Reitmans (Canada) Limited results for the six months ended August 4, 2007



    MONTREAL, Sept. 5 /CNW Telbec/ - Sales for the six months ended August 4,
2007 increased 4.2% to $522,637,000 as compared with $501,797,000 for the six
months ended July 29, 2006. The increase in sales is attributed to the net
addition of 45 stores year over year. Same store sales for the comparable 26
weeks decreased 1.2%. Operating earnings before depreciation and amortization
(EBITDA(1)) decreased 5.9% to $94,691,000 as compared with $100,672,000 last
year. Net earnings and diluted EPS increased to $50,461,000 or $0.70 per share
as compared with $36,122,000 or $0.50 per share last year. Excluding the
impact of the retroactive Québec income tax assessments and interest of
$917,000 for the current year and $19,145,000 for last year, net earnings and
diluted EPS for the six months ended August 4, 2007 would have amounted to
$51,378,000 or $0.71 per share as compared to $55,267,000 or $0.78 per share
last year. The Company had 935 stores in operation at the end of this period
compared to 890 stores at the same time last year.
    Sales for the second quarter ended August 4, 2007 increased 4.7% to
$291,942,000 as compared with $278,828,000 for the second quarter ended
July 29, 2006. Same store sales for the comparable 13 weeks increased 3.4%.
Operating earnings before depreciation and amortization (EBITDA(1)) for the
period decreased 3.2% to $59,941,000 as compared with $61,901,000 last year.
Net earnings and diluted EPS increased to $32,077,000 or $0.44 per share as
compared to $14,448,000 or $0.20 per share for the period last year. Excluding
the impact of the retroactive Québec income tax assessments and interest of
$463,000 for the current year and $19,145,000 for last year, net earnings and
diluted EPS for the three months ended August 4, 2007 would have amounted to
$32,540,000 or $0.45 per share as compared to $33,593,000 or $0.48 per share
last year.
    During the second quarter, the Company opened 16 new stores and closed 10
stores. Accordingly, at August 4, 2007, there were 935 stores in operation,
consisting of 362 Reitmans, 159 Smart Set, 48 RW & CO., 72 Thyme Maternity, 12
Cassis, 159 Penningtons and 123 Addition Elle. An additional 36 stores are
scheduled to open this year and 12 stores will be closed.
    Sales for the month of August (4 weeks ended September 1, 2007) decreased
1.7%, same store sales for the comparable period decreased 7.2%.
    Sales in the Cassis stores were below expectations and as a result, the
Company is currently re-positioning its merchandise offerings to better
address the targeted market. All Cassis stores were temporarily closed for a
two week period in August to allow for slight modifications in the store
design and to re-merchandise the stores with new and better focused goods. As
a result of these initiatives management expects the performance of this
banner to improve significantly.
    The Company continues to be in a strong financial position with cash,
cash equivalents and marketable securities of $214,592,000 reported at fair
value (cost of $214,956,000). The Company's short-term cash is conservatively
invested in bank bearer deposit notes and bank term deposits with major
Canadian chartered banks. The Company does not hold any asset backed
commercial paper.
    At the Board of Directors meeting held on September 5, 2007, a quarterly
cash dividend (designated eligible dividends) of $0.16 per share was declared
on all Class A non-voting and Common shares outstanding, payable October 25,
2007 to shareholders of record on October 11, 2007.
    Financial statements are attached.

    
    Montreal, September 5, 2007

    Jeremy H. Reitman, President,

    Telephone:          (514) 385-2630
    Corporate Website:  www.reitmans.ca
    

    All of the statements contained herein, other than statements of fact
that are independently verifiable at the date hereof, are forward-looking
statements. Such statements, based as they are on the current expectations of
management, inherently involve numerous risks and uncertainties, known and
unknown, many of which are beyond the Company's control. Such risks include
but are not limited to: the impact of general economic conditions, general
conditions in the retail industry, seasonality, weather and other risks
included in public filings of the Company. Consequently, actual future results
may differ materially from the anticipated results expressed in
forward-looking statements. The reader should not place undue reliance on the
forward-looking statements included herein. These statements speak only as of
the date made and the Company is under no obligation and disavows any
intention to update or revise such statements as a result of any event,
circumstances or otherwise, except to the extent required under applicable
securities law.

