EXHIBIT 99.1
FOR IMMEDIATE RELEASE CONTACT: Day Runner, Inc.
Judy Tucker
Vice President, Business Development
714/680-3500, Ext. 3171
Jenifer Kirtland
Director, Investor Relations
714/680-3500, Ext. 3697
Morgen-Walke Associates, Inc.
Doug Sherk/Elizabeth Snowden
415/296-7383
Mark Owen
212/850-5600
DAY RUNNER(R) ANNOUNCES CLOSING OF FILOFAX ACQUISITION
IRVINE, CA. October 30, 1998. Day Runner, Inc. (Nasdaq/NMS: DAYR) today
announced that it has assumed control of Filofax Group plc. Day Runner now owns
or has received valid acceptances of its recommended cash tender offer for
Filofax totaling 20,936,994 shares, representing approximately 86.86% of that
company's outstanding shares. Filofax will operate as a subsidiary of Day
Runner. Filofax's managing director, Christopher Brace, will head Filofax's
operations, reporting directly to Day Runner chief executive officer James E.
Freeman, Jr., and Michael Ball will continue as group finance director,
reporting to Mr. Brace. Day Runner's offer is for (pound)2.10 per share ($3.52
at yesterday's exchange rate), and the transaction is valued at approximately
$85.8 million.
Day Runner chairman Mark Vidovich commented, "We are delighted that
Filofax is now part of the Day Runner group. We're confident that the Filofax
brand will be an excellent complement to Day Runner's current product lines, and
we believe that Filofax's established distribution in key markets outside the
U.S. offers substantial growth opportunities. We look forward to working closely
with Filofax's management to build the business."
All conditions to Day Runner's offer, including anti-trust approval, have
been satisfied or waived, and Day Runner has declared its offer for Filofax
unconditional in all respects. The offer will remain open for acceptance until
3:00 p.m. London time, November 12, 1998.
Valid acceptances of Day Runner's offer received by 3:00 p.m. London time
yesterday totaled 17,346,994 Filofax shares, representing approximately 71.97%
of Filofax's outstanding shares. This included acceptances for 5,373,084 Filofax
shares representing approximately 22.29% of Filofax's outstanding shares, held
by directors and a former director of Filofax and certain of their families and
associated interests who entered into irrevocable undertakings to accept the
offer. In addition, Day Runner owns 3,590,000 Filofax shares, representing
approximately 14.89% of the outstanding shares, that it bought on the open
market subsequent to announcing its offer on September 24th.
Filofax is the leading producer of loose-leaf personal organizers for the
UK retail market, and the Filofax brand name is widely recognized in a number of
other key markets around the world. In addition to its core personal organizer
business, Filofax markets business forms and high-end pens. Filofax has wholly
owned sales subsidiaries in France, Germany, Hong Kong, Scandinavia, the UK and
the U.S. and sells primarily through retail distribution channels in each
market.
Filofax's sales from continuing operations for its fiscal year ended March
31, 1998 were approximately (pound)37.7 million (approximately US$63.3 million),
with approximately US$54.7 million, or 86.4%, to markets outside the U.S. Day
Runner's sales for its fiscal year ended June 30, 1998 were approximately $167.8
million, with approximately $12.2 million, or 7.3%, to markets outside the U.S.
Financial statements have been translated using an exchange rate of 1.68.
Day Runner is a marketer of personal organizing products to broad-based
consumer audiences through retail distribution. The Company is the leading
developer, manufacturer and marketer of paper-based organizers for the U.S.
retail market and also develops, manufactures and markets a number of related
organizing products, including telephone/address books, appointment books,
business accessories, products for children and students, organizing and other
wall boards and flexible, laminated wall planners, among others. Day Runner's
products are carried by more than 20,000 retail stores across the U.S. and are
available in a number of countries in North America, Europe and the Asia-Pacific
region.
With the exception of the actual reported financial results and statements
of historical fact, the statements made in this news release are forward
looking, reflect the Company's current expectations and involve certain risks
and uncertainties. There can be no assurance that the Company's actual future
performance will meet the Company's expectations. As discussed in the Company's
fiscal 1998 Annual Report on Form 10-K, the Company's future operating results
are difficult to predict and subject to significant fluctuations. Factors that
may cause future results to differ materially from the Company's current
expectations include, among others: the timing and size of orders from large
customers, timing and size of orders for new products, competition, large
customers' inventory management, general economic conditions, the health of the
retail environment, supply constraints and supplier performance.
This announcement does not constitute an offer or an invitation to
purchase any securities. The offer is not being made, directly or indirectly, in
or into Canada, Australia or Japan, and this release is not for distribution in
Canada, Australia or Japan.
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(R)Day Runner is a registered trademark of Day Runner, Inc.