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From the Wires
The Jean Coutu Group-First Quarter Results Reflect Improving Canadian and US Sales Trends and Elements of the Announced Rite Aid-Jean Coutu Group Transaction
The Jean Coutu Group-First Quarter Results Reflect Improving Canadian and US Sales Trends and Elements of the Announced Rite Aid

By: Marketwire .
Oct. 10, 2006 10:30 AM

LONGUEUIL, QUEBEC -- (MARKET WIRE) -- 10/10/06 -- The Jean Coutu Group (PJC) Inc. (TSX: PJC.A) (the "Company" or the "Jean Coutu Group") today reported its financial results for the first quarter of fiscal 2007 ended August 26, 2006.


                            SUMMARY OF RESULTS
 (Unaudited, in millions of US dollars except per share amounts)
---------------------------------------------------------------------
                                      Q1/2007    Q4/2006    Q1/2006
---------------------------------------------------------------------
Revenues                              2,786.2    2,875.2    2,683.1
Operating income before amortization
 ("OIBA")                               100.2      129.9      104.4
OIBA before restructuring charges       110.8      129.9      104.4
Net earnings (loss)                    (108.8)      30.3       11.1
Per share                              $(0.42)     $0.12      $0.04
Earnings before specific items           17.8       41.5       12.3
Per share                               $0.07      $0.16      $0.05
---------------------------------------------------------------------

HIGHLIGHTS

- The Company recorded certain components of the announced Rite Aid-
  Jean Coutu Group transaction during the first quarter of fiscal
  2007, recognizing an after-tax impairment loss of $120.0 million
  and restructuring charges of $10.6 million ($6.4 million after-
  tax).
- The Canadian network continues to improve its performance,
  recording a 9.1% increase in pharmacy sales and a 3.5% increase in
  front-end sales during the quarter.
- Same-store sales increased in the US network due to improved
  pharmacy sales trends.

"The Jean Coutu Group's first quarter results were positively impacted by the improving sales performance in both the Canadian and US networks," said Jean Coutu, President and Chief Executive Officer. "In the meantime, we had to recognize certain components of the Rite Aid-Jean Coutu Group transaction during this quarter. We continue our focus on sales growth and efficient operations in both networks and expect the Rite Aid-Jean Coutu Group transaction to close during the third quarter of fiscal 2007."

Net earnings

For the first quarter of fiscal 2007, the net loss was $108.8 million ($0.42 per share) compared with net earnings of $11.1 million ($0.04 per share) for the first quarter of the previous fiscal year.

On August 23, 2006, the Company entered into a definitive agreement with Rite Aid Corporation ("Rite Aid") whereby the Company would dispose of its network in the United States. The Company expects to close this transaction, subject to certain usual conditions, in the third quarter of fiscal 2007. However, Generally Accepted Accounting Principles ("GAAP") require that the Company recognizes certain components of the disposal transaction immediately. The after-tax impairment loss recognized during the first quarter of fiscal 2007 amounts to $120.0 million. Earnings before specific items were $17.8 million ($0.07 per share) compared with $12.3 million ($0.05 per share) for the first quarter of the previous fiscal year. Those specific items are as follows:


                               SPECIFIC ITEMS
  (Unaudited, in millions of US dollars except per share amounts)
---------------------------------------------------------------------
                                      Q1/2007    Q4/2006    Q1/2006
---------------------------------------------------------------------
---------------------------------------------------------------------
Impairment loss on assets held for
 sale                                   120.0          -          -
Restructuring charges ($10.6 million
 pre-tax)                                 6.4          -          -
Unrealized foreign exchange losses
 on monetary items                        0.2       11.2        1.2
---------------------------------------------------------------------
Specific items - total                  126.6       11.2        1.2
  Per share                             $0.49      $0.04      $0.01
---------------------------------------------------------------------

Revenues

Total revenues of the Company's Canadian operations for the first quarter reached $435.5 million compared with $364.7 million for the first quarter of fiscal 2006, an increase of $70.8 million or 19.4%. First quarter Canadian revenues increased by 9.2% year-over-year, excluding the impact of currency exchange rate fluctuations.

The Company's US operations generated total revenues of $2.351 billion, up slightly from the first quarter of fiscal 2006, due principally to improving pharmacy sales, net of the closure of 78 non-performing Eckerd drugstores, which had contributed $21.2 million to revenues during the first quarter of fiscal 2006. Pharmacy sales were impacted by the conversion of branded drugs to generics, which generally have a lower selling price, but higher gross margins for the drugstore retailer.

