Continued growth in Couche-Tard revenues



    
    -------------------------------------------------------------------------
    - Revenues from the third quarter rose 31.2% to $4.6 billion
    - Net earnings of $50.5 million compared with $43.7 million last year
    - A major sale and leaseback transaction for a value of $131.4 million
    - Continuation of the share repurchase program, thus far totalling
      $48.3 million
    -------------------------------------------------------------------------

    TSX: ATD.A, ATD.B
    

    LAVAL, QC, March 12 /CNW Telbec/ - With the acquisitions carried out in
the past 12 months and the sharp increase in the retail price at the pump,
Alimentation Couche-Tard Inc. posted solid growth in revenues for the third
quarter of fiscal 2008.
    Revenues for the 16-week period ended February 3, 2008, rose 31.2%,
reaching $4.6 billion, i.e. an increase of $1.1 billion. An amount of
$613.5 million stems from the sharp rise in the price of gasoline and
$314.2 million results from the acquisitions carried out over the past 12
months.
    Net earnings were $50.5 million ($0.24 per share on a diluted basis)
compared with $43.7 million ($0.21 per share on a diluted basis) last year,
representing an increase of 15.6%. Excluding the reversal of the unusual
income tax expense recorded during the first quarter of 2007, net earnings
fell 7.1%.
    "Given the more difficult economic climate in certain regions of the
United States and the negative effect on merchandise and service revenues,
motor fuel volume sold and margins, we are satisfied with the results
achieved," notes Alain Bouchard, Chairman of the Board, President and Chief
Executive Officer. "Past experience has shown us that Couche-Tard has managed
to thrive in unfavourable economic periods, for instance through profitable
acquisitions, and our intention is to once again pursue that path," he added.

    
    Highlights of the Third Quarter of Fiscal 2008

    Growth of the Store Network

                        16-week period ended        40-week period ended
                          February 3, 2008            February 3, 2008
                 ------------------------------------------------------------
                   Company-     Affi-            Company-     Affi-
                  operated    liated            operated    liated
                    stores    stores(1)  Total    stores    stores(1)  Total
                 ------------------------------------------------------------
    Number of stores,
     beginning of
     period          4,087     1,550     5,637     4,072     1,441     5,513
      Acquisitions      10        45        55        44        45        89
      Openings /
       constructions
       / additions      15        53        68        31       195       226
      Closures /
       withdrawals     (25)      (45)      (70)      (65)      (73)     (138)
      Conversions
       into company-
       operated stores   -         -         -         5        (5)        -
    -------------------------------------------------------------------------
    Number of stores,
     end of period   4,087     1,603     5,690     4,087     1,603     5,690
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    1. The affiliated store count includes wholesalers and members of
       purchasing agreements.


    IMPACT Program

    During the third quarter, Couche-Tard implemented its IMPACT program in
115 company-operated stores. As a result, 59.0% of the company-operated stores
have now been converted to the IMPACT program, which gives the Company
considerable opportunity for future internal growth.

    Sale and leaseback transaction

    On December 21, 2007, through our subsidiaries Circle K Stores Inc. and
Mac's Convenience Stores LLC., Couche-Tard entered into a sale and leaseback
transaction with Cole Credit Property Trust II, Inc. relating to 83 properties
for a total selling price of $131.4 million. The proceeds were used namely to
reduce its term revolving unsecured operating credit. The properties sold are
located in several states and are subject to lease agreements with an initial
average term of 20 years.

    Dividends

    On March 12, 2008, the Board of Directors of Couche-Tard declared a
dividend of Cdn$0.035 per share to shareholders on record as at March 25,
2008, and approved its payment for April 4, 2008. This is an eligible dividend
within the meaning of the Income Tax Act.

    Share repurchase program

    Under a share repurchase program, Couche-Tard purchased 49,000 Class A
multiple voting shares during the quarter at an average cost of Cdn$17.44 and
2,272,700 Class B subordinate voting shares at an average cost of Cdn$17.48.
On a cumulative basis, as at February 3, 2008, since the implementation of
this program, purchases total 54,400 Class A multiple voting shares at an
average cost of Cdn$17.72 and 2,652,400 Class B subordinate voting shares at
an average cost of Cdn$17.87.

    Exchange Rate Data

    The Company reports in US dollars given the predominance of its operations
in the United States and its US dollar denominated debt.

    The following table presents relevant exchange rates information based
upon the Bank of Canada closing rates expressed as US dollars per Cdn$1.00:

                               16-week periods ended   40-week periods ended
                             ------------------------------------------------
                              February 3, February 4, February 3, February 4,
                                    2008        2007        2008        2007
                             ------------------------------------------------
    Average for period(1)         1.0107      0.8682      0.9720      0.8835
    Period end                    0.9874      0.8435      0.9874      0.8435

    -------------------------------------------------------------------------
    1. Calculated by taking the average of the closing exchange rates of each
       day in the applicable period.

    Selected Consolidated Financial Information

    The following tables highlight certain information regarding Couche-Tard's
operations for the 16-week and the 40-week periods ended February 3, 2008 and
February 4, 2007:


    (In millions
     of US
     dollars,
     unless
     otherwise   ------------------------------------------------------------
     stated)         16-week periods ended        40-week periods ended
                 ------------------------------------------------------------
                  February  February     Varia- February  February     Varia-
                         3,        4,     tion         3,        4,     tion
                      2008      2007         %      2008      2007         %
                 ------------------------------------------------------------
    Statement of
     Operations
     Data:
    Merchandise
     and service
     revenues(1):
      United
       States      1,011.3     937.9       7.8   2,685.5   2,347.9      14.4
      Canada         501.5     422.9      18.6   1,350.9   1,182.0      14.3
                 ------------------------------------------------------------
      Total
       merchandise
       and service
       revenues    1,512.8   1,360.8      11.2   4,036.4   3,529.9      14.3
                 ------------------------------------------------------------
    Motor fuel
     revenues:
      United
       States      2,685.6   1,875.4      43.2   6,662.3   4,847.9      37.4
      Canada         392.5     261.8      49.9     965.5     737.0      31.0
                 ------------------------------------------------------------
      Total motor
       fuel
       revenues    3,078.1   2,137.2      44.0   7,627.8   5,584.9      36.6
                 ------------------------------------------------------------
    Total
     revenues      4,590.9   3,498.0      31.2  11,664.2   9,114.8      28.0
                 ------------------------------------------------------------
                 ------------------------------------------------------------
    Merchandise
     and service
     gross
     profit(1):
      United
       States        332.9     317.1       5.0     884.1     791.4      11.7
      Canada         174.9     147.7      18.4     471.6     413.1      14.2
                 ------------------------------------------------------------
      Total
       merchandise
       and service
       gross profit  507.8     464.8       9.3   1,355.7   1,204.5      12.6
                 ------------------------------------------------------------
    Motor fuel
     gross
     profit:
      United
       States        126.7     106.7      18.7     326.2     289.3      12.8
      Canada          25.5      16.4      55.5      62.7      44.7      40.3
                 ------------------------------------------------------------
      Total motor
       fuel gross
       profit        152.2     123.1      23.6     388.9     334.0      16.4
                 ------------------------------------------------------------
    Total gross
     profit          660.0     587.9      12.3   1,744.6   1,538.5      13.4
    Operating,
     selling,
     administrative
     and general
     expenses        529.4     462.9      14.4   1,323.7   1,145.4      15.6
    Depreciation
     and
     amortization
     of property
     and equipment
     and other
     assets           53.8      43.3      24.2     132.6      99.4      33.4
                 ------------------------------------------------------------
    Operating income  76.8      81.7      (6.0)    288.3     293.7      (1.8)
                 ------------------------------------------------------------
    Net earnings      50.5      43.7      15.6     173.8     163.0       6.6
                 ------------------------------------------------------------
                 ------------------------------------------------------------
    Other Operating
     Data:
    Merchandise
     and service
     gross
     margin(1):
      Consolidated    33.6%     34.2%     (0.6)     33.6%     34.1%     (0.5)
      United States   32.9%     33.8%     (0.9)     32.9%     33.7%     (0.8)
      Canada          34.9%     34.9%        -      34.9%     34.9%        -
    Growth of
     same-store
     merchandise
     revenues(2)(3):
      United
       States          2.4%      1.9%                3.3%      3.0%
      Canada           1.6%      3.2%                4.4%      2.9%
    Motor fuel
     gross margin:
      United
       States
       (cents par
       gallon)(3):   14.38     13.19       9.0     14.65     15.50      (5.5)
      Canada
       (Cdn cents
       per litre)     5.03      4.05      24.2      5.03      4.21      19.5
    Volume of
     motor fuel
     sold(4):
      United
       States
       (millions
       of gallons)   914.2     841.8       8.6   2,322.6   1,938.0      19.8
      Canada
       (millions
       of litres)    501.7     470.1       6.7   1,284.9   1,203.5       6.8
    Growth of
     same-store
     motor fuel
     volume(3):
      United
       States         (1.0%)     3.2%               (0.5%)     4.5%
      Canada           5.3%      4.2%                6.4%      4.5%
                 ------------------------------------------------------------
    Per Share Data:
      Basic net
       earnings
       per share
       (dollars
       per action)    0.25      0.22      13.6      0.86      0.81       6.2
      Diluted net
       earnings
       per share
       (dollars
       per action)    0.24      0.21      14.3      0.84      0.78       7.7

