Letter to our Stakeholders

Looking Ahead

As we go forward in 2010, we do so with the belief that there has been a fundamental shift in the way people spend money. In short, we have moved from a position of conspicuous consumption to one of conspicuous frugality, which we believe bodes well for our business. In the coming year, we will continue to pursue new opportunities. Chief among these is capitalizing on our web-based business. Today, our website receives 1 million hits per month, and when you add these to our existing customer relationships from which we can draw, you can see the tremendous opportunity for growth. With opportunities like this, and the support of our employees, customers, vendors and shareholders, I am confident in our ability to navigate through this economic downturn.

Respectfully,

George Zimmer

Chairman of the Board
and Chief Executive Officer