    
    (1) This release includes reference to certain Non-GAAP Financial
    Measures such as operating earnings before depreciation and amortization
    and EBITDA, which are defined as earnings before interest, taxes,
    depreciation and amortization and investment income. The Company believes
    such measures provide meaningful information on the Company's performance
    and operating results. However, readers should know that such Non-GAAP
    Financial Measures have no standardized meaning as prescribed by GAAP and
    may not be comparable to similar measures presented by other companies.
    Accordingly, they should not be considered in isolation.


    CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

                                       For the                 For the
                                   six months ended      three months ended
    (in thousands except        August 4,    July 29,   August 4,    July 29,
     per share amounts)             2007        2006        2007        2006

    Sales                      $ 522,637   $ 501,797   $ 291,942   $ 278,828
    Cost of goods sold and
     selling, general and
     administrative expenses     427,946     401,125     232,001     216,927
                               ----------  ----------  ----------  ----------
                                  94,691     100,672      59,941      61,901
    Depreciation and
     amortization                 23,838      22,060      12,140      10,853
                               ----------  ----------  ----------  ----------
    Operating earnings before
     the undernoted               70,853      78,612      47,801      51,048

    Investment income (note 8)     7,049       6,899       2,729       2,719
    Interest on long-term debt       504         536         250         266
                               ----------  ----------  ----------  ----------
    Earnings before income
     taxes                        77,398      84,975      50,280      53,501
    Income taxes:
      Current                     29,837      31,018      20,190      21,343
      Future                      (3,817)     (1,310)     (2,450)     (1,435)
                               ----------  ----------  ----------  ----------
                                  26,020      29,708      17,740      19,908
      Québec tax assessments
       - current (note 7)            917      19,145         463      19,145
                               ----------  ----------  ----------  ----------
                                  26,937      48,853      18,203      39,053
                               ----------  ----------  ----------  ----------
    Net earnings               $  50,461   $  36,122   $  32,077   $  14,448
                               ----------  ----------  ----------  ----------
                               ----------  ----------  ----------  ----------
    Earnings per share:
      Basic                    $    0.71   $    0.51   $    0.45   $    0.21
      Diluted                       0.70        0.50        0.44        0.20

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



    CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

                                       For the                 For the
                                   six months ended      three months ended
                                August 4,    July 29,   August 4,    July 29,
    (in thousands)                  2007        2006        2007        2006

    CASH FLOWS (USED IN) FROM
     OPERATING ACTIVITIES
      Net earnings             $  50,461   $  36,122   $  32,077   $  14,448
      Adjustments for:
        Depreciation and
         amortization             23,838      22,060      12,140      10,853
        Future income taxes       (3,817)     (1,310)     (2,450)     (1,435)
        Stock-based compensation     524         676         268         399
        Amortization of deferred
         lease credits            (2,230)     (1,934)     (1,146)       (976)
        Deferred lease credits     3,090       2,130       1,738         960
        Pension expense              800         672         400         336
        Gain on sale of
         marketable securities    (2,006)     (2,283)        (10)       (276)
      Changes in non-cash
       working capital items
       relating to operations    (37,693)      1,751      17,975      26,140
                               ----------  ----------  ----------  ----------
                                  32,967      57,884      60,992      50,449

    CASH FLOWS (USED IN) FROM
     INVESTING ACTIVITIES
      Purchases of marketable
       securities                      -      (3,982)          -      (2,788)
      Proceeds on sale of
       marketable securities      11,596      12,959         534       8,009
      Additions to capital
       assets                    (39,143)    (23,912)    (20,919)    (11,947)
                               ----------  ----------  ----------  ----------
                                 (27,547)    (14,935)    (20,385)     (6,726)

    CASH FLOWS (USED IN) FROM
     FINANCING ACTIVITIES
      Dividends paid             (22,832)    (19,698)    (11,420)     (9,851)
      Repayment of long-term
       debt                         (530)       (497)       (267)       (250)
      Proceeds from issue of
       share capital               1,322         791          72         171
                               ----------  ----------  ----------  ----------
                                 (22,040)    (19,404)    (11,615)     (9,930)


    NET (DECREASE) INCREASE IN
     CASH AND CASH EQUIVALENTS   (16,620)     23,545      28,992      33,793

    CASH AND CASH EQUIVALENTS,
     BEGINNING OF THE PERIOD     188,491     135,399     142,879     125,151
                               ----------  ----------  ----------  ----------

