,000	$22,500	68%	26%	5%		1%
FACTOR	11/2006	11/2003	NET 30		$0
FACTOR	01/2005	10/2000	NET 30		$0						CUST 5 YR
+FACTOR	05/2005	05/2005	VARIED	$11,000	$3,900	100%
FACTOR	05/2006		NET 30		$0
FACTOR	01/2005	02/2004	NET 60		$0
FREIGHT	06/2007		VARIED	$200	$0
+FREIGHT	05/2007	11/2006	VARIED	$82,000	$300	100%
=GENERAL	08/2005		NET 30	$6,500	$4,400	100%
GENERAL	02/2005	11/1998	NET 30		$0						CUST 15 YR
GIFTWARE	03/2007	01/2006	NET 30		$0						CUST 2 YR
+GIFTWARE	09/2005	05/2005	NET 30	$2,000	$200	100%
GIFTWARE	01/2006		NET 30		$0						CUST 17 YR
+GIFTWARE	01/2005		CONTRCT	$1,200	$1,200	100%
-HARDWARE	08/2005	06/2005	VARIED	$1,300	$100			100%
HOUSEWARES	04/2006	12/2004	VARIED	$300	$0
+INDUS MACH	06/2007		NET 30	$2,900	$1,100		100%
INDUS SUPL	05/2005		COD		$0						CUST 5 YR
+LEASING	08/2006		NET 30	$100	<$100	100%					CUST 1 YR
LEASING	09/2007		CONTRCT	$49,400	$0
MANUFCTRNG	04/2005	07/2003	NET 30		$0						CUST 3 YR
MISC MANUF	09/2006	08/2006	VARIED	$16,900	$0
=MOTR TRANS	12/2005	11/2005	VARIED	$22,000	$1,800		100%
-OFFC EQUIP	06/2006	06/2006	NET 30	$63,100	$200	18%	36%	4%		42%	CUST 2 YR
=OFFC SUPPL	06/2007	06/2007	NET	+$100,000	$150,300	56%	38%	5%	1%		CUST 1 YR
=PETROLEUM	03/2007	02/2007	VARIED	$1,900	$800	54%	46%				CUST 10 YR
PLUMBING	11/2005		NET30		$0						CUST 8 YR
+PROP MGMT	10/2006		NET 30	$6,600	$3,200	100%
TELECOM	05/2006		NET 30	<$100	$0						CUST 14 YR
+TELECOM	05/2007	05/2007	NET 30	$10,800	<$100	94%		6%			PAYS-SLOW
+TELECOM	08/2006		NET 30	<$100	<$100	100%
TEMP HELP	07/2005		VARIED		$0						CUST 7 YR
+UTILITY	05/2007	05/2007	NET 15	$1,200	$900	100%					SATSFTRY

Monthly Payment Trends

Payment Trends Analysis
JEWELRY STORES INDUSTRY SIC: 5944

Account Status
Days Beyond Terms

Date Reported

Industry

Cur

DBT

Business
DBT

Balance

Cur

1-30

31-60

61-90

91+

CURRENT

N/A

N/A

5

$282,200

81%

16%

1%

1%

1%

SEP07

82%

7

9

$246,200

73%

20%

1%

1%

5%

AUG07

82%

7

9

$176,100

74%

14%

8%

2%

2%

JUL07

84%

6

32

$281,200

53%

12%

5%

12%

18%

JUN07

85%

6

28

$257,600

57%

10%

13%

1%

19%

MAY07

85%

5

24

$256,900

52%

26%

2%

7%

13%

APR07

85%

5

18

$282,500

66%

15%

7%

1%

11%

Quarterly Payment Trends

Payment History - Quarterly Averages				Account Status Days Beyond Terms
Quarter	Months	DBT	Balance	Cur	1-30	31-60	61-90	91+
Q3 - 07	JUL-SEP	17	$231,800	66%	16%	4%	5%	9%
Q2 - 07	APR-JUN	24	$258,200	58%	17%	7%	3%	15%
Q1 - 07	JAN-MAR	14	$290,000	54%	30%	8%	7%	1%
Q4 - 06	OCT-DEC	6	$166,700	66%	31%	2%	1%
Q3 - 06	JUL-SEP	10	$180,400	69%	20%	6%	3%	2%

Inquiries

Summary of Inquiries
Business Category	NOV07	OCT07	SEP07	AUG07	JUL07	JUN07	MAY07	APR07	MAR07
CRED CARD	2
Totals	2

UCC Profile

The number of UCC Filings is summarized with the 10 most recent listed below.

