THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Michaels Stores, Inc. (MIK)

5/4/2006 Proxy Information

In fiscal 2005, we paid $263,654 in salary to Donald R. Miller, Jr., Vice President — Market Development. In connection with his employment with Michaels in fiscal 2005, Mr. Miller also (i) earned a cash bonus of $116,100, (ii) received $24,239 for the personal use of a company-owned automobile, (iii) was transferred the ownership of an older company-owned automobile, valued at $53,405, and (iv) received $3,884 in other employee benefits. In addition, Michaels (i) reimbursed Mr. Miller $16,867 for golf/health club membership dues and the related tax gross-up, and (ii) paid life insurance premiums for Mr. Miller in the amount of $599. In fiscal 2005, Michaels granted options to Mr. Miller which are exercisable for 43,750 shares of common stock at an exercise price of $37.96 per share, the fair market value of a share of our common stock on the date of grant. Mr. Miller is the son-in-law of Charles J. Wyly, Jr.

The compensation paid by Michaels to Sam Wyly, Vice Chairman of the Board, during fiscal 2005 is set forth in the section of this Proxy Statement entitled “Compensation of Directors.” Sam Wyly is the brother of Charles J. Wyly, Jr.

5/12/2005 Proxy Information

In fiscal 2004, we paid $256,369 in salary to Donald R. Miller, Jr., Vice President — Market Development. Mr. Miller also earned (i) a bonus of $124,759, (ii) $17,238 for the personal use of a company-owned automobile, and (iii) $2,655 for other employee benefits. In addition, Michaels (i) reimbursed Mr. Miller $10,139 for golf/health club membership dues and the related tax gross-up, and (ii) paid life insurance premiums for Mr. Miller in the amount of $599. In fiscal 2004, Michaels granted options to Mr. Miller which, after giving effect to a two-for-one stock split in the form of a stock dividend to stockholders of record as of the close of business on September 27, 2004, are exercisable for 50,000 shares of common stock at an exercise price of $25.59 per share, the fair market value of a share of our common stock on the date of grant. Mr. Miller is the son-in-law of Charles J. Wyly, Jr.

The compensation paid by Michaels to Sam Wyly, Vice Chairman of the Board, during fiscal 2004 is set forth in the section of this Proxy Statement entitled “Compensation of Directors.” Sam Wyly is the brother of Charles J. Wyly, Jr.

In fiscal 2004, Michaels paid to C&S Aviation, Ltd., a Texas limited liability company of which Sam Wyly and Charles J. Wyly, Jr. are managing members, approximately $49,000 for the rental of an airplane used for corporate purposes. C&S Aviation, Ltd. is a commercial carrier under regulations established by the Federal Aviation Administration.

5/6/2004 Proxy Information

Chairman Charles J. Wyly, Jr. is the borther of Vice Chairman Sam Wyly.

In fiscal 2003, we paid $248,120 in salary to Donald R. Miller, Jr., Vice President — Market Development of Michaels. Mr. Miller also received (i) a bonus of $72,675, (ii) $17,262 for the personal use of a company-owned automobile, and (iii) $2,604 for other employee benefits. In fiscal 2003, Michaels granted options to Mr. Miller exercisable for 25,000 shares of common stock at an exercise price of $35.31 per share, the fair market value of a share of common stock on the date of grant. Mr. Miller is the son-in-law of Charles J. Wyly, Jr.

5/6/2003 Proxy Information

In fiscal 2002, we paid $240,856 in salary to Donald R. Miller, Jr., Vice President—Market Development of Michaels. Mr. Miller also earned (i) a bonus of $117,500, (ii) $18,390 for the personal use of a company-owned automobile and the transfer of that automobile, valued at $55,892, to Mr. Miller, and (iii) $2,605 for other employee benefits. In fiscal 2002, Michaels granted options to Mr. Miller exercisable for 25,000 shares of common stock at an exercise price of $34.10 per share, the fair market value of a share of common stock on the date of grant. Mr. Miller is the son-in-law of Charles J. Wyly, Jr. Chairman Charles J. Wyly, Jr. is the brother of Vice Chairman Sam Wyly.