Mr. Galen Weston reports

LOBLAW COMPANIES LIMITED OBTAINS APPROVAL FROM COMPETITION BUREAU AND SETS CLOSING DATE FOR ACQUISITION OF SHOPPERS DRUG MART CORPORATION

The Competition Bureau has approved Loblaw Companies Ltd.'s acquisition of Shoppers Drug Mart Corp. Loblaw and Shoppers Drug Mart also announced that the acquisition is expected to close March 28, 2014.

"We are pleased the Competition Bureau has concluded its review of this transaction and to have its consent to bring these two great Canadian companies together," said Galen Weston, executive chairman of Loblaw. "This merger uniquely positions Loblaw to meet the most important consumer trends in the country, including urbanization, and health and wellness. In doing so, we will continue to deliver more choice, more value and more convenience to Canadians."

As part of its agreement with the Competition Bureau, Loblaw will sell 18 stores and nine pharmacy operations. Loblaw does not anticipate any store closures as a result of these divestitures. Throughout the sale process, customers can expect the same trusted and quality in-store experience in the impacted stores.

In the course of its review of the acquisition, the Competition Bureau expressed potential concerns about certain Loblaw supplier practices. The company will co-operate with the Competition Bureau in its continued review of these practices. Loblaw is committed to supplier practices that meet the bureau's objectives of maintaining competitive markets.

Information for Shoppers Drug Mart shareholders

Shoppers Drug Mart shareholders have the ability to choose whether to receive $61.54 in cash or 1.29417 Loblaw common shares plus one cent cash for each Shoppers Drug Mart share held, subject to proration as set out in the plan of arrangement.

The deadline for registered Shoppers Drug Mart shareholders to make an election with respect to the form of consideration they wish to receive, subject to proration, is March 26, 2014, prior to 5 p.m. ET. Registered shareholders are reminded that they must complete, sign and return a letter of transmittal and election form with their share certificate(s) to Equity Financial Trust Co., as depositary, by the election deadline. Shareholders holding Shoppers Drug Mart shares through a broker, investment dealer or other intermediary, should carefully follow the instructions provided by such broker, investment dealer or other intermediary in order to make an election.

Shoppers Drug Mart shareholders that have not made an election by the election deadline will be deemed to have elected to receive the cash consideration as to 53.9 per cent of their shares and the share consideration as to 46.1 per cent of their shares, subject to proration.

Additional copies of the letter of transmittal and election form may be requested from Equity Financial Trust by telephone at: 1-866-393-4891 or 416-361-0930, Extension 205, or by e-mail at: corporateactions@equityfinancialtrust.com or investor@equityfinancialtrust.com. Copies of the letter of transmittal and election form are also available on Shoppers Drug Mart's website and SEDAR.

Loblaw will provide joint tax election forms on its website shortly after closing.

We seek Safe Harbor.