May 2011

MICHAELS SHARES NEW INFORMATION IN PIN PAD TAMPERING INVESTIGATION (IRVING, Texas) Michaels has completed its preliminary screening of PIN pads in all US Michaels Stores and confirms some PIN pads in selected stores have been tampered with in addition to the Chicago-area stores previously reported. Michaels has published a list of store locations where tampered PIN pads have been detected at the end of this notice. Michaels has identified less than 90 individual PIN pads (or approximately 1% of the total devices) in its 964 US stores that showed signs of tampering. Suspicious PIN pads were disabled and quarantined immediately. Out of an abundance of caution, Michaels has removed approximately 7,200 PIN pads comparable to the identified tampered PIN pads from its US stores. The company has commenced replacing these PIN pads in all US stores and expects the replacement to be completed within the next 15 days. Until the new upgraded PIN pads are installed, customers may have their credit and signature debit transactions processed on the store register. As an additional precaution, Michaels is screening all PIN pads in Canadian stores. Michaels is working closely with payment card brands and issuers to identify the accounts that may have been compromised, so issuers can employ enhanced fraud security measures immediately on potentially impacted accounts. In addition, the company is assisting federal and state law enforcement authorities with their investigation. Michaels continues to urge customers to take precautionary measures such as checking their accounts for unauthorized transactions. Consumers who believe their accounts were used without authorization should contact the card issuer directly. For additional information and updates, visit the Michaels website at www.Michaels.com. Customers may also call for 800-MICHAELS (642-4235) with questions. Refer to Page 2 and 3 for Store List

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Address 5650 Allen Way Ste 108 2140 Southgate Rd 3040 N Powers Blvd 7664 N Academy Blvd 9291 S Broadway 5382 S Wadsworth Blvd 11425 S Twenty Mile Rd 800 Centre Blvd 2625 Piedmont Rd NE 2540 Cumberland Blvd, Ste C 4000 LaVista Rd 2515 Corridor Way Ste 4 4010 E 53rd St 402 W Army Trail Dr 7600 S Cicero Ave Ste B 9680 S Ridgeland Ave 1206 75th St 2231 Willow Rd 6635 Grand Ave 2244 N Richmond Rd 1050 Mt Prospect Plaza 2768 Aurora Ave 7225 W Dempster St 7010 W Forest Preserve Dr 7055 Central Ave 701 N Milwaukee Ave Ste 164 7155 S Kingery Hwy 140 Ivory St 34 Cambridge St 35 Independence Way 17 Mystic View Rd 9041 Snowden River Pkwy 4360 Montgomery Rd 7665 Arundel Mills Blvd 1509 Rockville Pike 13850 Georgia Ave 4337 Park Rd 8716 JW Clay Blvd 8120 Providence Rd 9571 South Blvd 1006 Shoppes at Midway Dr 10510 Northeast Pkwy 5240 Capital Blvd 123 Rte 101a 348 State Rt 3 W 410 State Rte 10 325 Hwy 202 240 Rt 17 N 300 Nassau Park Blvd 1701 US Hwy 22 Ste 65 3701 Ellison Dr NW Ste B 9881 S Eastern Ave 1251 S Decatur Blvd 7195 Arroyo Crossing Pkwy

City Castle Rock Colorado Springs Colorado Springs Colorado Springs Highlands Ranch Littleton Parker Newark Atlanta Smyrna Tucker Coralville Davenport Bloomingdale Burbank Chicago Ridge Downers Grove Glenview Gurnee McHenry Mount Prospect Naperville Niles Norridge Skokie Vernon Hills Willowbrook Braintree Burlington Danvers Everett Columbia Ellicott City Hanover Rockville Wheaton Charlotte Charlotte Charlotte Charlotte Knightdale Matthews Raleigh Amherst Clifton East Hanover Flemington Paramus Princeton Watchung Albuquerque Las Vegas Las Vegas Las Vegas

State CO CO CO CO CO CO CO DE GA GA GA IA IA IL IL IL IL IL IL IL IL IL IL IL IL IL IL MA MA MA MA MD MD MD MD MD NC NC NC NC NC NC NC NH NJ NJ NJ NJ NJ NJ NM NV NV NV

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1350 Northern Blvd 3610 Long Beach Rd 9030 Metropolitan Ave 253-01 Rockaway Blvd 1280 Corporate Dr 1361 SOM Center Rd 4955 SW Western Ave 18069 NW Evergreen Pkwy 3475 Crater Lake Hwy 780 NW Garden Valley Blvd Ste 170 3318 Gateway St 7705 SW Nyberg St 751 Bustleton Pike 200 W DeKalb Pike 1500 Bald Hill Rd Unit C 1128 E Ft Union Blvd 2236 S 1300 St E Ste D-2 6330 Seven Corners Shopping Center 9856 W Broad St 6717 Spring Mall Dr 311 Maple Ave E 1325B SE Everett Mall Way 9755 Juanita Dr NE 3115 Alderwood Mall Blvd 16418 Twin Lakes Ave 17400 Southcenter Pkwy

Manhasset Oceanside Rego Park Rosedale Westbury Mayfield Heights Beaverton Beaverton Medford Roseburg Springfield Tualatin Feasterville Trevose King of Prussia Warwick Midvale Salt Lake City Falls Church Glen Allen Springfield Vienna Everett Kirkland Lynnwood Marysville Tukwila

NY NY NY NY NY OH OR OR OR OR OR OR PA PA RI UT UT VA VA VA VA WA WA WA WA WA

About Michaels Irving, Texas-based Michaels Stores, Inc. is North America’s largest specialty retailer of arts, crafts, framing, floral, wall décor, and seasonal merchandise for the hobbyist and do-it-yourself home decorator. The company currently owns and operates more than 1,045 Michaels stores in 49 states and Canada, and over 140 Aaron Brothers stores, and produces ten exclusive private brands including Recollections®, Studio Decor™, Bead Landing®, Creatology®, Ashland™, Celebrate It®, Art Minds®, Artist’s Loft®, Craft Smart® and Loops & Threads™. For more information visit www.Michaels.com

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