Seaway Valley Capital Corporation (OTC Bulletin Board: SWVL), a diversified holding company, today announced that it and wholly owned subsidiary Hackett's Stores, Inc. (Pink Sheets: HCKE) executed an agreement that released Hackett's from ongoing rent obligations due under its 2006 lease contract with Soggs Property Group and its Watertown Center Development, LLC, owner of the State Street plaza in Watertown.

As it did in the agreement for Hackett's Gouverneur location, Seaway Valley Capital Corporation agreed to guaranty payment the release fee and all back rents for Hackett's Watertown location. Seaway's Chairman and CEO, Thomas Scozzafava, stated, "Considering we had about seven years left on this lease, by agreeing to allow us to quickly contain the ongoing expenses of the location and to establish a reasonable and fair repayment period for back rents owed for Hackett's final months of occupancy, Randy Soggs is allowing the rest of Hackett's to survive and hopefully thrive. And for that, we and our employees are thankful."

Mr. Soggs added, "We realize that the preservation of jobs and businesses is critical to Northern New York State. While we'll miss Hackett's presence here in the plaza, we realized that saddling the company with rents and other occupancy expenses for unused real estate would have been unsustainable for Hackett's for the long term. We will continue doing all we can here at Soggs Property Group to further assist Hackett's in its success."

Seaway Valley and Hackett's recently announced another deal with Soggs Property Group that allowed Hackett's to remain in its Gouverneur location, and Hackett's has recently executed other deals with other landlords in Potsdam, Tupper Lake and Massena. Altogether, Hackett's employs over 130 people in these stores. Since acquiring Hackett's in November 2007, Seaway Valley has directly paid or assumed debt obligations of Hackett's of over $4 million. Including the repayment of the $5.5 million of Wells Fargo debt, which was guaranteed by Thomas Scozzafava personally and Seaway Valley Capital Corporation, Hackett's and Seaway Valley have reduced debt at Hackett's by over $9 million since November 2007.

About Hackett's

Hackett's, one of the nation's oldest retailers with roots dating back to 1830, is a full line department store specializing in name brand merchandise and full service hardware. Hackett's features brand name clothing for men, women, and children, and a large selection of brand name athletic, casual, and work footwear. Hackett's also carries domestics, home decor, gifts, seasonal merchandise and sporting goods.

About Seaway Valley Capital Corporation:

Seaway Valley Capital Corporation makes equity, equity-related, and debt investments in companies that require expansion capital. Seaway also seeks investments in leveraged buyouts and restructurings. Seaway will consider investment opportunities in a number of different industries, including retail, restaurants, consumer products, media, business services, manufacturing, and select technologies. Seaway Valley's current portfolio includes Hackett's Stores, Inc., Alteri Bakery, Inc., Sackets Harbor Brewing Company, and Seaway Restaurant Group.

Safe Harbor Statement

This press release contains statements that may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of the Company, and members of their management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results. The Company encourages the public to read the above information in conjunction with its year-end statement, Form 10-KSB for December 31, 2008, and the first Quarter Form 10-Q financial statements. The financial statements can be viewed with the Securities and Exchange Commission, at website.