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FIRST QUARTER REPORT TO SHAREHOLDERS For the 13-week period ended May 30, 2009

To our shareholders: The Jean Coutu Group is pleased to report its financial results for the first quarter of fiscal year 2010 ended May 30, 2009. Revenues increased by 7.8% to $619.3 million over the comparable period of fiscal year 2009. Operating income before amortization ("OIBA") amounted to $64.7 million for the first quarter of fiscal year 2010 compared with $54.4 million for the first quarter of fiscal year 2009, an increase of 18.9%. OIBA as a percentage of revenues ended the first quarter of fiscal 2010 at 10.4% compared with 9.5% during the first quarter of fiscal year 2009. The Company recorded its share of Rite Aid’s results in the Jean Coutu Group’s first quarter of fiscal year 2010 earnings, which amounted to $30.9 million ($0.13 per share) compared with $53.4 million ($0.21 per share) during the first quarter of fiscal year 2009. This is a non-cash charge. For the first quarter of fiscal year 2010, the net earnings amounted to $10.3 million ($0.04 per share) compared with a net loss of $20.2 million ($0.08 per share) for the first quarter of fiscal year 2009. Earnings before specific elements and the share of loss in Rite Aid amounted to $38.5 million ($0.16 per share) during the first quarter of fiscal year 2010 compared with $33.2 million ($0.13 per share) during the first quarter of the previous fiscal year. During the first quarter of fiscal year 2010, Canadian network retail sales increased by 6.7% while same store sales increased by 3.9% compared with the first quarter of fiscal year 2009. We are very satisfied with our first quarter’s results. Our organisation showed a solid operating performance as well as a sustained growth in its network’s retail sales. We have reached our objectives in spite of the economic conditions that prevailed during this quarter. We remain confident in our ability to pursue our growth. We intend to maintain the rhythm of our network’s expansion and renovation projects and the development of our product offering. On May 30, 2009, there were 358 stores in the PJC network of franchised stores. The Board of Directors of the Company declared a quarterly dividend of $0.045 per share. This dividend will be payable on August 7, 2009 to all holders of Class A subordinate voting shares and holders of Class B shares listed in the Company’s shareholder ledger as of July 24, 2009.

Demographic trends are expected to contribute to the growth in the consumption of prescription drugs, and to the increased use of pharmaceuticals as the primary intervention in individual healthcare. Management believes that these trends will continue and that the Company will grow its revenues through differentiation and quality of offering and service levels in its network of franchised stores, which it operates with a focus on sales growth, its real estate program and operating efficiency. Yours truly, /s/ François J. Coutu Francois J. Coutu President and Chief Executive Officer

Table of Contents Management’s discussion and analysis Financial statements and fiscal years 5 Definitions 5 Non-GAAP financial measures 6 Quarterly results 8 Information on the Jean Coutu Group network of franchised stores 10 Information on Rite Aid 11 Liquidity 13 Third party asset-backed commercial paper 14 Capital stock 16 Contractual obligations and commercial commitments 16 Financial instruments and off-balance sheet arrangements 16 Foreign exchange risk management 17 Related party transactions 17 Changes in accounting policies 17 Risks and uncertainties 18 Changes in internal control over financial reporting 18 Strategies and outlook 19

Consolidated interim financial statements Statement of earnings 21 Statements of changes in shareholders’ equity 22 Balance sheets 23 Statements of cash flows 24 Notes to the financial statements 25 Additional information the financial statements 33 Throughout this document, the Jean Coutu Group (PJC) Inc. and subsidiaries, unless otherwise indicated, are referred to as "Company", "Jean Coutu Group", "we" or "our". This Management's Discussion and Analysis of the financial position and results of operations ("MD&A") should be read in conjunction with the Interim Consolidated Financial Statements and the notes thereto for the 13-week periods ended May 30, 2009 (Q1-2010) and May 31, 2008 (Q1-2009), and with the Annual Report for the fiscal year ended February 28, 2009. The Jean Coutu Group is one of the most trusted names in Canadian pharmacy retailing. The Company operates a network of 358 franchised stores located in the provinces of Québec, New Brunswick and Ontario under the banners of PJC Jean Coutu, PJC Clinique and PJC Santé Beauté, and employs more than 16,000 people. Furthermore, as of December 2007, we own Pro Doc Ltd ("Pro Doc"), a Québec-based subsidiary and manufacturer of generic drugs. The Company also holds a significant interest in Rite Aid Corporation ("Rite Aid"), a national chain of drugstores in the United States with more than 4,800 stores in 31 states and the District of Columbia.

Management’s Discussion and Analysis FINANCIAL STATEMENTS AND FISCAL YEARS The Company's Consolidated Financial Statements are prepared in accordance with Canadian Generally Accepted Accounting Principles ("GAAP"). All amounts are in Canadian dollars, unless otherwise indicated. The following table shows exchange rates based on the Bank of Canada closing rates expressed in Canadian dollars per US dollar.

May 30, 2009 February 28, 2009 May 31, 2008Average rate (1) 1.2140 1.1040 1.0051Closing rate 1.0917 1.2723 0.9930

(1) Calculated using the average of the closing exchange rates for each day of the relevant period. The fiscal year ended February 28, 2009, contains 52 weeks. The fiscal year ended March 1, 2008, exceptionally contained 38 weeks and 5 days due to the change in the fiscal year-end date.

Fiscal year Year-end date Number of weeks 2009 February 28, 2009 52 2008 March 1, 2008 38 and 5 days

DEFINITIONS Revenues Revenues consist of sales plus other revenues derived from franchising activities in Canada. Merchandise sales to PJC franchisees through our distribution centres account for most of our sales. PJC franchised stores retail sales are not included in our revenues. However, any change in their retail sales directly affects our revenues since PJC franchisees purchase most of their inventory from our distribution centres. Other revenues consist of royalties from franchisees based on a percentage of retail sales, rental revenues and revenues related to certain services rendered to franchisees. Share of loss from investments subject to significant influence The share of loss from investments subject to significant influence consists principally of our equity interest in Rite Aid. The Company holds a 28.4% equity interest in Rite Aid and this investment is accounted for under the equity method in which the Company records its share of net earnings (or loss) in Rite Aid. Management periodically analyses each investment, and whenever an investment has declined below its carrying value and the decline is considered to be other than temporary, the carrying value of the investment is written down to its fair value and a loss in value is recognized in the consolidated statement of earnings. General and operating expenses General and operating expenses comprise costs associated with salaries and benefits, rent, advertising, repairs and maintenance, insurance and professional fees.

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NON-GAAP FINANCIAL MEASURES Management used certain non-GAAP financial measures such as:

Operating income before amortization ("OIBA"); Earnings (loss) before specific items or earnings (loss) per share before specific items; Earnings (loss) before specific items and share of loss from investments subject to significant influence.

Operating income before amortization OIBA is not a measure of performance under Canadian generally accepted accounting principles ("GAAP"); however, management uses this performance measure in assessing the operating and financial performance of its operations. Besides, we believe that OIBA is an additional measure used by investors to evaluate operating performance and capacity of a company to meet its financial obligations. However, OIBA is not and must not be used as an alternative to net earnings or cash flow generated by operating activities as defined by GAAP. OIBA is not necessarily an indication that cash flow will be sufficient to meet our financial obligations. Furthermore, our definition of OIBA may not be necessarily comparative to a similar measure reported by other companies. Net earnings (loss), which is a performance measure defined by GAAP, is reconciled hereunder with OIBA: 13 weeks (in millions of dollars) Q1-2010 Q1-2009

$ $ Net earnings (loss) 10.3 (20.2)Financing (revenues) expenses (2.2) 1.3 Share of loss from investments subject to significant influence 30.9 53.4 Income taxes 18.7 14.7

Operating income 57.7 49.2 Amortization per financial statements 4.1 3.9 Amortization of incentives paid to franchisees (1) 2.9 1.3 Operating income before amortization 64.7 54.4

(1) Amortization of incentives paid to franchisees is applied against other revenues in the Consolidated Financial Statements.

