Dollarama Inc. Files Final Base PREP Prospectus and Announces Pricing of
Initial Public Offering

    
    /NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE
    SERVICES/
    

MONTREAL, Oct. 8 /CNW Telbec/ - Dollarama Inc. (the "Corporation") announced today that it has obtained a receipt for its final base PREP prospectus filed with the securities regulatory authorities in each of the provinces and territories of Canada and has entered into an underwriting agreement for the initial public offering of 17,142,857 common shares of the Corporation at a price of $17.50 per share. The initial public offering will generate total gross proceeds of approximately $300 million. The net proceeds will be used to repay certain indebtedness of the Corporation, namely, the 8.875% Senior Subordinated Notes due 2012 issued by certain of its subsidiaries, the term loan A facility forming part of its credit facility and notes owing to certain of its shareholders. Based on the initial public offering price, the Corporation's market capitalization will be approximately $1.3 billion.

The closing is scheduled for October 16, 2009, subject to customary closing conditions, at which time the common shares of the Corporation will commence trading on the Toronto Stock Exchange under the symbol "DOL". The underwriters have also been granted an over-allotment option to purchase up to an additional 2,571,428 common shares from certain selling shareholders. The Corporation will not receive any proceeds from the sale of these additional shares, if any. A copy of the final base PREP prospectus will be available on SEDAR (www.sedar.com).

The offering is being made through a syndicate of underwriters led by RBC Capital Markets, CIBC World Markets Inc. and Credit Suisse Securities (Canada), Inc., and includes Scotia Capital Inc., Barclays Capital Canada Inc., National Bank Financial Inc., Desjardins Securities Inc., HSBC Securities (Canada) Inc., Merrill Lynch Canada Inc. and Raymond James Ltd.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Corporation in any jurisdiction in which such offer, solicitation or sale would be unlawful. These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws and may not be offered or sold in the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws or pursuant to an exemption therefrom. Any public offering of the securities in the United States may only be made by means of a prospectus containing detailed information about the Corporation and its management as well as financial statements.

About Dollarama Inc.

In 1992, the Dollarama business was founded by our CEO, Larry Rossy, a third generation retailer. We are the leading dollar store operator in Canada with 585 locations across the country. Our stores provide customers with compelling value in convenient locations, including metropolitan areas, mid-sized cities and small towns. All stores are corporate-owned and provide customers with a consistent shopping experience. Each store offers a broad assortment of everyday consumer products, general merchandise and seasonal items. Products are sold in individual or multiple units at select fixed price points between $1.00 and $2.00, with the exception of select candy offered at $0.65.

SOURCE Dollarama Inc.

For further information: For further information: Investors: Nicholas Nomicos, Interim Chief Financial Officer, (514) 737-1006 ext. 1237, Laki.Nomicos@dollarama.com; Media: Paul de la Plante, NATIONAL Public Relations, (514) 843-2332


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