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

SACRAMENTO, Calif. (Tower Records) - 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 https://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 https://www.omnimgt.com for up to date filing documentation. Click "Real Time Data" then "Tower Records 2006" for a listing of available documents.