                 ------------------------------------------------------------
                                              February 3, April 29, Variation
                                                    2008      2007          $
                 ------------------------------------------------------------
    Balance Sheet Data:
      Total assets                               3,188.2   3,043.2
      Interest-bearing debt                        765.5     870.0
      Shareholders' equity                       1,309.0   1,145.4
    Ratios:
      Net interest-bearing
       debt/total capitalization(5)               0.32:1    0.39:1
      Net interest-bearing debt/EBITDA(6)         1.19:1(7) 1.48:1
    -------------------------------------------------------------------------
    1. Includes other revenues derived from franchise fees, royalties and
       rebates on some purchases by franchisees and licensees.
    2. Does not include services and other revenues (as described in
       footnote 1 above). Growth in Canada is calculated based on Canadian
       dollars.
    3. For company-operated stores only.
    4. Includes volume of franchisees and dealers.
    5. This ratio is presented for information purposes only and represents
       a measure of financial condition used especially in financial circles.
       It represents the following calculation: long-term interest-bearing
       debt, net of cash and cash equivalents and temporary investments,
       divided by the addition of shareholders' equity and long-term debt,
       net of cash and cash equivalents and temporary investments. It does
       not have a standardized meaning prescribed by Canadian GAAP and
       therefore may not be comparable to similar measures presented by other
       public companies.
    6. This ratio is presented for information purposes only and represents
       a measure of financial condition used especially in financial circles.
       It represents the following calculation: long-term interest-bearing
       debt, net of cash and cash equivalents and temporary investments,
       divided by EBITDA (Earnings Before Interest, Tax, Depreciation and
       Amortization). It does not have a standardized meaning prescribed by
       Canadian GAAP and therefore may not be comparable to similar measures
       presented by other public companies.
    7. This ratio was standardized over a period of one year. It includes the
       results of the three first quarters of the year ending April 27, 2008
       as well as the fourth quarter of the year ended April 29, 2007.


    Operating Results

    Revenues amounted to $4.6 billion for the 16-week period ended February 3,
2008, up $1.1 billion, for an increase of 31.2%, of which $314.2 million is
attributable to the major acquisitions carried out over the past 12 months.
For the first three quarters, Couche-Tard's growth in revenues was
$2.5 billion or 28.0%, which boosted its revenues to $11.7 billion, of which
$1.4 billion is attributable to the major acquisitions. The proportion of its
business in the United States is 80.1% compared with 79.0% for the 40-week
period ended February 4, 2007.
    Merchandise and service revenues grew by $152.0 million or 11.2%, of which
$50.5 million was generated by the stores acquired during the past 12 months
and $70.8 million was generated by the 16.4% appreciation of the Canadian
dollar against its U.S. counterpart. Internal growth, as measured by the
increase in same-store merchandise revenues, was 2.4% in the United States and
1.6% in Canada. Growth in the U.S. followed the positive trend seen in the
first six months despite the economic slowdown in some regions. Couche-Tard
has implemented aggressive promotions in certain customized categories and
continued to implement one of its key success factors: its IMPACT program. In
the Canadian market, the weather and the increase in contraband cigarette
sales were determining factors in the slowdown of its performance. In the
first three quarters, revenues jumped $506.5 million, of which $244.4 million
stems from the stores acquired and $119.6 million is attributable to the sharp
rise in the Canadian dollar. The growth of same-store merchandise and service
revenues was 3.3% in the United States and 4.4% in Canada.
    Motor fuel revenues increased $940.9 million or 44.0% for the 16-week
period ended February 3, 2008, of which $613.5 million stems from a higher
average retail price at the pump in its U.S. and Canadian company-operated
stores, as shown in the following table, beginning with the fourth quarter of
the year ended April 29, 2007:

                                                                    Weighted
    Quarter                              4th     1st     2nd     3rd average
    -------------------------------------------------------------------------
    52-week period ended February 3,
     2008
      United States (US dollars
       per gallon)                      2.52    2.98    2.73    2.96    2.81
      Canada (Cdn cents per litre)     90.11   98.49   92.35   95.92   94.43
    53-week period ended February 4,
     2007
      United States (US dollars
       per gallon)                      2.30    2.86    2.61    2.26    2.48
      Canada (Cdn cents per litre)     88.63   96.08   89.87   80.27   88.08

    -------------------------------------------------------------------------


    The major acquisitions carried out over the past 12 months contributed
90.7 million additional gallons during the 16-week period ended February 3,
2008, or $263.7 million in revenues. The appreciation of the Canadian dollar
against its U.S. counterpart was also responsible for $55.2 million of the
increase. The same-store motor fuel volume fell 1.0% in the United States and
rose 5.3% in Canada. As mentioned earlier, the poor performance in the United
States can be explained by the unfavourable economic climate in certain
regions. Growth in Canada is primarily due to the strong economy in Western
Canada combined with the popularity of the CAA program in Quebec. For the
first three quarters, motor fuel revenues rose $2.0 billion, up 36.6%. The
increase in the retail price at the pump is behind $752.5 million of the
increase and $87.9 million is due to the strong Canadian dollar. Couche-Tard's
major acquisitions contributed an additional 381.9 million gallons or
$1.1 billion in sales. Finally, the same-store motor fuel volume fell slightly
by 0.5% in the United States but rose sharply by 6.4% in Canada.
    Merchandise and service gross margin was 33.6% in the third quarter of
2008, compared with 34.2% in the third quarter of 2007. In the United States,
the gross margin was 32.9%, down from 33.8% last year. Several American
markets facing an unfavourable economic climate continued their customized
promotions from the first six months in order to maintain and even increase
the number of customers per store. In Canada, it remained steady at 34.9% for
both periods. Over the first three quarters, the merchandise and service gross
margin was 33.6%, i.e. 32.9% in the U.S., down by 0.8% and 34.9% in Canada,
constant with last year. The decrease in the U.S. can be explained by the
above-mentioned reasons.
    Motor fuel gross margin for company-operated stores in the United States
rose 1.19 cents per gallon, from 13.19 cents per gallon last year to 14.38
cents per gallon this quarter. In Canada, the margin rose, reaching Cdn5.03
cents per litre compared with Cdn4.05 cents per litre for the corresponding
quarter in 2007. For the 40-week period ended February 3, 2008, the motor fuel
gross margin for its company-operated stores in the United States was 14.65
cents per gallon compared with 15.50 cents per gallon for the corresponding
first three quarters in the previous year. In Canada, the margin increased for
the first three quarters to Cdn5.03 cents per litre compared with Cdn4.21
cents per litre last year.
    As Couche-Tard has frequently mentioned in the past, the sometimes high
volatility of gross margin from one quarter to another tends to stabilize on
an annual basis. The motor fuel gross margin of its company-operated stores in
the United States for the last eight quarters was as follows:

