Sears Signs a Licensing Agreement with Cetalon Corporation to Introduce Sears Health Food Shops in 10 California Sears Stores

Sears has signed a licensing agreement with Cetalon Corporation to open Sears Health Food shops in 10 selected Sears department stores in California this summer. Cetalon's Health Food Shops sell vitamins, minerals, supplements and health information technology.

"Sears is committed to designing stores and tailoring product offerings to meet the needs of its customers. We believe that Cetalon's format for a health food shop will be an added benefit for our California customers," said Jack Krings, vice-president and general manager of Sears Licensed Businesses. "With more than 18 years of retail experience in Canada, Cetalon offers the high level of value and individualized service that Sears and its customers expect. We believe Cetalon will help make Sears the destination of choice for health-related products.

Anthony Bryan, chairman of Cetalon, commented, "The expansion of our business into the U.S. is an important milestone for Cetalon. The association with Sears, a well-established U.S.-based retailer with excellent locations, a large customer base, and strong reputation for quality and service, is a great platform for merchandising our vitamins, minerals and supplements, as well as our health information technology products. With the continuing support of Sears, we look forward to building a dynamic, fast-growing U.S. business, which will be based on creating superior value for Sears, Sears customers and Cetalon shareholders.

Cetalon is a "store within a store" retail and direct marketing company specializing in the sale of natural vitamins, minerals, and supplements as well as health information technologies and home health care products. Cetalon has 44 Sears Health Food and Fitness Shops in Sears Canada department stores.

Sears, Roebuck and Co. is a leading U.S. retailer of apparel, home and automotive products and services, with annual revenue of more than $40 billion. The company serves families throughout the country through more than 860 department stores, approximately 2,100 specialized retail locations, and a variety of online offerings accessible through the company's Web site, http://www.sears.com/ .

SOURCE: Sears, Roebuck and Co.

Contact: Media, Paula S. Davis of Sears, Roebuck and Co.,
847-286-4965

Website: http://www.sears.com/