"Sears believes in a 'stronger dollar, lower prices' approach," said Dene Rogers, President and Chief Executive Officer, Sears Canada Inc. "The price reductions we announced last week were just a start and we are making further reductions this week. We want our customers to shop in Canada; it's more convenient for them and it is better for Canada and its economy when Canadians shop at home."

Sears has permanently reduced prices across its Lands' End shops, representing hundreds of items in men's, women's and kids sizes. Lands' End shops were introduced in 34 stores across the country from Vancouver to Halifax earlier this year. Lands' End offers Sears Canada customers exclusive retail-store access to this brand of classic apparel for every day. The Lands' End price reductions are in addition to the apparel price reductions announced last week within the Company's popular "Sears More Value" program.

The Company also announced that its Nygard Collection and Tan Jay women's apparel brands are priced at comparable prices with U.S. retailers.

Sears has also reduced prices on greeting cards which display both a Canadian and U.S. price. Sears will sell these at the lower of the two prices.

Sears continues to offer its customers prices comparable to U.S. pricing in its popular Home Electronics shop, within its normal promotional advertising program. Some recent examples are:

    <<
    - LG 32" HDTV No.32LC7D:                      $799.99 until Nov. 18,
                                                  Reg. 999.99 lowered from
                                                  1099.99

    - Sharp Aquos 32" LCD HDTV LC No.LC-32D43U    $899.99 until Nov. 12,
                                                  Reg. 999.99
    >>

The Company continues to work with suppliers to obtain costs which more accurately reflect the higher value of the dollar. "Sears and its suppliers have a long history of working together to provide excellent value to Sears customers," continued Mr. Rogers. "Canadians expect us to give them lower prices in light of the dollar's value, and we are working to meet these expectations."

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. The Company intends the forward-looking information to speak only as of the time made and does not undertake to update or revise this information except as may be required by law.

Sears Canada is a multi-channel retailer with a network of 196 corporate stores, 179 dealer stores, 61 home improvement showrooms, over 1,800 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