    (US cents per gallon)
                                                                    Weighted
    Quarter                              4th     1st     2nd     3rd average
    -------------------------------------------------------------------------
    52-week period ended February 3,
     2008
      Before deduction of expenses
       related to electronic
       payment modes                   13.12   16.73   13.04   14.38   14.31
      Expenses related to electronic
       payment modes                    3.59    4.15    3.82    3.98    3.89
      -----------------------------------------------------------------------
      After deduction of expenses
       related to electronic
       payment modes                    9.53   12.58    9.22   10.40   10.42
      -----------------------------------------------------------------------
    53-week period ended February 4,
     2007
      Before deduction of expenses
       related to electronic
       payment modes                   10.96   13.60   20.73   13.19   14.48
      Expenses related to electronic
       payment modes                    3.31    3.82    3.77    3.12    3.46
      -----------------------------------------------------------------------
      After deduction of expenses
       related to electronic
       payment modes                    7.65    9.78   16.96   10.07   11.02
      -----------------------------------------------------------------------
    -------------------------------------------------------------------------


    Operating, selling, administrative and general expenses rose by 1.0% as a
percentage of merchandise and service revenues on a quarterly basis and they
increased 0.3% for the first three quarters. Excluding expenses related to
electronic payment modes, operating, selling, administrative and general
expenses increased only 0.4% as a percentage of merchandise and service
revenues on a quarterly basis and fell 0.1% over the first three quarters. The
increase for the third quarter can be attributed to the additional maintenance
costs recently incurred for the sites acquired over the last 12 months as well
as the increase in labour costs in certain regions.

    Earnings before interests, taxes, depreciation and amortization         
(EBITDA)(1) was $130.6 million in the third quarter, up 4.5% compared with
last year. The major acquisitions contributed $5.9 million. When Couche-Tard
neutralizes the variance of the motor fuel net margin, using the same motor
fuel net margin(2) for the two comparable periods, EBITDA shows a decrease of
0.8%. Over the first three quarters, EBITDA posted growth of 7.1% to
$420.9 million, of which $31.3 million stems from acquisitions. Still using
the same motor fuel net margin(2) for the two comparable periods, EBITDA
increased by 12.0%.

    -----------------------------
    (1) Earnings before interests, taxes, depreciation and amortization is
        not a performance measure defined by Canadian GAAP, but management,
        investors and analysts use this measure to evaluate the operating and
        financial performance of the Company. Note that Couche-Tard's
        definition of this measure may differ from the ones used by other
        companies.

    (2) The same motor fuel net margin (net of expenses related to electronic
        payment modes) used for the comparable periods corresponds to the
        weighted average of the motor fuel net margin realized during
        the last eight quarters, for both the U.S. and Canadian company-
        operated sites.


    Depreciation and amortization of property and equipment and other assets
increase stems primarily from investments made over the past 12 months through
acquisitions and from the ongoing implementation of the IMPACT program in the
network.
    Financial expenses were up $0.1 million compared with the quarter ended
February 4, 2007, or $11.9 million over the past 40-week period. The increases
are primarily due to higher average borrowings partially offset by the drop in
the average interest cost.
    Income tax rate for this quarter is 16.0%, down from the 32.9% posted last
year. This significant decrease is due to the reversal of the unusual income
tax expense of $9.9 million recorded during the first quarter of 2007
following the adoption by the Government of Quebec of Bill 15 in the National
Assembly of Quebec. For the first three quarters, excluding this aspect, the
income tax rate is 32.5% compared with 33.5% for the same period last year.
    Net earnings for the third quarter of fiscal 2008 is $50.5 million, which
equals $0.25 per share or $0.24 per share on a diluted basis, compared with
$43.7 million last year, an increase of $6.8 million or 15.6%. If the Company
exclude the reversal of the unusual income tax expense recorded during the
first quarter of 2007, net earnings would have fallen 7.1%. If the Company
neutralize the variance of the motor fuel net margin(1), using the same motor
fuel net margin for the two comparable periods, and excluding the reversal for
the quarter, decrease in net earnings is 15.6%. For the first three quarters,
Couche-Tard closed the period with net earnings of $173.8 million, which
equals $0.86 per share or $0.84 per share on a diluted basis, compared with
$163.0 million last year, an increase of $10.8 million or 6.6%. Still
considering the same motor fuel net margin(1) for the two comparable periods
and, excluding all effects of the unusual income tax expense, net earnings
would have increased by 1.8%. The major acquisitions have slightly contributed
to the increase in net earnings for the 16-week period but has a marginal
negative effect for the 40-week period, as expected. However, it is important
to remember that these newly acquired stores have not yet generated their full
potential and that their integration is going according to plan.

    Liquidity and Capital resources

    Couche-Tard's capital expenditures and acquisitions carried out during the
three first quarters of fiscal 2008 were mainly financed using its available
cash. In the future, Couche-Tard is confident that it will be able to finance
its capital expenditures and acquisitions through a combination of cash flows
from operating activities, additional debt, monetization of its real estate
portfolio and, as a last resort, by share issuances.
    As at February 3, 2008, $408.0 million of the Company's term revolving
unsecured operating credit had been used and the effective interest rate was
4.25%. The Company also has a $350.0 million subordinated unsecured debt. In
addition, standby letters of credit in the amount of Cdn$0.7 million and
Cdn$17.9 million were outstanding as at February 3, 2008.

    -----------------------------
    (1) The same motor fuel net margin (net of expenses related to electronic
        payment modes) used for the comparable periods corresponds to the
        weighted average of the motor fuel net margin realized during
        the last eight quarters, for both the U.S. and Canadian company-
        operated sites.


