Birks & Mayors Reports Record Third Quarter Results.

Third Quarter Net Income Increases 24.6% to $19.6 million

Company Introduces Fiscal 2007 Net Income Guidance of $8.5 million to $9.5 million

MONTREAL -- Birks & Mayors Inc. (the "Company" or "Birks & Mayors") (AMEX:BMJ), which operates 67 luxury jewelry stores across Canada, Florida and Georgia, reported results for the thirteen weeks ended December 30, 2006 ("Third Quarter"). The Company noted that its current fiscal year, ending March 31, 2007 ("Fiscal 2007") represents a 53-week period and compares to a 52-week period in Fiscal 2006. As a result, the first nine months of Fiscal 2007 include 40 weeks versus the first nine months of the fiscal year ended March 25, 2006 ("Fiscal 2006") that included 39 weeks.

Third Quarter Highlights:

* Net sales increased 4.3% to $114.7 million, from $110.0 million in the prior year period;

* Comparable store sales increased 3%, as compared to a 14% increase in the prior year period;

* Gross margin rose 130 basis points to 50.2% of net sales;

* Operating income increased 21.6% to $22.3 million, or 19.4% of net sales from $18.3 million, or 16.7% of net sales in the prior year period; and

* Net income increased 24.6% to $19.6 million, as compared to net income of $15.7 million in the prior year period.

Thomas A. Andruskevich, President and Chief Executive Officer stated: "Our record Third Quarter results can be attributed to our ongoing ability to provide clients with distinctive and desirable high-quality jewelry and timepieces. We were delighted by the performance of our Canadian stores during the third quarter season with comparable store sales increasing 8%. In the U.S., we mitigated the negative traffic trend in Florida through successfully executing our marketing, retail, and merchandising initiatives focused on personalized client service and the continued emphasis on product assortments at higher price points."

Nine Month Highlights:

* Net sales increased 8.9% to $237.8 million, from $218.3 million in the prior year period; excluding one extra week in the first forty weeks of Fiscal 2007, net sales increased by approximately 7%;

* Comparable store sales increased 4%, as compared to an 11% increase in the prior year period;

* Gross margin expanded by 120 basis points to 49.1% of net sales;

* Operating income increased 24.3% to $22.7 million, or 9.6% of net sales, as compared to $18.3 million, or 8.4% of net sales in the prior year period; and

* Net income increased 30.7% to $15.0 million, as compared to net income of $11.5 million in the prior year period.

Third Quarter Fiscal 2007 Results

For the thirteen weeks ended December 30, 2006, net sales increased 4.3%, or $4.7 million to $114.7 million, as compared to $110.0 million for the thirteen weeks ended December 24, 2005. Comparable store sales increased 3%, following a 14% rise during the same period last year, due to the successful execution of the Company's marketing and merchandising strategies, which included increasing sales of higher price point product offerings and enhancing brand awareness. Comparable store sales in the Company's Canadian markets increased 8%, driven primarily by an increase in average unit retail, while comparable store sales in the Company's U.S. markets declined 1% despite an increase in average unit retail, due to a decline in traffic compared to the third quarter of Fiscal 2006. Also contributing to the increase in Third Quarter Fiscal 2007 net sales was approximately $1.1 million due to the translation of the Canadian operations into U.S. Dollars at higher exchange rates due to the strengthening of the Canadian Dollar.

Gross margin increased to 50.2% of net sales from 48.9% of net sales in the prior year period, representing a 130 basis-point improvement. Gross profit dollars increased $3.8 million to $57.6 million from $53.8 million in the prior year period. The improvement in gross margin resulted from the ongoing execution of the Company's retail and merchandising strategies which include increasing sales of higher margin merchandise and products that are designed and manufactured or sourced directly by the Company.

Selling, general and administrative expenses ("SG&A") were $33.9 million, or 29.6% of net sales, as compared to $34.0 million, or 30.9% of net sales in the prior year third quarter. Included in SG&A for the Third Quarter this year was an expense of $171,000 associated with the closing of one of the Company's Canadian stores. Also, included in SG&A was $45,000 in non-cash compensation expense, which compares to non-cash compensation expense of $710,000 in the third quarter last year.

EBITDA was $23.7 million, as compared to $19.8 million in the prior year third quarter, an improvement of $3.9 million, or 19.8%. The improvement in EBITDA during the Third Quarter resulted primarily from the increase in net sales, gross margin expansion and leverage on SG&A.

Net income rose 24.6% to $19.6 million, or $1.65 per diluted share on 11,829,000 shares outstanding, as compared to net income of $15.7 million, or $1.50 per diluted share in the third quarter last year.

The following chart reconciles the Company's net income to EBITDA:

[TABLE OMITTED]

Nine-Month Fiscal 2007 Results

Net sales increased 8.9%, or $19.5 million to $237.8 million, as compared to $218.3 million for the nine months ended December 24, 2005. The Company estimates that the extra week in the first nine months of Fiscal 2007 increased net sales by approximately $4.3 million, as compared to the same period in the prior year. Comparable store sales increased 4%, driven primarily by higher average unit retail. Comparable store sales in the Company's Canadian markets increased 7%, while comparable store sales in the Company's U.S. markets grew 2%. Also, contributing to the increase in the first nine months of Fiscal 2007 net sales was approximately $5.6 million due to the translation of the Canadian operations into U.S. Dollars at higher exchange rates due to the strengthening of the Canadian Dollar.

