Music Network To Close 36 Stores

Business Wire, July 29, 2003

Business Editors

CHICAGO--(BUSINESS WIRE)--July 29, 2003

Huge Liquidation Sales now underway in 36 Peppermint Music,

Turtle's Music, Kemp Mill Music and Willies Music stores

It was announced today that the US Bankruptcy Court for the Northern District of Georgia has approved the liquidation and closure of 36 Music Network stores operating under the trade names of Peppermint Music, Turtle's Music, Kemp Mill Music and Willies Music. The stores (see attached list) are located in Alabama, Washington, DC, Delaware, Florida, Georgia, Maryland, North Carolina, Tennessee and Virginia. These 36 stores are being closed as part of Music Network's reorganization process, in an effort to streamline and strengthen its operations. All other Music Network stores will remain open and are conducting business as usual.

Mike Parkerson, Music Network President and Chief Executive Officer, stated: "During this brief sale, consumers will be able to take advantage of substantial discounts on an extensive assortment of music CD's, DVD's, cassettes, audio accessories, videos and more. All inventory in these stores needs to be liquidated quickly so we'll do what it takes to sell it off. I want to thank our associates for their loyal and dedicated service over the years. We are hoping to transfer as many associates to our operating stores as possible. Once these under-performing stores are closed, we will be in a position to refocus our energies and reinvest capital in our profitable stores."

A joint venture group comprised of Hilco Merchant Resources, LLC, Gordon Brothers Retail Partners LLC, and The Ozer Group, LLC will manage the liquidation sales for this music retailer.

Michael Keefe, President of Hilco Merchant Resources stated on behalf of the joint venture: "We are extremely pleased to have been selected to participate in this important project. We expect this to be a very short sale because of the well known reputation of these music retailers and the very desirable merchandise and compelling discounts."

A list of the closing stores is attached.

               The Music Networks List of Store Closings

                        Store
  Store Type       Name/Shopping Ctr    Address         City        St
-----------------  ---------------- ------------------ ---------------
Turtle's music     Village Mall     1627-51 Opelika    Auburn       AL
                                     Road.
-----------------  ---------------- ------------------ ---------------
Peppermint Music   EASTWOOD PLAZA   7887 Crestwood     Birmingham   AL
                                     Blvd #3A
-----------------  ---------------- ------------------ ---------------
Peppermint Music   SELMA            1391 East Highland Selma        AL
                                     Ave
-----------------  ---------------- ------------------ ---------------
Willies Music      Eastover Plaza   4665  South        Washington   DC
                                     Capital St SW
-----------------  ---------------- ------------------ ---------------
Kemp Mill Music    DUPONT CIRCLE    1619 Connecticut   Washington   DC
                                     Ave NW
-----------------  ---------------- ------------------ ---------------
Willies Music      Wonder Plaza     2301 Georgia       Washington   DC
                                     Avenue NW #C
-----------------  ---------------- ------------------ ---------------
Turtle's music     Marketplace of   251 Mary Esther    Mary Esther  FL
                    Santa Rosa       Cutoff

Turtle's music     Panama City      635-637 W. 23rd    Panama City  FL
                    Square           St.
-----------------  ---------------- ------------------ ---------------
Turtle's music     Cordova          4771 Bayou Blvd.,  Pensacola    FL
                    Collection       C11-14
-----------------  ---------------- ------------------ ---------------
Peppermint Music   ALBANY MALL      2601 Dawson Rd     Albany       GA
                                     Space E6
-----------------  ---------------- ------------------ ---------------
Peppermint Music   DUBLIN MALL      2001 Veterans Blvd Dublin       GA
-----------------  ---------------- ------------------ ---------------
Turtle's music     Macon Mall       3661 Eisenhower    Macon        GA
                                     Pkwy

Turtle's music     Hatcher Square   2400 N. Columbia   Milledgeville
                    Mall             St.                            GA
-----------------  ---------------- ------------------ ---------------
Turtle's music     Mt. Berry Square 229 Mount Berry    Rome         GA
                                     Square, NE
-----------------  ---------------- ------------------ ---------------
Peppermint Music   SAVANNAH         1900 E Victory Dr, Savannah     GA
                                     Ste 18
-----------------  ---------------- ------------------ ---------------
Peppermint Music   THOMASVILLE -                       Thomasville  GA
                    GATEWAY PLAZA   15143 Hwy 19 South
-----------------  ---------------- ------------------ ---------------
Willies Music      University Blvd  2200 University    Adelphi      MD
                                     Blvd
-----------------  ---------------- ------------------ ---------------
Willies Music      King Shopping    7027 Martin Luther Landover     MD
                    Center           King Jr Hwy
-----------------  ---------------- ------------------ ---------------
Kemp Mill Music    SILVER SPRINGS   8861 Colesville Rd Silver Spring
                                     Suite B153                     MD
-----------------  ---------------- ------------------ ---------------
Turtle's music     Boone Mall       Hwy 321            Boone        NC
-----------------  ---------------- ------------------ ---------------
Turtle's music     Eastland Mall    5409 Central Ave   Charlotte    NC
                                     #AT3
-----------------  ---------------- ------------------ ---------------
Willies Music      Wellons Village  137 The Village-   Durham       NC
                                     1000 Miami Blvd
-----------------  ---------------- ------------------ ---------------
Willies Music      Oxford Commons   3500 North Roxboro Durham       NC
                                     Rd #26
-----------------  ---------------- ------------------ ---------------
Willies Music      Berkeley Mall    621D Berkeley Mall Goldsboro    NC
                                     Space G4

Willies Music      Summit Shopping  928 Summit Avenue  Greensboro   NC
                    Center
-----------------  ---------------- ------------------ ---------------
Turtle's music     The Plaza        714 E Greenville   Greenville   NC
                                     Blvd.
-----------------  ---------------- ------------------ ---------------
Turtle's music     Jacksonville     384 Jacksonville   Jacksonville NC
                    Mall             Mall
-----------------  ---------------- ------------------ ---------------
Turtle's music     Twin Rivers Mall 500 Twin Rivers    New Bern     NC
                                     Mall
-----------------  ---------------- ------------------ ---------------
Turtle's music     Capital          3517 Capital Blvd. Raleigh      NC
-----------------  ---------------- ------------------ ---------------
Willies Music      Wilders Grove    4111 New Bern      Raleigh      NC
                    Center           Avenue

Turtle's music     Salisbury Mall   1935 Jake          Salisbury    NC
                                     Alexander Blvd.
                                     West

Turtle's music     Signal Hill Mall 1653 E. Broad St.  Statesville  NC
-----------------  ---------------- ------------------ ---------------
Turtle's music     Johnson City     2011 N Roan St,    Johnson City TN
                                     #D3
-----------------  ---------------- ------------------ ---------------
Willies Music      Southside Plaza  4000 Hull Street   Richmond     VA
-----------------  ---------------- ------------------ ---------------
Willies Music      Oakhill Plaza    3125-3127          Richmond     VA
                                     Mechanicsville
-----------------  ---------------- ------------------ ---------------
Willies Music      Brookhill/Azalea 1114 Azalea Avenue Richmond     VA
-----------------  ---------------- ------------------ ---------------