• (0229
• タワーレコード株式会社
• 2002年10月11日
• 企業情報

Tower Records Japan Completes MBO

October 11, 2002, Tokyo: Tower Records Japan has today announced the completion of a
management buy-out (MBO) from its California-based parent company, MTS Incorporated.
The MBO has been sponsored by Nikko Principal Investments Japan Ltd. (NPI), who have
acquired all the outstanding shares as well as the trademark rights to operate the business in
Japan from MTS Incorporated. The shares will be jointly held by NPI and the Tower Records
Japan management group via the special purpose holding company Vespasianus.

Tower Records Japan will operate the business independently from its US counterpart, but will
retain the Tower Records brand and trademark rights and current operating policies in
accordance with its original plans. An outline of the new company is attached. According to
the terms of the MBO, the company will undergo some restructuring, beginning with the
appointment of former resident director Keith Cahoon as CEO, and former corporate planning
director Akio Moriwaki as COO. Beyond these position changes the existing management
team remains in place, and has the full backing and support of its partner, NPI.

Continuing under the existing banner of “No Music, No Life”, the newly formed Tower Records
Japan will continue with their current retail strategies, offering a broad range of Japanese and
international music in accordance with consumer tastes. With the cooperation and backing of
NPI, the new management group intends to strengthen the firm’s business operations and is
aiming for an initial public offering in the future. Over the next three years, it aims to
consolidate its existing network of stores and expand the chain from the current 53 outlets to
70 across Japan.

CEO, Keith Cahoon comments, “Our new situation in Japan gives us a greater degree of
freedom, more focus and stronger financing. While we intend to carry forward the core values
on which Russ Solomon founded Tower Records, we look forward to operating as an
independent company and to expanding our operations in Japan”.