    CASH AND CASH EQUIVALENTS,
     END OF THE PERIOD         $ 171,871   $ 158,944   $ 171,871   $ 158,944
                               ----------  ----------  ----------  ----------
                               ----------  ----------  ----------  ----------

    Supplemental disclosure of cash flow information (note 8)

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



    CONSOLIDATED BALANCE SHEETS (Unaudited)
                                                                     Audited
                                          August 4,    July 29,   February 3,
    (in thousands)                            2007        2006          2007

    ASSETS
    CURRENT ASSETS
      Cash and cash equivalents
       (note 8)                          $ 171,871   $ 158,944     $ 188,491
      Marketable securities (note 8)        42,721      53,438        52,675
      Accounts receivable                    3,337       3,540         3,439
      Merchandise inventories               72,911      72,360        61,834
      Prepaid expenses                      24,775      10,504        21,405
      Future income taxes                    3,666           -            -
                                         ----------  ----------   -----------
        Total Current Assets               319,281     298,786       327,844

    CAPITAL ASSETS                         239,955     208,355       226,734

    GOODWILL                                42,426      42,426        42,426

    FUTURE INCOME TAXES                      5,058       2,664         3,407
                                         ----------  ----------   -----------

                                         $ 606,720   $ 552,231     $ 600,411
                                         ----------  ----------   -----------
                                         ----------  ----------   -----------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    CURRENT LIABILITIES
      Accounts payable and accrued
       items                             $  72,864   $  73,715     $  85,317
      Income taxes payable                  27,309      34,137        40,289
      Future income taxes                    1,802           -           248
      Current portion of long-term debt
       (note 5)                              1,110       1,042         1,076
                                         ----------  ----------   -----------
        Total Current Liabilities          103,085     108,894       126,930

    DEFERRED LEASE CREDITS                  21,718      19,221        20,858

    LONG-TERM DEBT (note 5)                 14,533      15,644        15,097

    FUTURE INCOME TAXES                          -         157           112

    ACCRUED PENSION LIABILITY                2,095         167         1,295

    SHAREHOLDERS' EQUITY
      Share capital                         22,981      18,165        21,323
      Contributed surplus                    3,771       3,199         3,583

      Retained earnings                    438,842     386,784       411,213
      Accumulated other comprehensive
       loss                                   (305)          -             -
                                         ----------  ----------   -----------
                                           438,537     386,784       411,213
                                         ----------  ----------   -----------
        Total Shareholders' Equity         465,289     408,148       436,119
                                         ----------  ----------   -----------
                                         $ 606,720   $ 552,231     $ 600,411
                                         ----------  ----------   -----------
                                         ----------  ----------   -----------

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



    CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited)

                                       For the                 For the
                                   six months ended      three months ended
                                August 4,    July 29,   August 4,    July 29,
    (in thousands)                  2007        2006        2007        2006

    SHARE CAPITAL
    Balance, beginning of
     period                    $  21,323   $  17,374   $  22,866   $  17,994
      Cash consideration on
       exercise of stock
       options                     1,322         791          72         171
      Ascribed value credited
       to share capital from
       exercise of stock
       options                       336           -          43           -
                               ----------  ----------  ----------  ----------
    Balance, end of period        22,981      18,165      22,981      18,165

    CONTRIBUTED SURPLUS
    Balance, beginning of
     period                        3,583       2,523       3,546       2,800
      Stock option
       compensation costs            524         676         268         399
      Ascribed value credited
       to share capital from
       exercise of stock
       options                      (336)          -         (43)          -
                               ----------  ----------  ----------  ----------
    Balance, end of period         3,771       3,199       3,771       3,199

    RETAINED EARNINGS
    Balance, beginning of
     period                      411,213     370,360     418,185     382,187
      Net earnings                50,461      36,122      32,077      14,448
      Dividends                  (22,832)    (19,698)    (11,420)     (9,851)
                               ----------  ----------  ----------  ----------
    Balance, end of period     $ 438,842   $ 386,784   $ 438,842   $ 386,784
                               ----------  ----------  ----------  ----------
                               ----------  ----------  ----------  ----------