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Earnings (loss) before specific items or earnings (loss) per share before specific items Earnings (loss) (or earnings (loss) per share) before specific items and earnings (or earnings per share) before specific items and share of loss from investments subject to significant influence are non-GAAP measures. The Company believes that it is useful for investors to be aware of significant items of an unusual or non-recurring nature that have adversely or positively affected its GAAP measures, and that the above-mentioned non-GAAP measures provide investors with measures of performance with which to compare its results between periods without regard to these items. The Company's measures excluding certain items have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation. Net earnings (loss) and earnings (loss) per share are reconciled hereunder to earnings (loss) (and earnings (loss) per share) before specific items and earnings (and earnings per share) before specific items and share of loss from investments subject to significant influence. All amounts are net of income taxes when applicable: 13 weeks (in millions of dollars) Q1-2010 Q1-2009

$ $ Net earnings (loss) 10.3 (20.2)Unrealized foreign exchange gains on monetary items (0.8) - Change in fair value of third party asset-backed commercial paper (1.9) -

Earnings (loss) before specific items 7.6 (20.2)Share of loss from investments subject to significant influence 30.9 53.4 Earnings before specific items and share of loss from

investments subject to significant influence 38.5 33.2 Earnings (loss) per share 0.04 (0.08)Unrealized foreign exchange gains on monetary items - - Change in fair value of third party asset-backed commercial paper (0.01) -

Earnings (loss) per share before specific items 0.03 (0.08)Share of loss from investments subject to significant influence 0.13 0.21 Earnings per share before specific items and share of loss from

investments subject to significant influence 0.16 0.13

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QUARTERLY RESULTS SELECTED CONSOLIDATED FINANCIAL INFORMATION FOR FISCAL QUARTERS - UNAUDITED The following table presents selected data and operating results for the quarters ended May 30, 2009 (Q1-2010) and May 31, 2008 (Q1-2009): 13 weeks (unaudited, in millions of dollars, except per share amounts) Q1-2010 Q1-2009 $ $ Sales 559.6 516.7 Other revenues (1) 59.7 57.6 Revenues (2) 619.3 574.3 Gross profit 55.5 44.9

OIBA (3) 64.7 54.4 Share of loss from investments subject to significant influence 30.9 53.4 Net earnings (loss) 10.3 (20.2)

Per share 0.04 (0.08)Earnings before specific items and share of loss from investments

subject to significant (3) 38.5 33.2 Per share 0.16 0.13

(1) Including amortization of incentives paid to franchisees. (2) Revenues include sales and other revenues. (3) See the "Non-GAAP financial measures" section.

COMPARISON OF THE CONSOLIDATED QUARTERLY RESULTS FOR THE PERIODS ENDED MAY 30, 2009 (Q1-2010) AND MAY 31, 2008 (Q1-2009) Revenues Revenues, which include sales and other revenues, amounted to $619.3 million during the quarter ended May 30, 2009, compared with $574.3 million during the quarter ended May 31, 2008. This increase of 7.8% is mainly attributable to the expansion of the Jean Coutu Group network of franchised stores. Other revenues amounted to $59.7 million during the first quarter of fiscal year 2010 compared with $57.6 million during the first quarter of fiscal year 2009. This increase is attributable to the increase in rental revenues and other services resulting from the expansion of the Jean Coutu Group network of franchised stores. Gross profit Gross profit from the first quarter of fiscal year 2010 amounted to $55.5 million compared with $44.9 million during the first quarter of fiscal year 2009. For the first quarter of fiscal year 2010, gross margin, calculated as percentage of sales, was 9.9% compared with 8.7% during the first quarter of fiscal year 2009. OIBA OIBA for the Company increased by $10.3 million or 18.9% and amounted to $64.7 million for the first quarter of fiscal year 2010, while amounting to $54.4 million during the first quarter of fiscal year 2009. The increase in OIBA is mostly attributable to a strong operational performance in the franchising activities and of the subsidiary, Pro Doc. The introduction of new products in the offering of Pro Doc combined with the increased purchasing from Quebec pharmacists allowed this subsidiary to grow sales, net of intercompany’s eliminations, to $19.2 million in the quarter compared to $2.3 million in the first quarter of fiscal year 2009. OIBA, as a percentage of revenues, was 10.4% during the first quarter of fiscal year 2010 compared with 9.5% during the first quarter of the previous fiscal year.

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Financing (revenues) expenses Financing revenues amounted to $2.2 million during the first quarter of fiscal year 2010, compared with expenses of $1.3 million recorded during the first quarter of fiscal year 2009. Financing revenues for the first quarter of fiscal year 2010 were related to the recording of a gain in value with respect to the options to repay drawdowns of credit facilities with restructured notes. Financing expenses for the first quarter of fiscal years 2009 were related to the debt incurred during fiscal years 2008 and 2009 to principally allow the Company to fund its normal course issuer bid program. Readers are referred to the "Third party asset-backed commercial paper" section of this MD&A for more information. Share of loss from investments subject to significant influence The share of loss from Rite Aid included in the Company’s earnings during the first quarter of fiscal year 2010 amounted to $30.9 million ($0.13 per share) compared with $53.4 million during the first quarter of fiscal year 2009 ($0.21 per share). This is a non-cash charge. Net earnings (loss) The net earnings amounted to $10.3 million ($0.04 per share) during the quarter ended May 30, 2009, compared with a net loss of $20.2 million ($0.08 per share) for the quarter ended May 31, 2008. Earnings before specific items and share of loss from investments subject to significant influence amounted to $38.5 million ($0.16 per share) during the quarter ended May 30, 2009 compared with $33.2 million ($0.13 per share) during the quarter ended May 31, 2008. SELECTED CONSOLIDATED QUARTERLY FINANCIAL INFORMATION - UNAUDITED (unaudited, in millions of

dollars, except per share amounts) Q1-2010 Q4-2009 Q3-2009 Q2-2009 Q1-2009 Q3-2008(2) Q2-2008(2) Q1-2008(2)

$ $ $ $ $ $ $ $Revenues 619.3 607.2 620.3 567.5 574.3 553.0 583.0 540.3

OIBA (1) 64.7 61.5 60.1 56.8 54.4 56.5 59.0 54.1

Share of loss from investments subject to significant influence 30.9 768.8 431.7 73.1 53.4 332.1 31.6 29.6

Net earnings (loss) 10.3 (733.6) (399.2) (39.1) (20.2) (269.2) 9.5 8.3Per share 0.04 (3.11) (1.66) (0.16) (0.08) (1.08) 0.04 0.03

Earnings before specific items and share of loss from investments subject to significant influence (1) 38.5 38.5 36.7 34.2 33.2 32.3 41.5 33.2

Per share 0.16 0.16 0.15 0.14 0.13 0.12 0.16 0.12

Weighted average number of shares, diluted 236.0 236.0 240.0 245.1 248.3 250.1 259.0 262.0

(1) See the "Non-GAAP financial measures" section. (2) The fiscal year ended March 1, 2008 contained three fiscal quarters due to the change in the fiscal year-end date as described previously in

this MD&A.

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INFORMATION ON THE JEAN COUTU GROUP NETWORK OF FRANCHISED STORES Our franchising activities include operating two distribution centres and providing services to PJC stores. These services comprise centralized purchasing, distribution, marketing, training, human resources, management, operational consulting and information systems, as well as participation in our private label program. The PJC franchisees own and manage their stores and are responsible for merchandising and financing their inventory. They must provision their store from our distribution centres, provided that the products requested are available and priced competitively to those of other suppliers. The financial results of the franchised stores are not included in the Company's Consolidated Financial Statements. 13 weeks Network performance Q1-2010 Q1-2009

Retail sales (in millions of dollars) $883.9 $828.1 Retail sales per square foot (in dollars) (1) $1,361 $1,379 Retail sales (in percentage) Pharmacy, prescription drugs 63% 62% Front-end, non-prescription drugs 9% 9% Front-end, general merchandise 28% 29% Retail sales growth (in percentage) (2) Total stores Total 6.7% 5.1% Pharmacy 8.7% 7.3% Front-end 3.7% 1.4%

Same store (3) Total 3.9% 4.2% Pharmacy 5.7% 6.6% Front-end 1.2% 0.3%

(1) Annual store sales for the last 12 months divided by average square footage. (2) Growth is calculated based on comparable periods. (3) Same store means a store that operated throughout the current fiscal year and previous fiscal year.

