Exhibit 99.1

                                                         Contact: Louise Solomon
                                                                   Tower Records
                                                                  (916) 373 2574
                                                       lsolomon@towerrecords.com

                              FOR IMMEDIATE RELEASE
            MTS, INCORPORATED ANNOUNCES AMENDMENT TO CLOSING DATE OF
                           SALE OF JAPANESE OPERATIONS

Sacramento, CA - MTS, Incorporated, dba Tower Records, the leading independent
specialist retailer of entertainment software, today announced that it has
entered into an agreement to extend the closing date of the sale of its Japanese
operations. The amendment to the stock purchase agreement provides for an
extension of the deadline from August 15th, 2002 to August 30th, 2002, in order
to complete all documentation related to the sale and the refinancing of the
company's senior credit facility.

The company previously announced in April 2002, that it had entered into an
agreement to sell its Japanese operations to Nikko Principal Investments Japan
Ltd. The company also later announced that it had agreed on terms in principle
with CIT Group/Business Credit Inc. and JP Morgan Chase to refinance its bank
credit facility through April 2005. Both the CIT credit facility of $125 million
and the JP Morgan Chase supplemental loan for $26 million will be finalized
upon, and are subject to, the execution of definitive loan documents and the
simultaneous completion of the sale of the company's Japanese operations.

ABOUT TOWER RECORDS

Since 1960 Tower Records has been recognized and respected throughout the world
for its unique brand of retailing. Founded in Sacramento CA, by current Chairman
Russ Solomon, the company's growth over four decades has made Tower Records a
household name.

Tower Records owns and operates 171 stores worldwide with 56 franchise
operations. The company opened one of the first Internet music stores on America
Online in June 1995 and followed a year later with the launch of
TowerRecords.com. The site was named "Best Music Commerce site" by Forrester
Research.



Tower Records' commitment to introducing its customers to the latest trends in
new product lines is paramount to the organization's retail philosophy. Tower
forges ahead with the development of exciting shopping environments, espousing
diverse product ranges, artist performance stages, personal electronics
departments, and digital centers. Tower Records maintains its commitment to
providing the deepest selection of packaged entertainment in the world
merchandised in stores that celebrate the unique interests and needs of the
local community.

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This press release contains certain forward-looking statements. These
forward-looking statements generally can be identified by the context of the
statement or the use of words such as the Company or its management "believes,"
"anticipates," "intends," "expects," "plans," or words of similar meaning.
Similarly, statements that describe the Company's future plans, objectives,
strategies or goals are forward-looking statements. Although the management of
the Company believes that the assumptions underlying the forward-looking
statements are reasonable, these assumptions and the forward-looking statements
are subject to various factors, risks and uncertainties, many of which are
beyond the control of the Company, including, but not limited to: consumer
demand for the Company's products, which is believed to be related to a number
of factors, including overall consumer spending patterns, weather conditions and
new releases available from suppliers; an increase in competition, including
Internet competition and competition resulting from electronic or other
alternative methods of delivery of music and other products to consumers, or
unanticipated margin or other disadvantages relative to competitors; the
continued availability and cost of adequate capital to fund the Company's
operations; higher than anticipated interest, occupancy, labor, distribution and
inventory shrinkage costs; unanticipated adverse litigation expenses or results;
higher than anticipated costs associated with the implementation of the
Company's business plan and/or lower than anticipated resulting operations and
cash flow benefits; anticipated increases in the cost of merchandise sold by the
Company; the changes in foreign currency rates and economic and political risks;
the ability of the Company to comply with the ongoing monthly affirmative and
negative covenants as prescribed under the Company's existing credit facility;
the successful refinancing of the Company's existing credit facility, which is
dependent upon the successful completion of the sale of the Company's Japanese
operations and the negotiation and execution of definitive loan documents
covering the CIT credit facility and the supplemental loan; the ability of the
Company to continue to service its senior subordinated notes; and the other risk
factors disclosed in the Company's filing with the Securities and Exchange
Commission, including its annual report on Form 10-K. Accordingly, actual
results could differ from those contemplated by the forward-looking statements
contained in this press release.