    Selected Consolidated Cash Flow Information


    (In millions
     of US
     dollars)        16-week periods ended        40-week periods ended
                 ------------------------------------------------------------
                  February  February     Varia- February  February     Varia-
                         3,        4,     tion         3,        4,     tion
                      2008      2007         %      2008      2007         %
                 ------------------------------------------------------------
    Operating
     activities
      Cash flows(1)   90.2      92.1      (1.9)    293.8     273.2      20.6
      Other          (74.6)      3.4     (78.0)    (67.3)    (42.8)    (24.5)
                 ------------------------------------------------------------
    Net cash
     provided by
     operating
     activities       15.6      95.5     (79.9)    226,5     230.4      (3.9)
                 ------------------------------------------------------------
    Investing
     activities
      Proceeds from
       sale and
       leaseback
       transactions  134.2      19.2     115.0     166.7      25.4     141.3
      Purchase of
       property and
       equipment,
       net of
       proceeds
       from the
       disposal of
       property and
       equipment     (75.0)   (138.9)     63.9    (162.4)   (217.1)     54.7
      Business
       acquisitions  (12.9)   (318.0)    305.1     (70.4)   (561.7)    491.3
      Other           (1.4)     10.4     (11.8)     (2.7)     (3.0)      0.3
                 ------------------------------------------------------------
    Net cash used
     in investing
     activities       44.9    (427.3)    472.2     (68.8)   (756.4)    687.6
                 ------------------------------------------------------------
    Financing
     activities
      Repayment of
       long-term
       debt         (110.3)     (0.2)   (110.1)   (110.9)   (167.0)     56.1
      Share
       repurchase    (40.4)        -     (40.4)    (48.3)        -     (48.3)
      Dividends       (7.0)     (5.3)     (1.7)    (18.7)    (14.3)     (4.4)
      Increase in
       long-term
       borrowing         -     390.1    (390.1)     11.8     570.2    (558.4)
      Issuance of
       shares          0.2       0.3      (0.1)      4.7       0.8       3.9
                 ------------------------------------------------------------
    Net cash
     provided by
     (used in)
     financing
     activities     (157.5)    384.9    (542.4)   (161.4)    389.7    (551.1)
                 ------------------------------------------------------------
                 ------------------------------------------------------------
    Company credit
     rating
      Standard and
       Poor's           BB        BB                  BB        BB
      Moody's          Ba1       Ba1                 Ba1       Ba1
    -------------------------------------------------------------------------
    1. These cash flows are presented for information purposes only and
       represent a performance measure used especially in financial circles.
       They represent cash flows from net earnings, plus depreciation and
       amortization, loss on disposal of assets and future income taxes. They
       do not have a standardized meaning prescribed by Canadian GAAP and
       therefore may not be comparable to similar measures presented by other
       public companies.


    Operating activities

    During the first three quarters, the other elements of operating
activities have been negatively affected by the variance in non-cash working
capital, which results primarily from the increase in inventory and accounts
receivable which related to the increase in fuel costs, as well as the
decrease in accounts payable, partially offset by the increase in income taxes
payable.

    Investing activities

    A significant event occurring this quarter was the sale and leaseback
transaction entered into on December 21, 2007 with Cole Credit Property Trust
II, Inc. for a totaled consideration of $131.4 million. One of its major
investments during the first three quarters was the acquisition of the
Sterling stores. Capital expenditures are primarily related to the ongoing
implementation of its IMPACT program throughout its network, as well as the
replacement of equipment in some of its stores to enhance the offering of
products and services as well as the addition of new stores.

    Financing activities

    A significant event occurring in the third quarter was the purchase of
$40.4 million of its shares following the launch of the share repurchase
program announced in August 2007 and a net debt repayment of $110.3 million.
During the first three quarters of fiscal 2008, Couche-Tard reimbursed
$99.1 million of its operating credit and repurchased a total of $48.3 million
in shares.

    Financial Position

    As demonstrated by the indebtedness ratios included in the "Selected
Consolidated Financial Information" section and by the cash flows, Couche-Tard
has an excellent financial position.
    The increase in Couche-Tard's total assets stems primarily from the
$37.5 million increase in inventory and the $33.9 million increase in property
and equipment. Its cash and cash equivalents remained fairly constant,
increasing slightly by $7.4 million, resulting from net cash provided by
operating activities.


    Summary of Quarterly Results

    (In millions of
     US dollars
     except for per
     share data,
     unaudited)
                                                       40-week period ended
                                                         February 3, 2008
    -------------------------------------------------------------------------
    Quarter                                          3rd       2nd       1st
    Weeks                                       16 weeks  12 weeks  12 weeks
                                             --------------------------------
    Revenues                                     4,590.9   3,499.8   3,573.5
                                             --------------------------------
    Income before
     depreciation
     and amortization
     of property and
     equipment and
     other assets,
     financial expenses
     and income taxes                              130.6     135.2     155.1
    Depreciation and
     amortization of
     property and
     equipment and
     other assets                                   53.8      41.1      37.7
                                             --------------------------------
    Operating income                                76.8      94.1     117.4
                                             --------------------------------
    Financial expenses                              16.7      13.8      15.0
                                             --------------------------------
    Net earnings                                    50.5      54.2      69.1
                                             --------------------------------
                                             --------------------------------
    Net earnings per share
      Basic                                        $0.25     $0.27     $0.34
      Diluted                                      $0.24     $0.26     $0.33
    -------------------------------------------------------------------------

                                                                     Extract
                                                                    from the
                                                                     53-week
                                                                      period
                                                                       ended
                                       52-week period ended         April 30,
                                           April 29, 2007               2006
    -------------------------------------------------------------------------
    Quarter                      4th       3rd       2nd       1st       4th
    Weeks                   12 weeks  16 weeks  12 weeks  12 weeks  13 weeks
                          ---------------------------------------------------
    Revenues                 2,972.6   3,498.0   2,759.7   2,857.1   2,638.9
                          ---------------------------------------------------
    Income before
     depreciation
     and amortization
     of property and
     equipment and
     other assets,
     financial expenses
     and income taxes           99.0     125.0     149.2     118.9      84.0
    Depreciation and
     amortization of
     property and
     equipment and
     other assets               34.4      43.3      28.3      27.8      26.8
                          ---------------------------------------------------
    Operating income            64.6      81.7     120.9      91.1      57.2
                          ---------------------------------------------------
    Financial expenses          14.4      16.6       8.5       8.5       8.5
                          ---------------------------------------------------
    Net earnings                33.4      43.7      74.7      44.6      32.1
                          ---------------------------------------------------
                          ---------------------------------------------------
    Net earnings per share
      Basic                    $0.17     $0.22     $0.37     $0.22     $0.16
      Diluted                  $0.16     $0.21     $0.36     $0.21     $0.15
    -------------------------------------------------------------------------


    Outlook

    During fiscal 2008, Couche-Tard will pursue its investments in order to
deploy the IMPACT program in approximately 400 stores and build or acquire
approximately 60 stores on a individual basis. The Company's capital budget
for the fiscal year 2008 is approximately $300.0 million, which Couche-Tard
plans to finance with its net cash provided by operating activities. With
respect to store acquisitions, the Company is confident to be able to enter
into agreements before the end of the fiscal year that could add approximately
250 company-operated stores.
    "Past experience has shown us that we are able to thrive in unfavourable
economic periods, namely through well-selected and profitable acquisitions.
Our objective for future quarters is to pursue that path while maintaining a
sound financial position." concluded Mr. Bouchard.

    Profile

    Alimentation Couche-Tard Inc. is the leader in the Canadian convenience
store industry. In North America, Couche-Tard is the second largest
independent convenience store operator (whether integrated with a petroleum
company or not) in terms of number of stores. Couche-Tard currently operates a
network of 5,690 convenience stores, 3,440 of which include motor fuel
dispensing, located in nine large geographic markets, including six in the
United States covering 29 states and three in Canada covering six provinces.
More than 45,000 people are employed throughout Couche-Tard's retail
convenience network and service centers.

    The statements set forth in this press release, which describes
Couche-Tard's objectives, projections, estimates, expectations or forecasts,
may constitute forward-looking statements within the meaning of securities
legislation. Positive or negative verbs such as "plan", "evaluate",
"estimate", "believe" and other related expressions are used to identify such
statements. Couche-Tard would like to point out that, by their very nature,
forward-looking statements involve risks and uncertainties such that its
results, or the measures it adopts, could differ materially from those
indicated or underlying these statements, or could have an impact on the
degree of realization of a particular projection. Major factors that may lead
to a material difference between Couche-Tard's actual results and the
projections or expectations set forth in the forward-looking statements
include the effects of the integration of acquired businesses and the ability
to achieve projected synergies, fluctuations in margins on motor fuel sales,
competition in the convenience store and retail motor fuel industries,
exchange rate variations, and such other risks as described in detail from
time to time in the reports filed by Couche-Tard with securities authorities
in Canada and the United States. Unless otherwise required by applicable
securities laws, Couche-Tard disclaims any intention or obligation to update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. The forward-looking information in
this release is based on information available as of the date of the release.


