Michael’s crafts store updates on security breach issue

Michaels Stores, Inc. (the “Company” or “Michaels”) today provided an update on its ongoing investigation into the data security issue it previously reported. In January, the Company learned of possible fraudulent activity on some U.S. payment cards that had been used at Michaels stores. Since the announcement, the Company retained two independent, expert security firms to conduct an extensive investigation. The Company also has been working closely with law enforcement authorities and coordinating with banks and payment processors to determine the facts. After weeks of analysis, the Company discovered evidence confirming that systems of Michaels stores in the United States and its subsidiary, Aaron Brothers, were attacked by criminals using highly sophisticated malware that had not been encountered previously by either of the security firms.