June 23, 2006

A week in the world of

Issue 44 – June 23, 2006

WHY IS THIS MAN SMILING?

Exemplifying the best qualities in Roots retail employees, Andrew Ligama is the new Roots MVP of the Month

MAKING IT COUNT

Roots shows its stuff in connection with Pride Week

OUR WOMAN IN MAUI

Roots takes part in film festival in Hawaii

CENTRAL BECOMES MORE COMPLETE

Shopping experience enhanced at Toronto’s Eaton Centre

ECO-BAG A BIG HIT

A win-win for the environment and customers’ pocketbooks

FOR KIDS IN NEED

Roots sponsors event for Right to Play charity

CRANK IT UP

New Roots 3-in-1 radio ideal for all situations

GOING THE EXTRA DISTANCE Andrew Ligama honoured for what he brings to the Yorkdale store every day OUR WOMAN IN MAUI Roots takes part in film festival in Hawaii MAKING IT COUNT Roots shows its stuff in connection with Pride Week in Toronto WINNING IN WINDSOR Roots crowned for its appearance at charity fashion event THE FRIENDLY BAG Eco-Bag creates a win-win situation for the environment and customers’ pocketbooks THE LINES ARE OPEN New service makes it easier for retail staff to get assistance from HR FOR KIDS IN NEED Roots gets behind event for the benefit of Right to Play CENTRAL BECOMES MORE COMPLETE Facilitating the Roots shopping experience at the Eaton Centre MAKING TRACKS IN THE RIGHT DIRECTION Roots team takes part in Relay for Life out east

Departments FRESH INK GUESS WHO JUST DROPPED IN… NEW AND NOTEWORTHY SPREADING THE WORD MOMENTS THAT MATTER UP FRONT ON THE MOVE OPPORTUNITY KNOCKS GREEN TIPS HEALTH TIPS SPECIAL DELIVERY

One of the major strengths of Roots, in addition to quality products, has always been the caliber of people working in the stores. Ultimately, they are the ones who have the greatest impact on customers and, by extension, on the bottom line. Their Cover: Andrew Ligama photographed by Ilich dedication, friendliness and the way they engage Mejia at the Roots Head Office shoppers are indispensable to the success of Roots.

Late this week, in tribute to the Roots retail team in general, and one member in particular, Andrew Ligama was selected as the MVP of the Month. He was chosen for his work at a Roots store in Toronto where he exemplifies the best attributes in our retail staff.

Andrew, 22, may be the youngest Roots staff member ever selected as an MVP but a rookie he’s not. Despite his tender age, he’s already amassed considerable experience on the frontlines of Roots since joining the company as a part-time cashier in 2000.

In his current position as Assistant Manager of the Roots store at Toronto’s Yorkdale Shopping Centre, Andrew has a lot on his shoulders. He’s responsible for many key aspects of the store, which is one of the top locations in the Roots constellation. Working closely with Store Manager Nancy Nasralla, Andrew’s duties include opening and closing the store; completing weekly payroll; running the sales floor; following up with employees with their weekly productivity; helping with hiring and training new staff; and maintaining the visual aspects of the store.

Andrew’s progress at Roots is no surprise given his exemplary attitude to his job and his winning ways with customers and fellow staff members. “One of the things I like so much about my work is that it allows me to meet and work with amazing people,” says Andrew, who was born in Toronto to parents who immigrated from Italy. “The team we have at Yorkdale is amazing and I’m blessed that I work well with all of them. I have learned so much at Roots, including always trying to exceed at any task assigned to me and to go beyond what is expected. I’ve seen that hard work always pays off.”

Andrew is clearly committed to Roots, loves the product and derives great satisfaction from seeing his store succeed. Personable, engaging and unflappable, he thrives on contact with people in the store. “I strive to always offer great customer service,” says Andrew.

“Over the past six years, I’ve been able to build relationships with many customers who come and visit me regularly.”

His work has caught the eye of many at Roots. “Andrew has always impressed me with his energy, devotion and his way with people,” says Roots Co-Founder Michael Budman. “To me, Andrew is a shining example of what makes those who work in our stores so special. It’s people like Andrew who make Roots such an inviting place to shop. In the end, it really comes down to our retail team.”

2

OUR WOMAN IN MAUI Roots takes part in film festival in Hawaii This week, for the third year in a row, Roots figured prominently at the Maui Film Festival in Hawaii.

As a co-sponsor of the five-day event, Roots supplied T-shirts and hats for the staff, guests and volunteers. Roots products were also featured in the promotional trailers for the Festival shown in 350 movie screens across the United States.

More than 40 full-length films from 12 countries were presented at this year' s festival that honoured artists who have made contributions both on and off screen. Wendy Goodman, the Los Angeles-based Roots salesperson, was at the Festival where she met senior executives from several film studios (including Sony and Universal) to discuss future merchandising projects involving Roots.

It doesn’t hurt that Wendy recently became a member of the Festival’s Board of Directors.

Among those attending the festival were Paul Stanley from the rock band Kiss, Brian Wilson of the Beach Boys, and actors Richard Chamberlain, Sean William Scott, Patricia Clarkson, and Joan Allen.

MAKING IT COUNT Roots shows its stuff in connection with Pride Week in Toronto A new, topical display at several Roots stores in Toronto has been capturing the attention of passersby in recent days, directing many in past the front door. With the city packed with visitors for the annual Pride Week, which celebrates diverse sexual and gender identities and related culture, Roots stores have attracted many customers interested in the Roots Pride collection.

The display at Roots Central, Roots Bloor St. and Roots Queen Street has proven highly effective. James Wilford, Field Visual Merchant for Toronto Central, came up with the great idea of bringing mannequins dressed in the product out to the front of the store entrances, creating an instant buzz on the street, attracting customers inside.

Pride Week culminates on Sunday with a massive parade through downtown Toronto that is expected to attract hundreds of thousands of people.

ECO-BAG A BIG HIT A win-win situation for the environment and customers’ pocketbooks The recently introduced Roots Eco-Bag has turned into a huge hit. Made from canvas and cotton, it was created as an environmental measure to encourage customers to reuse the bag for future shopping, thereby reducing the number of paper bags used and thrown out.

As a further inducement, customers who buy the Roots Eco-Bag receive 10% off regularly priced merchandise on future purchases. It’s obviously working. Due to the popularity of the bags, the Accessories Department has already had to order a replenishment to keep up with the demand.

FOR KIDS IN NEED Roots gets behind event for the benefit of Right to Play Roots will sponsor the inaugural Right to Play Semi-Final Ball in support of the international humanitarian organization Right to Play. Based in Toronto and started by long time friend of Roots Johann Koss, Right to Play is dedicated to helping underprivileged children around the world through sports-related initiatives. Roots is an ongoing supporter of the charity.

As part of this event, two soccer balls autographed by Brazilian superstar Ronaldo and the complete Juventus team of Italy will be displayed next week in the Roots flagship store on Toronto’s Bloor Street. Funds raised from the sale of these balls, which will be auctioned on the eBay website, will go to Right To Play.

3

Winners of the auction will be announced at the Semi-Final Ball to be held at the Brassaii restaurant in downtown Toronto. The Roots website will feature a link to the eBay auction web page.

Additionally, XM radios and Roots United football apparel can be won as part of a contest in support of this initiative.

WINNING IN WINDSOR Roots crowned for its appearance at charity fashion event For the second year in a row, Roots staff at the Windsor, Ontario store won an award for the best presentation at the Devonshire Mall’s “Look” Charity Fashion Show and Business Expo. The annual event, held in the Caboto Club in Windsor, helped retailers showcase their businesses while supporting the Maryvale Adolescent Centre, Citizen Advocacy; and the Child Abuse Prevention Council.

As part of the event, Store Manager, Christine Crowe-Campeau and staff set up a booth displaying Roots handbags, promotional posters and mannequins sporting Roots lifestyle apparel for men and women. They also participated in a fashion show, which was a part of the evening’s activities.

Gift bags with Roots-related items were given away at the Roots booth which also contributed a gift certificate prize for visitors.

THE LINES ARE OPEN New service makes it easier for retail staff to get assistance from HR Roots has launched a new toll-free phone service to further facilitate communication between staff in the field and the Human Resources Department at the Head Office in Toronto. As part of this Open Door Policy initiative, employees can report any work-related concerns, discrimination or harassment complaints confidentially.

“This is the first of many initiatives by the HR Department in conjunction with Retail Operations toward ensuring the smooth working of the Head Office and stores,” says Laura Clark, Director of Human Resources, who initiated the program along with Rosemary Eisenhut, Director of Retail. Introduced earlier this month, this program provides an additional outlet for discussing matters when the retail management team cannot resolve an issue.

Roots staff from any store or department can call 1 (877) 507-6687 and leave a voice message stating the concern in question. All situations are kept in strict confidence and calls are returned within 24 hours.

CENTRAL BECOMES MORE COMPLETE Facilitating the Roots shopping experience at the Eaton Centre In an effort to make shopping for Roots customers at Toronto’s Eaton Centre easier, the Roots Kids store on the second level will move upstairs to be integrated into the Roots Central location on the mall’s street level. As of next Wednesday (June 28), the Kids/Baby department will be on Central' s third floor and will provide one-stop convenience for shoppers. The move is part of the recent renovations of the store that is one of the largest Roots retail locations in Canada.

MAKING TRACKS COUNT Roots team takes part in Relay for Life out east Hats off to Roots employees who give of their free time to get out and support worthy causes. In the latest example, the staff at the Wheeler Park outlet store in Moncton, New Brunswick recently took part in the Relay for Life fundraising event to benefit cancer research “It was a very good experience for our team,” says Mauricio Santos, Store Manager. “Now we feel even more committed to participating in other initiatives like this.”

4

In addition to Mauricio, staff who took part in the event included (in alphabetical order), Sophie Lajoie, Samantha Morey, and Joyce Phillips. Also in attendance was Melissa Vienneau who came with her friends for support. Although unable to attend, Maria Brine and Sally Gaudet also gave their support to the rest of the team.

The Canadian Cancer Society' s Relay for Life is an overnight, non-competitive event that honours and celebrates cancer survivors and has become the organization’s premier fundraising event.

It involves teams of people who take turns walking, running or strolling around a track, as well as a survivors'victory lap.

GUESS WHO JUST DROPPED IN… Taking attendance of special guests at Roots stores Celebrities have long made a point of shopping at Roots. Here are the latest sightings of prominent figures from the world of entertainment that visited Roots stores recently: Mont Tremblant (Quebec) - Swedish actor Andreas Wilson and director Bjorne Larson visited the Roots store where Bjorne purchased a Heritage hoody in red and white, Argentina and England football jackets, and a Heritage wrap top for his wife. The pair was in town for the Mont Tremblant Film Festival promoting their film Kill Your Darlings.

FRESH INK A selection of recent coverage of Roots in the media Here are some recent sightings of Roots in the pages of newspapers and magazines: The Gazette (Montreal), June 20: Mentions Roots taking part in this week’s Festival de Mode and Design in Montreal.

Le Journal de Montreal, June 17: Article about concert promoters sending Roots Kids products, among other items, to Madonna for her children, as part of their invitation to her to perform in Montreal.

The National Post, June 17: Article on Roots hosting a dinner event, with Guest of Honour New York-based artist and filmmaker Julian Schnabel, to benefit the Art Gallery of Ontario and its current expansion program.

The Globe and Mail, June 17: Mentions the Roots United Football line to celebrate the 2006 World Cup. Metro (Toronto), June 16: Photo of Michael Budman and Rethink executive director MJ DeCoteau, at launch of Rethink 2006 campaign launch.

24 Heures (Montreal, QC), June 16: Mentions Roots participating at the Festival de M Mode and Design in Montreal.

Owl/Canadian Family magazine, June issue: Article about proceeds from the Fashion Targets Breast Cancer togs made by Roots going to Rethink Breast Cancer programs.

Wish magazine, June issue: Spotlight on Roots Leather Monogram “M” featured in the “Style Trend” section.

House & Home Media magazine, June issue: Spotlight on Roots trumpet glass table lamp featured in the “Luxe for Less” section.

SPREADING THE WORD Guide to new ads appearing in this week and next Thurs., June 22 - Toronto Star ran a half-page colour ad in the fashion section featuring Canada Day and Wayne Gretzky.

Thurs., June 22 - Now magazine (Toronto) ran a full-page colour ad featuring Canada Day and Wayne Gretzky.

Sat., June 24 - Globe and Mail will run a half-page vertical colour ad in the Globe Style section 5

featuring Canada Day and Wayne Gretzky.

Sat., June 24 - National Post will run a full-page colour ad on the outside back cover of the Toronto section featuring Canada Day and Wayne Gretzky.

Sat., July 1 - National Post will run a full-page colour ad on the outside back cover of the Toronto supplement featuring current Roots products.

UP FRONT What’s in the Roots window displays in the coming days As part of Roots celebrations for July 1, all Roots stores, starting this weekend, will feature the Roots Canada Day theme. The Canada Day-themed Wayne Gretzky posters will replace the current Roots Camp collection as the primary window display.

The posters show Wayne with an Algonquin Park cabin in the background photographed by Senior Art Director Ilich Mejia.

The hockey legend is wearing a Roots Canada Day T-shirt and a hoody. Both are part of the Canada Day collection designed by Senior Designer, Special Projects, David Young and his team.

Stores with back lits (except for Quebec stores) will receive a Wayne Gretzky poster. Stores carrying Roots Kids will also receive a poster featuring Wayne and his son Tristan, both wearing Canada Day gear. Sale, markdown and promotion merchandise will be showcased secondary to the primary Canada Day items.

The outlet stores currently are also displaying “Sale” windows promoting the ongoing sale in “Roots 73” outlets.

OPPORTUNITY KNOCKS

Our weekly spotlight on new positions at Roots Here is a list of current job openings at Roots along with the appropriate contact person. For more information, please refer to the separate email notices sent out recently about each position: Fashion Writer, Head Office, 1400 Castlefield Ave., Toronto ON. Email your resume to the attention of Laura Clark at hr@roots.com Deadline Monday July 3 Technician, Baby, Head Office, 1400 Castlefield Ave., Toronto ON. Email your resume to the attention of Laura Clark at hr@roots.com Deadline Monday July 3 Team Leader, Retail, Head Office, 1400 Castlefield Ave., Toronto ON. Email your resume to the attention of Laura Clark at hr@roots.com Deadline Monday July 3 Shipper, Head Office, 1400 Castlefield Ave., Toronto ON. Email your resume to the attention of Laura Clark at hr@roots.com Deadline Monday July 3.

ON THE MOVE New appointments and promotions at Roots Daniel Galliera, promoted to Store Services and Purchasing Manager, Head Office, Toronto

ON THE FRONTLINES

Our ongoing series for retail staff on making a difference in Roots stores Each week, Heather Hillen, CoManager 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.

The Art of Serving

By Heather Hillen

“Welcome to Roots. Your table will be ready shortly…”

What is your favourite restaurant? Is it your favourite because of the food, the wallpaper, the menu, or the whole experience? I bet most of you answered that it’s the whole experience. The service, the consistency and the food (product) are almost always right and you are rarely disappointed. Am I still right?

So let' s approach our customers like waiters/waitresses do in a restaurant. It’s a simple, foolproof way to deliver top service every time.

Approaching your friends/customers is just like waiting on a table. You start by being ready to accommodate their needs. You then fill their order (substitutions are sometimes necessary) and you give them time to enjoy. You offer choices, give your honest opinion and always answer any questions. You make the entire experience comfortable, enjoyable and memorable.

Just like a waiter/waitress, you are always there to help but never hovering. You time your reapproach and never rush the encounter.

So, the next time you are out dining, watch for new ideas from the person serving you.

You’ll be surprised by how many skills you can learn from them and later apply to your work at Roots.

6

CRANK IT UP New Roots 3-in-1 radio ideal for all situations A new, environmentally friendly, self-powered radio is now available in select Roots stores. The FR 300 Crank Radio is equipped with a hand-crank power generator that provides unlimited power for the AM/FM radio, eliminating the need for batteries or electricity.

Perfect for trekking, travel, power blackouts and emergencies, this multi-purpose device includes a built-in flashlight, a cell phone charger and a siren. It also features seven weather channels and TV-VHF channels 2-13.

Additionally, the radio comes with the facility to attach an AC adaptor and earphones.

Coordinated by Rima Biback, Director, Roots Home and Licensing, and Jarar Kazmi, Director, Merchandise Purchasing and Flow, the radio is part of Roots licensed equipment. It comes in silver, red, black, orange, blue, green and yellow. Retail price: $60.

THE MOVEABLE FEAST Perfect bag for taking lunch from one place to another Available in stores since last month, the insulated Roots lunch bag is convenient for carrying your daily meal. Its reflective interiors keep food and drinks warm or cold depending on the requirement, and are easy to clean.

The high-density black nylon exterior is water- resistant and washable. The large bag easily handles lunch containers, fruits and drinks and the zippered front pocket securely stores utensils or other articles. Retail price: $20 SITTING PRETTY Where all good cell phones and iPods come to rest The Roots Digital Lounger is a perfect place to park a cell phone, Blackberry, MP3 player or iPod at the office or home. It is a miniature copy of the famous Roots Club Chair, which is a part of the popular Roots Home collection.

Available in stores, this lounger comes with a Roots logo embossed on it. Retail price: $15

7

GREEN TIP # 10 The latest in our series of easy ways to help the environment Your average Joe: Coffee, the international pick-me-up of choice, is actually a huge downer for the environment: next to cotton, coffee is the most heavily pesticide-sprayed crop in the world. If the ecological impact isn’t enough to give you pause, just give a thought to how much pesticide residue winds up in your own personal cup.

Furthermore, coffee plantations in the Americas are rapidly expanding, wiping out huge sections of rainforest. Kinda’ leaves a bitter taste in your mouth, doesn’t it?

For more info: Merchants of Green Coffee wrote the book on enviro-friendly coffee. They also sell organic green beans and home roasters (for the ultimate in fresh taste): www.merchantsofgreencofee.com (Source: Green Tips: How to Save Money and the Planet, published by Green Living Enterprises)

HEALTH TIP # 7 The latest in our series of easy ways to stay healthy Break the rules 10% of the time: Being “perfect” is stressful, not to mention impossible. The purpose of this health tips column is to give you ideas about how to enjoy life to the fullest. Letting go every so often and doing whatever you please is vital to keeping things in perspective. To quote Elson Haas, M.D., when it comes to health, being “good beats perfect every time”.

Provided by Jeff Hirst, a professional trainer, co-owner of Training Zone, and a former Olympic diver. Jeff is an acclaimed sports instructor (who was the captain of the University of Toronto swim team) and is highly knowledgeable about health and fitness.

SPECIAL DELIVERY Recent letters from the world of Roots ANDY WOWS THEM IN QUEBEC

In Issue 41 of The Source, you reported on Andy McCurbin and his road show that is bringing his passion for Roots leather goods and his expert knowledge on the subject to stores across the country.

I just want to mention how impressed I was by his recent seminar at Roots Centreville in Montreal. I loved it. It was the first time someone has been able to keep my attention at a conference.

He has a rare talent. It would be great if Andy could work in our store with our staff for a day. It would add to their motivation.

Kerry Kirby-Zbikowski Co-Manager, Mont Tremblant store, Quebec STAYING POWER IN ACTION

In recent issues of The Source, you’ve invited staff to write in to say how long they’ve been at Roots. I have been with the Roots store in Aspen since December 1995. I began as Assistant Manager and then became Manager in April 1997. So it’s now been more than 10 years and I have sincerely enjoyed my time with this exciting company.

Aspen being an international ski town, the most interesting aspect of my job has always been the people I’ve worked with from all over the world. I have loved taking care of Don and Michael’s "Aspen Roots" in this beautiful never-never land.

Peggy McCafferty Store Manager, Aspen, Colorado 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.

8

DEPT. OF CLARIFICATION Setting the record straight In issue 43 of The Source, in the item entitled “Faster than you can say...� about the move of the White Oaks store in London, Ontario to a temporary location, credit should also have been given to Cathy Allison, Sandra Pinerio, Shannon Isnor and Tanya Thompson of the White Oaks store, and James Wilford and Vanessa Haight from Visual Department for their assistance in the making the move so swift and smooth.

- Please address any corrections, relevant updates and revisions to rsarner@roots.com

Please note: Due to the Canada Day holiday next week, the next edition of The Source (issue 45) will be published on Thursday, June 29. _____________________

THE SOURCE

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

9