    Conference Call on March 12, 2008 at 2:30 P.M. (Montreal Time)
    -------------------------------------------------------------------------
    Financial analysts and investors who wish to participate in the conference
call on Couche-Tard's results can dial 1-800-731-6941 a few minutes before the
start of the call. For those unable to participate, a taped re-broadcast will
be available March 12, 2008 from 4:30 p.m. until March 19, 2008 at 11:59 p.m.,
by dialing 1-877-289-8525 - access code 21264206 followed by the
#key. Also, a webcast of the conference call will be available on
the website of the Company for a period of 90 days after the conference call.
Members of the media and other interested parties are invited to listen in.


    CONSOLIDATED STATEMENTS OF EARNINGS
    (in millions of US dollars, except per share amounts, unaudited)

                                      16 weeks                40 weeks
    For the periods ended     February 3, February 4, February 3, February 4,
                                    2008        2007        2008        2007
    -------------------------------------------------------------------------
                                       $           $           $           $
    Revenues                     4,590.9     3,498.0    11,664.2     9,114.8
    Cost of sales                3,930.9     2,910.1     9,919.6     7,576.3
    -------------------------------------------------------------------------
    Gross profit                   660.0       587.9     1,744.6     1,538.5
    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

    Operating, selling,
     administrative and
     general expenses              529.4       462.9     1,323.7     1,145.4
    Depreciation and
     amortization of
     property and equipment
     and other assets               53.8        43.3       132.6        99.4
    -------------------------------------------------------------------------
                                   583.2       506.2     1,456.3     1,244.8
    -------------------------------------------------------------------------
    Operating income                76.8        81.7       288.3       293.7
    Financial expenses              16.7        16.6        45.5        33.6
    -------------------------------------------------------------------------
    Earnings before income taxes    60.1        65.1       242.8       260.1
    Income taxes (Note 9)            9.6        21.4        69.0        97.1
    -------------------------------------------------------------------------
    Net earnings                    50.5        43.7       173.8       163.0
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net earnings per share
     (Note 4)
      Basic                         0.25        0.22        0.86        0.81
      Diluted                       0.24        0.21        0.84        0.78
    Weighted average number
     of shares (in thousands)    201,878     202,163     202,366     202,100
    Weighted average number
     of shares - diluted
     (in thousands)              206,707     208,384     207,527     208,199
    Number of shares
     outstanding at end of
     period (in thousands)       200,268     202,172     200,268     202,172
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (NOTE 2)
    (in millions of US dollars, unaudited)

                                      16 weeks                40 weeks
    For periods ended         February 3, February 4, February 3, February 4,
                                    2008        2007        2008        2007
    -------------------------------------------------------------------------
                                       $           $           $           $
    Net earnings                    50.5        43.7       173.8       163.0
    Other comprehensive income,
     net of income taxes
      Net change in unrealized
       gains (losses) on
       translating Canadian
       and corporate operations
       into the reporting
       currency                    (35.6)      (14.4)       35.6       (21.7)
      Net change in unrealized
       gains on available-for-sale
       financial assets             (0.1)          -           -           -
    -------------------------------------------------------------------------
    Other comprehensive income     (35.7)      (14.4)       35.6       (21.7)
    -------------------------------------------------------------------------
    Comprehensive income            14.8        29.3       209.4       141.3
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    The accompanying notes are an integral part of the consolidated financial
    statements.


    CONSOLIDATED STATEMENTS OF CAPITAL STOCK
    (in millions of US dollars, unaudited)

    For the 40-week periods ended                     February 3, February 4,
                                                            2008        2007
    -------------------------------------------------------------------------
                                                               $           $
    Balance, beginning of period                           352.3       351.0
    Issuance resulting from stock options exercised
     for cash                                                4.7         0.6
    Fair value of stock options exercised                    1.8         0.2
    Carrying value of Class A multiple voting shares
     and Class B subordinate voting shares
     repurchased and cancelled                              (6.3)          -
    -------------------------------------------------------------------------
    Balance, end of period                                 352.5       351.8
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    CONSOLIDATED STATEMENTS OF CONTRIBUTED SURPLUS
    (in millions of US dollars, unaudited)

    For the 40-week periods ended                     February 3, February 4,
                                                            2008        2007
    -------------------------------------------------------------------------
                                                               $           $
    Balance, beginning of period                            13.4         9.4
    Stock-based compensation (Note 6)                        3.3         2.8
    Fair value of stock options exercised                   (1.8)       (0.2)
    -------------------------------------------------------------------------
    Balance, end of period                                  14.9        12.0
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
    (in millions of US dollars, unaudited)

    For the 40-week periods ended                     February 3, February 4,
                                                            2008        2007
    -------------------------------------------------------------------------
                                                               $           $
    Balance, beginning of period, as previously reported   681.9       505.0
    Impact of changes in accounting policies (Note 2)        0.9           -
    -------------------------------------------------------------------------
    Balance, beginning of period, as restated              682.8       505.0
    Net earnings                                           173.8       163.0
    -------------------------------------------------------------------------
                                                           856.6       668.0
    Dividends                                              (18.7)      (14.3)
    Excess of purchase price over carrying value of
     Class A multiple voting shares and Class B
     subordinate voting shares repurchased and
     cancelled                                             (30.1)          -
    -------------------------------------------------------------------------
    Balance, end of period                                 807.8       653.7
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    CONSOLIDATED STATEMENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME
    (NOTE 2)
    (in millions of US dollars, unaudited)

    For the 40-week periods ended                     February 3, February 4,
                                                            2008        2007
    -------------------------------------------------------------------------
                                                               $           $
    Balance, beginning of period, as previously
     reported (Note 2)                                      97.8       100.6
    Impact of changes in accounting policies (Note 2)        0.4
    -------------------------------------------------------------------------
    Balance, beginning of period, as restated               98.2       100.6
    Net changes in other comprehensive income during
     the period, net of income taxes                        35.6       (21.7)
    -------------------------------------------------------------------------
    Balance, end of period                                 133.8        78.9
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    The accompanying notes are an integral part of the consolidated financial
    statements.


                                      16 weeks                40 weeks
    For periods ended         February 3, February 4, February 3, February 4,
                                    2008        2007        2008        2007
    -------------------------------------------------------------------------
                                       $           $           $           $
    Operating activities
    Net earnings                    50.5        43.7       173.8       163.0
    Adjustments to reconcile
     net earnings to net cash
     provided by operating
     activities
      Depreciation and
       amortization of property
       and equipment and other
       assets, net of amortization
       of deferred credits and
       financing fees recorded
       in long-term debt            47.0        37.3       116.7        87.4
      Future income taxes           (7.5)       15.0         6.3        23.7
      Loss (gain) on disposal
       of property and
       equipment and other
       assets                        0.2        (3.9)       (3.0)       (0.9)
      Deferred credits               4.0        20.4        11.7        27.4
      Other                         10.2         1.0        19.8         7.7
      Changes in non-cash working
       capital                     (88.8)      (18.0)      (98.8)      (77.9)
    -------------------------------------------------------------------------
    Net cash provided by
     operating activities           15.6        95.5       226.5       230.4
    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

    Investing activities
    Purchase of property and
     equipment                     (78.2)     (148.5)     (176.7)     (230.7)
    Proceeds from sale and
     leaseback transactions        134.2        19.2       166.7        25.4
    Business acquisitions
     (Note 3)                      (12.9)     (318.0)      (70.4)     (561.7)
    Proceeds from disposal of
     property and equipment
     and other assets                3.2         9.6        14.3        13.6
    Increase in other assets        (1.6)      (10.0)       (2.9)      (16.7)
    Deposit reimbursement
     (deposit) on business
     acquisition                     0.2        11.6         0.2        (2.4)
    Temporary investments              -         8.8           -        21.1
    Liabilities related to
     business acquisitions             -           -           -        (5.0)
    -------------------------------------------------------------------------
    Net cash provided (used)
     in investing activities        44.9      (427.3)      (68.8)     (756.4)
    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

