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Aquisition Update (01/25/2002)

I write to you to share information regarding Reed Elsevier’s acquisition of Harcourt and changes within the Rigby organization.  As you may recall Rigby initiated a comprehensive project study focusing on our Abacus software, new ERP solutions, and our long term system requirements and capabilities.  As it turned out, the fine work that so many people did on this project did not move to a final solution as it was placed on hold when Reed Elsevier’s acquisition of Harcourt was announced.  Now with six months elapsed since the acquisition, it has been determined that Rigby will transition its systems to be compatible with the other Harcourt Education companies.  This conversion, as is the case with any conversion, will present challenges, but I am confident that our Rigby IT team and all others involved will handle this important project with their considerable talents and energy to assure minimal or no noticeable business disruption.  

With the above information in mind, I must also communicate to you a decision that has been reached with regard to our Distribution and Customer Service areas.  When Rigby becomes fully operational with the new COPS, BOSS, and PeopleSoft systems, it will also initiate a transfer of responsibilities for the distribution of Rigby products.  Rigby’s product line post-conversion will be housed and shipped from a Harcourt Distribution Center which is located in Troy, Missouri which includes other Reed Elsevier and Harcourt publications.  The target date for the distribution transition will be the beginning of May provided essential facets of the project are ready to proceed.  Customer Service will maintain a core group of staff members through the end of the summer to receive customer calls and to assist the planned transition for these responsibilities.  

Our Rigby Distribution and Customer Service colleagues will greatly benefit from your visible support, encouragement, and appreciation over the remaining months as they continue to assist our customers with the professionalism and concern for which Rigby is known.  

- Steven Korte, President

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