Retail sales increase reflects overall market growth and openings, renovations and relocations of network stores. Data on the growth included in this MD&A was calculated based on comparable periods. During the first quarter of fiscal year 2010, on a same-store basis, PJC network retail sales grew 3.9%, pharmacy sales gained 5.7% and front-end sales increased by 1.2% compared with the same period last year. During the first quarter of fiscal year 2010, the sales of non-prescription drugs, which represented 9% of total retail sales, increased by 7.2%, whereas these sales had increased by 1.9% compared with the same period last year. Store network development During the first quarter of fiscal year 2010, there were 7 store openings, including 2 relocations, in the PJC network of franchised stores, compared with 8 openings, including 3 relocations, during the first quarter of fiscal year 2009.

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INFORMATION ON RITE AID Rite Aid Corporation Investment The Company holds a 28.4% (29.8% as at May 31, 2008) equity interest in Rite Aid, and this investment is accounted for under the equity method. During the quarter ended May 30, 2009, Rite Aid reported a net loss of US$98.4 million (US$0.11 per Rite Aid's share) compared with a net loss of US$156.6 million (US$0.20 per Rite Aid’s share) during the same period of the previous fiscal year. The share of loss from Rite Aid included in the Company’s earnings during the first quarter of fiscal year 2010 amounted to $30.9 million ($0.13 per share) compared with $53.4 million during the first quarter of fiscal year 2009 ($0.21 per share). This is a non-cash charge. As at May 30, 2009, the carrying value of the investment in Rite Aid is $22.6 million. On February 28, 2009, the Company performed a comprehensive analysis related to its investment in Rite Aid and impaired it at its fair value. Consequently, the carrying value of the investment in Rite Aid was assessed at $58.3 million as at February 28, 2009. The Company used the closing market value of Rite Aid's common shares as of February 27, 2009, adjusted by a liquidity discount, to assess the fair value of its investment and record the other-than-temporary loss in value. If, in the future, the Company's share of loss in Rite Aid exceeds the carrying value of the investment, the Company would reduce the carrying value of its investment down to zero and would cease recording its share of loss in Rite Aid as required by Canadian GAAP, since the Company has not guaranteed obligations of Rite Aid and is not committed to provide further financial support to Rite Aid. Selected Financial Information - Summary Consolidated Balance Sheets – Rite Aid Corporation

(unaudited, in millions of US dollars and under US GAAP) May 30, 2009 February 28,2009 $ $ Current assets 4,186.2 4,364.9 Property, plant and equipment, net 2,507.4 2,587.4 Other intangibles, net 964.6 1,017.0 Other assets 361.0 357.2 Total assets 8,019.2 8,326.5

Current liabilities 2,393.6 2,302.4 Long-term debt 5,640.9 5,971.0 Other long-term liabilities 1,275.3 1,252.8 Stockholders’ deficit (1,290.6) (1,199.7)Total liabilities and stockholders’ equity 8,019.2 8,326.5

Some of this information would have been different if Rite Aid had prepared its consolidated financial statements using the same Canadian GAAP as the Jean Coutu Group. The differences are primarily due to the fact that Rite Aid uses the last in, first out method to evaluate its inventory, whereas the Jean Coutu Group uses the first in, first out method. The following table presents selected information from the Rite Aid balance sheet using the Canadian GAAP:

(unaudited, in millions of US dollars) May 30, 2009 February 28, 2009 $ $ Current assets 4,947.5 5,111.4 Current liabilities 2,324.9 2,232.3 Stockholders’ deficit (466.9) (389.3)

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CONSOLIDATED STATEMENTS OF OPERATIONS OF RITE AID FOR THE FISCAL QUARTERS ENDED MAY 30, 2009 AND MAY 31, 2008 13 weeks

(unaudited, in millions of US dollars, except per share amounts and under US GAAP) Q1-2010 Q1-2009

$ $Revenues 6,531.2 6,612.8

Costs and expenses

Cost of goods sold 4,757.1 4,804.6Selling, general and administrative expenses 1,710.7 1,793.0Lease termination and impairment charges 67.0 36.3Interest expense 109.5 118.2Loss on debt modifications and retirements, net - 3.7(Gain) loss on sale of assets, net (20.0) 5.3

6,624.3 6,761.1Loss from continuing operations before income taxes (93.1) (148.3)Income tax expense 5.3 5.0Net loss from continuing operations (98.4) (153.3)Loss from discontinued operations, net of gain on

disposal and income taxes - (3.3)Net loss (98.4) (156.6)

Basic and diluted loss per share (0.11) (0.20) This information would have been different if Rite Aid had prepared its consolidated financial statements using the Jean Coutu Group’s Canadian GAAP. The differences are primarily due to the fact that Rite Aid uses the last in, first out method to evaluate its inventory, whereas the Jean Coutu Group uses the first in, first out method. The following table presents selected information from the Rite Aid statements of operations using the Canadian GAAP:

13 weeks (in millions of US dollars) Q1-2010 Q1-2009 $ $ Cost of goods sold 4,742.3 4,789.5 Loss from continuing operations before income taxes (78.8) (133.2)Net loss (84.1) (141.5) The Rite Aid selected financial information above is derived from their quarterly results press release of June 24, 2009. In addition to information in Rite Aid’s public disclosure documents, readers are referred to their website at www.riteaid.com. Readers are also referred to Note 6a of the Company’s Interim Consolidated Financial Statements for the first quarter of fiscal year 2010 for further information on the Rite Aid investment.

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LIQUIDITY The Company’s cash flows are generated by: i) merchandise sales and rental revenues from PJC franchised stores, ii) the collection of royalties from PJC franchisees and iii) rent from properties leased to tenants other than franchisees. These cash flows are used: i) to purchase products and services for resale, ii) to finance operating expenses, iii) for real estate investments, iv) to finance capital expenditures incurred to renovate and open stores and replace equipment and v) for debt service. We have typically financed capital expenditures and working capital requirements through cash flow from operating activities. The Company’s larger acquisitions have been financed through long-term debt and equity. SELECTED CONSOLIDATED INFORMATION ON LIQUIDITY The following table presents selected data from the consolidated statements of cash flows for the quarters ended May 30, 2009 and May 31, 2008: 13 weeks (in millions of dollars) Q1-2010 Q1-2009

$ $Cash flow provided (used) by operating activities 42.7 (11.7)Cash flow used in investing activities (19.1) (26.1)Cash flow (used) provided in financing activities (23.6) 37.8

COMPARISON OF THE CONSOLIDATED INFORMATION ON LIQUIDITY FOR THE QUARTERS ENDED MAY 30, 2009 AND MAY 31, 2008 Cash flow from operating activities Cash flow provided by operating activities amounted to $42.7 million during the first quarter of fiscal year 2010 compared with a use of $11.7 million during the first quarter of fiscal year 2009. Non-cash items include an amount of $30.9 million for the share of loss from investments subject to significant influence recorded during the first quarter of fiscal year 2010 compared with the share of loss from investments subject to significant influence of $53.4 million recorded during the first quarter of fiscal year 2009. Net changes in non-cash asset and liability items represented a $8.5 million decrease in cash during the first quarter of fiscal year 2010 compared with a $52.2 million decrease during the first quarter of the previous fiscal year. Readers are referred to Note 8 of the Interim Consolidated Financial Statements for a listing of the net changes in non-cash operating asset and liability items. Cash flow from investing activities Cash flow used in investing activities amounted to $19.1 million during the first quarter of fiscal year 2010 compared with $26.1 million during the first quarter of fiscal year 2009. During the first quarter of fiscal year 2010, $0.1 million was invested compared with $1.2 million for investments and business acquisition during the first quarter of previous fiscal year. During the first quarter of fiscal year 2010, $10.1 million was used to acquire capital assets compared with $14.3 million during the first quarter of previous fiscal year. During the first quarter of fiscal year 2010, $8.9 million was used to acquire other long-term assets compared with $10.8 million during the first quarter of previous fiscal year. During the first quarter of fiscal year 2010, 7 new stores were opened in the PJC network of franchised stores, of which 2 were relocations, and several other stores were expanded or renovated.

