A week in the world of ������ Issue 47 – July 14, 2006

MAKE WAY FOR MONIKA East Coast lady goes west on special assignment AIDING THE AIDS FIGHT Roots an official sponsor of international conference

ROOTSTAKES OFF

ON THE RUNWAY

New styles acclaimed

at major Montreal

fashion and design

show

2

MAKE WAY FOR MONIKA East Coast lady goes west on special assignment

For the next 10 days, Monika Urbaniak will be covering new ground. Usually based in Halifax where she is the Senior Manager, Eastern Canada, Monika traveled to Toronto yesterday to embark on an intensive road trip to stores in Ontario. Over the next ten days, she will visit 18 locations in the Toronto region and also spend time in the Head Office. The main objective of the trip is to cover for her colleague Field Business Manager Heidi Botis, who is currently on holiday, and to learn from seeing different

stores and meeting new Roots retail people. “I am really excited about the opportunity to work with the

stores in the Toronto area,” says Monika. “I've heard many good things about the team and I'm looking forward to meeting everyone. I hope that we can learn from each other and have lots of fun while we're doing it.” Monika joined Roots in 1999 when she was hired by Rosemary Eisenhut (currently Director of Retail), and Heidi Botis, to be the Manager of a Roots Outlet store in Halifax. In 2004, she was appointed to be Area Manager for Eastern Canada.

“Working with Monika is an absolute delight,” says Rosemary. “She’s always willing to take on new challenges, never shying away from new assignments. If it serves Roots, Monika is always ready to get on a plane or jump in her car at the drop of a hat to go wherever the needs of the business are.” Originally from Warsaw, Poland, Monika came to Canada in 1987. She previously worked at IKEA, Aldo and Suzy Shier after receiving a college degree in Fashion Merchandising and Design. “I love Roots and the people who work at the company,” says Monika, famous for her radiant smile. “But I must say that I’m especially proud of the East Coast Team at Roots who are a very cool and hardworking bunch.”

No doubt they derive a lot of their inspiration from Monika. AIDING THE AIDS FIGHT Roots an official sponsor of major international conference

Next month, Roots will be the official outfitter and a sponsor of the world's largest conference on AIDS. The 16th International AIDS Conference will take place in Toronto

��������������������������������������������������������������������

NO MYSTERY HERE Store earns top marks from undercover evaluator

IN THE SPOTLIGHT Influential trend monitor features Roots on its website

SNAKES IN THE AIR… While on the ground, Roots provides bags to movie’s cast and crew

KIM HITS THE JACKPOT New challenge for teenage employee: What to do with instant $100,000

GOOD THINGS FOR BAD BOYS In heat of summer, Roots and movie producer team up for hockey event

Departments

FRESH INK NEW AND NOTEWORTHY SPREADING THE WORD MOMENTS THAT MATTER UP FRONT OPPORTUNITY KNOCKS GREEN TIPS HEALTH TIPS SPECIAL DELIVERY

Publishers Michael Budman, Don Green

Editor Robert Sarner

Editorial Assistant Paulomi Patel

The Source is published every week by Roots Canada Ltd. We welcome letters from readers for publication. Please address all correspondence to The Source, Letters to the Editor, Roots Canada, 1400 Castlefield Ave., Toronto, Ontario, M6B 4CR or by email to rsarner@roots.com Letters may be edited for length and clarity.

Each issue of The Source is also available, in an abridged version, on the Roots website at www.roots.com

3

from August 13-18, with some 20,000 delegates from around the world expected to attend the event. To show its support for the bi-annual gathering, Roots has agreed to subsidize the costs of the merchandise being provided to organizers.�

At the initiative of Roots Co-Founder Don Green, Roots will be producing apparel for the conference’s volunteer staff and for sale to delegates. A portion of the sales will help pay for staging the conference. Made in Canada, the Roots apparel includes T-shirts and baseball caps. Along with Don, David Jackson, Account Manager in the Business-to-Business Department, Graphic Artist Stephanie Briers, and Women's Merchandise Manager Julie O'Neill were all instrumental in bringing this project to fruition.

In addition, Roots will be making shirts for the youth portion of the conference and will produce a special event T-shirt for a major rock concert at the Rogers Centre in connection with the conference.�

"The shirts will be available in multiple colours with messages on them that promote awareness to the younger generation," says David. "They will make a very strong statement for an important cause." � NO MYSTERY HERE Store earns top marks from undercover evaluator

Last week, the Roots store in Burlington, Ontario met with great approval in the Mapleview Shopping Centre Retailer Recognition Program. This is the first time the store has achieved such an honour in this secret shopping operation conducted by the administration of the Mapleview

Shopping Centre. Three times a year, the mall conducts this exercise,

which provides independent evaluations of customer service and store appearance by using mystery shoppers to visit stores incognito to assess their standards. The store’s team members took particular pride in the latest results and paid special tribute to their colleague Sales Associate Meaghan Bell.

