Warren Jenson Operating Quotations

Over the past year, our U.S. pro forma operating loss decreased from 24 percent of net sales in the fourth quarter of 1999 to less than 2 percent in the fourth quarter of 2000,

I think you will walk away understanding our confidence in the fourth quarter, ... We are highly confident in our ability to deliver pro forma operating profitability in our fourth quarter.

We continue to make progress toward reaching pro forma operating profitability in the fourth quarter of 2001, ... This quarter, the U.S. was profitable on a pro forma operating basis for the first time, and this is our sixth sequential quarter of improved absolute pro forma operating results.

We expect our U.S. Books, Music and DVD/Video segment to be profitable on a pro forma operating basis for the full year 2000,

We expect strong year-over-year sales growth in the first quarter, and our outlook for growth in 2000 remains strong. We expect that in 2000, our overall operating loss will decrease significantly as a percentage of sales.