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Cash flow from financing activities During the first quarter of fiscal year 2010, the Company used $23.6 million for its financing activities while these activities provided $37.8 million during the first quarter of fiscal year 2009. During the first quarter of fiscal year 2010, $13.1 million were used to reimburse the Company’s revolving credit facilities compared with the use of $48.0 million of these funds during the first quarter of the previous fiscal year. Also, the Company received net proceeds of $1.2 million during the first quarter of fiscal year 2010 generated by the exercise of stock options as provided by the Company’s Stock Option Plan for officers. Furthermore, the Company repaid the amount of $1.1 million from its long-term debt compared with $0.2 million during the first quarter of fiscal year 2009. The Company paid a quarterly dividend of $0.045 per Class A subordinate voting share and Class B share during the first quarter of fiscal year 2010 for a total of $10.6 million due to the date of payment of the quarterly dividends. The Company had paid a quarterly dividend of $0.04 per Class A subordinate voting share and Class B share during the first quarter of fiscal year 2009 for a total of $10.0 million. THIRD PARTY ASSET-BACKED COMMERCIAL PAPER On May 30, 2009, the Company held investments of a nominal amount of $33.3 million (of which $0.8 million is denominated in US dollars), which were invested, in August 2007, in Canadian third party asset-backed commercial paper ("ABCP"). During the period ended May 30, 2009, the Company received $2.4 million in principal repayments on its ABCP. As at May 30, 2009, these ABCP are accounted for at their fair value, which was $17.7 million ($21.8 million as at February 28, 2009). For the 13-week period ended May 30, 2009, the change in fair value of third party ABCP of $1.9 million consists of a gain on options to repay drawdowns of credit facilities with restructured notes of $3.4 million, as described below, and a loss in value of $1.5 million (no change in fair value for the 13-week period ended May 31, 2008). The total loss in value recorded was $15.6 million as at May 30, 2009, representing 47 % of the ABCP’s nominal value. On acquisition date, these ABCP were rated by the Dominion Bond Rating Service ("DBRS") as R1-High, but they did not settle as they matured as a result of liquidity issues in the ABCP market. A Pan-Canadian Investors Committee (the "Committee") was subsequently established to oversee the orderly restructuring of these instruments and lead to an agreement with all key stakeholders, including the governments of Canada, Québec, Ontario and Alberta, regarding the restructuring of ABCP. The restructuring plan implementation was certified by the Ontario Superior Court of Justice on January 21, 2009, effectively closing the process. The restructuring plan extends the maturity of the ABCP to provide for a maturity similar to that of the underlying assets. The transactions of the ABCP conduits supported solely by synthetic assets or hybrid assets, namely a combination of synthetic and traditional assets, have been pooled into the Master Asset Vehicles “MAV” I and II, which are class A-1 and class A-2 senior long-term notes that will bear interest at floating rates and class B and C subordinated long-term notes that will bear interest at floating rates. Ineligible assets in MAV I and MAV II have been segregated and note holders have received ineligible assets tracking notes that will track the performance of the underlying individual asset. The transactions of the ABCP conduits supported exclusively by high-risk assets and traditional assets have been pooled into MAV III, which are long-term notes that will bear interest at floating rates.

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As at May 30, 2009, the ABCP have the following notional values: • $25.3 million of MAV II notes as follows:

Senior notes: $10.4 million of class A-1 notes; $10.3 million of class A-2 notes.

Subordinated notes: $1.9 million of class B notes; $0.7 million of class C notes.

Ineligible assets tracking notes: $2.0 million.

• $8.0 million of MAV III notes as follows: $1.3 million of traditional assets tracking notes; $6.7 million of ineligible assets tracking notes.

The Company also assessed its ABCP as at May 30, 2009. Since there is no active market for ABCP, the Company has estimated the fair value of the senior and subordinated notes by discounting the expected cash flows at yields comparable to prevailing market yields and credit spreads available for securities with similar characteristics to the restructured notes and other market inputs reflecting the Company’s best available information. The fair value of the ineligible assets tracking notes was estimated using observable market inputs from independent pricing sources. This estimate of the fair value of the ABCP investments is subject to significant uncertainty. While management believes that its valuation technique is appropriate in the circumstances, changes in assumptions could affect the value of ABCP securities in the next fiscal year. The resolution of these uncertainties could be such that the ultimate fair value of these investments may vary from management’s current best estimate. The Company tested the sensitivity of its ABCP valuation model, and a 100 basis point increase in the discount rate would result in a 4.5% or $0.8 million pre-tax decrease in the fair value of these investments. On May 28, 2009, the Company entered into revolving credit facilities in a total amount of $17.6 million (of which $0.5 million is denominated in US dollars) and maturing between May 28, 2011 and May 28, 2012. Borrowings under the credit facilities bear interest at the Canadian prime rate plus a variable margin or at banker acceptance rate plus a variable margin, and the credit facilities may be renewed for periods of 12 consecutive months until reaching a total term of 7 years. These credit facilities include options that allow the Company to use the restructured notes to repay the drawdowns as they become due, under certain conditions. The Company assessed and accounted these options to repay drawdowns of credit facilities with restructured notes at fair value under other long-term assets. The corresponding initial gain of $3.4 million has been recognized in net earnings under change in fair value of third party asset-backed commercial paper. The options will be accounted at fair value at each balance sheet date and any change in fair value of the options will be recorded in net earnings under change in fair value of third party asset-backed commercial paper. As at May 30, 2009, none of these credit facilities were used. The Company has sufficient credit facilities to satisfy its financial obligations as they come due and does not expect there will be a material adverse impact on its business as a result of the ABCP liquidity issue.

