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The outlook for Coast's business in 2013 remains cautious. In the builder segment, the company expects that its revenues will continue to grow as projects in its order backlog move into the final stages of development, particularly in the multi-family sector, but at a slower rate than in the first quarter of the year. Coast anticipates that housing starts will soften slightly in 2013 and that very competitive market conditions will continue to compress unit prices and hence margins on its builder sales for the foreseeable future. On the retail side, it expects that market conditions and pricing will remain similarly competitive through 2013 as consumers continue to be extremely cautious about making major purchases.

"We had an excellent start to the year from a sales perspective, thanks to our exceptionally robust builder business," said Paquette. "Going into the second quarter, we have a very strong backlog of contract orders for future delivery across all of our markets, but the reality is that planned residential development can be slowed by unfavourable economic conditions. The outlook for the British Columbia market is particularly cautious."

Over the balance of the year, Coast will continue to focus on controlling costs, improving its margin performance, reducing inventory and increasing inventory turns. To this end, the company will be implementing upgrades to its inventory and pricing management systems, expected to be in place by year-end.

A more detailed discussion of Coast's financial results can be found in its 2013 First Quarter Management's Discussion and Analysis, which will be posted with unaudited interim condensed financial statements for the period on Coast's website (www.coastwholesaleappliancesinc.com) and SEDAR (www.sedar.com) on or before May 7, 2013.

Coast Profile

Coast is a leading independent supplier of major household appliances and accessories to builders and developers of multi-family and single-family housing, and to retail customers. Founded in 1978, Coast currently operates 15 stores across the four western provinces and one store in the Greater Toronto Area of Ontario, as well as a network of warehouse distribution centres strategically situated to serve these locations.

Forward-looking Statements

This news release includes forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are identified by the use of terms and phrases such as "anticipate", "believe", "estimate", "expect", "may", "plan", "will", and similar terms and phrases, including references to assumptions. Such statements may involve, but are not limited to, comments with respect to the sustainability of Coast's dividends to shareholders, the performance of the Canadian economy and the company's sales expectations. Forward-looking statements are included in all sections of this news release.

These forward-looking statements reflect current expectations of management regarding future events and operating performance as of the date of this news release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to: sensitivity to general economic conditions; changes in consumer confidence in the economy; maintenance of profitability and management of changes to Coast's business; competition; increases to interest rates; reliance on suppliers and their ability to supply product for sale on a timely basis; changes in consumer preferences; changes in Coast's mix of product sales; fluctuations in fuel and commodity pricing; usage of extended warranty programs and the costs to deliver these services; changes to planning and supply chain processes; lack of long-term supplier agreements; reliance on key personnel; and foreign exchange rates as they relate to imported products.

Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, Coast cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements reflect management's current beliefs and are based on information currently available to Coast. They speak only as of the date of this news release, and reflect current assumptions regarding future events and operating performance. These assumptions include, without limitation: slow economic growth in 2013 in both Western Canada and the Greater Toronto Area (GTA), Coast's current markets; continued fluctuations in exchange rates with the Canadian dollar trading near par with the US dollar; continued low interest rates; continuing relatively stable credit markets for Coast's major builder customers; weak consumer confidence due to the slow economic recovery; and a slight softening of total housing starts in 2013 compared to 2012. These forward-looking statements are made as of the date of this news release and Coast assumes no obligation to update or revise them to reflect new events or circumstances, other than as required by law.

Non-IFRS Financial Measures

EBITDA and EBITDA margin are non-IFRS financial measures that are defined in the First Quarter Management's Discussion and Analysis to be posted on Coast's website and SEDAR on or before May 7, 2013.



Contacts:
Coast Wholesale Appliances Inc.
Gordon Howie
Chief Financial Officer
(604) 301-3400
invest@coastappliances.com
www.coastwholesaleappliancesinc.com