Important Notice about Certain Customer Payment Card Information

Updated Letter From Our CEO

April 17, 2014

Dear Valued Customers:

In January, we notified you that we might have experienced a data security incident. We wanted you to know quickly so you could take steps to monitor activity on your payment card account.

Since that time, we have continued our extensive investigation with the help of two independent, expert security firms. We have also been working closely with law enforcement authorities and coordinating with banks and payment processors to determine the facts.

After weeks of analysis, we have discovered evidence confirming that systems of Michaels stores in the United States and our subsidiary, Aaron Brothers, were attacked by criminals using highly sophisticated malware that had not been encountered previously by either of the security firms.

We want you to know we have identified and fully contained the incident, and we can assure you the malware no longer presents a threat to customers while shopping at Michaels or Aaron Brothers.

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Additional Information

We encourage our customers to take the following steps:

Order Your Free Credit Report.To order your free credit report, visit www.annualcreditreport.com, call toll-free at 1-877-322-8228, or complete the Annual Credit Report Request Form on the U.S. Federal Trade Commission’s (“FTC”) website at www.ftc.gov and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. The three credit bureaus provide free annual credit reports only through the website, toll-free number or request form.

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Frequently Asked Questions

What happened?

We previously informed our customers that we might have experienced a data security issue. Since the announcement, we retained two independent, expert security firms to conduct an extensive investigation. After weeks of analysis, we discovered evidence confirming that systems of Michaels stores in the United States and our subsidiary, Aaron Brothers, were attacked by criminals using highly sophisticated malware that had not been encountered previously by either of the security firms. The affected U.S. systems contained certain payment card information, such as payment card number and expiration date, about both Michaels and Aaron Brothers customers. We have now identified and fully contained the incident, and the malware no longer presents a threat while shopping at Michaels or Aaron Brothers.

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