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CAPITAL STOCK In July 2008, the Company announced its intention to purchase, for cancellation, up to 12,311,000 of its outstanding Class A subordinate voting shares. For the fiscal year ended February 28, 2009, the Company purchased 12,311,000 Class A subordinate voting shares (13,672,800 shares in 2008) at an average price of $7.42 per share ($12.93 in 2008) for a total consideration of $91.4 million ($177.0 million in 2008) including fees. An amount of $24.1 million ($102.3 million in 2008) representing the excess of the purchase price over the carrying value of the acquired shares was deducted from retained earnings. Purchases were made through the facilities of the Toronto Stock Exchange and in accordance with its requirements. As at July 6, 2009, the total number of Class A subordinate voting shares (TSX: PJC.A) issued and outstanding was 118.8 million (as at may 30, 2009 – 118.7 million, end of fiscal year 2009 - 118.6 million), and the number of Class B shares amounted to 117.4 million (as at May 30, 2009 and end of fiscal year 2009 - 117.4 million), for a total of 236.2 million outstanding shares as at July 6, 2009 (May 30, 2009 – 236.1 million and end of fiscal year 2009 – 236.0 million). CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS For more information on the Company’s main contractual cash obligations under our long-term debt, long-term leases, inventories, services and capital assets commitments, readers are referred to the MD&A section of the financial statements for the fiscal year ended February 28, 2009. Long-term debt As at May 30, 2009, long-term debt, including the short-term portion, amounted to $260.9 million and included an amount of $256.6 million borrowed under its revolving credit facility, compared with long-term debt of $275.7 million, including $269.8 million borrowed under its revolving credit facility as at February 28, 2009. For further details, readers are referred to Note 13 of fiscal year 2009 Consolidated Financial Statements. As at May 30, 2009, $243.0 million of the $500 million available credit facilities was still unused. Despite the current economic conditions, the Company does not expect any liquidity issues. The Company has operating liquidities and has access to credit facilities in order to finance its operating activities. The Company is in compliance with all of its bank covenants as at May 30, 2009. Operating lease obligations The Company leases a substantial portion of its buildings using conventional operating leases. Generally, the Company’s real estate leases are for primary terms of 10 to 20 years with options to renew. For further details, readers are referred to Note 20 of fiscal year 2009 Consolidated Financial Statements. FINANCIAL INSTRUMENTS AND OFF-BALANCE SHEET ARRANGEMENTS The Company does not use any off-balance sheet arrangements that currently have, or that we expect are reasonably likely to have, a material effect on its financial condition, results of operations or cash flow. The Company uses operating leases for many of its Canadian properties, and, from time to time, engages in sale-leaseback transactions for financing purposes. The Company has not taken any specific actions to cover its exposure to interest rate risk. Depending on the interest rate environment, the Company may, in the future, use derivative financial instruments or other interest rate management vehicles. Guarantees and buyback agreements The Company has guaranteed the reimbursement of certain bank loans contracted by franchisees for a maximum amount of $2.2 million. The Company has also entered into commitments with financial institutions to purchase the equipment and inventories of certain of its franchisees under certain conditions. As at May 30, 2009, the maximum value of the equipment and inventories buyback agreements was $33.9 million and $101.9 million respectively.

16

The Company has not paid any indemnification related to these commitments and has not recorded any liability regarding these guarantees in the consolidated financial statements during the quarter ended May 30, 2009 and fiscal year 2009. FOREIGN EXCHANGE RISK MANAGEMENT The financial information from Rite Aid, whose functional currency is not the Canadian dollar, are translated into the reporting currency according to the current rate method. Under this method, statement of earnings and statement of cash flow items of each period are translated to the reporting currency at the average monthly exchange rates and asset and liability items are translated at the exchange rate in effect at the balance sheet date. Translation adjustments resulting from exchange rate fluctuations are recorded in foreign currency translation adjustments in accumulated other comprehensive income. Transactions denominated in currencies other than an entity’s functional currency are translated according to the temporal method. Under this method, monetary assets and liabilities in foreign currencies are translated at the exchange rate in effect at the balance sheet date, non-monetary assets and liabilities in foreign currencies at their historical rates, and statement of earnings items in foreign currencies at the average monthly exchange rates. All exchange gains and losses are current in nature and are included in the consolidated statement of earnings, unless subject to hedge accounting. RELATED PARTY TRANSACTIONS Franchising activities include transactions with enterprises controlled by an executive with significant influence on the Company. As at May 30, 2009, and May 30, 2008, Mr. François J. Coutu, President and Chief Executive Officer of the Company, held a participation in 3 PJC franchises. The transactions between the Company and these enterprises are carried out in the normal course of business and are measured at the exchange amount. CHANGES IN ACCOUNTING POLICIES There were several changes in accounting policies that may have a material impact on the Company’s Consolidated Financial Statements as noted herein. Fiscal year 2010 Goodwill and intangible assets In February 2008, the Canadian Institute of Chartered Accountants (“CICA”) issued Section 3064, "Goodwill and Intangible Assets", replacing Section 3062, "Goodwill and Other Intangible Assets", and Section 3450, "Research and Development Costs". This Section establishes standards for the recognition, measurement, presentation and disclosure of goodwill subsequent to its initial recognition and of intangible assets by profit-oriented enterprises. Standards concerning goodwill are unchanged from the standards included in the previous Section 3062. The adoption of this new Section should not have a significant impact on the Company's consolidated financial statements. The Company has adopted this Section as of March 1, 2009. This had no material impact on the Company's consolidated financial statements. Recent pronouncements International Financial Reporting Standards In February 2008, the Accounting Standards Board of Canada announced that accounting standards in Canada, as used by public companies, will converge with IFRS. The Company’s changeover date from current Canadian GAAP to IFRS is for interim and annual financial statements of fiscal year ending March 3, 2012. From this fiscal year, the Company will prepare both the current and comparative financial information using IFRS. IFRS uses a conceptual framework similar to Canadian GAAP, but there are significant differences in recognition, measurement and disclosures.

17

The Company’s IFRS convergence project includes three steps: planning and diagnosis, analysis and design of accounting policies as well as implementation and execution. The Company has completed the planning and diagnosis activities, which consist of the development of an IFRS convergence plan, the establishment of a steering committee comprised of senior management and a high level assessment of the differences between current Canadian GAAP and IFRS that could have a material impact for the Company. Also, the Company engaged the services of an independent advisor to facilitate the management of the project and to assist employees with technical matters and training. The Company is currently in the analysis and accounting policy design stage of the convergence plan. The Company is assessing the impact of these policies on its Consolidated Financial Statements, information systems, processes and controls. As the implementation process for IFRS evolves, the Company expects to adapt its convergence plan and continue to review all proposed projects of the International Accounting Standards Board and the International Financial Reporting Interpretations Committee to determine their impact on the Company. Therefore, the plan could be modified as soon as additional information on the adoption of IFRS is available. At this time, the impacts on the Company’s future financial position and results of operations cannot be reasonably determined. Business combinations, consolidated financial statements and non-controlling interests In January 2009, the CICA issued three new accounting standards: Section 1582, "Business combinations", Section 1601, "Consolidated financial statements", and Section 1602, "Non-controlling interests". These new standards will be effective for interim and annual reporting periods beginning on or after January 1, 2011. The Company will adopt these Sections in the fiscal year beginning February 27, 2011. Early adoption of these Sections is permitted as long as they are adopted simultaneously. These new accounting standards are intended to harmonize Canadian accounting standards with IFRS. Section 1582 replaces Section 1581 of the same name and establishes standards for the accounting of business combinations. It applies prospectively to business combinations with acquisition dates on or after the first annual reporting period beginning on or after January 1, 2011. Therefore, this Section will have an impact on the Company's consolidated financial statements if a business combination occurs after its adoption. Sections 1601 and 1602 together replace former Section 1600 "Consolidated financial statements". Section 1601 establishes standards for the consolidated financial statements. Section 1602 establishes standards for accounting for a non-controlling interest in a subsidiary in consolidated financial statements subsequent to a business combination. The Company will assess the impact of these new Sections on its Consolidated Financial Statements. RISKS AND UNCERTAINTIES The Risks and uncertainties section of the fiscal year 2009 MD&A discusses various issues for which the industry and the Company are exposed. The detail and description of these issues remain unchanged. CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING There were no changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to have materially affected, the Company’s internal control over financial reporting, for the first quarter of fiscal 2010 ended May 30, 2009.