    Financing activities
    Repayment of long-term debt   (110.3)       (0.2)     (110.9)     (167.0)
    Repurchase of Class A
     multiple voting shares
     and Class B subordinate
     voting shares                 (40.4)          -       (48.3)          -
    Dividends paid                  (7.0)       (5.3)      (18.7)      (14.3)
    Increase in long-term debt         -       390.1        11.8       570.2
    Issuance of shares               0.2         0.3         4.7         0.8
    -------------------------------------------------------------------------
    Net cash (used in) provided
     by financing activities      (157.5)      384.9      (161.4)      389.7
    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
    Effect of exchange rate
     fluctuations on cash and
     cash equivalents               (0.2)       (2.9)       11.1        (4.1)
    -------------------------------------------------------------------------
    Net increase (decrease) in
     cash and cash equivalents     (97.2)       50.2         7.4      (140.4)
    Cash and cash equivalents,
     beginning of period           246.3       140.9       141.7       331.5
    -------------------------------------------------------------------------
    Cash and cash equivalents,
     end of period                 149.1       191.1       149.1       191.1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Supplemental information:
      Interest paid                 24.1        22.1        54.9        42.7
      Income taxes paid             30.8        13.7        50.4        39.0
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    The accompanying notes are an integral part of the consolidated financial
    statements.


    CONSOLIDATED BALANCE SHEETS
    (in millions of US dollars)

                                                           As at       As at
                                                      February 3,   April 29,
                                                            2008        2007
                                                      (unaudited)         (1)
    -------------------------------------------------------------------------
                                                               $           $
    Assets
    Current assets
      Cash and cash equivalents                            149.1       141.7
      Accounts receivable                                  232.6       199.0
      Inventories                                          419.6       382.1
      Prepaid expenses                                      20.6        13.5
      Future income taxes                                   21.2        22.7
    -------------------------------------------------------------------------
                                                           843.1       759.0
    Property and equipment                               1,705.5     1,671.6
    Goodwill                                               406.5       373.8
    Trademarks and licenses                                170.0       168.7
    Deferred charges                                        14.1        25.8
    Other assets                                            47.3        43.4
    Future income taxes                                      1.7         0.9
    -------------------------------------------------------------------------
                                                         3,188.2     3,043.2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities
    Current liabilities
      Accounts payable and accrued liabilities             696.0       740.3
      Income taxes payable                                  65.0        46.6
      Current portion of long-term debt                      1.2         0.5
      Future income taxes                                    0.1         0.1
    -------------------------------------------------------------------------
                                                           762.3       787.5
    Long-term debt                                         764.3       869.5
    Deferred credits and other liabilities                 254.9       161.9
    Future income taxes                                     97.7        78.9
    -------------------------------------------------------------------------
                                                         1,879.2     1,897.8
    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

    Shareholders' equity
    Capital stock                                          352.5       352.3
    Contributed surplus                                     14.9        13.4
    Retained earnings (Note 2)                             807.8       681.9
    Accumulated other comprehensive income (Note 2)        133.8        97.8
    -------------------------------------------------------------------------
                                                         1,309.0     1,145.4
    -------------------------------------------------------------------------
                                                         3,188.2     3,043.2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (1) The balance sheet as of April 29, 2007 has been derived from the
        audited consolidated financial statements at that date but does not
        include all of the information and footnotes required by Canadian
        Generally Accepted Accounting Principles for complete financial
        statements.

    The accompanying notes are an integral part of the consolidated financial
    statements.


    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (in millions of US dollars, except per share amounts, unaudited)

    1. CONSOLIDATED FINANCIAL STATEMENTS PRESENTATION

    The unaudited interim consolidated financial statements have been prepared
by the Company in accordance with Canadian generally accepted accounting
principles and have not been subject to a review engagement by the Company's
external auditors. These consolidated financial statements were prepared in
accordance with the same accounting policies and methods as the audited annual
consolidated financial statements for the year ended April 29, 2007, with the
exception of the accounting changes described in Note 2 below. The unaudited
interim consolidated financial statements do not include all the information
for complete financial statements and should be read in conjunction with the
audited annual consolidated financial statements and notes thereto in the
Company's 2007 Annual Report (the 2007 Annual Report). The results of
operations for the interim periods presented do not necessarily reflect
results expected for the full year.
    The Company's business follows a seasonal pattern. The busiest period is
the first half-year of each fiscal year, which includes summer's sales.

    2. ACCOUNTING CHANGES

    Financial Instruments - Recognition and Measurement

    On April 30, 2007, the Company adopted Canadian Institute of Chartered
Accountants (CICA) Handbook Section 3855 "Financial Instruments - Recognition
and Measurement", which establishes standards for recognition and measurement
of financial assets, financial liabilities and non-financial derivatives. This
new standard was implemented retroactively without restatement of prior
periods financial statements.

    The Company made the following classifications:

                                                              Classification
    Financial assets                         Subsequent       of gains
    and liabilities      Classification      measurement(1)   and losses

    Cash and cash
     equivalents         Held-for-trading    Fair value       Net earnings
    Accounts             Loans and
     receivable           receivables        Amortized cost   Net earnings
    Investments in                                            Other
     publicly-traded                                           comprehensive
     securities          Available-for-sale  Fair value        income
    Bank indebtedness    Other financial
     and long-term debt   liabilities        Amortized cost   Net earnings
    Accounts payable
     and accrued         Other financial
     liabilities          liabilities        Amortized cost   Net earnings

    (1) Initial measurement of all financial assets and liabilities is at
        fair value.


    As of April 30, 2007, the impact of the implementation of the
classifications described above is a $0.5 increase in Other assets, a
$0.1 increase in the long-term Future income tax liability and a $0.4 increase
in Accumulated other comprehensive income. These adjustments relate to an
investment in publicly-traded securities held by the Company. For the 40-week
period ended February 3, 2008, there is not impact in other comprehensive
income.
    Section 3855 also requires that transaction costs be i) recognized in
income when incurred or ii) added to or deducted from the amount of the
financial asset or liability to which they are directly attributable when the
asset or liability is not classified as held-for-trading. The Company has
deferred financing costs attributable to its Subordinated unsecured debt which
were previously deferred and amortized over the term of the debt.
Consequently, the Company elected to apply the accounting policy that consists
of deducting financing costs from the amount of the financial liability to
which they are directly attributable. As of April 30, 2007, this change
resulted in a decrease of $11.6 in Deferred charges, of $13.1 in Long-term
debt, in an increase of $0.6 in the long-term Future income tax liability and
of $0.9 in Retained earnings. For the 40-week period ended February 3, 2008,
the impact is not significant.

    Hedges

    Effective April 30, 2007, the Company adopted CICA Handbook Section 3865
"Hedges", which establishes circumstances under which hedge accounting may be
applied. The purpose of hedge accounting is to ensure that gains, losses,
revenues and expenses related to a hedging item and to the hedged item are
recognized in net income in the same period.
    As described in Notes 4 and 23 of the consolidated financial statements
included in the 2007 Annual Report, the Company uses interest rate swaps as
part of its program for managing the interest rate of its Subordinated
unsecured debt. These interest rate swaps have been designated and documented
as an effective fair value hedge of the Subordinated unsecured debt. Under the
new standard, changes in the fair value of the swaps and the debt are
recognized in net income, counterbalancing each other, with the exception of
any ineffective portion of the hedging relationship. On the balance sheet, the
fair value of the interest swaps is recorded in Other assets if it is
favourable for the Company or in Deferred credits and other liabilities if it
is unfavourable for the Company.
    The Company also designates its entire US dollars denominated long-term
debt as a foreign exchange hedge of its net investment in its U.S.
self-sustaining subsidiaries. Accordingly, corresponding foreign exchange
gains and losses are recorded in Accumulated other comprehensive income in the
Shareholders' equity to offset the foreign currency translation adjustments on
the investments.
    As of April 30, 2007, these changes resulted in an increase of $14.9 in
Deferred credits and other liabilities and in a decrease of $14.9 in Long-term
debt.