Total revenues for fiscal 2007 increased by $103.1 million or 3.8% to $2.786 billion, from $2.683 billion for fiscal 2006.

Retail sales

Retail sales growth percentages quoted herein are calculated in local currency in order to exclude the impact of currency rate fluctuations. As of August 1, 2005, the Company began to report same-store sales for the Eckerd drugstores acquired on July 31, 2004, and publishes this information for both the Canadian and US networks on a monthly basis.

For the first quarter of fiscal 2007, both of the Company's networks showed an increase in sales.

During the first quarter, the Company's Canadian franchise network retail sales were up 6.2%, pharmacy sales gained 8.6% and front-end sales increased 2.6% year-over-year in terms of comparable stores. The network showed a 6.8% increase in retail sales compared with the same period of fiscal 2006. Retail sales for the quarter were $652.8 million.

The US corporate pharmacy network retail sales increased 2.4%, pharmacy sales increased 3.3% and front-end sales decreased 0.2% compared with the same quarter of fiscal 2006 in terms of comparable stores. This measure included comparable store sales for the acquired Eckerd stores beginning August 1, 2005, the first anniversary of ownership by the Company. The impact of generic drugs replacing branded drugs on US pharmacy sales growth was 270 basis points for the period. The front-end sales decrease was principally attributable to the decline in the photo category due to the shift to digital photography. The network posted a 1.4% increase in retail sales when compared with the same quarter of fiscal 2006, reflecting the closure of 78 non-performing Eckerd drugstores during the first quarter. Retail sales for the quarter were $2.348 billion.


---------------------------------------------------------------------
---------------------------------------------------------------------
RETAIL SALES GROWTH                           13 weeks     13 weeks
                                                 ended        ended
                                             August 26,   August 27,
(Unaudited)                                       2006         2005
---------------------------------------------------------------------

CANADA(1)
Same store sales growth
Total                                              6.2%         3.5%
Pharmacy                                           8.6%         5.4%
Front-end                                          2.6%         1.4%
Total sales growth
Total                                              6.8%         3.6%
Pharmacy                                           9.1%         5.5%
Front-end                                          3.5%         1.4%

UNITED STATES
Same store sales growth
Total                                              2.4%         0.3%
Pharmacy                                           3.3%         1.3%
Front-end                                         (0.2)%       (2.3)%
Total sales growth
Total                                              1.4%       126.3%
Pharmacy                                           2.4%       131.0%
Front-end                                         (1.1)%      114.3%

(1) Franchised outlets' retail sales are not included in the
    Company's consolidated financial statements.
---------------------------------------------------------------------
---------------------------------------------------------------------

OIBA

OIBA decreased for the first quarter of fiscal 2007 to $100.2 million from $104.4 million for the corresponding period of fiscal 2006. OIBA decreased by $4.2 million compared to the corresponding period of fiscal 2006 and, as a percentage of revenues, ended the quarter at 3.6% compared with 3.9% for the same period of 2006.

Fiscal 2007 first quarter OIBA was impacted by certain restructuring charges principally related to the adoption of a transition pay program associated with the announced transaction. OIBA before restructuring charges amounted to $110.8 million during the first quarter of fiscal 2007 and ended the first quarter at 4.0% compared with 3.9% for the same period in fiscal 2006.

Store network development

During the first quarter of fiscal 2007, 7 drugstores were opened, of which 4 were relocations, 3 were acquired and 5 were closed. On August 26, 2006, there were 2,186 stores in the system, comprised of 327 Canadian PJC stores, and 1,859 Brooks and Eckerd drugstores in the United States.

Outlook

With the announcement of the Rite Aid-Jean Coutu Group transaction, the Company will be well positioned to capitalize on the growth in the North American drugstore retailing industry. Demographic trends in Canada and the United States are expected to contribute to growth in the consumption of prescription drugs, and to the increased use of pharmaceuticals as the primary intervention in individual healthcare. Management believes that these trends will continue and that the Company will achieve sales growth through differentiation and quality of offering and service levels in its drugstore network.

The Company operates its Canadian and US networks with a focus on sales growth, its real estate program and operating efficiency. The initial budget for the 2007 fiscal year called for capital expenditures of approximately $300 million, representing $250 million in the United States and $50 million in Canada. Investments will be revised in light of the announced transaction with Rite Aid.

