Engages Financial Advisor to Evaluate Alternatives For Its Retail
Segment
REX Stores Corporation (NYSE:RSC) announced today that it has completed
the repurchase of approximately 142,000 of its common shares. The
repurchases represent all of the shares remaining under an expanded May
2007 stock buy-back authorization. The Company’s
Board of Directors has authorized the repurchase of up to an additional
500,000 shares. Purchases will be made from time to time in open market
or private transactions at prevailing market prices, and all shares
purchased will be held in the Company’s
treasury for possible future use.
REX also announced that it engaged Brown, Gibbons, Lang & Company
Securities, Inc. (“BGL”)
to assist it in identifying and evaluating strategic alternatives for
its retail segment. The Company expects to consider and evaluate a broad
range of alternatives during the strategic review process, including
opportunities to monetize its real estate portfolio. There is no
assurance that any transaction will occur as a result of the strategic
review process.
REX has interests in four ethanol entities and is a specialty retailer
of consumer electronic products and appliances. As of April 30, 2008,
the Company operated 111 retail stores in 34 states under the trade name “REX.”
About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company is a leading independent investment bank
serving middle market companies and their owners throughout the U.S. and
internationally. BGL is the U.S. partner in Global
M&A, a worldwide partnership of independent middle market
financial advisory firms focusing on cross-border transactions. Further
information on BGL may be found at www.bglco.com.
This news announcement contains or may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements can be identified by use of
forward-looking terminology such as “may,”
“expect,” “believe,”
“estimate,” “anticipate”
or “continue” or
the negative thereof or other variations thereon or comparable
terminology. Readers are cautioned that there are risks and
uncertainties that could cause actual events or results to differ
materially from those referred to in such forward-looking statements.
These risks and uncertainties include the risk factors set forth from
time to time in the Company’s filings with
the Securities and Exchange Commission and include among other things:
the highly competitive nature of the consumer electronics retailing
industry, changes in the national or regional economies, weather, the
effects of terrorism or acts of war on consumer spending patterns, the
availability of certain products, technological changes, changes in real
estate market conditions, the fluctuating amount of quarterly payments
received by the Company with respect to sales of its partnership
interest in its synthetic fuel investments, and the uncertain amount of
synthetic fuel production and resulting income received from time to
time from the Company’s synthetic fuel
investments. As it relates to ethanol investments, risks and
uncertainties include among other things: the uncertainty of
constructing plants on time and on budget, the price volatility of corn,
sorghum, dried distiller grains, ethanol, gasoline and natural gas, and
the plants operating efficiently and according to forecasts and
projections.
REX Stores Corporation
Douglas Bruggeman, 937-276-3931
Chief
Financial Officer
or
Jaffoni & Collins Incorporated
Joseph
N. Jaffoni/David Collins, 212-835-8500
rsc@jcir.com
