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| Customers      and Marketplace                             | 4      |
|------------------------------------------------------------|--------|
| Associates                                                 | 4      |
| Our      Shareholders                                      | 4      |
| Our      Communities and the Public                        | 5      |
| Vendors      and Suppliers                                 | 5      |
| Our      Responsibilities as Charming Shoppes Associates   | 5      |
| The      Business Conduct Committee                        |   |
| When      and Where to Get Help or Report an Ethical Issue |   |
| Waivers      of these Standards                            |   |
| Charming      Shoppes’ Policy Regarding Retaliation  |   |
| Frequently      Asked Questions                            |   |
| Our      Standards                                         | 8      |
| Accuracy      of Books, Records and Financial Statements   | 8      |
| Anti-boycott      and Import Laws                          | 9      |
| Antitrust      and Competition Laws                        | 9      |
| Associate      Privacy                                     | 9      |
| Bribery      and Corruption                                | 10     |
| Competitive      Practices                                 | 10     |
| Confidential      Information                              | 11     |
| Conflicts      of Interest                                 | 12     |
| Customer      Privacy                                      | 13     |
| Drug      and Alcohol Use                                  | 14     |
| Environment                                                | 14     |
| Equal      Treatment and Respect                           | 15     |
| Fair      Labor Practices                                  | 15     |
| Fraudulent      Behavior                                   | 16     |
| Gifts      and Entertainment                               | 16     |

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| Health      and Safety                      | 18 |
|---------------------------------------------|----|
| Insider      Trading                        | 18 |
| Loans                                       | 18 |
| Marketing      Integrity                    | 19 |
| Political      Contributions and Activities | 19 |
| Public      and Media Communications        | 19 |
| Records      Retention                      | 20 |
| Use      of Company Assets                  | 20 |

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| Conduct      Committee:    |
|----------------------------|
| Tony      DeSabato (Chair) | Eric      Specter |
| 215      638 6636          | 215      638 6740 |
| tony.desabato@charming.com | eric.specter@charming.com |
|                       |   |
| Colin      Stern           |   |
| 215      638 6898          |   |
| colin.stern@charming.com   |   |

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|   | Q:      I’m an hourly      associate and my supervisor has asked me to help out with some extra work      off the clock. What should Ido? |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: The law      requires that the Company keep accurate time records. Hourly associates      are not permitted to work off the clock, and it is inappropriate for a      supervisor to make this request. Politely inform your supervisor that you      would be happy to do the work, but that you cannot submit an inaccurate      time record by not recording your hours. You should then report the      incident through the Business EthicsHotline. |
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|   | Q: A friend of      mine asked me to give her the names and phone numbers of co-workers so she      can send them a solicitation for a charity for which she is helping raise      money. Can I do this? |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: No. You      would have to obtain permission from each co-worker to disclose their      information.  You should not do that in that it would put your      co-worker in an awkward position.  When you obtain personal      information about a co-worker, such as address, telephone number, social      security number, etc, that information is not to be disclosed to      others.  Of course, you can use the information in performing      your duties. |
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|   | Q: An      associate recently asked me if another associate who works with us is      HIV-positive.  I know that she is. What should I    do? |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: Nothing.      Her HIV status is private employee medical information. Federal and state      laws protect the privacy of such information. Because HIV is not      contagious through casual contact it is not a health risk for other      associates. You need to respect this associate’s privacy by not sharing      this information with anyone else. |
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|   | Q: A      government official I am working with on a matter for the Company pulls me      aside and says that in his area things go faster and easier if his boss is      taken care of and that the going rate      for walking these things through is about $1000 in cash. I need to get the      job done quickly, what do Ido? |
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|   | A: Tell the      official that you work for a public company and cannot make any payments      to individuals in cash and report the incident to the Executive Vice      President of Business Ethics. |
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|   | A: Comparison      shopping is essential and permissible in our business. However,      comparative shopping must be performed legally and ethically with      sensitivity and respect for the competitor’s operations. Comparative      shopping should not involve any attempt to receive or receipt of      confidential non-public information and should never be disruptive to the      competitors operation. When in a competitor’s store, do not enter any area      of the store that is not open and accessible to the public. Do not ask for      or accept documents, including price lists, which are not generally      available to the public. |
