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JPMorgan Aquired Arizona Mail Order

From: ASAP

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JPMorgan Partners LLC, the private equity arm of J.P. Morgan Chase & Co., and Federated Department Stores, Inc. today announced that JPMorgan Partners has acquired the assets of Arizona Mail Order and Figi's catalog operations from Federated. Terms of the deal were not disclosed.

Arizona Mail Order, headquartered in Tucson, AZ, markets high- quality women's apparel through its Old Pueblo Traders, Bedford Fair, Willow Ridge, Lew Magram, Brownstone Studio, Regalia, Intimate Appeal, and Coward Shoe catalog titles. Figi's, headquartered in Marshfield, WI, markets food and specialty gift products through its Figi's and JF Collection catalog titles. These businesses, leaders in the direct marketing industry with more than 3.7 million active customers, will be combined into a new holding company named Crosstown Traders, Inc.

"Given its financial strength and history of backing successful direct marketing enterprises, JPMorgan Partners is an ideal partner for Crosstown Traders," said Steven Lightman, president and CEO of Crosstown. "We remain committed to providing our customers with the quality, selection, and service to which they have become accustomed and deserve." Michael Sherman, vice chairman of Crosstown, said, "Steve and I are very excited about the prospects for Crosstown Traders. We have a strong product offering, a loyal customer base, and a talented management team that is committed to building this business even beyond the stellar position it enjoys today."

Jonathan Lynch, a general partner of JPMorgan Partners, said, "Crosstown Traders has clearly established itself as a leading direct marketer of women's apparel and specialty gifts. JPMorgan Partners' acquisition of Crosstown Traders is consistent with our strategy of investing in direct marketing companies with outstanding management teams and unparalleled competitive positions. We look forward to working with the entire Crosstown team to advance the growth of the business as a free standing asset."

Ronald W. Tysoe, Federated vice chairman, said, "We are very pleased to be able to successfully complete the sale of these businesses in a manner that will allow for the preservation of jobs and the continued operation of Arizona Mail Order and Figi's as going concerns."

Arizona Mail Order and Figi's were formerly part of the Fingerhut Companies, a direct marketing subsidiary of Federated. GLC Securities Corp., an affiliate of Gruppo Levey & Co., and Capital Run LLC acted as financial advisor to JPMorgan Partners, and Credit Suisse First Boston acted as financial advisor to Federated.

About Federated

Federated Department Stores, Inc. (NYSE:FD), with corporate offices in Cincinnati and New York, is one of the nation's leading department store retailers, with annual sales of more than $15.6 billion. Federated currently operates more than 460 stores in 34 states, Guam and Puerto Rico, under the names of Macy's, Bloomingdale's, The Bon Marche, Burdines, Goldsmith's, Lazarus and Rich's, as well as macys.com and Bloomingdale's By Mail.

About JPMorgan Partners

JPMorgan Partners (JPMP), formerly Chase Capital Partners, is a global partnership with more than $29 billion under management. It is a leading provider of private equity and has closed more than 1,800 individual transactions since its inception in 1984. JPMP has more than 150 investment professionals in eight offices throughout the world. JPMorgan Partners' primary limited partner is J.P. Morgan Chase & Co. (NYSE:JPM), one of the largest financial institutions in the United States. For additional information, please visit our website at www.jpmorganpartners.com. CONTACT: JP Morgan Partners

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