Meaghan’s top-notch customer service earned Roots a 90-plus score from the mystery shopper who commented: “Meaghan was very attentive and helpful throughout the purchase process. It was a positive experience. I returned later to actually make the purchase that Meaghan sold to me.”

In recognition of their performance, the store’s staff received flowers and a letter of congratulations from the mall which also featured the Roots store on its website. In addition, the store received a poster recognizing their achievement (see photo above). IN THE SPOTLIGHT Influential trend monitor features Roots on its website

THE HOT LIST A fast look at what’s flying off the shelves at Roots stores

Based on the latest sales figures from stores in Canada and the United States, here are the 25 top-selling products:

1. Men’s Cargo Shorts 2. Women’s V-neck Henley Tank 3. Men’s Italy Support T-shirt 4. Men’s Short Sleeves Graphic T-shirt 5. Women’s Pima Ringer Tee with Canada logo 6. Women’s Italia World Cup T-shirt 7. Women’s Surf Heather T-shirt 8. Women’s Essential Long Rib Tank 9. Women’s Canadiana Hoody 10. Women’s Roots Vintage Graphic T-shirt 11. Girls Glorious Crew T-shirt 12. Boys Crocs 13. Girls Crocs 14. Boys Italy Soccer T-shirt 15. Babies Rachel Ruched Dress 16. Babies Canada Day Campy 17. Babies Rachel Polo Dress 18. Babies Canada Shortall 19. Babies Canada Short Sleeves Ringer T-shirt 20. Roots Bottled Water (355 ml) 21. Beaver Canvas Tote 22. Havaiana Flip Flops 23. Che Cap 24. Crocs Beach Clogs 25. New Small Emily Leather Bag

4

Earlier this week, Roots caught the attention of the trends monitoring team at the UK-based Worth Global Style Network. The highly respected WGSN hosts an online subscription service that provides information to major style companies and media focusing on fashion retail trends from the latest catwalks, major trade shows, and street fashion.

The Roots men’s zipped hoodie with a chest appliqué figured prominently on the WGSN site as a Street Shot of the so-called “hot west coast menswear trends”. Street Shot is part of the Fast Track section in the Trends Info category of the website. Items featured are selected by the WGSN team, which scours different metropolitan areas to highlight upcoming trends. SNAKES IN THE AIR… While on the ground, Roots provides bags to movie’s cast and crew

It may be summer time but there doesn’t seem to be any slow down in the Roots Business-to-Business Department’s activities when it comes to the entertainment industry. In the latest movie to be connected with Roots, the people in the soon-to-be-released Snakes on a Plane are now making use of their customized duffel bags during the holiday period.

Made from nylon, the large black bags come with an embroidered logo of the movie and a Roots logo. Coordinated by

Vancouver-based Sales Representative Rich Patterson, Roots supplied 350 bags to the producers to be given to the cast and crewmembers of the movie.

Directed by David Ellis, the movie is about an assassin who lets loose a crate full of deadly snakes on a flight over the Pacific Ocean to kill a passenger who's a witness in protective custody. Originally entitled Pacific Air Flight 121, the film was later renamed Snakes on a Plane due to public demand prior to its release. KIM HITS THE JACKPOT New challenge for teenage employee: What to do with instant $100,000

Kim Jeanveau’s life today is a lot different than it was just over a week ago. Last Wednesday, Kim, who works in the Roots store in Sudbury, Ontario, bought a ticket for the Lotto 649 Encore lottery. She gave it little thought. After all, her past attempts at striking gold had always amounted to nothing.

The next day, on checking the results, Kim almost fainted, literally. She had just won $100,000. She’s been dizzy with excitement ever since. “It feels amazing,” says Kim, 19. “I can’t explain it. I have been on cloud nine the entire week!”

When not working part time in the Roots store in Sudbury, Ontario, she’s pursuing a four-year Communications program at the city’s Laurentian University. Ultimately, she hopes to start a career in advertising.

Ask Kim what she plans to do with the sudden windfall and she seems to have it already figured out. She intends to use the money to pay off some household debts and to bankroll her education and her elder sister’s tuition. She also wants to buy a car.

Given her newfound means, Kim plans to take a break and go traveling now. Come September, she will be back in school and says she will continue to work part-time at Roots.

