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			Offer		Trans.		Transaction Value / LTM									Premium to Prior:
Date	Target	Acquiror	Value		Value		Sales			EBITDA			EBIT			1-Day			30-Day			90-Day
3/17/2005	Toys R Us	Bain Capital / KKR / Vornado	$	6,607.3	$	8,184.3		0.72	x		11.2	x		21.8	x		58.3	%⁽¹⁾		58.4	%⁽¹⁾		84.7	%⁽¹⁾
1/9/2005	Hollywood Entertainment	Movie Gallery		852.0		1,015.0		1.40			4.4			6.9			NA			NA			NA
12/2/2004	Eye Care Centers of America	Moulin International / Golden Gate		NA		450.0		1.16			8.3			11.7			NA			NA			NA
11/17/2004	Sears, Roebuck and Co.	Kmart		10,806.4		13,751.4		0.40			7.4			14.1			7.7	%		19.8	%		41.8	%
10/14/2004	* Hollywood Entertainment	Leonard Green & Partners		669.2		874.6		0.50			3.7			5.1			NA			NA			NA
7/29/2004	Mervyn’s	Sun Capital & Cerberus		1,650.0		1,650.0		0.47			5.9			9.4			NA			NA			NA
7/26/2004	Duane Reade	Rex Corner Holdings		410.4		690.2		0.49			9.7			20.2			NA			NA			NA
6/21/2004	Galyans Trading Company	Dick’s Sporting Goods		308.9		365.2		0.51			10.7			50.2	⁽³⁾		1.5	%		23.9	%		7.1	%
4/23/2004	Loehmann’s Holdings	Crescent Capital Investments		178.1		169.1		0.46			6.9			11.5			4.7	%		14.1	%		26.6	%
3/29/2004	Hollywood Entertainment	Leonard Green & Partners		905.8		1,209.5		0.72			4.9			6.5			27.7	%		21.4	%		(1.0	%)
12/23/2003	Duane Reade	Rex Corner Holdings		416.1		703.5		0.52			9.4			16.5			11.7	%		25.5	%		(2.0	%)
10/17/2003	GNC	Apollo Management		735.0		750.0		0.55			5.8	⁽²⁾		NA			NA			NA			NA
7/29/2003	Elder Beerman	The Bon-Ton Stores		99.3		209.4		0.32			5.3			10.0			10.6	%		13.8	%		117.6	%⁽³⁾
12/2/2002	Vitamin Shoppe	Bear Stearns Merchant Banking		NA		320.0		1.22			7.1			NA			NA			NA			NA
7/12/2001	William Carter	Berkshire Partners		252.5		424.1		0.85			7.3			10.8			NA			NA			NA
5/17/2000	Petco Animal Supplies	Leonard Green / TPG		486.9		589.3		0.57			6.3			11.2			49.8	%		90.3	%⁽³⁾		NA
5/10/1999	Pamida Holdings Corp	ShopKo Stores Inc		104.4		272.4		0.40			6.5			8.2			27.8	%		NM			NM
5/4/1999	Galyans Trading Company	Freeman Spogli		83.3		157.2		0.48			6.6			12.1			NA			NA			NA
11/12/1998	Hills Stores Co	Ames Department Stores Inc	NA			299.4		0.17			5.0			22.0			9.5	%		(14.8	%)⁽³⁾		(55.8	%)⁽³⁾
4/15/1998	Advance Auto Parts	Freeman Spogli		NA		518.8		0.61			8.1			12.2			NA			NA			NA
10/9/1997	Big Five Sporting Goods	Leonard Green Partners		162.8		250.0		0.62			7.6			10.4			NA			NA			NA

			Maximum					1.40	x		11.2	x		22.0	x		49.8	%		25.5	%		41.8	%
			Mean					0.63	x		7.1	x		12.3	x		16.8	%		19.7	%		14.5	%
			Median					0.52	x		6.9	x		11.4	x		10.6	%		20.6	%		7.1	%
			Minimum					0.17	x		3.7	x		5.1	x		1.5	%		13.8	%		(2.0	%)

	Silver	GHJM	$	777	$	1,067		0.34	x		5.5	x		9.7	x		9.6	%⁽⁴⁾		38.2	%		33.5	%


Note:		Year represents calendar year. Fiscal year ends January following the calendar year. Financial projections based on Silver management estimates. Current price, 52-week high and 52-week low based on closing prices.

