BJ'S Wholesale Club, Inc. Says Membership Income Accounting Complies With All Applicable Standards

Business Wire, Sept 3, 1998

NATICK, Mass.--(BUSINESS WIRE)--Sept. 3, 1998--BJ's Wholesale Club, Inc. (NYSE:BJ) said today that it recognizes membership fees upon receipt of the members' payment. The company has been consistent in its recognition of membership fees since its inception in 1984. The company also said it is not aware of any accounting pronouncement requiring membership revenue recognition over time.

BJ's says it has responded to Securities and Exchange Commission (SEC) comment letters reviewing this subject in 1991, and also this year. The company continues to believe its accounting practices are correct and has so stated in a recent response to the SEC. As with all its accounting policies, BJ's has followed generally accepted accounting policies (GAAP) with the concurrence of PricewaterhouseCoopers, its independent accountants. BJ's method of accounting for membership income is disclosed in annual filings with the SEC on Form 10-K and on Form S-1 filed in connection with BJ's spin-off from Waban Inc. in 1997, which was reviewed by the SEC.

If the company were to adopt an accounting change in the future, either voluntarily, or because of a change in generally accepted accounting principles, it would record a one-time, non-cash charge at the time of adoption, and on an ongoing basis the effect on the company's reported earnings would be immaterial.

This press release may contain "forward-looking statements". For this purpose, any statements contained in this release that are not statements of historical fact, or include the words "believes," "anticipates," "plans," or similar expressions, are forward-looking statements. Investors should consider a number of factors that could cause actual events and financial results to differ materially from those indicated by such forward-looking statements, including, but not limited to, regional economic conditions and competitive factors. In reading this release, investors should refer to BJ's Wholesale Club, Inc. quarterly and annual filings with the SEC.

BJ's Wholesale Club, Inc. introduced the warehouse club concept to New England in 1984 and has since expanded to become a leading membership warehouse chain in the eastern United States. BJ's currently operates 88 clubs compared with 83 one year ago.

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    CONTACT: BJ's Wholesale Club, Inc.
              Eileen H. Kirrane, (508) 651-6650

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