    ACCUMULATED OTHER
     COMPREHENSIVE
     INCOME (LOSS)
    Balance, beginning of
     period                    $       -   $       -   $     (81)  $       -
      Adjustment to opening
       balance due to the
       new accounting policies
       adopted regarding
       financial instruments
       (net of tax of $523)        2,883           -           -           -
      Net unrealized loss on
       available-for-sale
       financial assets
       arising during the
       period, net of tax         (1,451)          -        (206)          -
      Reclassification
       adjustment for net
       gains included in net
       earnings, net of tax       (1,737)          -         (18)          -
                               ----------  ----------  ----------  ----------
    Balance, end of period(1)       (305)          -        (305)          -
                               ----------  ----------  ----------  ----------

    Total Shareholders'
     Equity                    $ 465,289   $ 408,148   $ 465,289   $ 408,148
                               ----------  ----------  ----------  ----------
                               ----------  ----------  ----------  ----------

    (1) Available-for-sale financial investments constitute the sole item in
        accumulated other comprehensive income (loss).



    CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

                                      For the                  For the
                                  six months ended       three months ended
                                August 4,    July 29,   August 4,    July 29,
    (in thousands)                  2007        2006        2007        2006

    Net earnings               $  50,461   $  36,122   $  32,077   $  14,448
    Other comprehensive income
     (loss):
      Net unrealized loss on
       available-for-sale
       financial assets arising
       during the period, net
       of tax of $250 ($11 for
       the three months ended
       August 4, 2007)            (1,451)          -        (206)          -
      Reclassification
       adjustment for net gains
       included in net earnings,
       net of tax of $331 ($19
       for the three months
       ended August 4, 2007)      (1,737)          -         (18)          -
                               ----------  ----------  ----------  ----------
      Other comprehensive
       income (loss)              (3,188)          -        (224)          -
                               ----------  ----------  ----------  ----------
    Comprehensive Income       $  47,273   $  36,122   $  31,853    $ 14,448
                               ----------  ----------  ----------  ----------
                               ----------  ----------  ----------  ----------

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


    NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
    (all amounts in thousands except per share amounts)


    1. BASIS OF PRESENTATION

    These unaudited interim consolidated financial statements (the "financial
statements") have been prepared in accordance with Canadian generally accepted
accounting principles for interim financial information and include all normal
and recurring entries that are necessary for a fair presentation of the
statements. Accordingly, they do not include all of the information and
footnotes required by Canadian generally accepted accounting principles for
annual financial statements. These financial statements should be read in
conjunction with the most recently prepared annual financial statements for
the 53 week period ended February 3, 2007. The Company applied the same
accounting policies in the preparation of the financial statements as
disclosed in note 1 of its annual consolidated financial statements in the
Company's fiscal 2007 Annual Report except as described below in note 2 -
changes in accounting policies.
    The Company's business is seasonal and due to the geographical spread of
the Company's stores and range of products it offers, the Company has
experienced quarterly fluctuations in operating results. The business
seasonality results in performance for the 13 weeks ended August 4, 2007,
which is not necessarily indicative of performance for the balance of the
year.
    All amounts in the attached footnotes are unaudited unless specifically
identified.


    2. CHANGES IN ACCOUNTING POLICIES

    On February 4, 2007, the Company adopted the following new accounting
standards issued by the Canadian Institute of Chartered Accountants ("CICA").
As provided under the standards, the adoption of these recommendations was
done without restatement of prior period consolidated financial statements.
The transitional adjustments resulting from these standards are recognized in
the opening balance of accumulated other comprehensive income.

    CICA Section 1530 - Comprehensive Income

    This CICA Handbook section introduced a statement of comprehensive income
which is included in the full set of interim and annual financial statements.
Comprehensive income represents the change in equity during a period from
transactions and other events and circumstances from non-owner sources and
will include all changes in equity other than those resulting from investments
by owners and distributions to owners.

    CICA Section 3251 - Equity

    This CICA Handbook section, which replaced Section 3250 - Surplus,
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. New consolidated statements of changes in
shareholders' equity are included in these financial statements.