18

STRATEGIES AND OUTLOOK With operations and financial flexibility, the Company is very well positioned to capitalize on the growth in the drugstore retailing industry. Demographic trends are expected to contribute to growth in the consumption of prescription drugs, and to the increased use of pharmaceuticals as the primary intervention in individual healthcare. Management believes that these trends will continue despite the current economic slowdown, and that the Company will increase its revenues through differentiation and quality of offering and service levels in its Canadian drugstore network, which it operates with a focus on sales growth, its real estate program and operating efficiency. Forward-looking statements This MD&A contains forward-looking statements that involve risks and uncertainties, and which are based on the Company’s current expectations, estimates, projections and assumptions and were made by the Jean Coutu Group in light of its experience and its perception of historical trends. All statements that address expectations or projections about the future, including statements about the Company’s strategy for growth, costs, operating or financial results, are forward-looking statements. All statements other than statements of historical facts included in this MD&A, including statements regarding the prospects of the Company’s industry and the Company’s prospects, plans, financial position and business strategy may constitute forward-looking statements within the meaning of the Canadian securities legislation and regulations. Some of the forward-looking statements may be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "project", "could", "anticipate", "plan", "foresee", "believe" or "continue" or the negatives of these terms or variations of them or similar terminology. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. These statements do not reflect the potential impact of any non-recurring items or of any mergers, acquisitions, dispositions, asset write-downs or other transactions or charges that may be announced or that may occur after the date hereof. While the list below of cautionary statements is not exhaustive, some important factors that could affect our future operating results, financial position and cash flows and could cause our actual results to differ materially from those expressed in these forward-looking statements are our equity interest in Rite Aid Corporation ("Rite Aid"), general economic, financial or market conditions, the investment in ABCP, the cyclical and seasonal variations in the industry in which we operate, the changes in the regulatory environment as it relates to the sale of prescription drugs, the ability to attract and retain pharmacists, the intensity of competitive activity in the industry in which we operate, labour disruptions, including possibly strikes and labour protests, changes in laws and regulations, or in their interpretations, changes in tax regulations and accounting pronouncements, the success of the Company’s business model, the supplier and brand reputations and the accuracy of management’s assumptions and other factors that are beyond our control. These and other factors could cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. Investors and others are cautioned that undue reliance should not be placed on any forward-looking statements. For more information on the risks, uncertainties and assumptions that would cause the Company’s actual results to differ from current expectations, please also refer to the Company’s public filings available at www.sedar.com and www.jeancoutu.com. In particular, further details and descriptions of these and other factors are disclosed in the Company’s Annual Information Form under "Risk Factors" and in the "Risks and uncertainties" section of the MD&A for the fiscal year ended February 28, 2009. We expressly disclaim any obligation or intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by the applicable securities laws. July 6, 2009

19

THE JEAN COUTU GROUP (PJC) INC.

Consolidated statements of earnings

For the periods ended May 30, 2009 and May 31, 2008 2009 2008

(unaudited, in millions of Canadian dollars, unless otherwise noted) $ $

Sales 559.6 516.7Other revenues (Note 3) 59.7 57.6

619.3 574.3Operating expenses

Cost of goods sold 504.1 471.8General and operating expenses 53.4 49.4Amortization 4.1 3.9

561.6 525.1Operating income 57.7 49.2Financing expenses (revenues) (Note 4) (2.2) 1.3Earnings before the following items 59.9 47.9Share of loss from investments subject to significant influence (Note 6a) 30.9 53.4Income taxes 18.7 14.7Net earnings (loss) 10.3 (20.2)

Basic and diluted earnings (loss) per share, in dollars (Note 5) 0.04 (0.08)

Consolidated statements of comprehensive income (loss)

For the periods ended May 30, 2009 and May 31, 2008 2009 2008$ $

Net earnings (loss) 10.3 (20.2)Other comprehensive income

Foreign currency translation adjustments (6.9) 11.5Comprehensive income (loss) 3.4 (8.7)

The accompanying notes are an integral part of these consolidated financial statements.

13 weeks

13 weeks

(unaudited, in millions of Canadian dollars)

21


Consolidated statements of changes in shareholders' equity


(unaudited, in millions of Canadian dollars) $ $

Capital stock, beginning of period 648.1 715.4Options exercised 1.2 -

Capital stock, end of period 649.3 715.4

Contributed surplus, beginning of period 28.4 16.7Stock-based compensation cost 0.2 0.3

2.1 2.7Contributed surplus, end of period 30.7 19.7

Retained earnings (deficit), beginning of period (324.1) 930.8Net earnings (loss) 10.3 (20.2)Dividends (10.6) (10.0)

Retained earnings (deficit), end of period (324.4) 900.6

103.2 (178.8)Foreign currency translation adjustments (6.9) 11.5

Accumulated other comprehensive income (loss), end of period 96.3 (167.3)

Total shareholders' equity 451.9 1,468.4


13 weeks

Stock-based compensation from investment subject to significant influence - Rite Aid

Accumulated other comprehensive income (loss), beginning of period

22


Consolidated balance sheetsAs at

May 30, 2009As at

February 28, 2009

(in millions of Canadian dollars) $ $

(unaudited) (audited)

Assets

Current assetsAccounts receivable 194.5 183.6Inventories 156.4 159.4Prepaid expenses 6.1 6.2

357.0 349.2Investments (Note 6) 73.1 110.1Property and equipment 371.8 366.2Goodwill 36.0 36.0Other long-term assets 157.2 152.9

995.1 1,014.4

LiabilitiesCurrent liabilities

Accounts payable and accrued liabilities 220.1 217.0Income taxes payable 32.3 36.4Short-term portion of long-term debt 4.3 5.9

256.7 259.3Long-term debt 256.6 269.8Other long-term liabilities 29.9 29.7

543.2 558.8

Shareholders' equityCapital stock 649.3 648.1Contributed surplus 30.7 28.4

Deficit (324.4) (324.1)Accumulated other comprehensive income 96.3 103.2

(228.1) (220.9)451.9 455.6995.1 1,014.4


23


Consolidated statements of cash flows


(unaudited, in millions of Canadian dollars) $ $

Operating activitiesNet earnings (loss) 10.3 (20.2)Items not affecting cash

Amortization 7.0 5.2Change in fair value of third party asset-backed commercial paper (1.9) - Share of loss from investments subject to significant influence 30.9 53.4Future income taxes 6.1 2.1Other (1.2) -

51.2 40.5Net changes in non-cash asset and liability items (Note 8) (8.5) (52.2)Cash flow provided by (used in) operating activities 42.7 (11.7)

Investing activitiesInvestments and business acquisition (0.1) (1.2)Purchase of property and equipment (10.1) (14.3)Proceeds from disposal of property and equipment - 0.2Other long-term assets (8.9) (10.8)

Cash flow used in investing activities (19.1) (26.1)

Financing activitiesNet change in revolving credit facility, net of fees (13.1) 48.0Repayment of long-term debt (1.1) (0.2)Issuance of capital stock 1.2 - Dividends (10.6) (10.0)

Cash flow provided by (used in) financing activities (23.6) 37.8Net change in cash and cash equivalents - - Cash and cash equivalents, beginning of period - - Cash and cash equivalents, end of period - -

13 weeks

The accompanying notes are an integral part of these consolidated financial statements. See supplementalcash flow information in Note 8.

24

THE JEAN COUTU GROUP (PJC) INC.Notes to the unaudited interim consolidated financial statementsFor the periods ended May 30, 2009 and May 31, 2008 (Tabular amounts are in millions of Canadian dollars unless otherwise noted)

2. Accounting policies

Changes in accounting policies

Fiscal year 2010

a) Goodwill and intangible assets

1. Financial statement presentation

The unaudited interim consolidated financial statements have been prepared in accordance with Canadiangenerally accepted accounting policies ("GAAP"). These financial statements do not contain all disclosuresrequired by Canadian GAAP for annual financial statements and, accordingly, should be read in conjunctionwith the most recently prepared annual consolidated financial statements for the fiscal year endedFebruary¤28, 2009.

The preparation of the consolidated financial statements in conformity with Canadian GAAP requiresmanagement to make certain estimates and assumptions. These may affect the reported amounts of assetsand liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financialstatements. They may also affect the reported amounts of revenues and expenses during the reportingperiod. Actual results could differ from those estimates. The most significant areas requiring the use ofmanagement estimates relate to: inventory, investments and loss in value of investments, long-lived assetsand allowances, specifically those related to income taxes as well as guarantees and contingencies.

These unaudited interim consolidated financial statements have been prepared based on accounting policiesand methods of application consistent with those used in the preparation of the most recently preparedaudited annual consolidated financial statements except for the changes in accounting policies mentioned inNote 2.

