APM

Sears Signs Power Centre Deal
July 14, 2004

Charlottetown -- Sears Canada announced today the construction of their first free- standing off-mall department store in Charlottetown, PEI creating 150 retail jobs and 200 construction jobs in the community. The new store, which will be located at the corner of the Malpeque Road and the Charlottetown By-Pass, will open in the summer of 2005.

"We have been eagerly awaiting the right opportunity to open a Sears department store on Prince Edward Island for quite some time and are delighted that the ideal location has finally been selected," said Mark A. Cohen, Chairman and Chief Executive Officer, Sears Canada Inc.. "We are particularly excited about this store as its not only our first full-line department store in PEI, it's our first free-standing off-mall department store to open in the country."

Tim Banks of APM, the developer, confirmed that APM secured Sears as their major anchor for what he describes as a major Power Centre for Prince Edward Island. Mr. Banks said: "There are many national retailers like Sears who just haven't committed to PEI. They've kicked the tires but our market appeared to be too small. Our vision of the Royalty Power Centre is that of a regional site. One that will allow a host of new opportunities for national retailers like Sears and with that opportunity will come jobs, investment and choices for Islanders."

Mr. Cohen announced earlier this year that Sears Canada was actively seeking off-mall locations for the continued growth of its full-line department store channel since traditional, regional malls are not being built at the same rate as before. "We will find new ways of bringing our business closer to residential neighbourhoods," said Mr. Cohen. "An off-mall or Power Centre provides such an opportunity."

Mr. Banks said: "We are confident that there is a market here in Charlottetown for these national retailers and we've made a major investment by acquiring 67 acres to provide the prime location and necessary infrastructure required for these retailers. Thanks to the full cooperation from the Province of Prince Edward Island and the City of Charlottetown, this development will now become a reality."

The Province, through the Department of Transportation and Public Works, was instrumental in securing an arrangement to widen the highway on Route 2 and installing a fully-actuated signalized intersection for which the developer is paying 50% of the cost. The Honorable Gail Shea, Minister of Transportation and Public Works said: "We've come to a mutually acceptable arrangement with the developer and neighbouring property owners that now allows the entire area to be developed while at the same time

restricting access to Route 2 through the new intersection. This eliminates the major traffic concern we had in the area and at the end of the day; we have a much safer highway that will allow for planned growth and development in the future."

The new 108,000 sq.ft. Sears store will house a wide range of private and national brand merchandise, including fashion apparel, accessories, cosmetics, home fashions, home improvement products, major appliances and electronics, as well as a Sears merchandise pick-up location for catalogue and internet orders. The store will feature a modern, easy-to-shop interior design with extra walkways and the newest in lighting and fixturing. "This new store will bring the Sears department store selection to Charlottetown and the Island in addition to providing a great place to shop with the best that Sears has to offer - merchandise selection, exceptional customer service and convenience," said Mr. Cohen.

Clifford Lee, Mayor of Charlottetown said: "This is great news for Charlottetown as we've all waited a long time for a full blown Sears department store. This project will bring jobs but more important, it will show other retailers and developers that Charlottetown is open for business."

Mr. Banks said: "Site work has already commenced and we expect to be in full construction activity within a few weeks and once word gets around the retail industry about what is happening here in Charlottetown with such a major retailer like Sears, I'm sure we'll see others follow suit."

Sears currently has 16 catalogue merchandise pick-up locations and two dealer stores in Prince Edward Island.

Sears Canada, the retailer with the most extensive multi-channel network in the country, began serving customers in 1953. The Company has 48,000 associates and in an independent consumer survey, ranks first in trust, respect and quality products and services. There is a Sears location within a 10-minute drive of 93% of Canadians and Sears is dedicated to providing them with quality merchandise and exceptional service coast to coast, through its 122 department stores, 47 Sears Home stores, over 2200 catalogue merchandise pick-up locations, 148 dealer stores, 12 outlet stores, 51 floor covering centres, 110 Sears Travel offices and a nation-wide home maintenance, repair, and installation network. The Company also publishes Canada's most extensive general merchandise catalogue and offers shopping online at www.sears.ca.

CONTACT: APM group Contact
Brian Gillis
902-569-8400
email bgillis@apm.cabgillis@apm.ca

Sears Corporate Communications Contact
Vincent Power
416-941-4422
email vpower@sears.cavpower@sears.ca