Jaspan Schlesinger Hoffman LLP 300 Garden City Plaza Garden City, New York 11530 (516) 746-8000

Hale Yazicioglu (HY/6677) Jaspan Schlesinger Hoffman, LLP 913 Market Street, 12th Floor Wilmington, Delaware 19801 (302)351-8005 Laurie Schenker Polleck, Esq (DE bar No. 4300) UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE ------------------------------------------------------x In re: MERVYN'S HOLDINGS LLC, et al., Debtors. -----------------------------------------------------x DMD INTERNATIONAL LTD. AND DMD INTERNATIONAL IMPORTS LLCS NOTICE OF DEMAND FOR RECLAMATION PLEASE TAKE NOTICE that DMD International Ltd. and DMD International Imports, LLC (collectively Sellers), by and through their undersigned counsel, have served a written demand for reclamation pursuant to Sections 503 and 546 of title 11 of the United States Code, 11 U.S.C. 101-1330, as amended by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (the Bankruptcy Code) and applicable non-bankruptcy law upon the above-captioned debtors and debtors-in-possession (the Debtors) via Federal Express to Richards, Layton & Finger, P.A., 920 N. King Street, One Rodney Square, Wilmington, Delaware 19801, and its agent, Kurtzman Carson Consultants, LLC, 2335 Alaska Avenue, El Segundo, California 90245. A copy of the written reclamation demand is attached hereto as Exhibit A and is incorporated herein by

Chapter 11 Case No. 08-11586 (KG) (Jointly Administered)

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reference. The written demand was served on the Debtors to reclaim certain goods sold by the Sellers to the Debtors in the ordinary course of the Sellers business, were delivered to and received by the Debtors during the 45-day period preceding the Debtors filing the voluntary petition for Chapter 11 relief, and during which time the Debtors were insolvent. PLEASE TAKE FURTHER NOTICE that the Sellers reserve their rights to assert an administrative expense claim pursuant to Section 503(b)(9) of the Bankruptcy Code for all goods delivered by the Sellers to the Debtors within twenty (20) days immediately preceding the commencement of the Debtors Chapter 11 cases. Dated: Garden City, New York August 22, 2008 JASPAN SCHLESINGER HOFFMAN, LLP Attorneys for DMD International Ltd. and DMD International Imports, LLC. By: /s/ Hale Yazicioglu Hale Yazicioglu, Esq. (HY/6677) 300 Garden City Plaza Garden City, New York 11530 (516) 746-8000 Laurie Schenker Polleck, Esq. (DE bar No. 4300) Jaspan Schlesinger Hoffman, LLP 913 Market Street, 12th Floor Wilmington, Delaware 19801 (302) 351-8005
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