Management expects that the announced transaction with Rite Aid, which is expected to close in the third quarter of fiscal 2007, will help create shareholder value. The Jean Coutu Group will optimize its US presence by transforming its investment in a regional drugstore chain into the leading ownership position of a major national chain with enhanced scale to better compete in the US drugstore industry. The Company's' 32.0% equity ownership position in the expanded Rite Aid will allow shareholders to participate in the economic benefits of expected synergies. The cash proceeds from the transaction will be used to retire debt, enhancing financial flexibility.

Dividend

The Board of Directors of The Jean Coutu Group declared a quarterly dividend of $C 0.03 per share. This dividend is payable on November 9, 2006 to all holders of Class A subordinate voting shares and holders of Class B shares listed in the Company's shareholder ledger as of October 26, 2006.

Conference call

Financial analysts are invited to attend the first quarter results conference call to be held on October 10, 2006, at 9:00 AM (ET). The toll free call-in number is 1-866-696-5895. Media and other interested individuals are invited to listen to the live or deferred broadcast on The Jean Coutu Group corporate website at www.jeancoutu.com. A full replay will also be available by dialing 1-800-408-3053 code 3199925 (pound sign) until November 10, 2006.

Supporting documentation (additional information and investor presentation) is available at www.jeancoutu.com using the investors link. Readers may also access additional information and filings related to the Company using the following links to the www.sedar.com (Canada) and www.sec.gov (United States) websites.

About The Jean Coutu Group

The Jean Coutu Group (PJC) Inc. is the fourth largest drugstore chain in North America and the second largest in both the eastern United States and Canada. The Company and its combined network of 2,186 corporate and franchised drugstores (under the banners of Brooks and Eckerd Pharmacy, PJC Jean Coutu, PJC Clinique and PJC Sante Beaute) employ more than 61,000 people.

The Jean Coutu Group's US operations employ 46,000 people and comprise 1,859 corporate-owned stores located in 18 states of the northeastern, mid-Atlantic and southeastern United States. The Jean Coutu Group's Canadian operations and franchised drugstores in its network employ over 15,000 people and comprise 327 PJC Jean Coutu franchised stores in Quebec, New Brunswick and Ontario.

Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995. The words "looking forward," "looking ahead," "believe(s)," "should," "may," "expect(s)," "anticipate(s)," "likely," "opportunity," and similar expressions, among others, identify forward-looking statements. Such statements are not guarantees of the future performance of the Company or its segments, and involve known and unknown risks and uncertainties that may cause the outlook, the actual results or performance of the Company or of its reportable segments to be materially different from any future results or performance expressed or implied by such statements depending on, among others, such factors as changes in the regulatory environment as it relates to the sale of prescription drugs, competition, exposure to interest rate fluctuations, foreign currency risks, certain property and casualty risks, the ability to attract and retain pharmacists, risks in connection with third party service providers, seasonality risks, changes in federal, provincial and state laws, rules and regulations relating to the Company's business and environmental matters, changes in tax regulations and accounting pronouncements, the success of the Company's business model, supplier and brand reputations, and the accuracy of management's assumptions. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. For further information, readers are referred to the section on Risks and uncertainties contained in the Company's MD&A as well as in other filings. The Company disclaims any intention or obligation to update or revise any forward-looking information contained in its communications, whether as a result of new information, future events or otherwise.

This press release also contains certain non-GAAP financial measures. Such information is reconciled to the most directly comparable financial measures, as set forth in the "additional information" section, which is attached to the Company's financial statements.


THE JEAN COUTU GROUP (PJC) INC.

Consolidated statements of earnings                   13 weeks
Periods ended August 26, 2006 and
 August 27, 2005                                  2006         2005
---------------------------------------------------------------------
---------------------------------------------------------------------
(in millions of US dollars, unless otherwise
 noted)                                              $            $
                                            (unaudited)  (unaudited)

