Copelands' Enterprises, Inc. has assigned the leasehold interests in eight former Copeland Sports retail store locations to a subsidiary of The Sports Authority, Inc. The transaction, which was approved by the bankruptcy court, is expected to be followed by the assignment of leasehold rights in additional sites within the next several weeks. The Company expects that the sites will be remodeled and rebranded under The Sports Authority name for reopening in Spring 2007. The Company believes that The Sports Authority plans to retain many of the current employees working at the Copeland Sports retail stores that it has assumed.

On November 1, 2006, the Company entered into a purchase agreement with a joint venture composed of a subsidiary of The Sports Authority, Inc., Hilco Real Estate, LLC and Hilco Merchant Resources, LLC for certain of the Copeland Sports assets. Hilco Real Estate, which has acquired certain lease designation rights, is expected to acquire or remarket the Copeland Sports remaining leases. Together with The Sports Authority, Hilco Merchant Resources and Hilco Real Estate collectively structured, financed and facilitated the strategic transaction, and will also manage the disposition of unwanted assets.