September 11, 2002

News Release: 54 % Net Earnings Increase in the Second Quarter

Hart Stores Inc. (TSX:HIS), an operator of junior department stores, improved its results by 54 % for the second quarter ended August 3, 2002, to reach $929,000 ($0.07 per share) compared to $602,000 ($0.04 per share) for the same period in the previous year. For this second quarter, sales increased by 11.8 % to reach $28.4 million while same-store sales increased by 7.6%. For the six-month period, ended August 3, 2002, net earnings reached $506,000 compared to a net loss of $236,000 for the same period in the previous year. Total revenues for the period increased by 8.9% to $48.8 million, compared to $44.8 million for the same period last year.

"We are pleased to be in a profitable position after the first half of the year, while this has traditionally been achieved only after the third quarter," said Michael Hart, president and chief executive officer of Hart Stores, adding that this milestone will set a new goal for the coming years. "This marks the 11th consecutive quarter in which we report improved results over the prior year. These improved results are mainly due to increased sales levels on a same-store basis, thanks to our promotional efforts, as well as a continued focus on increasing efficiencies and lowering our operating costs."

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    Quarters and six-month           For the 13 weeks        For the 26 weeks
     periods (Unaudited)                  ended                    ended
     (in thousands of dollars,       Aug. 3,  Aug. 4,        Aug. 3,   Aug.4,
     except per share amounts)         2002     2001           2002     2001
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    Sales                            28,424   25,428         48,769   44,769
    EBITDA                            1,879    1,508          1,468      597
    Net earnings (loss)                 929      602            506     (236)
    Net earnings (loss) per share      0.07     0.04           0.04    (0.02)
    _________________________________________________________________________

Subsequent to the quarter end, the Company opened its 58th store in the town of Sainte-Anne de Beaupre, near Quebec City. "We will continue our strategy of pursuing new store opportunities. Our 59th store will be opening on October 23 in the town of Cap Rouge, Quebec and we also plan on announcing our 60th store location in the spring of 2003", said Mr. Hart.

Hart Stores Inc. currently operates a network of 58 mid-sized junior department stores under the Hart, Bargain Giant and Geant des Aubaines banners. Located in smaller communities throughout Quebec and Atlantic Canada, the stores offer an extensive selection of national and exclusive fashion apparel brands as well as family footwear, home furnishings, giftware, toys, and seasonal goods.

%SEDAR: 00004123EB

For further information: Mr. Robert Farah, Vice-President, Secretary and
Chief Financial Officer, (514) 354-0101, rfarah(at)hartco.com;
www.hartstores.com

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