Sales                                          2,737.8      2,637.8
Other revenues (Note 2)                           48.4         45.3
---------------------------------------------------------------------
                                               2,786.2      2,683.1
Operating expenses
  Cost of goods sold                           2,120.3      2,021.2
  General and operating expenses                 556.0        558.4
  Restructuring charges (Note 3)                  10.6            -
  Amortization (Note 4)                           57.3         60.7
---------------------------------------------------------------------
                                               2,744.2      2,640.3
---------------------------------------------------------------------
Operating income                                  42.0         42.8
Financing expenses (Note 5)                       50.9         50.7
Impairment loss on assets held for sale
 (Note 3)                                        120.0            -
---------------------------------------------------------------------
Loss before income tax recovery                 (128.9)        (7.9)
Income tax recovery                              (20.1)       (19.0)
---------------------------------------------------------------------
Net earnings (loss)                             (108.8)        11.1
---------------------------------------------------------------------
---------------------------------------------------------------------

Earnings (loss) per share, in dollars (Note 6)
  Basic                                          (0.42)        0.04
  Diluted                                        (0.42)        0.04
---------------------------------------------------------------------
---------------------------------------------------------------------


Consolidated statement of retained earnings           13 weeks
Periods ended August 26, 2006 and
 August 27, 2005                                  2006         2005
---------------------------------------------------------------------
---------------------------------------------------------------------
(in millions of US dollars)                          $            $
                                            (unaudited)  (unaudited)

Balance, beginning of period                     864.4        787.6
Net earnings (loss)                             (108.8)        11.1
---------------------------------------------------------------------
                                                 755.6        798.7
Dividends                                          7.0          6.5
---------------------------------------------------------------------
Balance, end of period                           748.6        792.2
---------------------------------------------------------------------
---------------------------------------------------------------------

The segmented information and the accompanying notes are an integral
part of these unaudited interim consolidated financial statements.



THE JEAN COUTU GROUP (PJC) INC.

Consolidated balance sheets                      As at        As at
                                             August 26,      May 27,
                                                  2006         2006
---------------------------------------------------------------------
---------------------------------------------------------------------
(in millions of US dollars)                          $            $
                                            (unaudited)    (audited)

Assets
Current assets
  Cash and cash equivalents                       51.0        135.8
  Accounts receivable                            120.8        555.5
  Income taxes receivable                          7.6         16.5
  Inventories                                    102.3      1,744.9
  Prepaid expenses and other                       4.4         47.3
  Current assets held for sale (Note 3)        2,188.0            -
---------------------------------------------------------------------
                                               2,474.1      2,500.0
Investments                                       24.6         25.4
Capital assets                                   272.2      1,385.8

Intangible assets                                    -        689.4
Goodwill                                          18.1        876.8
Other long-term assets                           105.3        113.6
Long-term assets held for sale (Note 3)        2,651.0            -
---------------------------------------------------------------------
                                               5,545.3      5,591.0
---------------------------------------------------------------------
---------------------------------------------------------------------

Liabilities
Current liabilities
  Accounts payable and accrued liabilities       151.2      1,079.6
  Future income taxes                                -        147.8
  Current portion of long-term debt               76.1         78.8
  Current liabilities related to assets held
   for sale (Note 3)                           1,085.5            -
---------------------------------------------------------------------
                                               1,312.8      1,306.2
Long-term debt                                 2,291.5      2,312.0
Other long-term liabilities (Note 7)              25.8        407.1
Long-term liabilities related to assets held
 for sale (Note 3)                               345.1            -
---------------------------------------------------------------------
                                               3,975.2      4,025.3
---------------------------------------------------------------------

Shareholders' equity
  Capital stock                                  577.9        577.9
  Contributed surplus                              2.8          2.4
  Retained earnings                              748.6        864.4
  Foreign currency translation adjustments       240.8        121.0
---------------------------------------------------------------------
                                               1,570.1      1,565.7
---------------------------------------------------------------------
                                               5,545.3      5,591.0
---------------------------------------------------------------------
---------------------------------------------------------------------

The segmented information and the accompanying notes are an integral
part of these unaudited interim consolidated financial statements.



THE JEAN COUTU GROUP (PJC) INC.

Consolidated statements of cash flows                 13 weeks
Periods ended August 26, 2006 and
 August 27, 2005                                  2006         2005
---------------------------------------------------------------------
---------------------------------------------------------------------
(in millions of US dollars)                          $            $
                                            (unaudited)  (unaudited)

