HBC UNVEILS GREENEST ZELLERS EVER

Waterdown, ON – November 30, 2007 – Hudson's Bay Company (Hbc) is pleased to announce the grand opening of its new 120,000 square foot Waterdown Zellers location on Saturday, December 1st. This location will be the greenest Zellers ever, featuring a variety of progressive elements that will minimize the store’s impact on the environment.

“The Waterdown Zellers store will be a ‘proving’ ground for eco-friendly initiatives that could be included in other Hbc stores in coming years,” said Robert Johnston, President, Hbc.“This is one of the many important green initiatives Hbc has undertaken in 2007 as part of our Global Mind program. We have also increased the number of our trucks using bio-diesel and undertaken Zero Waste programs at our head offices and seven stores.”

In recognition of the environmental significance of this new Zellers store, the Ontario Power Authority’s Chief Energy Conservation Officer, Peter Love, presented Hbc with a special certificate of recognition that will be placed in the store.

“HBC is the oldest company in Canada, and it has been part of our culture since the 1600s,” said Love.  “How fitting that our oldest company has so completely embraced modern technology and practices to reduce energy use and greenhouse gas emissions.  I applaud HBC for continuing to be a leader in Canada, and for doing so much to develop a culture of conservation.”

The sustainable building measures Hbc implemented in the Waterdown location include:

Two windmills, which will generate enough electricity to power a house.

Solar panels, which will power recycling compactors and help light the store.

A white roof which reflects and disperses heat.

Waterless urinals and touchless faucets, which will reduce water use.

ERV - energy recovery ventilators, which will help control air quality for customers and reduce the store’s demand for energy.

HVAC – heating, ventilating and air conditioning units, which use no ozone depleting refrigerants.

PRA - pressure relief assembly: to control air quality into the store.

The Waterdown Zellers features a fully automated energy management system that is controlled remotely by Hbc’s head office.The system allows for central control over the timing of indoor and outdoor lights, temperature control, CO2 reduction, humidity control, electricity consumption, remote lighting and more. This system allows Hbc to raise temperatures and reduce lighting levels in the store during heat waves in response to energy conservation requests by the Province of Ontario.

Efforts to ensure that the new Waterdown location will leave the smallest ecological footprint possible means that it will also benefit from:

Kitchen exhaust control to reduce energy consumption used by ventilating fans.

Exclusive use to green products for cleaning the store.

Return programs for rechargeable batteries and cell phones.

A program to take back plastic shopping bags and to promote the use of reusable ones.

Exterior signage is LED illuminated.

State of the art InterfaceFLOR covering (carpet) which is carbon neutral, with 40% recycled content and can be fully reclaimed.

“In addition to being a state of the art Zellers store with approximately 200 associates employed, it will also feature programs like plastic shopping bag and battery recycling, and an in-store Zero Waste program that will allow our associates and customers to take an active role in reducing the store’s environmental footprint,” said Kevin Hanoman, store manager.

The new Waterdown location also benefits from custom designed, color specific signage and photography aimed at making store navigation and searching for leading brands like Alfred Sung, Midtown, Sportek and Stuff by Hillary Duff a more intuitive customer experience. Waterdown will feature an updated, rustic take on the classic Zellers dinner, a neighbourhood market location with grocery items, and a new display concept that will showcase jewelry and accessories together in an easy to browse format.

The Zellers Waterdown location is an important part of the Hbc’s broader sustainability program called Global Mind. Hbc is committed to ensuring its stores and operations are energy efficient and environmentally friendly through programs such as:

Zero waste - Hbc’s corporate head office located in downtown Toronto is the first office tower in Canada to achieve the ‘zero waste’ designation.

Enwave deep cooling - In 2005, Hbc was the first retailer to embrace green energy. By converting its one-million-square-foot Queen Street Bay to green energy for air conditioning, the new system uses 90 per cent less electricity than conventional chillers.

Recycling at store level - In 2006, Zellers and Bay stores recycled 606 kg (1,333 lb) of rechargeable batteries and cell phones.

Eco-friendly products such as Truly Ultra Cold Water Laundry Detergent, ENERGY STAR qualified appliances and 100 per cent Organic Cotton house wares and apparel are available at the Bay and Zellers.

Hbc is Canada's largest diversified general merchandise retailer, operating in department store (the Bay), mass merchandise (Zellers), specialty (Home Outfitters and Designer Depot) and discount (Fields) formats. With more than 580 retail locations and nearly 70,000 associates located in every province in Canada, Hbc provides Canadians with stylish, quality merchandise at great value, through retail banners focused on exceptional customer service. Hbc is a Canadian retail leader in corporate social responsibility, and the fifth annual Hbc CSR report can be found at www.hbc.com.