Le Chateau Inc.

Long-Term Financing to Support New Concept Store Renovation Program

MONTREAL, QUEBEC--(Marketwired - April 1, 2015) - Le Château Inc. (TSX:CTU.A) has entered into an agreement with a Corporation controlled by Herschel Segal, the founder of Le Château and a Director and majority shareholder of the Company, for long-term financing of $5.0 million.

This loan, in line with our current business plan and strategy, will provide the Company with additional capital and financing flexibility, with proceeds being used primarily towards the Company's new concept store renovation program which includes the following stores:

Scarborough Town Centre in Ontario (opened April 1, 2015)

Fairview Pointe Claire in Quebec (May 2015)

Yorkdale Shopping Centre in Ontario (July 2015)

St. Laurent Shopping Centre in Ottawa, Ontario (August 2015)

Mayfair Shopping Centre in British Columbia (August 2015)

With the above-mentioned stores, a total of 20 stores will have been converted to the new concept stores since the fall of 2011.

The financing is in the form of a secured loan which bears interest at an annual rate of 7.5%, is repayable at maturity on January 31, 2020, and may be prepaid, in whole or in part, at any time. The parties have concurrently amended the existing $5.0 million loan to extend its maturity from January 31, 2016 to January 31, 2020 and to secure it on the same basis as the new $5.0 million loan. The loans will be secured by all the Company's property and will be subordinated in terms of ranking and repayment to the Company's $80.0 million asset based credit facility.

The transaction was approved by all of the disinterested directors of the Company and is exempt from the requirements to obtain an independent valuation or minority approval under the related party transaction rules of applicable securities legislation.

Profile

Le Château is a leading Canadian brand in specialty retailing, offering a broad array of contemporary fashion apparel, accessories and footwear for style-conscious women and men. The Le Château brand is sold exclusively through the Company's 222 retail locations, of which 221 are located in Canada. The Company's retail locations are primarily found in major urban shopping malls, as well as street-front locations with high pedestrian traffic. In addition, the Company has 4 stores under license in the Middle East. Le Château's web-based marketing is further broadening the Company's customer base among internet shoppers in both Canada and the United States. With its 55-year tradition of vertical integration, emphasizing a design and manufacturing approach to retailing, Le Château is unique among Canadian fashion merchants.