A full UCC detail report is available within 72 hours by entering UCC-852710803-C032257074
into the Business ID Number field on the BizApps order page.

UCC Summary		Filings
Date Range	Year	Cautionary UCCs^**	Total Filed	Released/ Term'd	Cont	Amended/ Assigned
JUL - PRESENT	2007		18	1
JAN - JUN	2007	6	35	1
JUL - DEC	2006	4	36	1
JAN - JUN	2006	7	33		1
JUL - DEC	2005	10	22		1	1
PRIOR TO JUL	2005	51	185	2	5	81
Total		78	329	5	7	82

** Cautionary UCC Filings include one or more of the following collateral: Accounts, Accounts Receivable, Contracts, Hereafter Acquired Inventory, Leases, Notes Receivable or Proceeds.

  UCC Filings

UCC FILED Date: 10/28/2007

Filing Number: 0700367470

Jurisdiction: SEC OF STATE TEXAS

Secured Party: CONTINENTAL JEWELRY (USA) INC. NY NEW YORK 10001 115 WEST 30

Collateral: 

UCC FILED Date: 10/28/2007

Filing Number: 0700367471

Jurisdiction: SEC OF STATE TEXAS

Secured Party: CONTINENTAL JEWELRY (USA) INC. NY NEW YORK 10001 115 WEST 30

Collateral: 

UCC FILED Date: 10/28/2007

Filing Number: 0700367472

Jurisdiction: SEC OF STATE TEXAS

Secured Party: CONTINENTAL JEWELRY (USA) INC. NY NEW YORK 10001 115 WEST 30

Collateral: 

UCC FILED Date: 10/28/2007

Filing Number: 0700367473

Jurisdiction: SEC OF STATE TEXAS

Secured Party: CONTINENTAL JEWELRY (USA) INC. NY NEW YORK 10001 115 WEST 30

Collateral: 

UCC FILED Date: 10/28/2007

Filing Number: 0700367474

Jurisdiction: SEC OF STATE TEXAS

Secured Party: CONTINENTAL JEWELRY (USA) INC. NY NEW YORK 10001 115 WEST 30

Collateral: 

UCC FILED Date: 10/28/2007

Filing Number: 0700367475

Jurisdiction: SEC OF STATE TEXAS

Secured Party: CONTINENTAL JEWELRY (USA) INC. NY NEW YORK 10001 115 WEST 30

Collateral: 

UCC FILED Date: 10/28/2007

Filing Number: 0700367476

Jurisdiction: SEC OF STATE TEXAS

Secured Party: CONTINENTAL JEWELRY (USA) INC NY NEW YORK 10001 115 WEST 30T

Collateral: 

UCC FILED Date: 10/28/2007

Filing Number: 0700367477

Jurisdiction: SEC OF STATE TEXAS

Secured Party: CONTINENTAL JEWELRY (USA) INC. NY NEW YORK 10001 115 WEST 30

Collateral: 

UCC FILED Date: 10/28/2007

Filing Number: 0700367478

Jurisdiction: SEC OF STATE TEXAS

Secured Party: CONTINENTAL JEWELRY (USA) INC. NY NEW YORK 10001 115 WEST 30

Collateral: 

UCC FILED Date: 10/28/2007

Filing Number: 0700367479

Jurisdiction: SEC OF STATE TEXAS

Secured Party: CONTINENTAL JEWELRY (USA) INC. NY NEW YORK 10001 115 WEST 30

Collateral: 