In February 2008, the Canadian Institute of Chartered Accountants ("CICA") issued Section 3064, "Goodwilland Intangible Assets", replacing Section 3062, "Goodwill and Other Intangible Assets", and Section 3450,"Research and Development Costs". This Section establishes standards for the recognition, measurement,presentation and disclosure of goodwill subsequent to its initial recognition and of intangible assets by profit-oriented enterprises. Standards concerning goodwill are unchanged from the standards included in theprevious Section 3062. The adoption of this new Section should not have a significant impact on theCompany's consolidated financial statements. The Company has adopted this Section as of March 1, 2009.This section had no material impact on the Company's consolidated financial statements.

25


2. Accounting policies (continued)

Changes in accounting policies (continued)

Recent pronouncements

b) International Financial Reporting Standards

c) Business combinations, consolidated financial statements and non-controlling interests

In January 2009, the CICA issued three new accounting standards : Section 1582, "Business combinations",Section 1601, "Consolidated financial statements", and Section 1602, "Non-controlling interests". These newstandards will be effective for interim and annual reporting periods beginning on or after January 1, 2011. TheCompany will adopt these Sections in the fiscal year beginning February 27, 2011. Early adoption of theseSections is permitted as long as they are adopted simultaneously. These new accounting standards areintended to harmonize Canadian accounting standards with IFRS.

Section 1582 replaces Section 1581 of the same name and establishes standards for the accounting ofbusiness combinations. It applies prospectively to business combinations with acquisition dates on or afterthe first annual reporting period beginning on or after January 1, 2011. Therefore, this Section would have animpact on the Company's consolidated financial statements if a business combination occurs after itsadoption.

Sections 1601 and 1602 together replace section 1600 "Consolidated financial Statements". Section 1601establishes standards for the consolidated financial statements. Section 1602 establishes standards foraccounting for a non-controlling interest in a subsidiary in consolidated financial statements subsequent to abusiness combination. The Company will assess the impact of these new Sections on its consolidatedfinancial statements.

In February 2008, the Accounting Standards Board of Canada announced that accounting standards inCanada, as used by public companies, will converge with International Financial Reporting Standards("IFRS"). The Company's changeover date from Canadian GAAP to IFRS is for interim and annual financialstatements of the fiscal year ending March 3, 2012. From this fiscal year, the Company will prepare both thecurrent and comparative financial information using IFRS.

The Company has completed the planning and diagnosis activities of its transition plan. The Company iscurrently in the analysis and accounting policy design stage and is assessing the impact of these policies onits consolidated financial statements, information systems, processes and controls. As the implementationprocess evolves, the Company expects to adapt its transition plan based on the new information available. Atthis time, the impacts on the Company’s future financial position and results of operations cannot bereasonably determined.

26


3. Other revenues

2009 2008

$ $

Royalties : Gross royalties 30.0 30.8Amortization of incentives paid to franchisees (2.9) (1.3)

- (0.2)Net royalties 27.1 29.3Rent 18.5 16.7Sundry 14.1 11.6

59.7 57.6

4. Financing expenses (revenues)

2009 2008

$ $

Interest on long-term debt 0.9 1.9Unrealized foreign exchange gains on monetary items (0.8) - Realized foreign exchange losses on monetary items 0.1 -

(0.2) (0.4)(1.9) -

Other financing revenue, net (0.3) (0.2)(2.2) 1.3

13 weeks

Initial discount on loans and receivables recorded under the effective interest rate method

Interest revenues on loans and receivable accounted for under the effective interest rate methodChange in fair value of third party asset-backed commercial paper (Note 6)

13 weeks

27


5. Earnings (loss) per share

2009 2008(in millions) (in millions)

$ 10.3 $ (20.2)

236.0 248.3

$ 0.04 $ (0.08)

6. Investments

As at May 30, 2009

As at February 28, 2009

$ $

Investment in a company subject to significant influence - Rite Aid 22.6 58.3Investments in companies subject to significant influence - Other 8.0 7.3Long-term receivables from franchisees 31.3 29.6Third party asset-backed commercial paper 17.7 21.8

79.6 117.06.5 6.9

73.1 110.1

Basic and diluted earnings (loss) per share, in dollars

Current portion (included in accounts receivable)

For the 13-week period ended May 30, 2009, 2,451,000 of antidilutive stock options have been excluded fromthe computation of diluted earnings (loss) per share (2,354,000 for the 13-week period ended May 31, 2008).

13 weeks

Net earnings (loss)

Weighted average number of shares used to compute basic and diluted loss per share

The calculation of earnings (loss) per share and the reconciliation of the number of shares used to calculatethe diluted earnings (loss) per share is established as follows:

28


6. Investments (continued)

a) Investment in a company subject to significant influence - Rite Aid

b) Third party asset-backed commercial paper

A Pan-Canadian Investors Committee (the “Committee”) was subsequently established to oversee theorderly restructuring of these instruments and lead to an agreement with all key stakeholders, including thegovernments of Canada, Québec, Ontario and Alberta, regarding the restructuring of ABCP. Therestructuring plan implementation was certified by the Ontario Superior Court of Justice on January 21, 2009,effectively closing the process.

The Company holds an equity interest of 28.4% (February 28, 2009 - 28.4%) in Rite Aid, one of the UnitedStates’ leading drugstore chain, operating more than 4,800 drugstores. The equity interest in Rite Aidrepresents an investment subject to significant influence, which is accounted for using the equity methodsince June 4, 2007, its acquisition date.

The Company performed a comprehensive analysis related to its investment in Rite Aid during the fiscal yearended February 28, 2009 and impaired it at its fair value. Consequently, the carrying value of the investmentin Rite Aid was assessed at $58.3 million as at February 28, 2009. The Company used the closing marketvalue of Rite Aid's common shares as of February 27, 2009, adjusted by a liquidity discount to assess thefair value of its investment and record the other-than-temporary loss in value. This loss in value is included inthe share of loss from investments subject to significant influence account in the consolidated statement ofearnings of the Company ended February 28, 2009. If, in the future, the Company's share of loss in Rite Aidexceeds the carrying value of the investment, the Company would reduce the carrying value of itsinvestment down to zero and would cease recording its share of loss in Rite Aid as required by CanadianGAAP, since the Company has not guaranteed obligations of Rite Aid and is not committed to provide furtherfinancial support to Rite Aid.

On May 30, 2009, the Company held investments of a nominal amount of $33.3 million (of which $0.8 millionis denominated in US dollars), which were invested, in August 2007, in Canadian third party asset-backedcommercial paper (“ABCP”). During the period ended May 30, 2009, the Company received $2.4 million inprincipal repayments on its ABCP. As at May 30, 2009, these ABCP are accounted for at their fair value,which was $17.7 million ($21.8 million as at February 28, 2009). For the 13-week period ended May 30,2009, the change in fair value of third party ABCP of $1.9 million consists of a gain on options to repaydrawdowns of credit facilities with restructured notes of $3.4 million, as described below, and a loss in valueof $1.5 million (no change in fair value for the 13-week period ended May 31, 2008). The total loss in valuerecorded was $15.6 million as at May 30, 2009 representing 47% of the ABCP's nominal amount.

On acquisition date, these ABCP were rated by the Dominion Bond Rating Service (“DBRS”) as R1-High, butthey did not settle as they matured as a result of liquidity issues in the ABCP market.

29



b) Third party asset-backed commercial paper (continued)

$1.9 million of class B notes;$0.7 million of class C notes.

• $8.0 million of MAV III notes as follows: $1.3 million of traditional assets tracking notes;$6.7 million of ineligible assets tracking notes.

Ineligible assets tracking notes:$2.0 million.

The Company also assessed its ABCP as at May 30, 2009. Since there is no active market for ABCP, theCompany has estimated the fair value of the senior and subordinated notes by discounting the expected cashflows at yields comparable to prevailing market yields and credit spreads available for securities with similarcharacteristics to the restructured notes and other market inputs reflecting the Company’s best availableinformation. The fair value of the ineligible assets tracking notes was estimated using observable marketinputs from independent pricing sources.

