NEWS:
NASDAQ: VMIX
VALLEY MEDIA SIGNS VIDEO DISTRIBUTION AGREEMENT WITH FAO SCHWARZ
Woodland, CA - Valley Media, Inc. (Nasdaq: VMIX), a recognized leader in the full-line distribution of
music and video entertainment products, today announced that they have signed a multi-year
distribution/service agreement with FAO Schwarz to provide all VHS and DVD video product
merchandised in the chain. Valley Media will be working with FAO Schwarz to expand the chain's
presence in video sales. FAO Schwarz operates 42 stores nationally, including five "Flagship" stores as
well as their Fifth Avenue headquarters store. The agreement is effective as of October 4, 1999.
"FAO Schwarz is one of the premier children's product retailers in the United States," commented
Richard Plummer-Raphael, Valley's Vice President of National Sales. "The FAO Schwarz name is
known throughout the country as a destination for quality toys and related products. We believe this type
of supply and merchandising agreement, known within our industry as 'rackjobbing', will leverage Valley's
position as one of the largest wholesalers of video-for-sale products. We are extremely excited at the
opportunity to work with FAO Schwarz on a national basis," added Plummer-Raphael.
The rollout of the expanded FAO Schwarz video department will begin immediately. Emphasis will be
placed on licensed video titles to tie into the chain's character merchandising.
"Valley is working with the FAO design team to develop merchandising plans that will feature custom
signage and large reproductions of studio characters," said Patrick Beare, Valley's Director of Rack
Services. "We are also working with FAO on special promotions to tie into similar toy items, especially
in the area of plush toys," added Beare.
About Valley Media:
Valley Media (Nasdaq: VMIX) is a recognized leader in Internet fulfillment, the full-line distribution of
music, video, and DVD product, independent distribution, publications and proprietary database
products. Valley Media operates facilities in seven states with primary distribution facilities in Louisville,
KY, and Woodland, CA, where its corporate headquarters are located.
About FAO Schwarz:
Founded in 1862, FAO Schwarz has consistently delivered exclusive, unusual and trend-setting
merchandise. Stores and catalogues have been designed to interact with customers in a manner that
distinguishes FAO from other retailers and involves customers with merchandise. The company currently
operates 42 locations nationwide, including flagship stores in Chicago, Las Vegas, New York, Orlando
and San Francisco. FAO also produces The Ultimate Toy Catalogue, a direct mail catalogue that is
distributed to more than six million consumers annually. For more information about FAO Schwarz, visit
the company's website at www.fao.com.
This press release may contain forward-looking statements made pursuant to the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by
words such as "will," "expects," "anticipates," "plans," or "intends" and by other descriptions of future
circumstances or conditions. Actual results may differ materially from those projected in these
forward-looking statements. Factors that could affect Valley Media's actual results include, without
limitation, risks and uncertainties related to the following factors: intense competition, customers' ability
or preference to buy product direct, slower growth rates of Internet sales, new electronic delivery
technologies and copyright or royalty disputes. More information about these and other factors that could
negatively affect Valley Media's financial performance and the value of its common stock is contained in
Valley Media's filings with the Securities and Exchange Commission, including its Annual Report on
Form 10-K. Readers of the 10-K should pay particular attention to the sections entitled "Management's
Discussion and Analysis of Financial Condition and Results of Operations" and "Factors Affecting
Operating Results." |
