U.S. Bankruptcy Court Approves EBSCO's Purchase of RoweCom U.S.A.

Apr 15, 2003

EBSCO Industries, Inc. (EBSCO), has confirmed that on Monday, April 7, 2003, the United States Bankruptcy Court, District of Massachusetts, Eastern Division, approved the sale of certain RoweCom U.S.A. assets to EBSCO pursuant to a definitive purchase agreement previously executed by the two parties. The sale includes the U.S. operations of RoweCom, Inc. (RoweCom), which includes the operations of Dawson, Inc., Dawson Information Quest, Inc., The Faxon Company, Inc., Turner Subscription Agency, Inc., McGregor Subscription Service, Inc., and Corporate Subscription Services, Inc. Final closing of the sale is primarily contingent on verification of publisher support representing at least 50 percent of the aggregate monetary amount prepaid to RoweCom by customers, which was not subsequently forwarded to publishers, and successful closure by EBSCO of its acquisition of RoweCom's European operations, which is contingent on receipt of French regulatory approval. Both items are expected to be finalized in the next few weeks. EBSCO has also finalized its purchase of RoweCom Australia, Pty Ltd. The orders of RoweCom Australia customers who prepaid RoweCom, but whose payments were not forwarded to publishers, will be graced by publishers pursuant to the same methodology being used in the U.S. Such participating customers will be transferring their bankruptcy claim to participating publishers in exchange for 2003 issues.