5

Denyse Yoga Jacket, Breeze Yoga Shorts Rossland Sweater, Roots T-shirt and Echo Lake Jean

ROOTS TAKES OFF ON THE RUNWAY New styles acclaimed at recent Montreal fashion and design festival

The venue was ideal, the weather cooperative and the audience highly appreciative. To say nothing of the beautiful models and of course the impressive clothes they paraded down the runway. That was the scene at the recent 2006 Montreal Fashion and Design Festival where Roots presented current and upcoming creations on an outdoor stage downtown on McGill College Avenue. Roots Co-Founder Michael Budman helped oversee the show after which he personally gave the models gifts in the form of the Roots clothes they displayed.

This was the second time that Roots took part in the Festival, the largest public fashion happening in North America. (The pictures seen on these two pages and on the front cover were taken by Allen McInnis.)

Eddie Sweater Tunic, Cozy Long Leggings with Nude Dakar Leather Village Pack and Village Bag

Crossback Tank, Denyse Yoga Jacket, Breeze Yoga Capri and Roots Yoga Mat

6

Huron V-Neck Sweater, Grassland Shirt, Roots Denim, Venetian Leather Blazer And Tuff Boots

Warm-Up Yoga Jacket, Lightweight Cargo Fatique, Emma Leather Jacket And Havaiana Flip Flops

Vintage Concert T, Amy Belted Cardigan, Roots Denims, Kathy’s Bag, Laurel Newsboy Cap And Tuff Boots

Women’s Madonna Bomber Jacket, Wave Yoga Pants, Bella Newsboy Cap and Havaiana Flip Flops

7

GOOD THINGS FOR BAD BOYS In the heat of summer, Roots and prominent movie producer team up for annual hockey event in Las Vegas

Continuing its association of many years, Roots will be supplying products for the 12th Annual Jerry Bruckheimer Bad Boys Invitational Hockey Tournament once again this summer. Jerry Bruckheimer is a highly accomplished American film and TV producer. He is also an avid hockey

fan and conducts the Bad Boys hockey tournament every year. Roots will supply 150 sleeveless T-shirts to be given

away to the players. Made from 100% cotton, the T-shirts come with a screen-printed Bad Boys Hockey logo on the chest and a Roots logo at the bottom. Coordinated by David Jackson of the Business-to-Business Department, the T-shirts are made in Toronto and will be shipped to Las Vegas next week.

The event, which is to be held at the end of this month, is expected to have some 200 participants including Hollywood celebrities and NHL players. Roots Co-Founder Michael Budman, who is also an old friend of Jerry Bruckheimer, will be participating in the event. FRESH INK A selection of recent coverage of Roots in the media

The Hamilton Spectator, (Hamilton, ON) July 17: Article about Roots being one of the few long-timers still left at the

Jackson Square Mall in Hamilton. The Gazette (Montreal), July 13: Article

entitled “Demand for World Cup gear soars, Roots posts 25% hike from 4 years ago”

focuses on the phenomenal sales of Roots United collection during this World Cup. Metro (Toronto), July 7: Mentions the Roots camouflage print Havaianas featured in the “liven up your sandals this season with a bright pattern!” section. Today’s Parent, July: Spotlight on Roots retro style cap available in fun colours featured in the “Hats On!” section. Toronto Life, July: Photos of Roots Co-Founder Michael Budman and Special Events Director Raymond Perkins at Bonnie Fuller’s book launch at Amber’s. Fashion magazine, July: Spotlight on Roots leather bag featured in the “two ways to wear the season’s best trends” section. Food and Drink magazine, Summer issue: Spotlight on 100 percent organically grown bamboo plates and utensils featured as available from Roots Home Design.

ON THE FRONTLINES Our ongoing series for retail staff on making a difference in Roots stores

Each week, Heather Lambert-Hillen, Co-Manager of Roots Central in Toronto’s Eaton Centre, offers a new take on what makes customers enjoy shopping at Roots stores. It’s based on her many years working on the retail side of Roots.

To know it is to sell it By Heather Lambert-Hillen

As salespeople, our primary job responsibility is to sell all products with our broad scope of knowledge and skills. Product knowledge does not close sales but it does enhance the process of engaging the customer. It is at this transitional time of year between seasons that we need to focus on building our product knowledge.

Our spring/summer line is on sale. Therefore, the discounted prices sell the product even more. All the more reason to focus more on learning about the new Fall line that is now starting to roll in.

