West 49 Inc.

May 25, 2005 17:00 ET

West 49 Closes Acquisition of Off The Wall'TM' Chain

BURLINGTON, ONTARIO--(CCNMatthews - May 25, 2005) - West 49 Inc. (TSX:WXX) has closed its acquisition of Off the Wall, a fashion-forward young women's clothing retailer.

Off the Wall operates 10 stores in British Columbia, primarily in major shopping malls. An eleventh store is scheduled to open in the West Edmonton Mall for the fall season.

"We are pleased to have Off the Wall and its president, Christian Toth, as part of the West 49 team," said Sam Baio, Chief Executive Officer. "This represents another tremendous growth opportunity, as Off the Wall serves market segments very similar to those of West 49."

Off the Wall posted sales of $21.1 million and unaudited pre-tax profit of $2.4 million in its most recent fiscal year ended February 26, 2005. Off the Wall's results will be consolidated with those of West 49 beginning May 25, 2005.

The acquisition price consists of $6 million in cash and slightly more than 5.2 million West 49 shares (which will be subject to certain resale restrictions). Off the Wall Group Inc.'s head office will remain in Burnaby, British Columbia.

West 49 Inc. is a specialty retailer of apparel, footwear and accessories, with an emphasis on skateboarding, snowboarding and surfing. The Company targets "Generation Y" customers (ages 10 through 18). West 49 operates 62 stores in seven provinces. It also owns Off the Wall, fashion-forward young women's clothing retailer with 10 stores. West 49's shares are listed on the Toronto Stock Exchange under the symbol WXX.

Forward-looking statements

Information in this news release that is not current or historical factual information may constitute forward-looking information. Implicit in this information are assumptions which, although considered reasonable by West 49 at the time of preparation, may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties and could differ materially from what is currently expected, including those referred to in our 2005 Annual Report.

Contact Information

  • West 49 Inc.
    Pete Pigott
    Chief Operating Officer
    905-336-5454 x261
    West 49 Inc.
    Kim Mullenger
    Manager of Financial Reporting and Investor Relations
    905-315-8400 x237