The Back Wars Come to a Close

Healthy Back Acquires Rival JoAnne's Bed & Back; Merger Sets Up Healthy Back as the Nation's Largest Company Owned Back Retail Chain

LORTON, Va., May 16 /PRNewswire/ -- Healthy Back, the 14-year old company whose focus on home and workplace back wellness created an ergonomic revolution, has acquired all substantial assets of its rival, JoAnne's Bed & Back. Healthy Back's 18 stores and ecommerce division claimed 2007 revenues of $40million. JoAnne's 16 mid-Atlantic stores claimed annual 2007 revenues of approximately $10million. JoAnne's declared Chapter 11 in April 2008.

"We have always had friendly competition and tremendous respect for JoAnne's," said Tony Mazlish, Healthy Back CEO. "It's exciting to be able to blend pieces from a competitor that has terrific people and has long experience in the industry."

Healthy Back will keep 8 current JoAnne's store locations open and as many employees on as possible. The acquisition fits with the company's long-term strategy of expanding its footprint in its current markets (Maryland, Virginia, New Jersey, North Carolina, Kentucky, Colorado and Southern California) while exploring new market possibilities. "By growing the number of stores in our key strategic markets, we increase our overall efficiency leading to smart growth and better service for our customers," said Mazlish.

Healthy Back has long focused its growth by diversifying its back wellness product offerings in key markets. Even in tight economic climates, Healthy Back continued to invest in subsidiary ecommerce channels, a diverse media mix, and catalog marketing, launched in late 2006 to drive growth in a weakening retail market.

Mazlish reflected, "It's a tough time to be a retailer, particularly in the furniture industry. We are fortunate to be in a position to acquire these valuable assets while pursuing growth in the back store industry which finds product solutions for people with back pain."

Started just a few years apart, the two chains were close rivals, While JoAnne's stayed focused on its core business, high-end mattresses, Healthy Back focused on a diversified product offering including ergonomically-correct chairs (office, recliners and massage), lumbar supports, travel accessories, exercise equipment and adjustable beds.

"We are thrilled to now be the nation's largest purveyor of back-focused products. Our goal is to make every one of our customers feel better than ever before, and now we have the resources to impact a dramatically larger group of customers," says Mazlish.

Contact: Barbara Martin
301.512.5078
barbara@thepattongroupinc.com

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Source: Healthy Back

CONTACT: Barbara Martin, +1-301-512-5078, barbara@thepattongroupinc.com,
for Healthy Back

Web site: http://www.healthyback.com/

2008-05-16 20:26:28 0364422 PRNEWSWIRE