    Comprehensive Income

    On April 30, 2007, the Company adopted CICA Handbook Section 1530
"Comprehensive Income". This Section introduces a new financial statement
which presents the change in equity of an enterprise from transactions and
other events and circumstances from non-owner sources. These transactions
include net changes in unrealized gains and losses on translating Canadian and
corporate operations into the reporting currency as well as unrealized gains
and losses related to changes in the fair value of certain financial
instruments that are not recorded in net earnings. These two types of
transactions are recorded in Other comprehensive income.
    The result of the implementation of this new standard is that, beginning
in the first quarter of fiscal 2008, the Company includes, in its consolidated
financial statements, a consolidated statement of comprehensive income while
the cumulative net changes in other comprehensive income are included in
Accumulated other comprehensive income, which is presented as a new category
of Shareholders' equity. Consequently, an amount of $97.8 presented in
cumulative translation adjustments as at April 29, 2007 has been reclassified
to Accumulated other comprehensive income.

    Disclosure and presentation

    On April 30, 2007, the Company adopted CICA Handbook Section 3861
"Financial Instruments - Disclosure and Presentation", which replaces Section
3860, of the same name. Section 3861 establishes standards for presentation of
financial instruments and non-financial derivatives, and identifies the
information that should be disclosed about them.

    Equity

    Effective April 30, 2007, the Company adopted CICA Handbook Section 3251
"Equity", which replaces Section 3250 "Surplus". This new section establishes
standards for the presentation of equity and changes in equity during the
reporting period and requires the Company to present separately equity
components and changes in equity arising from i) net earnings; ii) other
comprehensive income; iii) other changes in retained earnings; iv) changes in
contributed surplus; v) changes in share capital; and vi) changes in reserves.

    3. BUSINESS ACQUISITIONS

    Effective June 5, 2007, the Company purchased 28 company-operated stores
and five land parcels from Sterling Stores LLC. The acquired stores operate
under the Sterling banner in northwest Ohio, United States.
    In addition, during the 40-week period ended February 3, 2008, the Company
purchased 18 stores, including two from an affiliated, through 15 distinct
transactions.
    These acquisitions were settled for a total cash consideration of $70.4,
including direct acquisition costs. The preliminary allocations of the
purchase price of the acquisitions were established based on available
information and on the basis of preliminary evaluations and assumptions
management believes to be reasonable. Since the Company has not completed its
fair value assessment of assets acquired, the preliminary allocations are
subject to adjustments to the fair value of the assets and liabilities until
the process is completed. The preliminary allocations are based on the
estimated fair values on the dates of acquisition:

                                                                           $
    Tangible assets acquired
      Inventories                                                        3.8
      Property and equipment                                            59.9
    -------------------------------------------------------------------------
    Total tangible assets                                               63.7
    -------------------------------------------------------------------------
    Liabilities assumed
      Accounts payable and accrued liabilities                           0.3
      Deferred credits and other liabilities                             0.6
    -------------------------------------------------------------------------
    Total liabilities                                                    0.9
    -------------------------------------------------------------------------
    Net tangible assets acquired                                        62.8
    -------------------------------------------------------------------------
    Non-compete agreements                                               1.1
    Goodwill                                                             6.5
    -------------------------------------------------------------------------
    Total consideration paid, including direct acquisition costs        70.4
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    The Company expects that approximately $5.7 of the goodwill related to
these transactions will be deductible for tax purposes.

    4. NET EARNINGS PER SHARE

                          16-week period                16-week period
                      ended February 3, 2008        ended February 4, 2007
                 ------------------------------------------------------------
                            Weighted                      Weighted
                             average                       average
                           number of       Net           number of       Net
                              shares  earnings              shares  earnings
                       Net  (in thou-      per       Net  (in thou-      per
                  earnings     sands)    share  earnings     sands)    share
                 ------------------------------------------------------------
                         $                   $         $                   $
    Basic net
     earnings
     attributable
     to Class A
     and B
     shareholders     50.5   201,878      0.25      43.7   202,163      0.22
    Dilutive
     effect of
     stock options             4,829     (0.01)              6,221     (0.01)
                 ------------------------------------------------------------
    Diluted net
     earnings
     available
     for Class A
     and B
     shareholders     50.5   206,707      0.24      43.7   208,384      0.21
                 ------------------------------------------------------------
                 ------------------------------------------------------------


                          40-week period                40-week period
                      ended February 3, 2008        ended February 4, 2007
                 ------------------------------------------------------------
                            Weighted                      Weighted
                             average                       average
                           number of       Net           number of       Net
                              shares  earnings              shares  earnings
                       Net  (in thou-      per       Net  (in thou-      per
                  earnings     sands)    share  earnings     sands)    share
                 ------------------------------------------------------------
                         $                   $         $                   $
    Basic net
     earnings
     attributable
     to Class A
     and B
     shareholders    173.8   202,366      0.86     163.0   202,100      0.81
    Dilutive
     effect of
     stock options             5,161     (0.02)              6,099     (0.03)
                 ------------------------------------------------------------
    Diluted net
     earnings
     available
     for Class A
     and B
     shareholders    173.8   207,527      0.84     163.0   208,199      0.78
                 ------------------------------------------------------------
                 ------------------------------------------------------------


    A total of 1,462,999 stock options are excluded from the calculation of
the diluted net earnings per share due to their antidilutive effect for the 16
and 40-week periods ended February 3, 2008. There are 191,400 stock options
excluded from the calculation for the 16 and 40-week periods ended February 4,
2007.

    5. CAPITAL STOCK

    As at February 3, 2008, the Company has 56,072,912 (56,175,312 as at
February 4, 2007) issued and outstanding Class A multiple voting shares each
comprising ten votes per share and 144,195,182 (145,996,246 as at February 4,
2007) outstanding Class B subordinate voting shares each comprising one vote
per share.

    6. STOCK-BASED COMPENSATION AND OTHER STOCK-BASED PAYMENTS

    As at February 3, 2008, 8,905,699 stock options for the purchase of Class
B subordinate voting shares are outstanding (9,217,116 as at February 4,
2007). These stock options can be gradually exercised at various dates until
January 14, 2018, at an exercise price varying from Cdn$2.38 to Cdn$25.71.
Eight series of stock options totaling 280,000 stock options at exercise
prices ranging from Cdn$17.30 to Cdn$23.54 were granted since the beginning of
the fiscal year.
    For the 16 and 40-week periods ended as at February 3, 2008, the
stock-based compensation costs amount to $1.3 and $3.3, respectively. For the
16 and 40-week periods ended as at February 4, 2007, the stock-based
compensation costs amount to $1.1 and $2.8, respectively.
    The fair value of stock options granted is estimated at the grant date
using the Black & Scholes option pricing model on the basis of the following
weighted average assumptions for the stock options granted during the period:

    - risk-free interest rate of 4,00%;
    - expected life of 8 years;
    - expected volatility of 32%;
    - expected quarterly dividend of Cdn$0.033 per share.

    The weighted average fair value of stock options granted since the
beginning of the year is Cdn$8.17 (Cdn$11.62 as at February 4, 2007). A
description of the Company's stock-based compensation plan is included in Note
20 of the consolidated financial statements presented in the 2007 Annual
Report.

