Hudson's Bay Company Announces Closing of Over-Allotment Option

Hudson's Bay Company Announces Closing of Over-Allotment Option

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/

TORONTO, Dec. 28, 2012 (GLOBE NEWSWIRE) -- Hudson's Bay Company (TSX:HBC)
("HBC") announced today that the underwriters have purchased an additional
900,000 common shares of HBC at a price of $17.00per share, pursuant to the
exercise of an over-allotment option granted to the underwriters in connection
with the previously announced initial public offering of common shares of HBC,
which closed on November 26, 2012. HBC did not receive proceeds from the sale
of these additional common shares. The common shares of HBC are listed on the
Toronto Stock Exchange under the symbol "HBC."

As a result of the exercise of the over-allotment option, the selling
shareholder, Hudson's Bay Company (Luxembourg) S. à r. l, now holds an
aggregate 80.9 per cent equity and voting interest in HBC on a non-diluted
basis (compared to 81.7 per cent had the over-allotment not been exercised).

The initial public offering was made through a syndicate of underwriters led
by RBC Dominion Securities Inc., BMO Capital Markets, CIBC World Markets Inc.,
and BofA Merrill Lynch who acted as joint bookrunners.

No securities regulatory authority has either approved or disapproved of the
contents of this news release. The securities being offered have not been, and
will not be, registered under the United States Securities Act of 1933, as
amended (the ''U.S. Securities Act''), or any state securities laws, and may
not be offered or sold in the United States unless pursuant to an exemption
therefrom. This press release is for information purposes only and does not
constitute an offer to sell or a solicitation of an offer to buy any
securities of Hudson's Bay Company in any jurisdiction.

ABOUT HUDSON'S BAY COMPANY

Hudson's Bay Company ("HBC"), founded in 1670, is North America's longest
continually operated company and is a leading retailer offering a wide
selection of branded merchandise in Canada and the United States through its
three banners. In the United States, HBC operates Lord & Taylor, a fashion
department store with 48 full-line store locations throughout the northeastern
United States and in two major cities in the Midwest. In Canada, HBC operates
Hudson's Bay, Canada's largest national branded department store with 90
locations. HBC also operates Home Outfitters, a kitchen, bed and bath
superstore with 69 locations. With approximately 29,000 associates in Canada
and the U.S., Hudson's Bay Company banners provide stylish, quality
merchandise at great value and with a dedicated focus on exceeding customers'
expectations.

CONTACT: INVESTOR RELATIONS:
        
         Lucas Evans
         Senior Vice President and Treasurer
         Hudson's Bay Company
         Phone: (416) 861-4444
         Email: investorrelations@hbc.com
        
         MEDIA CONTACTS:
        
         Stephanie Thornbury
         Divisional Vice President, Communications
         Hudson's Bay Company
         Phone: (416) 436-8086
         Email: stephanie.thornbury@hbc.com
        
         Tiffany Bourre
         Senior Manager, External Communications
         Hudson's Bay Company
         Phone: (905) 595-7184
         Email: tiffany.bourre@hbc.com
 
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