EBITDA was $27.7 million for the first nine months of Fiscal 2007, as compared to $22.3 million for the comparable period in Fiscal 2006, an improvement of $5.4 million, or 24.3%. The improvement in EBITDA during the current period resulted primarily from increased net sales, gross margin expansion and leverage on SG&A.

Net income was $15.0 million, or $1.28 per diluted share on 11,754,000 diluted shares outstanding for the first nine months of Fiscal 2007, as compared to net income of $11.5 million or $1.18 per diluted share for the first nine months of Fiscal 2006.

The following chart reconciles the Company's net income to EBITDA:

[TABLE OMITTED]

To supplement the Company's unaudited condensed consolidated financial statements presented in accordance with generally accepted accounting principles (GAAP), the Company provides EBITDA, which is a non-GAAP financial measure. EBITDA is defined as net income plus the provision for income taxes, interest expense, and depreciation and amortization as presented in the Company's unaudited condensed consolidated statement of operations. EBITDA should not be considered as an alternative to operating income or net income (as determined in accordance with GAAP) as a measure of the Company's operating performance or to net cash provided by operating, investing and financing activities (as determined in accordance with GAAP) as a measure of our ability to meet cash needs. The Company believes that EBITDA is a measure commonly reported and widely used by investors and other interested parties as a measure of a company's operating performance and debt servicing ability because it assists in comparing performance on a consistent basis without regard to capital structure, depreciation and amortization or non-operating factors (such as historical cost). Accordingly, as a result of the Company's capital structure, the Company believes EBITDA is a relevant measure. This information has been disclosed here to permit a more complete comparative analysis of the Company's operating performance relative to other companies and of its debt servicing ability.

Inventory totaled $166.2 million at December 30, 2006, as compared to $145.6 million at December 24, 2005. This $20.6 million increase is attributable to the Company's internalization strategies which result in higher levels of inventory as more products are made internally, additional inventory related to the opening of a new store in Florida during the quarter, the decision to maintain higher levels of core inventory items in timepieces and bridal jewelry and additional inventory related to the Company's holiday sales results in the U.S. being lower than expected.

Guidance

The Company is introducing net sales and earnings guidance for the full year of Fiscal 2007. The Company currently expects Fiscal 2007 net sales in the range of $291.0 million to $294.0 million, as compared to actual Fiscal 2006 net sales of $274.3 million.

The Company currently expects the full year of Fiscal 2007 net income to be in the range of $8.5 million to $9.5 million, or a 58% increase over the prior year's net income of $5.7 million at the midpoint of the estimated range.

The luxury retail market continues to be very competitive and could negatively impact our results. In addition, factors such as: rising interest rates, tourism and mall traffic, the impact of changes in the real estate markets, (especially in the state of Florida), the equity markets, the general level of consumer confidence, and commodity prices may have an influence on the realization of the Company's sales and net income plans for Fiscal 2007.

Conference Call Information

A conference call to discuss Third Quarter results is scheduled for today, February 16, 2007 at 9:00 a.m. Eastern Time. Investors and analysts in the U.S. and Canada interested in participating in the call are invited to dial [phone], or for all other international callers [phone] approximately ten minutes prior to the start of the call. The conference call will also be web-cast live at www.birksandmayors.com. A replay of this call will be available until February 23, 2007 and can be accessed by dialing [phone] and entering pin number 8380575.

Birks & Mayors is a leading operator of luxury jewelry stores in the United States and Canada. As of January 31, 2007, the Company operated 38 stores (Birks Brand) across most major metropolitan markets in Canada and 29 stores (Mayors Brand) across Florida and Georgia. Birks was founded in 1879 and developed over the years into Canada's premier retailer, designer and manufacturer of fine jewelry, timepieces, sterling and plated silverware and gifts. Mayors was founded in 1910 and has maintained the intimacy of a family-owned boutique while becoming renowned for its fine jewelry, timepieces, giftware and service. Additional information can be found on Birks & Mayors web site, www.birksandmayors.com.

This press release contains certain "forward-looking" statements concerning expectations for continued sales growth, success of the Company's merchandising, marketing and retail initiatives, continued growth in net income, earnings and improvement in gross margins, and the net sales and earnings guidance for Fiscal 2007. Because such statements include various risks and uncertainties, actual results might differ materially from those projected in the forward-looking statements and no assurance can be given that the Company will meet its earnings estimates. These risks and uncertainties include, but are not limited to, rising interest rates, tourism and mall traffic, the impact of changes in the real estate markets (especially in the state of Florida), changes in the equity markets, consumer confidence, increases in commodity prices, the Company's ability to maintain sales growth throughout the remainder of the fiscal year, the ability of the Company to maintain strong growth in net income, the Company's ability to keep costs low, the Company's ability to implement its business strategy, the Company's ability to maintain relationships with its primary vendors, the Company's ability to limit its exposure to currency exchange risk and fluctuations in the availability and prices of the Company's merchandise, the Company's ability to compete with other jewelers, the success of the Company's marketing initiatives, the Company's ability to have a successful customer service program, and the Company's ability to attract and retain its key personnel. Information concerning factors that could cause actual results to differ materially are set forth in the Company's Annual Report on Form 20-F filed with the Securities and Exchange Commission on July 19, 2006. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law.

[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]