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Chapters, Indigo merger is final Chapters corporate name changes to Indigo TORONTO, Aug. 14 - The merger of Chapters Inc. ("Chapters") (TSE: CHP) and Indigo Books & Music, Inc. ("Indigo") was completed today, following the receipt of all necessary regulatory approvals and the approval of Chapters' and Indigo's debt holders. Independent Chapters shareholders had already voted overwhelmingly in favour of the merger in a vote at the company's Annual and Special Meeting, held August 7. The majority of the independent Chapters shareholders, being shareholders other than Trilogy Retail Enterprises LP, Gerald Schwartz, Heather Reisman and parties related to them, voted 86% in favour of the merger. Indigo and Indigo Online Inc. shareholders voted in favour of the merger at their shareholder meetings in July. In addition, the corporate name of the company was formally changed from Chapters Inc. to Indigo Books & Music Inc. Prior to the name change being approved by The Toronto Stock Exchange (the "TSE") and the resulting change in the trading symbol for the company's common shares on the TSE, an additional news release will be issued. About Chapters Chapters is the largest book retail chain in Canada, operating bookstores in all provinces under the names Chapters, Coles, SmithBooks, and World's Biggest Bookstore. Chapters is the top retail brand in Canada, ranked No. 1 overall by consumers for four consecutive years (Kubas Major Market Retail Report 1997, 1998, 1999 and 2000). Chapters is majority owner of Chapters Online Inc., operating www.chapters.indigo.ca, an online retailer of books, music, videos and DVDs. To learn more about Chapters, please visit the About Our Company section of www.chapters.indigo.ca. About Indigo Indigo is Canada's second largest bookstore chain. It operates stores in Ontario, Quebec, Alberta and British Columbia and has been recognized as "Best Large Format Bookstore" by Toronto Life Magazine and Best Music Retailer of the Year by the Canadian Music Association. For further information: Tracy Nesdoly, Vice President Communications, Indigo Books & Music Inc., Tel.: (416) 263-5025, Fax: (416) 598-5060 back to retail news releases Retail Corporate Profile Management SEDAR Filings News Releases Online Corporate Profile Management News Releases Info Desk iREWARDS Program About Our Company Affiliate Opportunities Careers Contact Us Corporate Sales Gift Certificates Privacy Policy Shipping Rates Store Locations Wish List chapters.indigo.ca: home Shopping Bag | Account Centre | Wish List | Help iREWARDS Program | Corporate Sales | Store Locations All Products Books DVD Video Gifts Books Advanced Search Search Tips Browse Books Art and Architecture Audiobooks Biography & Memoir Business and Finance Children's Books Computers View all Categories Browse DVD Action & Adventure Comedies Dramas Foreign Films Horror & Suspense Kids & Family View all Categories Browse Video Action & Adventure Comedies Dramas Foreign Films Horror & Suspense Kids & Family View all Categories . Coles, Canada • Indigo Canada • Indigo Chapters Ca • Chapters Com • Chapters Canada • Chapters Library • www.Chapters Indigo • Indigo Website, Canada • Chapters Ontario • www.Indigo.com • Chapters Website • Indigo Chapters • Chapters Home Page • Chapters Library • www.Chapters Indigo • Chapters Indigo Toronto • Chapters Ontario • Chapters Bookstore • Chapters Online Store • Chapters Indigo Com • Chapters Book Store • www.Indigo.ca • Chapters Website, Canada • Chapters Indigo Toronto • Chapters Ontario •

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