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Press release from CNW Group

Brick Buys Back $9.861 Million Debentures

Friday, December 09, 2011

Brick Buys Back $9.861 Million Debentures10:00 EST Friday, December 09, 2011Repurchased 12% Senior Secured Debentures to be CancelledEDMONTON, AB, Dec. 9, 2011 /CNW/ - The Brick Ltd. (TSX: BRK) (the "Brick Group") has completed the buy back of all the debentures held by Chou Associates Management Inc. ("Chou").   In accordance with the terms of the Debenture Indenture dated May 28, 2009, the Brick Group and Chou entered into the private agreement on December 2, 2011 to settle Chou's Debentures. Terms of the transaction have not been disclosed.  The Brick Group bought back the debentures from available cash and continues to have no borrowings under its Asset Backed Credit Facility."This opportunity to buy back Debentures is an effective way for The Brick to use its available cash by lowering its costs of debt financing" stated Bill Gregson, President and Chief Executive Officer of the Brick Group.   "As one of our shareholders, Chou identified the value to the company of the Debenture buyback and we are pleased that we were able to reach an agreement."On May 28, 2009, the Brick Group issued 120,000 debt units, each consisting of $1000 principal amount of the 12% senior secured debentures (the "Debentures") and 1000 Class A Share purchase warrants (the "Debenture Warrants").   The Debentures mature on May 30, 2014 and bear interest at a fixed rate of 12% per annum payable in cash semi-annually in arrears on December 31 and June 30 of each year commencing on December 31, 2009.  Chou exercised all of its Debenture Warrants in the cashless exercise of warrants completed on July 12, 2011, and continues to hold shares in the Brick Group.  Following this transaction, 110,139 debt units remain outstanding.About the Brick GroupThe Brick Group, together with its subsidiaries, is one of Canada's largest volume retailers of household furniture, mattresses, appliances and home electronics, operating under five banners: The Brick, United Furniture Warehouse, The Brick Superstore, The Brick Mattress Store, and Urban Brick. In addition, through its corporate sales division, the Brick Group services the subdivision, condominium, hospitality, and high-rise builder market. The Brick Group's retail operations are located in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Prince Edward Island, Nova Scotia, New Brunswick, the Northwest Territories and Yukon.For further information: Bill Gregson President and CEO The Brick Group (780) 930-6300     Greg Nakonechny Vice President, Legal and Corporate Secretary The Brick Group (780) 930-6300