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Zany Brainy Announces Commitment for Secured Credit Facility
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 Zany Brainy, Inc. , today announced that it has received a commitment from First Union National Bank to provide a new secured revolving credit facility. The principal amount of the new facility is $65 million prior to the closing of the Noodle Kidoodle acquisition and increases to $115 million upon closing of the acquisition. Keith Spurgeon, Chairman and Chief Executive Officer of Zany Brainy, said, ``We are excited about the commitment to our business being made by First Union, and look forward to the continuation of our excellent relationship with the bank. This new facility, when completed, will meet our current capital needs as we pursue our bricks, clicks and catalog expansion strategy and provide us with the liquidity we need to integrate the operations of Noodle Kidoodle.'' The new facility, which is subject to certain conditions, including the execution of definitive loan documents, will have an initial term of three years. The $65 million portion of the credit facility is currently scheduled to close in late July. The balance of the facility should be available upon satisfactory completion of the bank's due diligence on Noodle Kidoodle and closing of the acquisition. William R. Davis, President and Chief Executive Officer of First Union Business Credit stated, ``First Union and Zany Brainy have been working together since 1994 when Zany only had seven stores. We are very pleased that Zany Brainy turned to us again as the bank to support Zany's strategic initiatives and capital needs as we enter the new millennium.'' Mr. Spurgeon added, ``Besides obtaining the commitment from First Union, our other plans for integrating Noodle Kidoodle and Zany Brainy continue to be on track. Noodle's shareholders will vote on July 25th and Zany's shareholders will vote on July 26th. Assuming we get the necessary shareholder approvals, the acquisition should close shortly thereafter. I'm pleased to announce that, in addition to the continuing involvement of both Stanley Greenman and Stewart Katz, certain key employees of Noodle have agreed to permanently join Zany post-closing. Other key Noodle employees have agreed to stay with Zany on a short-term basis. The continuity these employees will afford during the post-closing integration process, as well as the ongoing support and hard work of both Noodle and Zany employees prior to the closing, is invaluable.'' [Posted 7/13/2000]
  
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