Waldenbooks continues to build upon its tradition of innovation. During 2002,
America's largest mall-based bookseller expanded its use of kiosks and other
creative formats, operating 725 Day by Day Calendar locations during the holiday
season, including multiple stores in several high-traffic shopping areas. In
addition, Waldenbooks tested several other seasonal concepts with leading product
brands and manufacturers, who are attracted by Waldenbooks' mall expertise and
proven ability to staff and operate seasonal businesses. These alliances may create
new opportunities for growth — enabling Waldenbooks to expand kiosk sales without
adding to its inventory investment or risk.