October 26, 2001

THE BARGAIN! SHOP HOLDINGS INC. PLANS TO OPEN 24 NEW STORES
MANY IN FORMER BIWAY LOCATIONS

The Bargain! Shop Holdings Inc. announces today that it plans to open 24 new stores by the end of November 2001. This expansion brings the number of Bargain! Shop stores to 112. Most of the new stores were, until recently, operated by Dylex as part of the BiWay chain. All of the new stores are located in Ontario and Eastern Canada and will create approximately 250 jobs, mainly in smaller and mid-sized communities.

The Bargain! Shop, which has been called "the best kept secret in Canadian retailing", carved out its niche by operating its extreme value format in mainly rural and smaller communities. The Bargain! Shop originated as the Canadian arm of Woolworth's discount store chain and became independent in 1999.

"Fortunately, we have not experienced the same disappointing sales results as reported by some others in the retail sector." said Michael Roellinghoff, President and CEO of The Bargain! Shop Holdings Inc. "Our stores offer the same range of merchandise as BiWay did and these new locations were successful BiWay stores. Therefore, with the knowledge that our format should be successful in our new markets, the timing of this aggressive rate of expansion is right."

The Bargain! Shop carries a variety of merchandise including; seasonal products, toys, food, bed & bath items, housewares, cleaning products, health & beauty products, candy as well as clothing & footwear for the whole family.

The Bargain! Shop, part of The Bargain! Shop Holding Inc., currently operates 88 stores across Canada. The Bargain! Shop offers great value with quality products at everyday low prices.