Tower Records Selects Great American Group as Lead Bidder in Chapter 11 Sale Process

Tower Records Selects Great American Group as Lead Bidder in Chapter 11 Sale Process

Expects Additional Bidders for October 5th Auction

SACRAMENTO, Calif., Sept. 13 /PRNewswire/ -- MTS Incorporated and its Subsidiaries ("Tower Records"), America's leading independent music and entertainment retailer, has selected the Great American Group as Lead Bidder for the sale of inventory at all of the Company's stores. The Great American offer represents the start of the process to sell the Company's assets at the upcoming auction.

Under the sale process approved by the Bankruptcy Court on September 6th, the Company may select other qualified bidders who have an interest in purchasing the ongoing business of the Company or its individual assets. The auction will be held at the offices of RICHARDS, LAYTON, & FINGER, P.A. at One Rodney Square, 920 N. King Street, Wilmington, Delaware 19801, on October 5th at 10 am. Other potential bidders who would like to participate in the auction should contact Houlihan Lokey Howard & Zukin and must, among other things, submit their interest to Tower Records pursuant to the court's Bid Procedures Order by September 26th. For complete details of the bidding procedures, log on to www.omnimgt.com, click on "Real Time Data" and then on "Tower Records 2006."

"We are happy to have the Great American Group offer, and look forward to a vigorous auction with more bidders for Tower's business," said Joseph L D'Amico, CEO of Tower Records.

Visit www.omnimgt.com for up to date filing documentation. Click "Real Time Data" then "Tower Records 2006" for a listing of available documents.

About Great American

Great American Group is the premier asset management company, providing financial services to North America's most successful retailers, distributors, manufacturers, and healthcare administrators. Our well-established services center on turning excess inventory into immediate cash through strategic retail store-closings and wholesale and industrial liquidations. Our Healthcare division is the leading facilitator of excess equipment disposal for metropolitan hospitals to community healthcare centers across the country. Our Appraisal Group provides the highest quality appraisal and valuation services. We leverage our understanding and extensive knowledge of retail liquidations and machinery and equipment auctions to create insightful and meaningful appraisal reports. Great American Group's commitment to excellence, responsiveness, and confidentiality is the foundation of our success.

About Tower Records

Since 1960, Tower Records has been recognized and respected throughout the world for its unique brand of retailing. Founded in Sacramento, California, with the singular vision to have a music store with unparalleled selection and fair prices, Tower forges ahead with the development of exciting shopping environments, espousing diverse product ranges, artist performances, and technological advances in merchandising. Tower maintains its commitment to providing the deepest selection of entertainment merchandise in stores that celebrate the unique interests and needs of the local community. For the third year in a row, the music industry has voted Tower Records "Retailer of the Year."

Tower owns and operates 89 stores in the U.S. with 144 additional stores run by licensees in nine different countries. The Company opened one of the first Internet music stores on America Online in June 1995 and followed a year later with the launch of Tower.com.

Source: Tower Records

CONTACT: media, Mike Jansta of Tower Records, +1-916-373-2551, or
mjansta@tower.com, or Legal Representation, Steve Warren of O'MELVENY & MYERS,
+1-213-430-7875, or for inquires regarding the sale of the Company,
Christopher DiMauro of HOULIHAN LOKEY HOWARD & ZUKIN CAPITAL, +1-310-712-6507,
or cdimauro@hlhz.com

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

-------
Profile: intent