Operating activities
Net earnings (loss)                             (108.8)        11.1
Items not affecting cash
  Amortization                                    61.5         64.6
  Impairment loss on assets held for sale        120.0            -
  Future income taxes                            (21.5)       (18.3)
  Other                                           (0.8)        (6.2)
---------------------------------------------------------------------
                                                  50.4         51.2
Net changes in non-cash asset and liability
 items                                           (41.0)      (146.6)
---------------------------------------------------------------------
Cash flow provided by (used in) operating
 activities                                        9.4        (95.4)
---------------------------------------------------------------------
Investing activities
  Investments and temporary investments            0.9         (0.6)
  Purchase of capital assets                     (42.3)       (37.8)
  Proceeds from the disposal of capital assets     0.2          0.8
  Purchase of intangible assets                   (1.7)        (5.5)
  Proceeds from the disposal of intangible
   assets                                          0.1          7.8
  Other long-term assets                          (0.8)        (0.3)
---------------------------------------------------------------------
Cash flow used in investing activities           (43.6)       (35.6)
---------------------------------------------------------------------
Financing activities
  Issuance of long-term debt, net of expenses      2.6         99.6
  Repayment of long-term debt                    (12.9)       (12.2)
  Issuance of capital stock                          -          0.4
---------------------------------------------------------------------
Cash flow provided by (used in) financing
 activities                                      (10.3)        87.8
---------------------------------------------------------------------
Effect of foreign exchange rate changes on
 cash and cash equivalents                         0.5          8.0
---------------------------------------------------------------------
Decrease in cash and cash equivalents            (44.0)       (35.2)
Cash and cash equivalents, beginning of period   135.8        132.2
---------------------------------------------------------------------
Cash and cash equivalents, end of period (1)      91.8         97.0
---------------------------------------------------------------------
---------------------------------------------------------------------

(1) Includes $40.8 million of cash and cash equivalents grouped with
    current assets held for sale as of August 26, 2006.

See complementary cash flow information in Note 11.

The segmented information and the accompanying notes are an integral
part of these unaudited interim consolidated financial statements.



THE JEAN COUTU  GROUP (PJC) INC.
Consolidated segmented information
Periods ended August 26, 2006 and August 27, 2005
(in millions of US dollars)

The Company has two reportable segments: franchising and retail sales. Within the franchising segment, the Company carries on the franchising activity of the "PJC Jean Coutu" banner, operates two distribution centers and coordinates several other services for the benefit of its franchisees. The Company operates retail sales outlets selling pharmaceutical and other products under the "Brooks" and "Eckerd" banners.

The Company analyzes the performance of its operating segments based on their operating income before amortization, which is not a measure of performance under Canadian generally accepted accounting principles ("GAAP"); however, management uses this performance measure for assessing the operating performance of its reportable segments.

Segmented information is summarized as follows:


                                                       13 weeks
                                                  2006         2005
---------------------------------------------------------------------
                                                     $            $
                                            (unaudited)  (unaudited)

Revenues (1)
  Franchising                                    435.5        364.7
  Retail sales                                 2,350.7      2,318.4
---------------------------------------------------------------------
                                               2,786.2      2,683.1
---------------------------------------------------------------------
---------------------------------------------------------------------

Operating income before amortization
  Franchising                                     44.7         37.9
  Retail sales                                    55.5         66.5
---------------------------------------------------------------------
                                                 100.2        104.4
---------------------------------------------------------------------
---------------------------------------------------------------------

Amortization
  Franchising (2)                                  4.0          4.0
  Retail sales                                    54.2         57.6
---------------------------------------------------------------------
                                                  58.2         61.6
---------------------------------------------------------------------
---------------------------------------------------------------------

Operating income
  Franchising                                     40.7         33.9
  Retail sales                                     1.3          8.9
---------------------------------------------------------------------
                                                  42.0         42.8
---------------------------------------------------------------------
---------------------------------------------------------------------

Acquisition of capital assets and intangible
 assets
  Franchising                                      6.7          5.0
  Retail sales                                    37.3         38.3
---------------------------------------------------------------------
                                                  44.0         43.3
---------------------------------------------------------------------
---------------------------------------------------------------------


                                                 As at        As at
                                             August 26,      May 27,
                                                  2006         2006
---------------------------------------------------------------------
                                                     $            $
                                            (unaudited)    (audited)

Capital assets, intangible assets and goodwill
  Franchising                                    290.3        286.9
  Retail sales                                 2,645.3      2,665.1
---------------------------------------------------------------------
                                               2,935.6      2,952.0

---------------------------------------------------------------------
---------------------------------------------------------------------

Total assets
  Franchising                                    706.3        729.5
  Retail sales                                 4,839.0      4,861.5
---------------------------------------------------------------------
                                               5,545.3      5,591.0
---------------------------------------------------------------------
---------------------------------------------------------------------

The Company's revenues, capital assets, intangible assets and
goodwill as well as total assets for the geographic areas of Canada
and the United States correspond respectively, to the franchising and
retail sales segments.