    7. EMPLOYEE FUTURE BENEFITS

    For the 16 and 40-week periods ended as at February 3, 2008, the Company's
total net pension expense included in its consolidated statement of earnings
amounts to $1.8 and $4.6, respectively. For the corresponding 16 and 40-week
periods ended as at February 4, 2007, the expense is $1.7 and $4.1,
respectively. The Company's pension plans are described in Note 21 of the
consolidated financial statements presented in the 2007 Annual Report.

    8. SEGMENTED INFORMATION

    The Company operates convenience stores in the United States and in
Canada. It essentially operates in one reportable segment, the sale of goods
for immediate consumption, services and motor fuel through company-operated
stores or franchise and affiliated operations. It operates a convenience store
chain under several banners, including Couche-Tard, Mac's and Circle K.
Revenues from outside sources mainly fall into two categories: merchandise and
services and motor fuel.

    The following table provides the information on the principal revenue
classes as well as geographic information:

                          16-week period                16-week period
                      ended February 3, 2008        ended February 4, 2007
                 ------------------------------------------------------------
                    United                        United
                    States    Canada     Total    States    Canada     Total
                 ------------------------------------------------------------
                         $         $         $         $         $         $
    External customer
     revenues(a)
    Merchandise
     and services  1,011.3     501.5   1,512.8     937.9     422.9   1,360.8
    Motor fuel     2,685.6     392.5   3,078.1   1,875.4     261.8   2,137.2
                 ------------------------------------------------------------
                   3,696.9     894.0   4,590.9   2,813.3     684.7   3,498.0
                 ------------------------------------------------------------
                 ------------------------------------------------------------
    Gross Profit
    Merchandise
     and services    332.9     174.9     507.8     317.1     147.7     464.8
    Motor fuel       126.7      25.5     152.2     106.7      16.4     123.1
                 ------------------------------------------------------------
                     459.6     200.4     660.0     423.8     164.1     587.9
                 ------------------------------------------------------------
                 ------------------------------------------------------------
    Property and
     equipment and
     goodwill(a)   1,760.6     351.4   2,112.0   1,457.5     427.3   1,884.8
                 ------------------------------------------------------------
                 ------------------------------------------------------------

                          40-week period                40-week period
                      ended February 3, 2008        ended February 4, 2007
                 ------------------------------------------------------------
                    United                        United
                    States    Canada     Total    States    Canada     Total
                 ------------------------------------------------------------
                         $         $         $         $         $         $
    External customer
     revenues(a)
    Merchandise
     and services  2,685.5   1,350.9   4,036.4   2,347.9   1,182.0   3,529.9
    Motor fuel     6,662.3     965.5   7,627.8   4,847.9     737.0   5,584.9
                 ------------------------------------------------------------
                   9,347.8   2,316.4  11,664.2   7,195.8   1,919.0   9,114.8
                 ------------------------------------------------------------
                 ------------------------------------------------------------
    Gross Profit
    Merchandise
     and services    884.1     471.6   1,355.7     791.4     413.1   1,204.5
    Motor fuel       326.2      62.7     388.9     289.3      44.7     334.0
                 ------------------------------------------------------------
                   1,210.3     534.3   1,744.6   1,080.7     457.8   1,538.5
                 ------------------------------------------------------------
                 ------------------------------------------------------------

    (a) Geographic areas are determined according to where the Company
        generates operating income (where the sale takes place) and according
        to the location of the property and equipment and goodwill.


    9. INCOME TAXES

    On June 9, 2006, the Government of Québec adopted Bill 15 in the National
Assembly of Québec, regarding amendments to the Taxation Act and other
legislative provisions. As a result, for the 12-week period ended July 23,
2006, the Company recorded an unusual retroactive income tax expense of $9.9.
During the 16-week period ended February 3, 2008, the Company reversed this
unusual income tax expense following an agreement with the taxing authorities.

    10. RECENTLY ISSUED ACCOUNTING STANDARDS NOT YET IMPLEMENTED

    Capital disclosures and financial instruments disclosures and
    presentation

    In December 2006, the CICA issued three new standards: Section 3862
"Financial Instruments - Disclosures", Section 3863 "Financial Instruments -
Presentation" and Section 1535 "Capital Disclosures". These three new
standards are applicable to fiscal years beginning on or after October 1st,
2007.
    Section 3862 describes the required disclosures related to the
significance of financial instruments on the entity's financial position and
performance and the nature and extent of risks arising from financial
instruments to which the entity is exposed and how the entity manages those
risks. This Section complements principles of recognition, measurement and
presentation of financial instruments of Section 3855 "Financial Instruments -
Recognition and Measurement", 3863 "Financial Instruments - Presentation" and
3865 "Hedges".
    Section 3863 establishes standards for presentation of financial
instruments and non-financial derivatives. It complements standards of Section
3861 "Financial Instruments - Disclosure and Presentation".
    Section 1535 establishes standards for disclosing information about an
entity's capital and how it is managed to enable users of financial statements
to evaluate the entity's objectives, policies and procedures for managing
capital.
    The Company will implement these three new standards in its first quarter
of fiscal year 2009 and is currently evaluating the impact of their adoption
on its consolidated financial statements.

    Inventories

    In June 2007, the CICA issued Handbook Section 3031 "Inventories", in
replacing Section 3030, of the same name. The new section provides guidance on
the basis and method of measurement of inventories and allows for reversal of
previous write-downs. Finally, the section also establishes new standards on
disclosure of accounting policies used, carrying amounts, amounts recognized
as an expense, write-downs and the amount of any reversal of any write-downs.
    This new standard is applicable to fiscal years beginning on or after
January 1st , 2008. The difference in the measurement of opening inventory may
be applied to the opening inventory for the period, with an adjustment to
opening retained earnings without prior periods being restated, or
retrospectively with a restatement of prior periods. The Company will
implement this standard in its first quarter of fiscal year 2009 and is
currently evaluating the impact of its adoption on its consolidated financial
statements.

    Goodwill and Intangible Assets

    In February 2008, the CICA issued Handbook Section 3064 "Goodwill and
intangible assets", in replacing Section 3062 "Goodwill and other intangible
assets" and Section 3450 "Research and development costs". Various changes
have been made to other sections of the CICA Handbook for consistency
purposes. The new Section establishes standards for the recognition,
measurement, presentation and disclosure of goodwill subsequent to its initial
recognition and of intangible assets by profit-oriented enterprises. Standards
concerning goodwill are unchanged from the standards included in the previous
Section 3062.
    This new standard is applicable to fiscal years beginning on or after
October 1, 2008. The Company will implement this standard in its first quarter
of fiscal year 2010 and is currently evaluating the impact of its adoption on
its consolidated financial statements. The Company does not expect that the
adoption of this new Section will have a material impact on its financial
statements.

    International Financial Reporting Standards

    The Canadian Accounting Standards Board has confirmed that the use of
International Financial Reporting Standards ("IFRS") will be required in 2011
for publicly accountable profit-oriented enterprises. IFRS will replace
Canada's current GAAP for those enterprises.
    These new standards are applicable to fiscal years beginning on or after
January 1, 2011. Companies will be required to provide comparative IFRS
information for the previous fiscal year. The Company will implement this
standard in its first quarter of fiscal year 2012 and is currently evaluating
the impact of their adoption on its consolidated financial statements.

    11. COMPARATIVE FIGURES

    Certain comparative figures have been reclassified to comply with the
presentation adopted in the current year.
    




For further information:

For further information: Alain Bouchard, Chairman of the Board,
President and Chief Executive Officer; Richard Fortin, Executive
Vice-President and Chief Financial Officer, (450) 662-3272,
info@couche-tard.com; www.couche-tard.com


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