September 11th 2007

Following last week’s Competition Commission ruling in favour of its acquisition of the Bertram Group, Entertainment UK (E.UK) today sets out its plans for the integration of Bertram and Total Home Entertainment (THE).

The successful acquisition of Bertram allows E.UK to significantly enhance its book wholesale capabilities and to further develop its retail and online customer base. Additionally, combining the offerings of Bertram and THE – which E.UK acquired in September 2006 – will strengthen E.UK’s ability to support and develop the independent retail sector.

In the short term, the respective businesses will continue to function as normal, to ensure continuity and excellence in customer service during the forthcoming peak trading period. This will include the continued operation of two separate call centres, although a new united sales force will be created imminently.

Over the coming months the THE business will be integrated with Bertram to create a new distribution company – Bertram|THE. Discussions will take place with THE customers with regards to the migration of their business to Bertram|THE, with physical orders fulfilled from its Norwich distribution centre from November onwards. Responsibility for servicing THE’s library customers will be transferred to Bertram Library Services by the end of October. It is envisaged that all remaining aspects of THE’s current operation will be fully integrated into the Bertram Group by the early part of January 2008.

As a result of the acquisition and subsequent restructure, THE’s base in
Newcastle-Under-Lyme will cease operations by the end of December 2007. E.UK is undertaking a comprehensive programme to support those staff affected; including looking for opportunities elsewhere within the Group, and through assistance with outplacement, careers support and skills training.

Lloyd Wigglesworth, Managing Director of E.UK comments:
“The integration of the Bertram and THE businesses will allow us to continue to enhance our book wholesale offering. Our priorities throughout this period of change are to support those employees affected, and to ensure that our customers continue to receive the best possible service during the vital peak trading period. As such we are offering a wide range of assistance to our employees, and making the transition for customers as seamless as possible with ‘business as usual’ during the coming months.”