(1) Revenues include sales and other revenues.
(2) Including amortization of incentives paid to franchisees.



THE JEAN COUTU GROUP (PJC) INC.
Unaudited additional information
Periods ended August 26, 2006 and August 27, 2005
(In millions of US dollars except for margins)

                                                      13 weeks
                                                  2006         2005
---------------------------------------------------------------------
                                                     $            $
Canada
  Sales                                          389.5        322.8
  Cost of goods sold                             354.9        294.1
---------------------------------------------------------------------
  Gross profit                                    34.6         28.7
  As a % of sales                                  8.9%         8.9%

  Other revenues (1)                              46.9         42.8

  General and operating expenses                  36.8         33.6
---------------------------------------------------------------------
  Operating income before amortization            44.7         37.9
  Amortization (1)                                 4.0          4.0
---------------------------------------------------------------------
  Operating income                                40.7         33.9
---------------------------------------------------------------------
---------------------------------------------------------------------

United States
  Sales                                        2,348.3      2,315.0
  Cost of goods sold                           1,765.4      1,727.1
---------------------------------------------------------------------
  Gross profit                                   582.9        587.9
  As a % of sales                                 24.8%        25.4%

  Other revenues                                   2.4          3.4

  General and operating expenses                 519.2        524.8
  Restructuring charges                           10.6            -
---------------------------------------------------------------------
  Operating income before amortization            55.5         66.5
  Amortization                                    54.2         57.6
---------------------------------------------------------------------
  Operating income                                 1.3          8.9
---------------------------------------------------------------------
---------------------------------------------------------------------

Consolidated
  Sales                                        2,737.8      2,637.8
  Cost of goods sold                           2,120.3      2,021.2
---------------------------------------------------------------------
  Gross profit                                   617.5        616.6
  As a % of sales                                 22.6%        23.4%

  Other revenues (1)                              49.3         46.2

  General and operating expenses                 556.0        558.4
  Restructuring charges                           10.6            -
---------------------------------------------------------------------
  Operating income before amortization           100.2        104.4
  Amortization (1)                                58.2         61.6
---------------------------------------------------------------------
  Operating income                                42.0         42.8
---------------------------------------------------------------------
---------------------------------------------------------------------

(1) Amortization of incentives paid to franchisees are presented in
    the amortization instead of other revenues.



THE JEAN COUTU GROUP (PJC) INC.
Unaudited additional information
Periods ended August 26, 2006 and August 27, 2005

                                                      13 weeks
                                                  2006         2005
---------------------------------------------------------------------

Number of outlets
  Beginning of period                            2,185        2,243
  Openings                                           7           13
  Acquisitions                                       3            1
  Relocations                                       (4)          (7)
  Closings                                          (5)         (78)
---------------------------------------------------------------------
  End of period                                  2,186        2,172
---------------------------------------------------------------------
---------------------------------------------------------------------


Network performance - Retail sales
(In millions of US dollars)
  Canada (1)                                     652.8        555.6
  United States                                2,348.3      2,315.0
---------------------------------------------------------------------
                                               3,001.1      2,870.6
---------------------------------------------------------------------
---------------------------------------------------------------------

Network performance - Retail sales
Canada (1)
  Pharmacy                                          60%          58%
  Front-end                                         40%          42%

United States
  Pharmacy                                          74%          73%
  Front-end                                         26%          27%

(1) Franchised's outlet retail sales are not included in the
    Company's consolidated financial statements.



                                                      13 weeks
                                                  2006         2005
---------------------------------------------------------------------

Retail sales growth (1)
Canada (2)
  Total                                            6.8%         3.6%
  Pharmacy                                         9.1%         5.5%
  Front-end                                        3.5%         1.4%

United States
  Total                                            1.4%       126.3%
  Pharmacy                                         2.4%       131.0%
  Front-end                                       (1.1)%      114.3%


Retail sales growth - same store (1)
Canada (2)
  Total                                            6.2%         3.5%
  Pharmacy                                         8.6%         5.4%
  Front-end                                        2.6%         1.4%

United States (3)
  Total                                            2.4%         0.3%
  Pharmacy                                         3.3%         1.3%
  Front-end                                       (0.2)%       (2.3)%

(1) Growth is calculated in local currency and is based on comparable
    periods.

