MWRK Mothers Work (MM)

Company Has Prepaid $13 Million of Term Loan Debt in the Last Three Months PHILADELPHIA, June 19 /PRNewswire-FirstCall/ -- Mothers Work, Inc. (NASDAQ:MWRK) announced today that it has prepaid $8 million of its senior secured Term Loan due March, 2013, pursuant to the optional prepayment provisions of the Term Loan. Together with its Term Loan prepayment of $5 million on March 19, 2008, the Company has prepaid $13 million of its Term Loan over the past three months. Pursuant to the provisions of the Term Loan, such prepayments were made without any prepayment premium or penalty. Giving effect to these prepayments, the Company's indebtedness under the Term Loan is now $76.1 million. Edward M. Krell, Chief Operating Officer & Chief Financial Officer of Mothers Work, noted, "We are very pleased to prepay an additional $8 million of our Term Loan, bringing our total Term Loan prepayments this year to $13 million. We believe this action indicates our continued commitment to increase shareholder value and reflects our confidence in our generation of free cash flow despite a challenging overall economic environment." Mothers Work is the world's largest designer and retailer of maternity apparel, using its custom TrendTrack(TM) merchandise analysis and planning system as well as its quick response replenishment process to "give the customer what she wants, when she wants it." As of May 31, 2008, Mothers Work operates 1,531 maternity locations, including 760 stores, predominantly under the tradenames Motherhood Maternity(R), A Pea in the Pod(R), Mimi Maternity(R), and Destination Maternity(R), and sells on the web through its DestinationMaternity.com and brand-specific websites. In addition, Mothers Work distributes its Oh Baby by Motherhood(TM) collection through a licensed arrangement at Kohl's(R) stores throughout the United States and on Kohls.com. The Company cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or made from time to time by management of the Company, including those regarding expected results of operations, liquidity, financial condition and free cash flow and various business initiatives, involve risks and uncertainties, and are subject to change based on various important factors. The following factors, among others, in some cases have affected and in the future could affect the Company's financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any such forward-looking statements: our ability to successfully manage our various business initiatives, our ability to successfully manage and retain our leased department and licensed relationships and marketing partnerships, future sales trends in our existing store base, weather, changes in consumer spending patterns, raw material price increases, consumer preferences and overall economic conditions, the impact of competition and pricing, availability of suitable store locations, continued availability of capital and financing, ability to hire and develop senior management and sales associates, ability to develop and source merchandise, ability to receive production from foreign sources on a timely basis, potential stock repurchases, potential debt prepayments, changes in market interest rates, war or acts of terrorism, and other factors set forth in the Company's periodic filings with the Securities and Exchange Commission, or in materials incorporated therein by reference. Mothers Work press releases available through Company News On-Call at http://www.prnewswire.com/comp/581877.html DATASOURCE: Mothers Work, Inc. CONTACT: Edward M. Krell, Chief Operating Officer & Chief Financial Officer, +1-215-873-2220 Web site: http://www.motherswork.com/ Company News On-Call: http://www.prnewswire.com/comp/581877.html

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