Sterling Shoes Announces Closing of Sale to Town Shoes

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 22, 2012) - Sterling Shoes Inc. ("Sterling") is pleased to announce that, further to its press release dated April 16, 2012, its wholly-owned subsidiary, Sterling Shoes GP Inc. ("Sterling GP"), the general partner of Sterling Shoes Limited Partnership ("Sterling LP"), and Sterling LP have successfully completed the sale of the majority of the assets of Sterling LP including 69 of Sterling's retail locations operating under the Sterling Shoes, Shoe Warehouse and Freedman banners to Town Shoes Limited ("Town Shoes") for a purchase price of approximately $17.5 million, subject to certain post-closing adjustments (the "Transaction"). The Transaction was completed pursuant to a purchase agreement dated as of April 16, 2012 among Sterling GP, Sterling LP, Town and Alvarez Marsal Canada Inc. (the "Monitor" or "A&M"), in its capacity as the court appointed monitor pursuant to Sterling's proceedings under the Companies' Creditors Arrangement Act (the "CCAA").