ALGOMA CENTRAL CORPORATION ANNOUNCEMENT

Algoma Central Properties Inc. Launches Major Re-Development

ALC-T

TORONTO, Sept. 24 /CNW/ - Algoma Central Properties Inc., a division of Algoma Central Corporation, a TSX listed company, is pleased to announce that it has completed negotiations with one of the country's leading retailers and is set to launch its re-development project for Station Mall, Sault Ste. Marie, Ontario.

Station Mall has a long history as the dominant shopping destination in this regional market of 120,000+. Officials view this as a strategic turning point for the downtown waterfront complex in repositioning itself in an ever-changing retail market.

Most recently, Algoma Central successfully reinvested several million dollars in its Delta hotel property adjacent to the downtown shopping complex.

"We have a strong commitment to this community and confidence in the market. Our re-development will reflect that confidence", says Tom Siklos, Vice President, Algoma Central Properties.

Mr. Siklos announced that the kick-off tenant for this major undertaking is a 22,000 square foot SportChek store.

"We are excited to be opening a store reflecting our newest design in such a central and strategic location in the city's dominant shopping center," says John McLellan, Director of Real Estate for the Forzani Group, owner of the SportChek chain. "Our sales in this market are very strong and we will now be better able to serve our customers in this market with an expanded product line."

Petroff Architects, of Toronto, have been retained to work on the design of this renovation. "The restructuring will bring considerable excitement to the retail fabric that makes up the centre. In addition to changing the look of the mall, we will be working to add exterior oriented category leaders and major national brands that the consumer has continually asked for," explained Hans Geenen, property manager for Algoma Central Properties.

Mr. Siklos is targeting fall of 2011 for the opening of the SportChek store and is excited to announce this redevelopment as it will serve to reinvigorate the downtown business district.

Currently Station Mall boasts 500,000 square feet, anchored by Sears, Zellers and Galaxy. Marino Locations Limited is proceeding with negotiations that will bring new retail companies to Sault Ste. Marie and is looking forward to hearing from other interested parties.

For further information:

Greg D. Wight, FCA             President and Chief Executive Officer         905-687-7850

Tom Siklos Vice President, Algoma Central Properties 905-687-7873