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|   | Q: During an      interview with a candidate who is or was employed by a competitor can I      ask them information about the competitor’s  business? |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: Subject to      the stated restrictions regarding obtaining material, non-public,      confidential information, it is appropriate during the interview to      acquire information about the candidates’ business accomplishments and the      businesses in which they work or have worked, so as to assess the      candidate’s qualifications and how well they would fit in with our      organization. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | A: In social      settings it is common to have discussions about work. However, you should      never reveal any confidential information that has not been publicly      disclosed by the Company.  It is always permissible to refer      back to recent public disclosures of sales information, profit      information, or any other information that is set out in an official      Company press release. This information is readily accessible on the      Charming Shoppes website on theInternet. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Q: I saw a      message posted on the internet on the Charming Shoppes message Board that      has incorrect information. Can I post a message clarifying    it? |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: No. No      associate is authorized or permitted to post messages on such a public      communication. The Company has a clear policy on the public disclosure of      information. See “Public and Media  Communications.” |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Q: I was just      hired, but my previous employer called and asked if I could work part-time      a few evenings a week and one day on the weekend. The business is a retail      clothing store but is not a direct competitor. Can I take the part-time      work? |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: It might be      okay for you to take this job, but you should talk to Human Resources or      the Executive Vice President of Business Ethics first, since this is a      potential conflict of interest. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: It depends      on the size of the investment. You should talk to the Executive Vice      President of Business Ethics or another member of the Business Conduct      Committee to determine whether or not you will need to sell the      stock. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: No. This is      not a good idea because it could result in favoritism, or at least the      appearance of favoritism. You should ask your niece to apply to another      store. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Q: My spouse      has his own video production company.  I’m about to develop a      new video for Charming Shoppes. Can I use my spouse’s    company? |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: Probably      not. This situation raises serious conflict of interest issues. The      Company’s dealings with vendors must be totally at arm’s length. Whether      contracting this work out to your spouse’s company is appropriate will      depend on a review of all the facts and circum stances. If an issue like      this arises, please contact the Executive Vice President of Business      Ethics for clarification. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Q: My cousin      is starting a business that does not compete with the Company and has      asked me to keep track of the names, address, and phone numbers of some of      our customers, so she can send them information on her business. Is it      okay to do this? |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: No.      Customer information is confidential and is not to be used for any purpose      other than authorized business purposes. Names, addresses, telephone      numbers, social security numbers, credit card numbers, credit ratings, etc      that come to your attention are not to be used for personal use or for any      third party use not authorized by theCompany. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: Talk to      your manager about your concerns.  This person’s drinking could      be jeopardizing the safety of the team and needs to be      addressed. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Q: I know that      one of my associates is using illegal drugs on the job. I want to talk to      her instead of telling our manager. Is this the right thing to do? |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: You are      doing the right thing by helping your associate, but drug use on the job      is of serious concern to the Company.  It involves the presence      of illegal substances on Company property, other legal issues, safety      issues, and customer relations issues. You should bring the matter to the      attention of your manager, Human Resources, or the Executive Vice      President of Business Ethics. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Q: One of our      vendors is always asking me out on dates. No matter how many times I tell      him I’m not interested, he keeps asking me. I told my boss about this      behavior and she told me to just ignore him. His behavior really bothers      me. What should I do? |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: What this      vendor is doing may be sexual harassment since you’ve asked him to stop      asking you out, and he hasn’t.  Regardless, the behavior is not      appropriate. You need to discuss the situation with Human Resources or the      Executive Vice President of BusinessEthics. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Q: I think one      of our vendors is not being honest with us about their use of a particular      subcontractor because this subcontractor doesn’t comply with fair labor      laws.  What should I do? |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: You should      contact the Executive Vice President of Business Ethics so that your      suspicions can be investigated, and an inspection can be conducted through      the fair labor compliance program, if  appropriate. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Q: I was in a      vendor’s office and admired one of their products.  The vendor      offered me a sample. When I told them I couldn’t accept it, they offered      to give it to me at a special discount. Can I do this, on this      basis? |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: Probably      not. You cannot accept a special discount from a vendor based on your      status as an associate. However, this does not prohibit you from buying      merchandise from a vendor on the same basis that is offered generally to      the public. Also, from time to time, the Company may enter into      relationships with vendors and arrange for special discounts for any of      our associates. Purchases from vendors under terms arranged by the Company      are permissible. If you have a question about a purchase from a vendor,      please contact the Executive Vice President of Business      Ethics. