Handleman Company Announces New Share Repurchase Program

Handleman Company Announces New Share Repurchase Program

* Repurchase authorization is for up to 15% of outstanding shares.

* Represents the sixth Board authorization in the last eight years.

TROY, Mich., Feb. 23 /PRNewswire-FirstCall/ -- Handleman Company (NYSE:HDL), http://www.handleman.com/ , today announced that its Board of Directors has authorized a new share repurchase program whereby the Company may repurchase up to 15% of its current outstanding common stock. This new authorization replaces the 20% share repurchase authorization announced in February 2003, which was over 92% complete as of February 23, 2005. There is no time requirement to complete the new authorization. The Company intends to finance the new share repurchase program with internally generated funds. The Company currently has 21,787,611 shares of common stock outstanding.

The Board has previously authorized five share repurchase programs, which began in September 1997 and includes the 20% authorization just replaced. Under these authorizations, the Company has repurchased 13.9 million shares of its common stock at an average cost of $13.91 per share.

Stephen Strome, Chairman and Chief Executive Officer, said, "This new authorization reflects our positive outlook regarding cash flow, and our ongoing commitment to maximize shareholder value. We believe the stock of Handleman Company continues to represent an attractive investment opportunity."

About Handleman Company

Handleman Company is a category manager and distributor of prerecorded music to mass merchants in the United States, United Kingdom, Canada, Brazil and Argentina. As a category manager, the Company manages a broad assortment of titles to optimize sales and inventory productivity in retail stores and also provides direct-to-store shipments, marketing and in-store merchandising.

Forward-Looking and Cautionary Statements

Information in this press release contains forward-looking statements, which are not historical facts. These statements involve risk and uncertainties and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results, events and performance could differ materially from those contemplated by these forward- looking statements including, without limitation, risks associated with changes in the music industry, continuation of satisfactory relationships with existing customers and suppliers, establishing satisfactory relationships with new customers and suppliers, effects of electronic commerce inclusive of digital music distribution, dependency on technology, ability to control costs, relationships with the Company's lenders, pricing and competitive pressures, dependence on third-party carriers to deliver products to customers, the ability to secure funding or generate sufficient cash required to build and grow new businesses, the occurrence of catastrophic events or acts of terrorism, certain global and regional economic conditions, and other factors discussed in this press release and those detailed from time to time in the Company's filings with the Securities and Exchange Commission. Handleman Company notes that the preceding conditions are not a complete list of risk and uncertainties. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.


Source: Handleman Company

CONTACT: Handleman Company Contact: Greg Mize, Vice President, Investor
Relations, +1-248-362-4400, Ext. 211, or Thomas Braum, Senior Vice President
and CFO, +1-248-362-4400, Ext. 718, both of Handleman Company; Media
Relations: David Bassett, +1-248-855-6777, Ext. 132, or Fred Marx,
+1-248-855-6777, Ext. 131, for Handleman Company

Web site: http://www.handleman.com/


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