Tower Records: Year Ends on High Note

Tower Records: Year Ends on High Note Successful Turnaround Under New Ownership; Tower Records Named 'Retailer of the Year'; New Seattle Flagship Store Marks Beginning of a Reinvigorated Tower SACRAMENTO, Calif., Dec. 2 /PRNewswire/ -- In perhaps the most dramatic year in its 44 year history, Tower Records, America's leading independent music and movie retailer, has achieved what many thought would have been impossible ... Within 35 days of filing Chapter 11 bankruptcy in February of this year, Tower received approval of its pre-packaged debt restructuring plan by the US Bankruptcy Court, effectively ending its restructuring period and establishing new ownership. Excited by their investment in this venerated brand, Tower's new equity holders are actively supporting the Company's recommitment to selling music and movies to an eager market. But that's not all. While in the throes of restructuring, Tower Records was still paying careful attention to its merchandising, marketing and promotion, as well as simply offering its customers the best home entertainment experience possible, both in-store and online. With a new leadership team resulting from the restructuring and ownership change, Tower Records made beautiful noise, and others noticed ... namely its peers. In August the primary industry trade group, The National Association of Recording Merchandisers (NARM), named Tower Records its 2004 'Retailer of the Year' Award Recipient, recognizing its achievement above and beyond other competitors such as: Best Buy, Borders, Circuit City, Musicland, Target, TransWorld (Spec's, Record Town, Strawberries, Wherehouse), and Virgin Megastore. In addition, NARM named Tower the overwhelming winner of 7 out of its 8 Advertising Awards that recognize outstanding achievements in newspaper, magazine, radio and television advertising; direct mail pieces; point-of- purchase materials; special media; best collaboration; and overall advertising campaigns from January 2003 to March 2004. With Tower's new management team, its strong market position, new ownership and financial stability, the Company is forging ahead with reinvestment in the business. In November, Tower celebrated the "Grander" Re-Opening of its store just blocks from the famed Space Needle in Seattle. Bigger and better, the new 14,000 sq. ft. Seattle Tower Records is regarded as Tower's flagship store for the Northwest, featuring over 160,000 CDs and more than 25,000 DVDs -- the largest selection in the Northwest. Lauded across Washington for its unmatched selection of Rock, Pop, Hip-Hop, Alternative and Classical, Tower also features the most comprehensive selection of music, movie and television DVDs. A Seattle institution since 1976, the newly opened store is one of the first to feature interactive "touch-screen" music and video stations. It is the first of several that will be upgraded and refurbished over the next 18 months, marking the beginning of a new age for Tower. "This year has been one of the most challenging yet one of the most successful years in Tower's history, and as it comes to a close, I am so satisfied that we have positively emerged with our best profitability in years, positioning ourselves as a strong and vibrant player in this highly competitive market," stated Allen Rodriguez, CEO of Tower Records. "I attribute this success to a stellar operations and marketing team, the outstanding employees that make up the Tower family, an extraordinarily supportive supplier group, and of course to our loyal customers who turn to Tower to satisfy their music and movie needs. About Tower Records Since 1960, Tower Records has been recognized and respected throughout the world for its unique brand of retailing. Founded in Sacramento, CA, by Chairman Emeritus Russ Solomon, the company's growth over four decades has made Tower Records a household name. Tower owns and operates 89 stores in the U.S. with a further 130 stores run by licensees in nine different countries. The company opened one of the first Internet music stores on America Online in June 1995 and followed a year later with the launch of Tower.com. In 2004, The National Association of Recording Merchandisers (NARM) named Tower Records 'Retailer of the Year' (Large Division), in addition to proclaiming Tower the overwhelming winner of 7 out of its 8 Advertising Awards that recognize outstanding achievements in advertising campaigns from January 2003 to March 2004. Tower's commitment to introducing its customers to the latest trends in new product lines is paramount to the organization's retail philosophy. Tower forges ahead with the development of exciting shopping environments, espousing diverse product ranges, artist performances, and technological advances in merchandising. Tower maintains its commitment to providing the deepest selection of packaged entertainment merchandised in stores that celebrate the unique interests and needs of the local community. NOTE: Tower, Tower Records, Tower Records Videos Books, and associated logos are trademarks and/or registered trademarks of MTS, Incorporated in the United States and other countries. Source: Tower Records CONTACT: Lisa Amore for Tower Records, +1-206-954-8006, or lisa@amorepr.com Web site: http://www.towerrecords.com/ ------- Profile: International Entertainment