Orchard Supply Hardware Statement Regarding Its Equity Securities during Chapter 11 Bankruptcy Proceedings

  Orchard Supply Hardware Statement Regarding Its Equity Securities during
  Chapter 11 Bankruptcy Proceedings

Business Wire

SAN JOSE, Calif. -- June 19, 2013

Orchard Supply Hardware Stores (NASDAQ:OSH and OTCQB:OSHSQ), a neighborhood
hardware and garden store focused on paint, repair and the backyard, today
issued the following statement:

Orchard’s management has noticed high trading volume in Orchard’s Class A
Common Stock and Series A Preferred Stock following its filing of Chapter 11
with the U.S. Bankruptcy Court on June 17, 2013. Stockholders of a company in
Chapter 11 generally receive value only if all claims of the company's secured
and unsecured creditors are fully satisfied. In this case, Orchard’s
management strongly believes that it is highly unlikely all such claims will
be fully satisfied. Accordingly, it is expected that the Company’s equity
holders will experience a complete loss of their investment as a result of
Orchard’s Chapter 11 bankruptcy proceedings, as previously disclosed in the
Company’s Form 8-K filed on June 17, 2013 and in its Form 10-K/A for the
fiscal year ended February 2, 2013.

About Orchard Supply Hardware

Orchard Supply Hardware Stores Corporation operates neighborhood hardware and
garden stores focused on paint, repair and the backyard. The Company was
founded as a purchasing cooperative in San Jose in 1931. Today the stores
average approximately 36,000 square feet of interior selling space and 8,000
square feet of exterior nursery and garden space. As of June 16, 2013 the
Company has 89 stores in California and two stores in Oregon. For more
information, visit http://osh.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of

This press release (including information incorporated or deemed incorporated
by reference herein) contains “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are those involving future events and future results that are based
on current expectations, estimates, forecasts, and projections as well as the
current beliefs and assumptions of the Company’s management. Words such as
“guidance”, “outlook”, “believes”, “expects”, “appears”, “may”, “will”,
“should”, “intend”, “target”, “projects”, “estimates”, “plans”, “forecast”,
“is likely to”, “anticipates”, or the negative thereof or comparable
terminology, are intended to identify such forward looking statements. Any
statement that is not a historical fact and other estimates, projections,
future trends and the outcome of events that have not yet occurred referenced
in this press release, is a forward-looking statement. Forward-looking
statements are only predictions and are subject to risks, uncertainties and
assumptions that are difficult to predict. Therefore actual results may differ
materially and adversely from those expressed in any forward-looking
statements. Factors that might cause or contribute to such differences
include, but are not limited to, factors discussed under the section entitled
“Risk Factors” in the Company’s reports filed with the Securities and Exchange
Commission, the ability to conclude the transaction with Lowe’s or another
bidder in the Court-supervised auction process under Section 363 of the
Bankruptcy Code and the challenges and risks associated with operating the
business under Chapter 11 protection. Many of such factors relate to events
and circumstances that are beyond the Company’s control. You should not place
undue reliance on forward-looking statements. The Company does not assume any
obligation to update the information contained in this press release.


Orchard Media:
FTI Consulting
Leigh Parrish, 212-850-5651
Orchard Investor:
FTI Consulting
Matt Gross, 212-850-5659
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