How are you getting ready to promote and sell the new product? When new products come in to your store, do you and your team do the following? - get excited - try them on - put them in a prominent "home" - let customers know about them - talk about them - know what they're made of - FAB them - buy them

Use the above checklist to get a jumpstart on the new fall line-up. Remember: you will sell more if you know "how to" and know better what you are selling. P.S. Use the FAB product sheets from Head Office and the "New and Noteworthy" section of The Source as tools to help build your vocabulary and skill set.

8

����������������������������� ��������������������

BORN TO ROCK Retro style in vogue for Roots kids

It’s rock and roll time for kids this fall as retro-inspired 1970s styles for tiny tots hit Roots stores next week.

Designed by Elsa De Souza, Senior Designer, Babies and coordinated by Marisa Battaglia, Merchandise Manager, Babies and Kids, the first fall delivery is called Down To Earth. It includes a range of classic T-shirt styles like the Loud and Proud tee, Future Rock Star tee, Born to Rock tee and the Naia style colour block tee. They are made from 100% cotton jersey and feature graphic prints inspired by the late Sixties, early Seventies ideals of peace and love. Other details include multi-colour topstitching and slit seams on the

sleeve and bottom hems. Made in China, the tees are available in stores all over Canada and

the United States. Another style in the same category is the Gorgeous Sweater. It is

made from 100% cotton sweater knit fabric and comes with a chest print. The style is sold in Roots stores in Canada. All the above styles are available in sizes S – 5T (babies, 3-6 months – kids, 5 years)

Retail price: Loud and Proud tee, Future Rock Star tee, Born to Rock tee - $12.95; Naia tee - $22.95; Gorgeous Sweater - $29.95

SPREADING THE WORD Guide to new ads appearing this week and next

Thurs., July 13 - Markham Economist & Sun will run a third-of-a-page colour ad featuring The Big Beaver Sale. Thurs., July 13 - Newmarket-Aurora Era-Banner will run a third-of-a-page colour ad featuring The Big Beaver Sale. Thurs., July 13 - Richmond Hill/Thornhill Liberal will run a third-of-a-page colour ad featuring The Big Beaver Sale. Thurs., July 13 - Oakville Today will run a third-of-a-page colour ad featuring The Big Beaver Sale. Fri., July 14 - Burlington Post will run a third-of-a-page colour ad featuring The Big Beaver Sale. Fri., July 14 - Mississauga News will run a third-page colour ad featuring The Big Beaver Sale.

9

Fri., July 14 - Oshawa/Whitby This Week will run a third-of-a-page colour ad featuring The Big Beaver Sale. Fri., July 14 - Toronto community newspapers (Total Friday circulation includes: Etobicoke Guardian, North York Mirror, Scarborough Mirror, Bloor West Villager/ Annex Guardian, East York/ N. Riverdale/ Beach/ S. Riverdale Mirrors, York Guardian, City Centre Moment) will run a third-of-a-page colour ad featuring The Big Beaver Sale. Sat., July 15 - National Post will run a full-page colour ad on the outside back cover of the Toronto section featuring The Big Beaver Sale. Sat., July 22 - National Post will run a full-page colour ad on the outside back cover of the Toronto supplement featuring current Roots Products. GREEN TIP # 13 The latest in our series of easy ways to help the environment

Off...and still running? Have you ever heard of "vampire energy use?" It describes all the appliances in your house that suck energy even when they're turned off. This includes televisions, DVD players, microwaves and computers. Vampire energy can

mean big-time spending for your family. Although it's probably not reasonable to expect you to unplug the microwave every time you're finished nuking a snack, the computer is another story. To help ward off the "vampire," plug your electronics into a power strip rather than a wall outlet. Then, when you've turned off the TV, flick the off switch on the power strip. (Source: National Post) HEALTH TIP # 10 The latest in our series of easy ways to stay healthy

Manage stress: Don’t sweat the small stuff. Count your blessings and nurture “yin” (calm) in the evening. If you feel like you’re caught in a cycle of stress that you can’t break, consider working with a Naturopath or other natural health care provider to get help in bringing your

body and mind back into balance.

Provided by Jeff Hirst, a professional trainer, co-owner of Training Zone(trainingzone@hotmail.com), and a former Olympic diver. Jeff is an acclaimed sports instructor and is highly knowledgeable about health and fitness.

OPPORTUNITY KNOCKS Our weekly spotlight on new positions at various stores

Next week, the Roots flagship store on Toronto’s Bloor Street will host the second and final job fair to hire staff for the new concept environment on Yonge Street scheduled to open in mid-August. The fair will be for all in-store positions including managerial posts.

