Contact: Xxxxxx X. Xxxxxx Investor Relations:
Vice Chairman and Xxxx Xxxxxx/Xxxxxxx Xxxxxxxx/
Chief Administrative Officer Xxxxxx Xxxxxxxxxxxx
United Retail Group, Inc.
000-000-0000
Press: Xxxxxxx XxXxxxxx
Xxxxxx-Xxxxx Associates, Inc.
212-850-5600
UNITED RETAIL GROUP ENTERS INTO RIGHT OF FIRST REFUSAL
AGREEMENT FOR 1,600,000 SHARES OF ITS STOCK WITH
LIMITED DIRECT ASSOCIATES, X.X.
Xxxxxxxx Park, New Jersey, September 21, 1999 - United Retail Group, Inc.
(NASDAQ-NMS:
"URGI") today announced that it entered into a right of first refusal
agreement for any proposed sale of 1,600,000 shares of its Common Stock,
representing 12% of shares outstanding, held by Limited Direct Associates,
L.P. "Limited").
The right has a term of one year, subject to extension by mutual agreement,
and applies to any sales that Limited may propose to make from time to time
on the Nasdaq National Market System and in negotiated or block
transactions. If United Retail Group, Inc. (the "Company") exercises the
right of first refusal, any shares that are proposed to be sold on the
NASDAQ National Market System will be sold to the Company instead (i) after
the market closes and before it opens again and (ii) at a purchase price
equal to that day's closing price. The Company has no obligation, however,
to exercise the right and purchase shares.
Limited has no obligation to propose any sales of shares.
The Company entered into a similar agreement with The Limited,
Inc./Intimate Brands, Inc. Foundation, whose present holding of shares of
Company Common Stock is not material.
Any purchases by the Company made under the rights of first refusal will be
included in the total authorized in the Company's recently announced stock
buyback program.
Any purchases of shares will be paid for from the Company's cash reserves.
United Retail Group, Inc. is a specialty retailer of large-size
women's fashion apparel, footwear and accessories featuring AVENUE(R) brand
merchandise. The Company operates 499 stores under its AVENUE(R) trade
name.
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