We have simplified our operations and we are harvesting the benefits of completing the integration of all remaining HBC functions.

We are anxious to get to work with Mr. Zucker on realizing the value that we know is inherent in this great company.

Although we had hoped that we could pursue meaningful discussions that could lead to increased value for your shareholders, we have been left with no choice but to present our offer directly to HBC shareholders.

We have simplified our operations and we are harvesting the benefits of completing the integration of all remaining HBC functions,

But the worst of it is behind us,

We enter the back half of the year with many more of our new merchandise programs now in place that have shown early success; coupled with our extensive store upgrade program for the year substantially completed, we are positive about the prospects for the balance of the year.