Commercial Finance Relationships

  Leasing Relationships

Leasing Company: CANON FINANCIAL SERVICES

Address: BURLINGTON, NJ 08016- 0

Phone: (800) 220-0200

Origination Date: 07/2007

Original Lease Amount: $8,172

Lease Product Type: EQUIPMENT

Lease Term: 36 Months

Current Due Date: 11/10/2007

Current Scheduled Amount Due: $227

Amount of Overdue Payments: $681

Remaining Balance: $8,172

Late Payments: 0

Leasing Company: CANON FINANCIAL SERVICES

Address: BURLINGTON, NJ 08016- 0

Phone: (800) 220-0200

Origination Date: 08/2007

Original Lease Amount: $123,552

Lease Product Type: EQUIPMENT

Lease Term: 48 Months

Current Due Date: 11/10/2007

Current Scheduled Amount Due: $2,574

Amount of Overdue Payments: $5,148

Remaining Balance: $123,552

Late Payments: 0

Company Background Information

  Corporate Registration

THE FOLLOWING INFORMATION WAS PROVIDED BY THE STATE OF MONTANA

State of Origin: MT

Date of Incorporation: 02/14/1886

Current Status: Active - IN GOOD STANDING

Business Type: Institutions - Unknown

Charter Number: F017902

Agent: PRENTICE-HALL CORPORATION SYSTEM

Agent Address: 26 W 6TH AVE HELENA, MT

  Additional Company Background Information

Operating Information

Business Type: Institutions

Primary SIC Code: JEWELRY STORES - 5944

Secondary SIC Code: METAL STAMPINGS, NEC - 3469

Additional SIC Code: 8211 - 9100

Number of Employees: 17,000

Sales: $2,304,000,000

Standard and Poor's Information

Balance sheet for fiscal year ending: DEC 31 Data current through: 03/20/2007 ($ Thousands)
		2006	2005	2004
	Cash and equivalent	42,594	55,446	63,124
	Receivables - net	0	0	0
	Inventory	903,294	853,580	826,824
	Other current assets	103,356	64,042	63,956
	Total current assets	1,049,244	973,068	953,904
	Fixed assets - net	283,721	282,033	266,688
	Investments	21,948	23,505	24,281
	Other assets	107,655	102,294	97,211
	Total assets	1,462,568	1,380,900	1,342,084
	Debt due in 1 year	0	0	0
	Notes payable	0	0	0
	Accounts payable	174,581	133,300	138,800
	Taxes payable	26,549	49,116	31,529
	Other current liabilities	201,999	199,921	200,687
	Total current liabilities	403,129	382,337	371,016
	Long term debt	202,813	129,800	197,500
	Other liabilities	55,377	51,175	47,454
	Net worth	801,249	817,588	726,114
	Total liab. and net worth	1,462,568	1,380,900	1,342,084

Operating statement for fiscal year ending: DEC 31 Data current through: 03/20/2007 ($ Thousands)
		2006	2005	2004
	Net sales	2,438,977	2,383,066	2,304,440
	Cost of goods sold	1,174,035	1,163,310	1,128,909
	Gross income on sales	1,264,942	1,219,756	1,175,531
	Expenses	1,194,992	1,049,678	1,006,705
	Pre-tax income	69,950	170,078	168,826
	Taxes	16,328	63,303	62,353
	After tax income	53,622	106,775	106,473
	Extraord. inc. & discont'd ops	0	0	0
	Net income	53,622	106,775	106,473

Critical data and ratios for fiscal year ending: DEC 31 Data current through: 03/20/2007 ($ Thousands)
		2006	2005	2004
	Tangible net worth	704,910	726,814	640,531
	Net working capital	646,115	590,731	582,888
	Current ratio (times)	2.5	2.5	0.0
	% Total debt to tang. n.w.	77.5	96.1	0.0
	% Current debt to tang. n.w.	52.6	57.9	0.0
	% After tax inc. to tang. n.w.	14.6	16.6	0.0
	% After tax inc. to net sales	4.4	4.6	0.0
	Net sales to inventory (times)	2.7	2.7	0.0
	CGS to inventory (times)	267.8	267.3	0.0
	Avg. days sales outstanding (days)	0.0	0.0	0.0

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions