November 5, 2002

NAPA Canada to supply Canadian Tire with some parts

Toronto, Ontario – A five-year supply and technology agreement has
been reached by Canadian Tire Corporation, Limited and NAPA Canada that will
result in NAPA Canada supplying Canadian Tire stores with emergency parts and
automotive products not normally kept in stock. Parts represented in this
agreement make up approximately 15 percent of Canadian Tire’s total automotive
hard part sales.

NAPA Canada has extensive automotive supply chain capability and
infrastructure including 11 distribution centres and 604 NAPA Auto Parts
Stores. This agreement will help enable CTR to focus its internal distribution
capabilities on its high volume parts and leverage NAPA’s distribution
infrastructure to obtain emergency parts and products not normally kept in
stock. This will result in significantly reduced infrastructure costs and
improved product delivery time to the stores while also expanding the range of
products available to customers.

The two organizations have also signed a related technology agreement for
parts ordering, automated inventory tools and other associated technology that
will expand the range of products and service available to Canadian Tire
customers. This agreement will be implemented in phases. Implementation, which
will begin in the first quarter of 2003, is expected to take place over 12-18
months with the majority of the implementation targeted to be complete by the
end of 2003.

“Automotive is a cornerstone business for CTR which we are growing
aggressively by expanding marketshare. Continued leadership in this area is
also a critical part of Canadian Tire’s overall strategic growth agenda. Our
new relationship with NAPA Canada will help support our growth and customer
service initiatives by widening the product assortment we offer customers, and
by improving our distribution capabilities, efficiency and technology. The
NAPA agreement will also significantly reduce infrastructure costs,” said Mark
Foote, president, Canadian Tire Retail.

“With more than 450 stores across Canada, Canadian Tire plays a major
role in today’s automotive industry” said NAPA Canada President and CEO Larry
Samuelson. “This agreement supports Canadian Tire’s commitment to service and
value for their customers. We are pleased that Canada’s leading automotive
retailer has favourably responded to the NAPA competitive advantage, namely,
our exceptional service capabilities, wide product range and business
solutions. We look forward to a long-term relationship with this fine

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