11.05.2007

Essen, 11 May 2007. Karstadt Warenhaus GmbH and Thalia Holding GmbH, a subsidiary of the Douglas Group, have sealed a strategic partnership in the book retailing segment. Effective 1 February 2008, Thalia, the qualitative market leader in the German-speaking general book trade is to take over the book departments in 89 Karstadt department stores operating these exclusively under the Thalia brand. From July 2007, the partnership will be started in five pilot department stores. Both parties agreed not to disclose any details about the purchase price. The agreement is subject to the approval of the Monopolies Commission.

"We are bringing into the partnership our department stores in first-rate city centre locations and an established book business. Thalia will provide for a higher-quality offer. A broad product range combined with a higher level of advice will result in a convincing offer for our customers," states Peter Wolf, Chairman of the Board of Directors of Karstadt Warenhaus GmbH. For his company he expects an increase in annual results in the two digit million range. During its 2006 financial year, Karstadt generated revenues of approximately €70 million with its bookselling activities.

Initially the co-operation with Thalia has been set for 10 years, with appropriate extension options. Thalia will convert the book sections in the department stores with its successful customer-oriented concept as full-range provider.

With this step, Karstadt is consistently continuing the trading-up strategy of its department stores. The Thalia book stores will be an important element of the tangibly more appealing media worlds, which will be established on the top floors of the department stores. "We will become stronger in this area with further strategic partnerships in the near future," explains Peter Wolf.

Press contact:
KarstadtQuelle AG
Corporate communication
Jörg Howe
Phone: +49 (0)201/727-25 38
Email: joerg.howe@karstadtquelle.com