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| A Message from Charming Shoppes                                  | 1  |
|------------------------------------------------------------------|----|
| Our Mission                                                      | 3  |
| Our Ethical Commitment                                           | 3  |
| Our Standards. Our Commitments. Our Stakeholders.                | 3  |
| 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                                   | 5  |
| When and Where to Get Help or Report an Ethical Issue            | 6  |
| Waivers of these Standards                                       | 7  |
| Charming Shoppes’ Policy Regarding Retaliation             | 7  |
| Frequently Asked Questions                                       | 7  |
| Our Standards                                                    | 8  |
| Accuracy of Books, Records and Financial Statements              | 8  |
| Anti-boycott and Import Laws                                     | 9  |
| Antitrust and Competition Laws                                   | 9  |
| Associate Privacy                                                | 10 |
| Bribery and Corruption                                           | 10 |
| Competitive Practices                                            | 11 |
| Confidential Information                                         | 11 |
| Conflicts of Interest                                            | 13 |
| Customer Privacy                                                 | 14 |
| Drug and Alcohol Use                                             | 15 |
| Environment                                                      | 15 |
| Equal Treatment and Respect                                      | 16 |
| Fair Labor Practices                                             | 16 |
| Fraudulent Behavior                                              | 17 |
| Gifts and Entertainment                                          | 17 |
| Health and Safety                                                | 19 |
| Insider Trading                                                  | 19 |
| Loans                                                            | 20 |
| Marketing Integrity                                              | 20 |
| Political Contributions and Activities                           | 20 |
| Public and Media Communications                                  | 21 |
| Records Retention                                                | 21 |
| Use of Company Assets                                            | 22 |
| Certification of Commitment to the Standards of Business Conduct | 24 |

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| ● | Customers by celebrating and advocating for her and by acting in harmony with ethical customers relations principles, and with such honesty and respect for her to earn her trust, confidence, and loyalty; |
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|    |                                                                                                                                                                                                        |
| ● | Associates by ensuring that our environment fosters trust, teamwork, mutual respect, open and honest communication, and creative thinking;                                                                  |
|    |                                                                                                                                                                                                        |
| ● | Shareholders by taking the necessary steps to deliver our commitments to them and build long-term value;                                                                                                    |
|    |                                                                                                                                                                                                        |
| ● | Communities by acting as a committed corporate citizen and by supporting community initiatives that are significant to our customers; and                                                                   |
|    |                                                                                                                                                                                                        |
| ● | Vendors and Suppliers by creating a mutually advantageous businesslike partnership based on fairness, honesty and respect.                                                                                  |

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| Colin Stern (Chair)      | Eric Specter              |
|--------------------------|---------------------------|
| 215 638 6898             | 215 638 6740              |
| colin.stern@charming.com | eric.specter@charming.com |

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| ● | Someone in your reporting structure,                                                                                                                 |
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|    |                                                                                                                                                 |
| ● | A senior leader,                                                                                                                                     |
|    |                                                                                                                                                 |
| ● | Any member of the Business Conduct Committee (Colin Stern and Eric Specter),                                                                         |
|    |                                                                                                                                                 |
| ● | The Business Ethics Hotline (800-350-0329), or                                                                                                       |
|    |                                                                                                                                                 |
| ● | The Financial Compliance Hotline (800-227-4602) in the event of financial disclosure, accounting, internal accounting controls, or auditing matters. |

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| ● | Maintain a system of effective internal controls,                                                                                                                                                                                                                                                         |
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|    |                                                                                                                                                                                                                                                                                                      |
| ● | Maintain books and records that in reasonable detail completely, accurately and fairly reflect the Company’s transactions,                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                      |
| ● | Prohibit the unauthorized acquisition, use, or disposition of Company assets, and the establishment of any undisclosed or unrecorded funds or assets, false or misleading entries in the Company’s books and records; and                                                                           |
|    |                                                                                                                                                                                                                                                                                                      |
| ● | Maintain a system of internal controls and procedures that will provide reasonable assurances to management that material information about the Company is accumulated and communicated to management, including the Chairman, President and CEO and CFO, to allow timely decisions regarding disclosure. |

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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 I do? |
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|   | 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 Ethics Hotline. |
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| ● | Refusing or agreeing to refuse to do business with a country, it’s nationals or blacklisted companies for boycott-related purposes;        |
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|    |                                                                                                                                             |
| ● | Discriminating or agreeing to discriminate against individuals or companies on the basis of race, religion, sex, national origin or nationality; |
|    |                                                                                                                                             |
| ● | Paying, honoring, negotiating or implementing letters of credit containing prohibited boycott provisions.                                        |

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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? |
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|   | 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? |
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|   | 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 I do? |
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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 General Counsel. |
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|   | Q: | Is comparison shopping permitted? |
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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? |
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|   | 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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|   | Q: | A friend of mine has asked me how business is going. What can I tell them? |
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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 the Internet. |
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|   | 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? |
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|   | 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? |
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|   | A: | It might be okay for you to take this job, but you should talk to Human Resources or the General Counsel first, since this is a potential conflict of interest. |
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|   | Q: | I recently inherited stock in a competitor‘s company. Do I have to sell it? |
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|   | A: | It depends on the size of the investment. You should talk to the General Counsel or another member of the Business Conduct Committee to determine whether or not you will need to sell the stock. |
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|   | Q: | My niece plans to apply for a job in a store I manage. Can I hire her for the position? |
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|   | 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. |
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|   | 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? |
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|   | 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 General Counsel 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? |
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|   | 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 the Company. |
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|   | Q: | An associate often comes back from lunch smelling of alcohol. What should I do? |
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|   | 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. |
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|   | 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? |
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|   | 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 General Counsel. |
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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? |
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|   | 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 General Counsel. |
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|   | 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? |
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|   | A: | You should contact the General Counsel 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? |
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|   | 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 General Counsel. |
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|   | 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 accept it? |
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|   | 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 General Counsel. |
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|   | 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? |
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|   | A: | Maybe. You should contact the General Counsel to discuss the situation. Depending on the circumstance it may or may not be appropriate to participate. |
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|   | 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? |
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|   | 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 this situation? |
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|   | 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 General Counsel. |
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|   | 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? |
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|   | 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. |
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|   | 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? |
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|   | 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? |
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|   | A: | You should inform the General Counsel and the council, of the potential conflict of interest, and obtain direction from the General Counsel. |
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|   | 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? |
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|   | A: | No. There are two problems with this. This would be an improper use of Company assets. It might lead to a claim that the Company was engaging in inappropriate political activity. |
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|   | 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 Investor Relations (Gayle Coolick) and provide her with the information. |
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|   |  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? |
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|   |  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 General Counsel. |
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|   | 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? |
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|   | 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. |
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|   | 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? |
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|   | A: | Yes. However, the Company policy permits only incidental use of Company e-mail for personal purposes. |
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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? |
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|   | 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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