Orchard Supply Hardware Announces Senior Executive Appointments

Business Wire, June 21, 2006

SAN JOSE, Calif. -- Orchard Supply Hardware (OSH) announced today the appointments of Richard Gibson as Chief Financial Officer and Mark Borison as Vice President, Real Estate and Construction. Gibson's appointment is effective July 10 and Borison will start on August 1.

"As OSH celebrates its 75th anniversary this year, we are entering an exciting new phase. With the significant investment from Ares Management LLC and our ongoing relationship with Sears Holdings, we believe we are ideally positioned for growth," said Rob Lynch, OSH President and CEO. "I'm particularly pleased that Richard and Mark are joining OSH because they bring such deep experience in retail, finance and operations and will play a pivotal role in achieving our company's goals."

Richard Gibson joins the California-based retail chain of 85 home and garden centers after serving for five years as Chief Financial Officer of David's Bridal, a wholly-owned subsidiary of Federated Department Stores. Prior to that appointment, Gibson served in roles of increased responsibility during his 20-year career including Global Controller and Head of Finance for Nike's worldwide retail operations, and several senior level positions with Time Warner, including Vice President, Finance & Administration at Warner Bros.

"I am looking forward to working with the rest of the excellent management team at OSH," said Gibson. "The company is clearly focused on its customers and has a bright future."

Mark Borison currently serves as Vice President, Real Estate, Store Design and Asset Management for Eddie Bauer, Inc., a position he has held for the last five years. An industry veteran of 28 years, Borison also has served as Vice President of Apparel Asset Management Strategy for The Limited, Inc., Executive Vice President and General Counsel at Boscov's Department Stores and Operating Vice President, Real Estate, at Federated Department Stores.

"I look forward to building strong relationships with the real estate community in helping OSH secure the best locations to accelerate its new store growth," said Borison.

About Orchard Supply Hardware

Orchard Supply Hardware, which is headquartered in San Jose, California, is a leading chain of 85 hardware and garden retail stores located throughout California. Orchard Supply has a rich heritage, having started in 1931 as a farmers' cooperative in Santa Clara Valley offering supplies to local growers. In November, 2005, OSH parent company Sears Holdings Corporation (NASDAQ:SHLD) announced a transaction with the private equity fund Ares Management LLC. Ares invested $58.7 million cash for 19.9 percent of the voting stock in OSH, while Sears Holding maintains 80.1 percent of the voting stock. OSH also received $250 million in financing under the arrangement. For more information about Orchard Supply Hardware, visit the company's Web site at http://www.osh.com.

About Sears Holdings

Sears Holdings Corporation is the nation's third largest broadline retailer, with approximately $55 billion in annual revenues, and with approximately 3,900 full-line and specialty retail stores in the United States and Canada. Sears Holdings is the leading home appliance retailer as well as a leader in tools, lawn and garden, home electronics and automotive repair and maintenance. Key proprietary brands include Kenmore, Craftsman and DieHard, and a broad apparel offering, including such well-known labels as Lands' End, Jaclyn Smith and Joe Boxer, as well as the Apostrophe and Covington brands. It also has Martha Stewart Everyday products, which are offered exclusively in the U.S. by Kmart and in Canada by Sears Canada. For more information, visit Sears Holdings' website at http://www.searshc.com .

About Ares Management LLC

Ares Management LLC is an independent investment firm with approximately $11 billion of total committed capital under management. Founded in 1997, Ares manages three complementary and distinct pools of capital in the private equity, private debt and public debt markets. Ares' private equity activities are conducted through two Ares Corporate Opportunities Funds: ACOF I and the new fund Ares Corporate Opportunities Fund II. Ares private debt activities are conducted through its management of Ares Capital Corporation (NASDAQ:ARCC), a publicly traded business development corporation. Ares' capital markets activities include the management of syndicated bank loans, high yield bonds and special situation investments, which are held in a variety of investment vehicles. The firm has over 115 employees and is headquartered in Los Angeles with offices in New York and London. For more information about the company, please visit our website at www.aresmgmt.com.