Thomas Nelson Announces Adjustment in Business Strategy of Publishing Business Unit; Change Reflects Shift in Christian Book Distribution

Business Wire, August 2, 2001

Business Editors

NASHVILLE, Tenn.--(BUSINESS WIRE)

Aug. 2, 2001. Thomas Nelson, Inc. (NYSE:TNM) today announced it has adjusted the business strategy of its Thomas Nelson Publishing division in an initiative to continue strengthening the Company's core publishing business.

Sam Moore, Chairman and Chief Executive Officer of Thomas Nelson, Inc., said the adjustment is in response to a shift in market demand for Christian books. The adjustment has resulted in the elimination of approximately 20 positions, including a few senior executives, at Thomas Nelson Publishing.

"This adjustment in the business strategy of Thomas Nelson Publishing is necessary as we continue to focus on strengthening our core publishing business," Moore said. "The decision to reduce the size of our work force was difficult, but essential as we align the skill sets of our staff with our business."

Lee Gessner, Executive Vice President of the Thomas Nelson Publishing Group, said the adjustment in business strategy reflects the current demand of the Company's customers.

"Christian books and Bibles are sold largely through independently owned retail bookstores, bookstore chains and mass merchandisers," Gessner explained. "These outlets have shifted priorities in their shelf space allocation and are now selling only the best titles on the market. They are telling publishers that we need to reduce the number of new product releases. Consequently, the focus of our marketing and publicity activities must be on a select group of titles.

"This adjustment in business strategy will allow us to improve performance by reducing overhead, lowering inventories, and targeting new product investments," Moore added. "The new organization will enhance our opportunity to achieve these goals going forward."

This news release includes certain forward-looking statements. Actual results could differ materially from those reflected by the forward-looking statements and a number of factors may affect future results, liquidity and capital resources. These factors include, but are not limited to, softness in the general retail environment, the timing of products being introduced to the market, the level of returns experienced by the operating divisions, the levels of margins achievable in the marketplace and ability to minimize operating expenses. Although the Company believes it has the business strategy and resources needed for improved operations, future revenue and margin trends cannot be predicted and may cause the Company to adjust its business strategy during the remaining periods of the 2002 fiscal year. The Company disclaims any intent or obligation to update forward-looking statements.

Thomas Nelson, Inc. is a leading publisher, producer and distributor of books emphasizing Christian, inspirational and family value themes, and believes it is the largest publisher of Bibles and inspirational books in the English language. The Company also designs and markets a broad line of gift and stationery products.

Thomas Nelson's stock is listed on the New York Stock Exchange (NYSE:TNM).