HUDSON’S BAY COMPANY & CANQUEST ENTER INTO TECHNOLOGY AGREEMENT

(Chatham, ON) October 8, 2004 – Hudson’s Bay Company, Canada’s largest department store and oldest corporation, has entered into a multi-year technology agreement with Chatham, Ontario-based Canquest Communications to expand it’s Gift Card offering across the nation.

Canquest is providing a point-of-sale activation system to Hbc for the purpose of receiving messages from a retail host system to activate prepaid Gift Cards on the Hbc platform. “In essence, we will be enabling Hbc to sell their already successful Gift Card into complimentary retail chains across the nation”, states Mike Pugh, Senior Vice President at Canquest. “Using our proprietary point-of-sale activation network, Hbc Gift Cards will be able to be merchandised and sold in places such as Safeway grocery stores and then be redeemed at any Hudson’s Bay, Zellers or Home Outfitters locations. The Bay has been very innovative with the marketing strategies and we’re honoured to be a part of their solutions”.

Canquest Communications (Canada) Inc. is a privately owned company and is a leader in the development of debit transactions for PrePaid systems and software in Canada, the U.S. and Mexico supported by its own 24/7 multi-lingual call centre. Canquest services the wireline and wireless telephone companies in Canada and Bermuda as well as large national distributors.

Hudson's Bay Company, established in 1670 is Canada's largest department store retailer and oldest corporation. The Company provides Canadians with the widest selection of goods and services available through numerous retail channels including more than 500 stores led by the Bay, Zellers and Home Outfitters chains. Hudson's Bay Company is one of Canada's largest employers with 70,000 associates and operations in every province in Canada.

For more information, contact;

Mike Pugh   mpugh@canquest.com
Senior Vice President   519-351-8647 tel.
Canquest Communications   519-351-0021 fax