Follett Corporation Completes Acquisition of Varsity Group

Apr 16, 2008, 01:00 ET from Follett Corporation

    RIVER GROVE, Ill., April 16 /PRNewswire/ -- Follett Corporation and
 Varsity Group Inc. (Nasdaq:   VSTY) today announced that Follett has
 completed its acquisition of Varsity Group through the merger of Follett's
 wholly-owned subsidiary, VGI Acquisition Corp., with and into Varsity
 Group. As a result of the merger, Varsity Group has become a wholly-owned
 subsidiary of Follett.
     "The merger of Varsity and Follett brings together two pioneers of
 online textbook sales dedicated to delivering increasing levels of
 innovation, service and value to the virtual bookstore marketplace," said
 Christopher D. Traut, president and chief executive officer of Follett
 Corporation. "Varsity will continue to provide superior service and
 fulfillment to customers who rely on virtual bookstores to support their
 educational missions."
     All outstanding shares of Varsity Group common stock not validly
 tendered and accepted for payment in the tender offer were converted into
 the right to receive $0.20 per share in cash, without interest and subject
 to any applicable withholding of taxes. The depositary for the tender offer
 and the disbursing agent for the merger will mail to non-tendering Varsity
 Group stockholders the materials necessary to exchange Varsity Group stock
 certificates for such payment.
     Follett and Varsity Group have requested that NASDAQ file a Form 25
 with the United States Securities and Exchange Commission causing the
 delisting of Varsity Group's common stock from NASDAQ and will file a Form
 15 completing the deregistration of Varsity Group's common stock under the
 United States federal securities laws.
     About Varsity Group
     Varsity Group Inc. is an outsource solution provider to education
 institutions nationwide. Under the brand Varsity Books, Varsity Group
 provides solutions that enable schools to focus on their core educational
 mission. Varsity Group's solutions include online textbook and school
 supply services.
     About Follett
     Follett Corporation is a $2.3 billion, privately-held company that
 provides products, services and solutions to the educational marketplace.
 Follett is the nation's largest provider of library materials and library
 technology to K-12 schools, the leading operator of college bookstores and
 a major distributor of textbooks to institutions at all levels of
 education. Follett Corporation was founded in 1873, and is headquartered in
 River Grove, Illinois.
     Cautionary Statements
     Statements in this release that are not statements of historical fact
 may include forward-looking statements. Any such forward-looking statements
 are subject to risks and uncertainties. Such forward-looking statements
 include statements concerning the completion of the transactions
 contemplated by the merger agreement, including the merger and the timing
 thereof and the business opportunities afforded by the merger. For a
 discussion of other risks facing Varsity Group's business, please refer to
 the documents filed by Varsity Group with the United States Securities and
 Exchange Commission from time to time.

SOURCE Follett Corporation