As part of this initiative, interviews will be conducted next Wednesday at the Bloor St. store. Organized by Laura Clark, Director, Human Resources and Benefits, and Rosemary Eisenhut, Director, Retail, the fair will be coordinated by Brenda Preston, Manager, Roots Bloor, with Jennifer Schmied and Heather Lambert-Hillen, Co-Managers of Roots Central. Amanda Peroulakis, Store Manager of the Bayview store, and Ashleigh Medd, Co-Manager of the Queen Street store, will assist them.

Postings of the fair are already on display in all Roots stores in Toronto in addition to on the monster.com website. If you know anyone who would be a great fit for Roots, please let them know.

Other positions available Here is a list of current job openings at Roots stores along with the appropriate contact person. For more information, please refer to the separate email notices sent out recently about each position:

� Store Manager, (Toronto) Pearson International Airport, Terminal 3, ON (Silver level store). Email your resume to Sanjiv Khanna at skhanna@roots.com -Deadline: Saturday, July 15.

� Assistant Store Manager, Sarnia, ON (Silver Level Store). Email your resume to Sanjiv Khanna at skhanna@roots.com - Deadline: Saturday, July 15.

10

MOMENTS THAT MATTER Big developments in the life of Roots staff

Dan Donnet, Senior Network Administrator, I.T. Department, became a father for the second time when his son Evan was born recently. We congratulate him and his family. - Please send us details of weddings, births and other good news and we’ll be happy to publish the information in The Source (email: rsarner@roots.com) SPECIAL DELIVERY Recent letters from the world of Roots

THE MEANING OF CUSTOMER SERVICE I am writing you to provide feedback and bring to your attention a superb customer service experience that your representative Marie-Eve Lanteigne

provided in your Champlain Place store in Dieppe, New Brunswick. Last week, I accidentally tore the knee out of my R33 cargo shorts. These are

the most stylish and functional shorts I’ve ever had the pleasure to wear for summer or cruisewear. I called your Champlain store concerned that I might not have the

opportunity to replace them this late in the season. Not that long ago, one would be hard pressed to find anything attractive in stock, the right size or in season this time of year from any designer sportswear merchant.

Marie-Eve answered the phone, was totally empathetic to the situation and offered to call other Roots stores in the Maritimes to have a pair couriered in if available in my size and color preference. To my amazement, within ten minutes she called back advising me that a pair would arrive from your Halifax store within two business days. In my shopping experience, this is exceptional.

When I arrived to buy the replacement pair, Marie-Ev and her manager were so wonderfully accommodating, I ended up buying add-ons and spent twice the amount of the purchase price of the shorts.

I have worked in the higher-end fashion industry as well as in blue chip corporations like Xerox, AT&T and Asurion. This is exactly what merchants hope will happen on a return or drop by. Your staff represent your company very well and I wished to make you aware of this. Not all shopping experiences in this day and age are so positive or leave customers feeling this way about a company. But your staff in Moncton, Halifax and Toronto always make shopping a total pleasure and I have spent thousands in your stores because of it.�Scott MacCallum Moncton, New Brunswick� PUBLIC APPLAUSE FOR PRIVACY POLICIES Congratulations on receiving the Nymity's 2006 Top Corporate Privacy Policies Award for your online privacy policies [Editor's note: See Issue 41 of The Source], and for demonstrating the highest levels of accountability to consumers. You are to be applauded for providing clear notice of your organization's information handling policies and practices.�

I have been championing good privacy practices for business for many years and am delighted that you have taken that message to heart. I'm often asked to recommend businesses in various sectors that represent excellent privacy benchmarks. I would not hesitate to refer such inquiries to this year's list of Nymity winners that includes Roots. .�

Congratulations again on a job well done to everyone involved in this achievement. Ann Cavoukian Ontario Information and Privacy Commissioner, Toronto

11

DEPT. OF CLARIFICATION Setting the record straight

In Issue 46 of The Source, in the item entitled “Behind the Scenes,” we reported on how the producers of the new hit movie The Devil Wears Prada purchased Roots suitor bags for the cast and crew. We have since been informed that the producers also bought Roots bags for members of the North American and international media who attended a special press screening of the movie in New York. - Please address any corrections, relevant updates and revisions to rsarner@roots.com The Source wants to hear from you. In addition to reporting on new developments at Roots, The Source also serves as a forum for ideas and commentary from readers. Please send your letters to Robert Sarner at rsarner@roots.com Letters may be edited for length and clarity. _____________________

THE SOURCE A week in the world of Roots Editor: Robert Sarner (rsarner@roots.com)