Hardware & Lumber Ltd.(HL)-Rights Issue

At the meeting of the Board of Directors on March 8, 2005, the following was agreed on: 1) Rights Issue – one share for every five shares held. 2) Record Date – March 22, 2005. 3) Offer Period – The offer would open on April 4 and remain open until April 15, 2005. 4) That the Board committee appointed on February 28, 2005 to direct and implement the Rights Issue be authorized to fix the Rights issue price without further reference to the Board upon registration of the Circular by the Registrar of Companies and the Financial Services Commission.