Press Releases

Shoppers Drug Mart Corporation prices issuance of $450 million of Series 2 medium term notes

May 28, 2008


TORONTO, May 28 /CNW/ - Shoppers Drug Mart Corporation (TSX: SC) today
announced that it has priced the issuance of $450 million aggregate principal
amount of 4.99% unsecured medium term notes, Series 2, due June 3, 2013 for
aggregate net proceeds of $448,285,500. The notes will be offered pursuant to
a pricing supplement to the Company's short form base shelf prospectus dated
May 22, 2008. The pricing supplement will be filed with the securities
regulatory authorities in each of the provinces of Canada. RBC Dominion
Securities Inc., Scotia Capital Inc., CIBC World Markets Inc., TD Securities
Inc., BMO Nesbitt Burns Inc., Merrill Lynch Canada Inc. and National Bank
Financial Inc. are acting as agents with respect to this offering. The
issuance of these notes is expected to close on or about June 2, 2008 and the
proceeds will be used to refinance existing indebtedness. As a result of using
the proceeds to refinance existing indebtedness, the consolidated debt
position of the Company is expected to remain substantially unchanged.
This offering is only being made by way of prospectus. The pricing
supplement and the short form base shelf prospectus, including the documents
incorporated by reference therein, contain important information concerning
these securities. Prospective investors should read the pricing supplement and
the short form base shelf prospectus before making an investment decision.
This news release does not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction. The
securities being offered have not been approved or disapproved by any
regulatory authority nor has any such authority passed upon the accuracy or
adequacy of the pricing supplement or the short form base shelf prospectus.
The securities referred to herein have not been and will not be
registered under the United States Securities Act of 1933, as amended, or any
state securities laws and may not be offered, sold or delivered within the
United States of America and its territories and possessions except in certain
transactions exempt from such registration requirements.
Copies of the short form base shelf prospectus and the pricing supplement
relating to the offering of these securities may be obtained from SEDAR at

About Shoppers Drug Mart Corporation

Shoppers Drug Mart Corporation is one of the most recognized and trusted
names in Canadian retailing. The Company is the licensor of full-service
retail drug stores operating under the name Shoppers Drug Mart (Pharmaprix in
Québec). With more than 1,095 Shoppers Drug Mart and Pharmaprix stores
operating in prime locations in each province and two territories, the Company
is one of the most convenient retailers in Canada. The Company also owns and
operates 65 Shoppers Home Health Care stores, making it the largest Canadian
retailer of home health care products and services. In addition to its retail
store network, the Company owns MediSystem Technologies Inc., a provider of
pharmaceutical products and services to long-term care facilities in Ontario
and Alberta.

%SEDAR: 00016987EF

For further information: Media Contact: Tammy Smitham, Director, Communications & Corporate Affairs, (416) 490-2892, or, (416) 493-1220, ext. 5500; Investor Relations: (416) 493-1220, ext. 5678,