    CICA Section 3855 - Financial Instruments - Recognition and Measurement

    This CICA Handbook section establishes standards for recognition and
measurement of financial assets, financial liabilities and non-financial
derivatives. All financial instruments must be classified into a defined
category, namely, held-to-maturity investments, held-for-trading financial
assets and financial liabilities, available-for-sale financial assets, loans
and receivables or other financial liabilities. The standard requires that
financial instruments within scope, including derivatives, be included on the
Company's balance sheet and measured at fair value, except for loans and
receivables, held-to-maturity investments and other financial liabilities
which are measured at cost or amortized cost. Gains and losses on
held-for-trading financial assets and financial liabilities are recognized in
net earnings in the period in which they arise. Unrealized gains and losses,
including changes in foreign exchange rates on available-for-sale financial
assets are recognized in other comprehensive income until the financial assets
are derecognized or impaired, at which time any unrealized gains or losses are
recorded in net earnings. Transaction costs are added to the financial asset
on initial recognition and are recognized in net earnings when the asset is
derecognized or impaired.
    Fair values of available-for-sale financial assets are based on published
market prices at month end.

    CICA Section 3861 - Financial Instruments - Disclosure and Presentation

    This CICA Handbook section, which replaces Section 3860 of the same name,
establishes standards for presentation of financial instruments and
non-financial derivatives, and identifies the information that should be
disclosed about them.
    The adoption of these new standards resulted in the following changes in
the classification and measurement of the Company's financial instruments,
previously recorded at cost:
    Cash and cash equivalents are classified as "financial assets
held-for-trading" and are measured at fair value. These financial assets are
marked-to-market through net earnings and recorded as investment income at
each period end. This change had no impact on the Company's consolidated
financial statements.
    Accounts receivable are classified as "loans and receivables" and are
recorded at cost which at initial measurement corresponds to fair value. 
After their initial fair value measurement, they are measured at amortized
cost using the effective interest rate method.  This change had no impact on
the Company's consolidated financial statements.
    Marketable securities, which consist primarily of preferred shares of
Canadian public companies, are classified as "available-for-sale securities".
These financial assets are marked-to-market through other comprehensive income
at each period end. The initial impact of measuring the available-for-sale
securities at fair value was a net unrealized gain of $2,883, net of tax of
$523, which was recorded in opening accumulated other comprehensive income.
    Accounts payable and accrued items and long-term debt are classified as
"other financial liabilities". They are initially measured at fair value and
subsequent revaluations are recorded at amortized cost using the effective
interest rate method. This change had no impact on the Company's consolidated
financial statements.
    The Company uses a variety of strategies, such as foreign exchange option
contracts, with maturities not exceeding three months, to manage its exposure
to fluctuations in the US dollar. These derivative financial instruments are
not used for speculative purposes. These financial assets are marked-to-market
through net earnings at each period end. This change had no impact on the
Company's consolidated financial statements.
    Embedded derivatives (elements of contracts whose cash flows move
independently from the host contract) are required to be separated and
measured at fair values if certain criteria are met. Under an election
permitted by the new standard, management reviewed contracts entered into or
modified subsequent to February 2, 2003 and determined that the Company does
not currently have any significant embedded derivatives in these contracts
that require separate accounting and disclosure.


    3. SHARE CAPITAL

    The Company has authorized an unlimited number of Class A non-voting
shares.
    The following table summarizes Class A non-voting shares issued for each
of the quarters listed:

                                      For the                 For the
                                  six months ended      three months ended
                                August 4,    July 29,   August 4,    July 29,
                                    2007        2006        2007        2006

    Balance at beginning
     of period                    57,817      56,747      57,925      56,895
    Shares issued pursuant
     to exercise of stock
     options                         118         181          10          33
                               ----------  ----------  ----------  ----------
    Balance at end of period      57,935      56,928      57,935      56,928


    The Company has authorized an unlimited number of Common shares. At August
4, 2007, there were 13,440 common shares issued (July 29, 2006 - 13,440;
February 3, 2007 - 13,440) with a value of $482 (July 29, 2006 - $482;
February 3, 2007 - $482).


    4. STOCK-BASED COMPENSATION

    The Company has a share option plan as described in note 7 c) to the
consolidated financial statements contained in the 2007 Annual Report. During
the three and six month periods ended August 4, 2007, no options were granted,
while eight thousand stock options were cancelled.


