corporate info

As consumers continue to focus on value during these uncertain economic times, Sears Canada Inc. (TSX: SCC) announced today it is bringing back its popular "Budget Relief Price Drop" program. To kick it off, Sears will offer consumers a large selection of products at outstanding prices beginning this weekend, Saturday January 24th.

Sears introduced the "Budget Relief Price Drop" program in the final months of 2008 to respond to Canadians looking for ways to get more value for their dollar. The program provides lower prices on a great selection of merchandise aimed to demonstrate to customers that they are getting the best prices for apparel and home products without having to lower their standards of quality. With consumer confidence remaining low and the difficult economic situation continuing into the first quarter, Sears "Budget Relief Price Drop" is certain to be welcomed back by consumers looking to stretch their household budgets in 2009.

"We understand, given the current economic climate, the issues facing our customers, and we are committed to providing household budgets needed relief beyond the Holiday season," said Dene Rogers, President and Chief Executive Officer, Sears Canada Inc. "Our Budget Relief Price Drop program is our way of making certain that our customers know that Sears continues to provide deeper-than-normal price cuts on private and national brands. They can feel confident shopping at Sears, even during these challenging times."

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    The Budget Relief Price Drop promotion for this weekend includes the
    following items:

    Men's Levis 501 Jeans                                $41.99, Reg. $74.99
    Men's Haggar Q Select Casual Pants                   $39.99, Reg. $70.00
    Men's Arnold Palmer Seersucker Sportshirt            $14.99, Reg. $29.99
    Women's Clark 'Chance' Leather Clogs                 $53.99, Reg. $89.99
    Proform Folding Treadmill                         $539.99, Reg. $1199.99
    Free Spirit Elliptical Trainer                    $899.99, Reg. $1799.99
    Nordick Track Folding Treadmill                   $749.99, Reg. $1499.99

    Craftsman 12", 15amp Sliding Compound Mitre Saw    $359.99, Reg. $699.99
    Craftsman 3gal Compressor                           $99.99, Reg. $179.99
    Craftsman 19.2V Drill/Driver/Flashlight             $99.99, Reg. $199.99
    Craftsman Orbital Sander                            $34.99, Reg.  $69.99
    Craftsman 19.2V Drill w/ 2 Batteries                $89.99, Reg. $179.99
    Craftsman 10", 15amp Mitre Saw                     $189.99, Reg. $379.99
    Craftsman 10" Table Saw                            $164.99, Reg. $329.99

    Henckels 10 pc stainless steel cookware set        $199.99, Reg. $699.99

    Sony 52" LCD TV                                  $1699.99, Reg. $2199.99
    Samsung 50" TV and Blu-Ray Player                $1799.99, Reg. $2399.99
    Panasonic Viera 42" Plasma & 5 Disc Home Theatre $1299.99, Reg. $1699.99
    Sony Bravia 40" TV                               $1099.99, Reg. $1399.99
    >>

With respect to prices at other retailers operating in Canada, Sears reminds customers of its Price Match Guarantee, which states that the Company will match any advertised price in Canada. Customers can find additional information and details at their local Sears store.

This release contains information which is forward-looking and is subject to important risks and uncertainties. Forward-looking information concerns the Company's future financial performance, business strategy, plans, goals and objectives. Factors which could cause actual results to differ materially from current expectations include, but are not limited to: the ability of the Company to successfully implement its cost reduction, productivity improvement and strategic initiatives and whether such initiatives will yield the expected benefits; the impact of the sale of the Company's Credit and Financial Services operations and the results achieved pursuant to the Company's long-term marketing and servicing alliance with JPMorgan Chase Bank, N.A.; general economic conditions; competitive conditions in the businesses in which the Company participates; changes in consumer spending; seasonal weather patterns; customer preference toward product offerings; changes in the Company's relationship with its suppliers; interest rate fluctuations and other changes in funding costs; fluctuations in foreign currency exchange rates; the possibility of negative investment returns in the Company's pension plan; the outcome of pending legal proceedings; and changes in laws, rules and regulations applicable to the Company. While the Company 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.

Sears Canada is a multi-channel retailer with a network of 198 corporate stores, 187 dealer stores, 44 home improvement showrooms, over 1,850 catalogue merchandise pick-up locations, 106 Sears Travel offices and a nationwide home maintenance, repair, and installation network. The Company also publishes Canada's most extensive general merchandise catalogue and offers shopping online at www.sears.ca.

SOURCE: Sears Canada Inc.

Contact for Media: Vincent Power, Sears Canada, Corporate Communications, (416)
941-4422, vpower@sears.ca