Boutiques San Francisco: Best Third Quarter in its History.

BOUCHERVILLE, Quebec--(BUSINESS WIRE)--Dec. 12, 1996--SAN FRANCISCO INC. (ME:SF.A.) The Board of Directors of Les Boutiques San Francisco Incorporees is pleased to announce the results of the third quarter ended November 2, 1996.

Sales for the three month period ended November 2, 1996 increased by 30 percent compared to the same period last year, rising from $31.7 million in 1995 to $41.1 million in 1996. Net earnings for the third quarter increased by 80 percent compared to 1995, rising from $964,000 or $0.16 per share for the third quarter of 1995, to $1,734,000 or $0.29 per share for the three month period ended November 2, 1996.

For the nine month period ending November 2, 1996, sales reached $99.4 million, an increase of 16 percent over the same period of last year, which reached $85.6 million. The net earnings for this period is $2.6 million or $0.43 per share compared to $1.5 million or $0.25 per share for the same period last year, representing an increase of net earnings for the present fiscal year of 73 percent.

Mr. Paul Delage Roberge, the Chairman of the Board and Chief Executive Officer of Les Boutiques San Francisco Incorporees, indicates that "the net earnings of this quarter represent the best result in the history of the San Francisco Group." He underlines also that the increase in sales and net earnings of the Company resulted mainly from the opening of the second superstore, Les Ailes de la Mode, in Laval last August. However, all six banners of San Francisco Group contributed to the better financial results.

Mr. Paul Delage Roberge is confident that all the strategies put in place during the last few years will contribute to even better performances from the Group. Moreover, the opening of the third Les Ailes de la Mode superstore, expected in August 1997 at Place Ste-Foy, in Ste-Foy, will be an important factor.

The San Francisco Group is operating 129 boutiques in Quebec -- 42 San Francisco boutiques, 15 L'Officiel, 21 San Francisco Maillots, 17 Frisco, 15 Victoire Delage and 19 West Coast boutiques -- and two Les Ailes de la Mode superstores.

CONTACT: Les Boutiques San Francisco Incorporees

Guy Charron, c.a., 514/449-1313