Orchard Supply Hardware Stores (NASDAQ:OSH), a neighborhood hardware and garden store focused on paint, repair and the backyard, will open its first two Oregon stores in Portland and Tigard. The Portland store will be located at 10860 SW Barnes Road in the former Bally's Fitness space. The Tigard store will be located at 9770 SW Scholls Ferry Road across from Washington Square in the former Ultimate Electronics building. Construction will begin this month and the build-out is expected to be completed during the first half of 2013.

Founded as a farmers' cooperative in San Jose, Calif., in 1931, Orchard has grown to 89 full-service stores throughout California that offer a broad assortment of tools, furnishings, housewares, paint, gardening equipment and home improvement gear. The Oregon openings represent the first out-of-state expansion for the company, and each location is expected to employ nearly 100 people. Orchard is also exploring additional store locations in the greater Portland area.

"We have wanted to bring Orchard to Oregon for a long time, and we're thrilled to finally be entering the market," said Mark Baker, president and CEO of Orchard Supply Hardware. "Oregon's community values, pride in ownership and strong do-it-yourself mentality are ideals we've lived as a company for more than 80 years. Our stores deliver the variety of merchandise that customers demand, with the high-touch, knowledgeable service necessary to keep the fun in do-it-yourself projects. We look forward to being an active member of this vibrant community."

Orchard's stores are bright, easy to navigate, and highlight a variety of locally sourced plants and products. Stores feature a unique "race-track" layout, which maximizes traffic flow and helps customers find items quickly. In addition, Orchard's stores offer an expanded and centralized customer-service area referred to as the "Workbench," where customers may get assistance with basic hardware needs such as tool and knife sharpening; rescreening; lock rekeying; pipe threading; and pipe, conduit, chain, cable or rope cutting.

About Orchard Supply Hardware

Orchard Supply Hardware Stores Corporation operates neighborhood hardware and garden stores focused on paint, repair and the backyard. The company was founded as a purchasing cooperative in San Jose, Calif., in 1931. Orchard's stores today average 44,000 square feet of enclosed retail space and 8,000 square feet of exterior nursery and garden space and carry a broad assortment of merchandise for repair, maintenance and improvement needs for the home and backyard. Orchard Supply Hardware is newly independent and trades on Nasdaq under the symbol "OSH." As of Oct. 12, 2012, the company had 89 stores in California. For more information, visit http://www.osh.com.

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This press release (including information incorporated or deemed incorporated by reference herein) contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations, estimates, forecasts, and projections as well as the current beliefs and assumptions of the Company's management. Words such as "guidance", "outlook", "believes", "expects", "appears", "may", "will", "should", "intend", "target", "projects", "estimates", "plans", "forecast", "is likely to", "anticipates", or the negative thereof or comparable terminology, are intended to identify such forward looking statements. Any statement that is not a historical fact and other estimates, projections, future trends and the outcome of events that have not yet occurred referenced in this press release, is a forward-looking statement. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore actual results may differ materially and adversely from those expressed in any forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, factors discussed under the section entitled "Risk Factors" in the Company's reports filed with the Securities and Exchange Commission. Many of such factors relate to events and circumstances that are beyond the Company's control. You should not place undue reliance on forward-looking statements. The Company does not assume any obligation to update the information contained in this press release.

Jeff Segvich, 503-546-7870
Jeff@lanepr.com