(Montréal, January 29, 2008) – METRO INC. realized net earnings of $69.7 million in the first quarter of 2008, up 2.7% from $67.9 million in the same quarter last year, and fully diluted net earnings per share of $0.61, up 5.2% from $0.58 last year.

In the first quarter, we benefited from a tax expense decrease of $11.4 million due to a net reduction of our future income tax assets and liabilities as a result of future federal income tax rate decreases totalling 3.5%. In the first quarter last year, we had A&P Canada acquisition-related integration and rationalization costs before taxes of $5.6 million. Excluding these non-recurring items, our first quarter adjusted net earnings(1) would have been $58.3 million and our adjusted fully diluted net earnings per share(1) $0.51 versus $71.6 million and $0.62 respectively for the same quarter last year.

First quarter sales reached $2,506.8 million, down 0.3% compared to fiscal 2007 first quarter sales of $2,515 million. Excluding decreased sales of tobacco products, 2008 first quarter sales would have been up 0.3%. Same store sales were flat.

“A more intense competitive environment as well as the training and learning curve associated with our new information systems in Ontario and our new Food Services warehouse weakened our results. We expect that the issues related to our information systems in Ontario and our Food Services warehouse will be behind us in the next few months, and are confident that our results will improve,” stated Pierre H. Lessard, President and Chief Executive Officer.

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