    5. LONG-TERM DEBT
                                                                     Audited
                                          August 4,    July 29,   February 3,
                                              2007        2006          2007
    Mortgage bearing interest at 6.40%,
     payable in monthly instalments of
     principal and interest of $172,
     due November 2017 and secured by
     the Company's distribution centre   $  15,643   $  16,686     $  16,173
    Less current portion                     1,110       1,042         1,076
                                         ----------  ----------    ----------
                                         $  14,533   $  15,644     $  15,097
                                         ----------  ----------    ----------
                                         ----------  ----------    ----------


    6. EARNINGS PER SHARE
                                       For the                 For the
                                  six months ended       three months ended
                                August 4,    July 29,   August 4,    July 29,
                                    2007        2006        2007        2006

    Weighted average number
     of shares per basic
     earnings per share
     calculations                 71,327      70,291      71,370      70,345
    Effect of dilutive
     options outstanding             769       1,474         781       1,451
                               ----------  ----------  ----------  ----------
    Weighted average number
     of shares per diluted
     earnings per share
     calculations                 72,096      71,765      72,151      71,796
                               ----------  ----------  ----------  ----------
                               ----------  ----------  ----------  ----------


    7. INCOME TAXES

    During the second quarter of the fiscal year ended February 3, 2007, the
Québec National Assembly enacted legislation (Bill 15) that retroactively
changed certain tax laws that subject the Company to additional taxes and
interest for the 2003, 2004 and 2005 years. In accordance with Canadian
generally accepted accounting principles, as a result of Québec income tax
assessments received, an amount of $20,054 for retroactive taxes and interest
was expensed in the fiscal year ended February 3, 2007 ($19,145 for the three
and six months period ended July 29, 2006). An additional amount of $463 and
$917 were expensed in the three and six months ended August 4, 2007,
respectively, representing additional accrued interest.
    The Company has filed formal objection notices for these unpaid
assessments and is pursuing all avenues to mitigate the tax liability.
However, the Company is unable to judge the likelihood of success.


    8. SUPPLEMENTARY INFORMATION
                                                                     Audited
                                          August 4,    July 29,   February 3,
                                              2007        2006          2007

    Balance with banks (overdraft)       $   3,447   $  (3,682)    $   6,239
    Short-term deposits, bearing
     interest at 4.5%
     (July 29, 2006 - 4.3%;
     February 3, 2007 - 4.3%)              168,424     162,626       182,252
                                          ---------  ----------    ----------
                                         $ 171,871   $ 158,944     $ 188,491
                                         ----------  ----------    ----------
                                         ----------  ----------    ----------

    Non-cash transactions:
      Capital asset additions included
       in accounts payable               $   1,320   $   1,379     $   3,404



                                        For the                For the
                                   six months ended      three months ended
                                August 4,    July 29,   August 4,    July 29,
                                    2007        2006        2007        2006
    Cash paid during the
     period for:
      Income taxes             $  46,279   $  30,671   $  14,166   $   8,964
      Interest                       552         608         252         298

    Investment income:
      Available-for-sale
       financial assets:
      Interest income          $      40   $      39   $      21   $      20
      Dividends                    1,247       1,729         562         764
      Realized gain on
       disposal                    2,006       2,283          10         276
      Held-for-trading
       financial assets:
      Interest income              3,756       2,848       2,136       1,659
                               ----------  ----------  ----------  ----------
                               $   7,049   $   6,899   $   2,729   $   2,719
                               ----------  ----------  ----------  ----------
                               ----------  ----------  ----------  ----------
    

    At August 4, 2007, marketable securities amounted to $42,721 reported at
fair value (cost of $43,085) as compared with $53,438 last year reported at
cost (with a market value of $56,363). At February 3, 2007, marketable
securities amounted to $52,675 (with a market value of $56,081). Due to new
accounting standards with respect to financial instruments that were adopted
by the Company in the first quarter of fiscal 2008, marketable securities have
been measured and reported at their fair value at August 4, 2007 while the
comparative year is reported at cost.


    9. COMPARATIVE FIGURES

    Certain comparative figures have been reclassified to conform with the
presentation adopted in the current year. In particular, investment income,
which had been previously classified as part of cash flows from investing
activities, is now included in cash flows from operating activities and
marketable securities have been reclassified as current assets based on the
liquidity of the investments.
    %SEDAR: 00002316EF




For further information:

For further information: Jeremy H. Reitman, President, (514) 385-2630;
www.reitmans.ca


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890