Pet Valu completes acquisition of 15 Berrys...Your PetsChoice stores



    MARKHAM, ON, Sept. 9 /CNW/ - Pet Valu, Inc, a specialty retailer of pet
food and pet-related supplies, announced today that its Canadian operating
company, Pet Valu Canada Inc., has completed its acquisition of the shares of
the companies operating 15 Berrys...Your PetsChoice stores.
    The newly acquired stores are located throughout eastern Ontario in the
following locations: Alexandria, Amherstview, Brockville, Carleton Place,
Kemptville, Ottawa, Pembroke, Picton, Prescott, Rockland and Winchester and
there are two acquired stores in each of Cornwall and Kingston.
    Pet Valu plans to continue to offer the range of nutritious and
wellness-focused products, which current customers enjoy, as well as enhancing
the Berrys' line-up with new products.
    The addition of these 15 stores expands Pet Valu's presence in Ontario
and offers greater efficiencies, more product variety, and other benefits,
which can be passed on to the Berrys' stores and their customers.
    The purchase price of C$2.4 million was financed using Pet Valu's
existing bank operating line. Anticipated operating synergies are expected to
incrementally contribute an approximate C$600,000 to Pet Valu's consolidated
earnings before interest, taxes, depreciation and amortization ("EBITDA")(1)
during the first 12 months of inclusion within the Pet Valu group of stores.
    Pet Valu will now operate a total of 354 company-owned and franchised pet
food and pet-related supply specialty stores in Canada and the United States
under the PET VALU, PET VALU BETTER PET NUTRITION, PAULMAC'S PET FOOD,
BERRYS...YOUR PETSCHOICE and CRITTER CRAVINGS names.

    FORWARD-LOOKING STATEMENTS:

    Certain information in this news release is forward-looking and is
subject to important risks and uncertainties. Forward-looking information
includes information concerning Pet Valu's future financial performance,
business strategy, plans, goals, objectives, business prospects and
opportunities. The forward-looking information reflects predictions and does
not in any way reflect a guarantee. Factors which could cause actual results
or events to differ materially from current expectations include, among other
things: the ability of Pet Valu to successfully implement its strategic
initiatives and whether such strategic initiatives will yield the expected
benefits; competitive conditions in the businesses in which Pet Valu
participates; changes in consumer spending; the outcome of legal proceedings
as they arise; general economic conditions and normal business uncertainty;
the availability of suitable store locations; customer preferences towards
product offerings; adverse climate changes; the occurrence of a pandemic or
other catastrophic event which could create shortages of labour, products or
services required to operate the business profitably; fluctuations in foreign
currency exchange rates; changes in Pet Valu's relationship with its
merchandise and service suppliers; interest rate fluctuations and other
changes in borrowing costs; and changes in laws, rules and regulations
applicable to Pet Valu or the markets in which Pet Valu operates. Pet Valu
cautions that this is not an exhaustive list of factors that may affect the
forward-looking information in this news release. Potential investors and
readers are urged to give careful consideration to all of these factors in
evaluating any forward-looking information and are cautioned not to place
undue reliance on such information. While Pet Valu believes that its forecasts
and assumptions are reasonable, results or events predicted in this
forward-looking information may differ materially from actual results or
events.

    CORPORATE PROFILE:

    Pet Valu is a specialty retailer of pet food and pet-related supplies
operating company-owned and franchised locations in Canada and the U.S. The
TSX stock symbol for Pet Valu Canada Inc., Pet Valu, Inc.'s publicly traded
Canadian operating subsidiary, is PVC.

    (1)Note: EBITDA is not a recognized measure under GAAP. As this measure
does not have a standardized meaning prescribed by GAAP, Pet Valu's method of
calculating EBITDA may differ from other companies. Pet Valu believes that
EBITDA is a useful supplemental measure as it provides investors with an
indication of cash available prior to debt service, capital expenditures and
income taxes.





For further information:

For further information: Michael Fitzgerald, Secretary, (905) 946-1200,
extension 3503, mfitzgerald@petvalu.com

Organization Profile

PET VALU CANADA INC.

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