EBSCO Completes RoweCom Acquisition

Apr 25, 2003

EBSCO Canada, Ltd., a subsidiary of EBSCO Industries, Inc., (EBSCO) has completed the acquisition of certain assets of RoweCom's Canadian subscription operations, divine Solutions, ULC, operating under the trade names of RoweCom, Faxon and divine, herein referred to as "RoweCom."

Following RoweCom's bankruptcy filing earlier this year, letters were sent to all of the publishers (approximately 25,000) with whom RoweCom U.S., RoweCom Australia, and RoweCom Canada has a business relationship to solicit their support and participation in a "Pre-paid Order Agreement." When a publisher agrees to participate in this agreement, they agree to fulfill subscriptions to their publications for which a RoweCom customer paid RoweCom, but for which the publisher did not receive payment. In exchange for agreeing to send issues, publishers are to receive the equivalent of the RoweCom customer's claim on the bankrupt estates up to the value of the subscriptions they have agreed to fulfill. Letters are being sent to all customers of RoweCom Canada to ascertain if customers who currently have a claim against the bankrupt Divine Solutions, ULC estate (i.e., had paid RoweCom for journal orders for which payment was never forwarded to publishers) would agree to assign their bankruptcy claims to participating publishers. RoweCom Canada customers would only be agreeing to exchange their claims to the extent publishers agree to fulfill issues. The publisher communication process is being managed by Kurtzman Carson Consultants, LLC (Kurtzman). As publishers sign on to participate, Kurtzman is posting the names of the participating publishers to its Web site. Once publishers and customers have responded, the responses will be cross-matched to determine the exact publications publishers have agreed to deliver to each participating customer. These details will be supplied to participating customers. Likewise, publishers will be supplied details of the journal orders they have agreed to fulfill and the associated customers to receive these journals.

(http://www.ebscoind.com), (http://www.faxon.com), (http://www.kccllc.net/rowecom)