The following went out from Keith Stamets at Castle Megastore: Vendors,

Going forward, Mark Franks [pictured] has made the following alterations to our New Release Program and has directed me to communicate these changes to all our vendors. We will order all new release titles and ask to receive our cost of $5.00.

This will allow us to adjust our retails to a level our vendors feel our customers will respond to and will generate sales. This decision is in response to industry conditions that have placed pressure on vendors and retailers to re-evaluate their price structure to remain competitive. Vendors submitting New Releases at our target cost will receive prompt orders. Vendors that choose to pass on our business rather than to participate in our On the Street Program may opt out in which case no orders will be placed on new release titles going forward.

We have heard from vendors who have suggested the we lower our retails to increase business. As partners we also see opportunity for our vendors that will lower their cost to grow their business as sell.

I trust that you will work with us on this new approach to the New Release program. If you have any questions regarding this change to our New Release program please feel free to contact myself or Mark Franks to discuss the details.

Thank you

Keith