(2) Franchised's outlet retail sales are not included in the
    Company's consolidated financial statements.

(3) This measure includes same-store sales for the acquired Eckerd
    corporate outlets as of August 1, 2005.



THE JEAN COUTU GROUP (PJC) INC.
Unaudited additional information
Periods ended August 26, 2006 and August 27, 2005
(In millions of US dollars)

Non GAAP measures - Operating income before amortization ("OIBA") and OIBA before restructuring charges

OIBA and OIBA before restructuring charges are not measures of performance under Canadian generally accepted accounting principles ("GAAP"); however management uses those performance measures in assessing the operating and financial performance of its reportable segments. Besides, we believe that OIBA and OIBA before restructuring charges are additional measures used by investors to evaluate operating performance and capacity of a company to meet its financial obligations.

However, OIBA and OIBA before restructuring charges are not and must not be used as alternatives to net earnings (loss) or cash flow generated by operating activities as defined by Canadian GAAP. OIBA and OIBA before restructuring charges are not necessarily indications that cash flow will be sufficient to meet our financial obligations. Furthermore, our definitions of OIBA and OIBA before restructuring charges may not be necessarily comparative to similar measures reported by other companies.

Net earnings (loss), which is a performance measure defined by Canadian GAAP, is reconciled below with OIBA and OIBA before restructuring charges.


                                                      13 weeks
                                                  2006         2005
---------------------------------------------------------------------
                                                     $            $

Net earnings (loss)                             (108.8)        11.1
Financing expenses                                50.9         50.7
Impairment loss on assets held for sale          120.0            -
Income tax recovery                              (20.1)       (19.0)
---------------------------------------------------------------------
Operating income                                  42.0         42.8
Amortization per financial statements             57.3         60.7

Amortization of incentives paid to
 franchisees (1)                                   0.9          0.9
---------------------------------------------------------------------
Operating income before amortization ("OIBA")    100.2        104.4
---------------------------------------------------------------------
---------------------------------------------------------------------
Restructuring charges                             10.6            -
---------------------------------------------------------------------
OIBA before restructuring charges                110.8        104.4
---------------------------------------------------------------------
---------------------------------------------------------------------

(1) Amortization of incentives paid to franchisees is grouped with
    other revenues in the financial statements.



THE JEAN COUTU GROUP (PJC) INC.
Unaudited additional information
Periods ended August 26, 2006 and August 27, 2005
(Tabular amounts are in millions of US dollars except per share
amounts)

Non GAAP measures - Earnings before specific items

Earnings before specific items and earnings per share before specific items are non-GAAP measures. The Company believes that it is useful for investors to be aware of significant items of an unusual or non-recurring nature that have adversely or positively affected its GAAP measures, and that the above mentioned non-GAAP measures provide investors with a measure of performance with which to compare its results between periods without regard to these items. The Company's measures excluding certain items have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation.

Net earnings (loss) and earnings (loss) per share are reconciled hereunder to earnings before specific items and earnings per share before specific items. All amounts are net of income taxes when applicable.


                                                       13 weeks
                                                  2006         2005
---------------------------------------------------------------------
                                                     $            $

Net earnings (loss)                             (108.8)        11.1
Restructuring charges                              6.4            -
Unrealized foreign exchange losses on monetary
 items                                             0.2          1.2
Impairment loss on assets held for sale          120.0            -
---------------------------------------------------------------------
Earnings before specific items                    17.8         12.3
---------------------------------------------------------------------
---------------------------------------------------------------------

Earnings (loss) per share                        (0.42)        0.04
Restructuring charges                             0.03            -
Unrealized foreign exchange losses on monetary
 items                                               -         0.01
Impairment loss on assets held for sale           0.46            -
---------------------------------------------------------------------
Earnings per share before specific items          0.07         0.05
---------------------------------------------------------------------
---------------------------------------------------------------------

Contacts:
Source: The Jean Coutu Group (PJC) Inc.
Andre Belzile
Senior Vice-President, Finance and Corporate Affairs
450-646-9760

Information:
Michael Murray
Director, Investor Relations
450-646-9611, Ext. 1068

Helene Bisson
Director, Public Relations
450-646-9611, Ext. 1165 or Toll free: 1-866-878-5206

Published Oct. 10, 2006
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