FootLocker Announces Sale of Northern Group

-New CEO Appointed-

NEW YORK, NY, September 28, 2001–FootLocker (formerly Venator Group, Inc.) (NYSE:Z), the New York-based specialty athletic retailer today announced that it has completed the sale of its Canadian-based Northern Group today to Northern Group Acquisition Corp (NGAC).

NGAC made the purchase for approximately $50 million (Cdn.) and, as part of the initial capitalization of the business, it has secured a $60 million (Cdn.) revolving line of credit from Congress Financial Corp. (Canada). In addition, Foot Locker is providing financial support to Northern in the form of acquisition financing. Foot Locker also will continue to provide Northern with data management and purchasing support services.

“We are committed to building on the strength of the Northern brands… offering exclusive and distinct apparel,” said Alan Dumain, who, with more than 30 years of experience in retail management, played a key role in the recent revitalization of the brand in Canada.”Through this acquisition, active family members of all ages can continue to count on Northern’s promise of comfortable, lifestyle-oriented, casual apparel at affordable prices.”

Venator Group’s President and Chief Executive Officer, Matthew D. Serra said “The sale is part of the strategic decision to focus Venator Group’s full resources on our very successful athletic footwear and apparel businesses and we appreciate the years of support we have received from our Canadian customers, vendors, landlords and associates.”

In business since 1985, Northern Group is a leading, Canadian specialty apparel retailer operating in 353 prime locations across Canada under the Northern Reflections, Northern Traditions, Northern Getaway and Northern Elements banners.

Venator Group is primarily a mall-based athletic specialty retailer that operates approximately 3,600 athletic retail stores in 14 countries in North America, Europe and Australia. Through its Foot Locker, Lady Foot Locker, Kids Foot Locker and Champs Sports retail stores, as well as its direct-to-customer channel, the Company is the leading provider of athletic footwear and apparel.

About Synergy Enterprises
Synergy Enterprises, LLC is a Fort Lauderdale-based firm owned by Gary Nacht, its Chairman and CEO. Founded in 1995, Synergy has been acquiring and advising distressed and underperforming companies for over 20 years across a wide diversity of industries, including Kmart Canada, Northern Reflections, Gemini Industries, DPI International and AmerTac Inc.  Recently, Synergy launched its Quick Strike Advisory Service to help companies experiencing operating losses achieve short-term recovery.

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