Senior notes: $10.4 million of class A-1 notes;$10.3 million of class A-2 notes.

Subordinated notes:

The restructuring plan extends the maturity of the ABCP to provide for a maturity similar to that of theunderlying assets. The transactions of the ABCP conduits supported solely by synthetic assets or hybridassets, namely a combination of synthetic and traditional assets, have been pooled into the Master AssetVehicles “MAV” I and II, which are class A-1 and class A-2 senior long-term notes that will bear interest atfloating rates and class B and C subordinated long-term notes that will bear interest at floating rates.Ineligible assets in MAV I and MAV II have been segregated, and noteholders have received ineligible assetstracking notes that will track the performance of the underlying individual asset. The transactions of the ABCPconduits supported exclusively by high-risk assets and traditional assets have been pooled into MAV III,which are long-term notes that will bear interest at floating rates.

As at May 30, 2009, the ABCP have the following notional values:

• $25.3 million of MAV II notes as follows:

30



b) Third party asset-backed commercial paper (continued)

7. Pension plans

2009 2008

$ $

Defined contribution pension plans 0.4 0.3Defined benefit pension plans 0.5 0.3

0.9 0.6

The Company has sufficient credit facilities to satisfy its financial obligations as they come due and does notexpect there will be a material adverse impact on its business as a result of the ABCP liquidity issue.

This estimate of the fair value of the ABCP investments is subject to significant uncertainty. Whilemanagement believes that its valuation technique is appropriate in the circumstances, changes inassumptions could affect the value of ABCP securities in the next fiscal year. The resolution of theseuncertainties could be such that the ultimate fair value of these investments may vary from management’scurrent best estimate. The Company tested the sensitivity of its ABCP valuation model, and a 100 basis pointincrease in the discount rate would result in a 4.5% or $0.8 million pre-tax decrease in the fair value of theseinvestments.

On May 28, 2009, the Company entered into revolving credit facilities in a total amount of $17.6 million (ofwhich $0.5 million is denominated in US dollars) and maturing between May 28, 2011 and May 28, 2012.Borrowings under the credit facilities bear interest at the Canadian prime rate plus a variable margin or atbanker acceptance rate plus a variable margin, and the credit facilities may be renewed for periods of 12consecutive months until reaching a total term of 7 years. These credit facilities include options, that allow theCompany to use the restructured notes to repay the drawdowns as they become due, under certainconditions. The Company assessed and accounted these options to repay drawdowns of credit facilities withrestructured notes at fair value under other long-term assets. The corresponding initial gain of $3.4 millionhas been recognized in net earnings under change in fair value of third party asset-backed commercialpaper. The options will be accounted at fair value at each balance sheet date and any change in fair value ofthe options will be recorded in net earnings under change in fair value of third party asset-backed commercialpaper. As at May 30, 2009, none of these credit facilities were used.

13 weeks

The Company offers defined benefit and defined contribution pension plans providing pension benefits to itsemployees. The defined benefit and defined contribution pension plans expenses are as follows:

31


2009 2008

$ $

Net changes in non-cash asset and liability itemsAccounts receivable and prepaid expenses (10.8) (18.5)

3.0 (9.0)0.9 (24.8)

(1.4) 0.3(0.2) (0.2)(8.5) (52.2)

Other informationInterest paid 0.9 2.0Income taxes paid 16.7 50.9

5.9 5.1

2009 2008

$ $

64.7 54.4

Inventories

Net changes in non-cash asset and liability itemsOther long-term liabilities

The Company has two reportable segments that are defined by geography and by the nature of its business:franchising segment in Canada and an investment in Rite Aid, an entity subject to significant influence, whichoperates in the United States. Within the franchising segment, the Company carries on the franchising activityunder the "PJC Jean Coutu" banner, operates two distribution centers and coordinates several other servicesfor the benefit of its franchisees. Its investment in Rite Aid is accounted for using the equity method asdescribed in Note 6a). Consequently, all information required is included in the consolidated statements ofearnings and notes to the consolidated financial statements.

Property and equipment acquired included in accounts payable and accrued liabilities

Accounts payable and accrued liabilities, and income taxes payable

Operating income before amortization

13 weeks

9. Segmented information

Other long-term assets

8. Supplemental cash flow information

The Company analyzes the performance of its franchising segment based on its OIBA, which is not ameasure of performance under Canadian GAAP. OIBA results from the addition of net earnings (loss),income taxes, share of loss in investments subject to significant influence, financing expenses (revenues),amortization and amortization of incentives paid to franchisees. OIBA for the franchising segment is detailedas follows :

13 weeks

32

THE JEAN COUTU GROUP (PJC) INC.Unaudited additional informationFor the periods ended May 30, 2009 and May 31, 2008 (In millions of Canadian dollars )

2009 2008$ $

Net earnings (loss) 10.3 (20.2)Financing expenses (revenues) (2.2) 1.3Share of loss from investments subject to significant influence 30.9 53.4Income taxes 18.7 14.7Operating income 57.7 49.2Amortization per financial statements 4.1 3.9

2.9 1.364.7 54.4

Non-GAAP measures

Operating income before amortization ("OIBA") is not a measure of performance under Canadian generallyaccepted accounting principles ("GAAP"); however, management uses this performance measure inassessing the operating and financial performance of its operations. Besides, we believe that OIBA is anadditional measure used by investors to evaluate operating performance and capacity of a company to meetits financial obligations.

Net earnings (loss), which is a performance measure defined by GAAP, is reconciled hereunder with OIBA.

13 weeks

However, OIBA is not and must not be used as an alternative to net earnings or cash flow generated byoperating activities as defined by GAAP. OIBA is not necessarily an indication that cash flow will be sufficientto meet our financial obligations. Furthermore, our definition of OIBA may not be necessarily comparative to asimilar measure reported by other companies.

Amortization of incentives paid to franchisees (1)

Operating income before amortization ("OIBA")

(1) Amortization of incentives paid to franchisees is applied against other revenues in the consolidated financial statements.

33

THE JEAN COUTU GROUP (PJC) INC.Unaudited additional information

For the periods ended May 30, 2009 and May 31, 2008 (In millions of Canadian dollars except per share amounts)

2009 2008$ $

10.3 (20.2)Unrealized foreign exchange gains on monetary items (0.8) -

(1.9) - Earnings (loss) before specific items 7.6 (20.2)

Share of loss from investments subject to significant influence 30.9 53.4

38.5 33.2

0.04 (0.08)Unrealized foreign exchange gains on monetary items - -

(0.01) - Earnings (loss) per share before specific items 0.03 (0.08)

Share of loss from investments subject to significant influence 0.13 0.21

0.16 0.13

Earnings (loss) (or earnings (loss) per share) before specific items and earnings (or earnings per share)before specific items and share of loss from investments subject to significant influence are non-GAAPmeasures. The Company believes that it is useful for investors to be aware of significant items of an unusualor non-recurring nature that have adversely or positively affected its GAAP measures, and that the above-mentioned non-GAAP measures provide investors with a measure of performance with which to compare itsresults between periods without regard to these items. The Company's measures excluding certain items haveno standardized meaning prescribed by GAAP and are not necessarily comparable to similar measurespresented by other companies and therefore should not be considered in isolation.

Net earnings (loss) and earnings (loss) per share are reconciled hereunder to earnings (loss) (and earnings(loss) per share) before specific items and earnings (and earnings per share) before specific items and shareof loss from investments subject to significant influence. All amounts are net of income taxes when applicable.

13 weeks

Earnings before specific items and share of loss from investments subject to significant influence

Earnings per share before specific items and share of loss from investments subject to significant influence

Net earnings (loss)

Change in fair value of third party asset-backed commercial paper

Earnings (loss) per share

Change in fair value of third party asset-backed commercial paper

Non-GAAP measures (continued)

34

530 Bériault Street, Longueuil, Québec J4G 1S8 (450) 646‐9760 www.jeancoutu.com

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