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Q: I’ve been      working very closely with a vendor whose product is selling so well that      I’ve placed a large re-order. They recently sent me a handbag from their      line with a thank you note. Can I acceptit? |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: No, you      cannot accept the handbag. It should be returned to the giver with a note      explaining our policy and should be reported to the Executive Vice      President of Business Ethics. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Q: In      gratitude for business we’ve given them over the years, a supplier wants      to host a picnic for the people in my department during business hours.      Can I accept? |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: Maybe. You      should contact the Executive Vice President of Business Ethics. to discuss      the situation. Depending on the circumstance it may or may not be      appropriate to participate. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Q: Recently I      admired a garment that was in a batch of samples a vendor brought me, and      the vendor’s representative offered to give it to me for free. Can I      accept it? |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: No.      Accepting samples from a vendor is not permitted under our      policy.  For guidance on purchases from vendors, see “Purchases      from Vendors” above. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Q: Someone is      always propping open a fire door because it gets hot in that part of the      building. How can I deal with thissituation? |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: Propping a      fire door open is a safety risk that should be reported immediately to      your manager. If this is an ongoing problem that isn’t being addressed by      your manager, you should speak with his or her manager, or the Executive      Vice President of Business Ethics. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Q: The other      day an associate was injured moving boxes. The employee hasn’t reported      the injury, because she doesn’t feel it’s that serious, and she doesn’t      want to jeopardize the team’s safety record.  What should I      do? |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: You have a      responsibility to see that this issue is dealt with.  You should      encourage your associate to report the injury to your      manager.  If she fails to do so, you should speak to your      manager instead. By doing this, you are protecting your associate’s health      and preventing further injury. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Q: A vendor      gave me a “hot tip” about a merger he knows is being announced at his      company in a few weeks. I’m thinking about buying some stock. Can I do      this? |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: No. If you      buy stock based on the confidential merger information, you would be      acting on material, non-public information and violating insider trading      laws. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Q: I was      recently elected to city council in the community where I live. Charming      Shoppes plans to open some stores there and will need to apply for      renovation permits through the council. What should I  do? |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: You should      inform the Executive Vice President of Business Ethics and the council, of      the potential conflict of interest, and obtain direction from the      Executive Vice President of BusinessEthics. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Q: I’m working      on a political campaign for a candidate running for local office. I didn’t      have time to run off flyers for an upcoming meeting. I only need a hundred      copies and it will only take a few minutes. Can I do the copying at      work? |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Q: I recently      received a phone call from someone outside the Company asking about what      we expect the hot trends to be next season. I know what we plan to feature      in a big way next season, but am not sure if I should talk to this person.      What should I do? |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | A: Because the      question relates to non-public future plans, the caller is asking you to      discuss confidential information, which you should not do. You should tell      the caller that you will take down his or her contact information and      provide it to the appropriate channel for a response. You should then      contact Public Relations (Catherine Lippincott) or Investor Relations      (Gayle Coolick) and provide them with the  information. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Q: I want to      post a message on the Company message board on the internet telling      everyone how great the Company is. Can I do  this? |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: No. All      public statements about the Company must go through approved channels. No      associate is authorized or permitted to make public statements on behalf      of or about the Company without prior approval. If you have a question      regarding what you can say publicly or whether a communication is a public      communication contact the Executive Vice President of Business      Ethics. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Q: As soon as      the school year starts, several associates start taking supplies from the      office to give to their children. How can I handle this      situation? |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: Tell your      associates that supplies are only for office use. Also ask your manager to      remind the whole team about the appropriate use of Company      property. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Q: The easiest      way for me to get hold of family members and close friends is through      e-mail. Can I give out my work e-mail address for this      purpose? |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A:      Yes.  However, the Company policy permits only incidental      use of Company e-mail for personalpurposes. |
|--------|------------------------------------------------------------------------------------------------------------------------------|

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|   | Q: I am a      store associate, and one of the other associates in my store is giving her      employee discount to her friends. I don’t think it’s my place to say      anything because I’m not her supervisor.  What should I      do? |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A: Misuse of      the associate discount is an abuse of Company assets. You have a      responsibility to tell your store manager about it or report what you have      seen to the Business Ethics Hotline  (800-350-0329). |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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