(1)		Accounted for using the treasury stock method, based on 30.2 million basic shares per 10-Q dated September 2, 2005, 2.0 million in-the-money options with an average exercise price of $15.46 and 0.1 million restricted shares as of March 25, 2005, per Silver management.

(2)		Net debt is calculated using an average annual revolver draw to account for operational seasonality. Unadjusted net debt is $241 million as of July 31, 2005.

(3)		Excludes transaction expenses.

(4)		Includes license revenues.


Note:		Year represents calendar year. Fiscal year ends January following the calendar year. Projections based on Silver Management estimates.

(1)		Diluted shares accounted for under the treasury stock method. Based on 30.2 million basic shares per 10-Q dated September 2, 2005, 2.0 million in-the-money options with an average exercise price of $15.46 and 0.1 million restricted shares as of March 25, 2005, per Silver management.

(2)		Net debt is adjusted using an average annual revolver draw to account for operational seasonality. Unadjusted net debt is $241 million as of July 31, 2005.

(3)		Includes license revenues.


Source: Historical figures from Company filings; projections reflect Base Case provided by Silver management.

Note: Dollars in millions, except per share data.

(1)		Store revenues excludes license fee revenue.


Note:		Net debt of $290 million is calculated using an average annual revolver draw to account for operational seasonality. Assumes 30.2 million basic shares per 10-Q dated September 2, 2005, 0.1 million restricted shares and “in-the-money” options as applicable as of March 25, 2005, per Silver management. All figures rounded to nearest $0.25 except for 3-Year Closing Stock Prices. Year represents calendar year. Fiscal year ends January following the calendar year. 30-day prior stock price of $18.09 is prior to original announcement in April 2005.

(1)		Present Value as of July 31, 2005.

(2)		Analysis assumes all financing other than that provided by the capital lease rollover, the asset-backed loan, the last out revolver and any non-equity like component of the real estate facility in the GHJM proposed structure is funded from equity. To calculate illustrative valuations, the non-equity component as described was fixed and the equity contribution was varied. All borrowing rates and fees assumed in proposed GHJM structure, as provided by GHJM on September 8, 2005, apply for illustrative purposes.


Note: Dollars in millions.

Note: Leonard Green acquisition of Hollywood Entertainment not completed, as Movie Gallery subsequently agreed to acquire Hollywood Entertainment.

Sources: SEC filings, Wall Street research and company press releases.

* Initial transactions renegotiated; prior transactions not included in high, mean, median and minimum calculations for transaction multiples.

(1)		1-Day, 30-Day, and 90-Day premiums shown are relative to August 11, 2004, date of Toys “R” Us’s public announcement of intention to explore strategic alternatives. Price premiums excluded from maximum, median, mean and minimum calculations.

(2)		Reflects EBITA.

(3)		Excluded from maximum, median, mean and minimum calculations.

(4)		Represents premium to closing price on April 5, 2005.


Source:		FactSet Database.

Note: Current price as of September 8, 2005. Current price, 52-week high and 52-week low based on closing prices.


Source:		FactSet closing price data as of September 8, 2005.


(1)		In the copy of these discussion materials distributed by Merrill Lynch to the special committee of the ShopKo board of directors on September 9, 2005, this figure was inadvertently listed as +2.6% rather than +2.8%.


Source: Base Case assumptions provided by Silver management.


Note: Dollars in millions, except per share data. Closing prices from FactSet as of September 8, 2005.

Source:		SEC filings.


Note:		Dollars in millions, except per share data. Present values as of July 31, 2005. Net debt of $291 million is calculated using an average annual revolver draw to account for operational seasonality. Unadjusted net debt is $241 million as of July 31, 2005. Assumes 30.2 million basic shares per 10-Q dated September 2, 2005, 0.1 million restricted shares and “in-the-money” options as applicable as of March 25, 2005, per Silver management. Projections reflect Base Case provided by Silver Management.


