The ALDO Group

Corporate Statement

November 2, 2015

The safety of our products and health of our customers is a top priority for the ALDO Group. We

strive to offer quality footwear and accessories that are in compliance with global standards.

Lead and cadmium are among a list of restricted substances that the ALDO Group monitors for

compliance. Although there are currently no established limits or legislation in Canada for lead

and cadmium in adult jewelry, the ALDO Group sets internal requirements based on global

regulations and industry standards, and we continually reassess and improve our practices of

establishing limits and monitoring vendor compliance with these limits.

The ALDO Group requires vendors to provide proof of compliance for products. We also perform

additional testing on products and monitor the restricted substance levels through independent

third party accredited laboratory tests. Products found not to meet the established internal ALDO

Group standards are removed from our stores.

We were disappointed to learn that the items tested by the CBC failed our own internal

guidelines, so we are taking steps to remove these items from all of our stores. We are committed

to increasing our monitoring efforts, and we will work with our vendors to enforce compliance

with our internal guidelines.

The ALDO Group

November 19, 2015

Extension of up-stream and downstream product testing

As a follow-up to the statement we issued to CBC Marketplace on November 2nd, we would like

to inform you of some of the additional measures ALDO Group is implementing to address

non-compliant inventory and enforce vendor compliance.

In collaboration with an independent third-party expert in heavy-metal testing, internal testing of

existing inventory will be extended to include products they assess to have the highest risk

characteristics. If non-compliant products are found they will be removed from stores.

Moving forward, we will also introduce focused testing of a broader sample of products prior to

distribution to our stores. This will include the highest risk products identified by the independent

third-party expert. Non-compliant products will be rejected and returned to the vendor.

We will also continue to work with vendors to promote compliance. Action will be taken against

non-compliant vendors through financial penalties as well as termination of contracts for

repeated non-compliance.