ELBO Electronics Boutique Hldgs (MM)

Electronics Boutique Opens New Expanded Distribution Facility - New Facility to Support Rapid Growth of the Company - WEST CHESTER, Pa., Oct. 13 /PRNewswire-FirstCall/ -- Electronics Boutique Holdings Corp. (NASDAQ:ELBO) today announced the official opening of its new 315,000-square-foot distribution center in the Bellaire Business Center in Sadsbury Township, PA. The new facility commenced operations on October 1, 2004 and features cutting-edge material handling technology designed to facilitate significant gains in productivity, increases in overall efficiencies, and further improvements to service levels. Complementing the Company's facility located in Louisville, KY, the new location will serve as one of Electronics Boutique's two primary distribution centers for its chain of over 1,300 U.S. stores. The addition of a state-of-the-art facility in the Northeast and the expanded overall capacity will help better balance the Company's distribution demands across the U.S. and will also provide expense savings. The new facility, which was completed on-time and within budget, consolidates the operations from the Company's two distribution facilities in West Chester, PA. The Company has signed an agreement to sell one of the existing facilities for approximately $5.5 million and expects the transaction to close during the fourth quarter. The Company will continue to utilize the remaining location as its corporate headquarters with the vacated space available for corporate expansion and training facilities as necessary. Upon the closing of the two former operations, approximately 350 existing employees were successfully transferred to the new distribution center in Sadsbury Township. "Our rapid store and sales growth across the country created the need for a new state-of-the-art facility to further streamline the Company's distribution procedures and support continued expansion," said Jeff Griffiths, President and Chief Executive Officer of Electronics Boutique. "The distribution center has innovative technology that will improve distribution capabilities and ensure that our customers will remain among the first to receive new releases and other products. That said, we are particularly pleased that this facility is fully operational in time for the busy holiday season so that we are able to maximize our opportunities and provide gamers with the superior service and availability they have come to expect from Electronics Boutique." Electronics Boutique, a Fortune 1000 company, is the leading global specialty retailer dedicated exclusively to video game hardware and software, PC entertainment software, accessories and related products. The company currently operates over 1,733 stores in the United States, Australia, Canada, Denmark, Germany, Italy, New Zealand, Norway, Puerto Rico and Sweden -- primarily under the names EB Games and Electronics Boutique. The company operates an e-commerce website at http://www.ebgames.com/. Additional company information is available at http://www.ebholdings.com/. DATASOURCE: Electronics Boutique Holdings Corp. CONTACT: James A. Smith, Chief Financial Officer, Electronics Boutique Holdings Corp., +1-610-430-8100; or Cara O'Brien/Melissa Myron, Financial Dynamics, +1-212-850-5600, for Electronics Boutique Holdings Corp. Web site: http://www.ebgames.com/ http://www.ebholdings.com/

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