Southpaw Asset Management LP Extends the Offer to Purchase 5.25% Convertible Senior Notes, due April 1, 2014, of Eddie Bauer Holdings, Inc.

GREENWICH, Conn., June 30, 2011 /PRNewswire/ -- Southpaw Asset Management LP ("Southpaw") announced today that is has amended its offer to purchase 5.25% Convertible Senior Notes, due April 1, 2014 (the "Notes", and, each individually, a "Note") of Eddie Bauer Holdings, Inc. (predecessor to EBHI Holdings, Inc.).  The amended offer increases the purchase price for each Note to $60.00 per $1,000.00 principal amount, and extends the expiration time for the offer until 5:00 p.m., New York City Time, on Friday, July 15, 2011, unless further extended in the discretion of Southpaw. All other the terms and conditions of the offer remain unchanged.

On June 1, 2011, Southpaw commenced an offer to purchase up to $57,397,000 principal amount of Notes at a price equal to $50.00 per $1,000.00 principal amount, net to the seller in cash, without interest thereon.  The offer was originally set to expire at 5:00 p.m., New York City Time, on June 29, 2011, or such later date to which the offer was extended at the discretion of the Southpaw.   The depositary has indicated that, as of 5:00 p.m. New York City time on June 29, 2011, an aggregate of $2,848,000 principal amount of Notes had been validly tendered and not withdrawn pursuant to the Offer.  All Notes previously validly tendered and not withdrawn prior to the new expiration date will receive the increased price for the Notes.

Additional terms and conditions of the offer to purchase are set forth in Southpaw's offering materials, which have been distributed to holders of the Notes.  Mellon Investor Services, LLC serves as the depositary and information agent for the offer.

This announcement is not a recommendation, an offer to purchase or a solicitation of an offer to sell Notes.  The offer is being made only by an offer to purchase Notes.  Offering materials including an offer to purchase, a related letter of transmittal and other documents are available free of charge from the information agent by calling 1-866-223-8322. Holders of the Notes should read the relevant offer to purchase and related documents as they contain important information about the offer.

SOURCE Southpaw Asset Management LP