Note:		This analysis should be viewed as a preliminary valuation review only and is not an appraisal. The properties have not been valued individually and have not been physically inspected. Broad valuation “rules of thumb”, in conjunction with a review of certain previous analyses completed by the Company, were utilized to arrive at a preliminary conclusion of a reasonable value range for the Silver portfolio.

(1)		Owned retail assets were valued assuming net market rent for each asset would fall between approximately 3.00% and 3.50% of 2004 gross sales provided by the Company. This imputed net market rent was then capitalized to a value estimate at a range of 8.00% to 8.50%. The high value estimate assumes a 3.50% market rent to sales ratio and an 8.00% cap rate. The low valuation assumes an 8.50% cap with a 3.00% rent to sales ratio. The resulting price per square foot for the owned assets was compared to the per square foot pricing of recent sales of other big box retail stores (such as Target, Wal-Mart, Costco, etc.) in the midwest and other comparable regions across the country. (Sales in more expensive areas, such as California, the northeast, etc. were not included.)

(2)		Silver Express store value estimate of $108/sf provided by management.

(3)		No value is assumed for the leased assets. While our analysis indicates that the Platinum contract rents may be slightly below market, any residual value attributable to the leasehold position appears to be more than offset by the costs of finding a new tenant and of tenant work that would be required.

(4)		Silver and Platinum ground leased assets valued at $50/sf for building (leasehold) only for base scenario. High and low values are plus and minus 20% of the base value respectively.

(5)		Owned “other assets” consists primarily of distribution warehouse properties, the Company’s corporate office and assorted vacant parcels. Value estimates were provided by the Company for these assets.

(6)		Assumes 30.2 million basic shares per 10-Q dated September 2, 2005, 0.1 restricted shares and “in-the-money” options at liquidation value per share as of March 25, 2005, per Silver management.

(7)		This analysis assumes a liquidation of the Silver portfolio, therefore the owned assets are assumed to be sold vacant. A negative adjustment to value is made to account for releasing of the assets and retrofitting of the space for a new tenant. The approximately $15/sf adjustment is based on the assumption of one year of rent loss due to vacancy for the owned assets (average market rent is estimated at approximately $5.67/sf) and approximately a $10/sf work allowance to retrofit the space.

(8)		Assumes assets divested over two-year period, assumes 11% discount and mid-year discounting. Tax basis of property (land, land bank, site improvements, building and leasehold interests) of $481 million at October 31, 2004 reduced annually by approximately $21 million in FY’05 and $21 million in FY’06, in line with historical depreciation rates.

(9)		Other net assets consists of other current assets ($60 million), current liabilities ($451 million), long-term debt ($235 million), other long-term obligations ($23 million) and deferred income taxes ($23 million).

(10)		Prescription files valued at a range of $0.24-$0.28 per $1 of Silver retail sales, $0.17-$0.21 per $1 of Platinum retail sales, based on Silver guidance. Proceeds in excess of net tax basis taxed at statutory tax rate of 35%.


Note: Year represents calendar year. Fiscal year ends January following the calendar year.

(1)		Based on Silver management estimates.

(2)		Based on the mid-point of an assumed discount rate range of 12.0% — 16.0%. Discounted to September 8, 2005.

(3)		Stock price as of September 8, 2005.


Note: Fiscal year ends in January of following year. Projections from Silver management.

(1)		Credit stats adjusted per Moody’s methodology.


Note:		Assumes transaction closes on July 31, 2005 for illustrative purposes. Year represents calendar year. Fiscal year ends January following the calendar year. Dollars in millions, except per share data. Fees and expenses include approximately $90 million of transaction fees and expenses, and additional prepayment fees and tender premiums.

(1)		Spread to LIBOR calculated to achieve initial stated rate of L+350 bps on entire $700 million real estate facility. Analysis assumes each of three available one-year extensions are exercised after the initial 2-year facility term. Analysis assumes purchase of interest rate protection agreement capping LIBOR at 4.10% for the term of the facility.

(2)		Debt balance as of July 31, 2005 from Company 10-Q. Estimated cash of $41.4 million not utilized as a source of funds.