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                                                                    EXHIBIT 99.1

October 8, 2001
For Immediate Release

Tower Records Inks New Bank Deal
Retailer Successfully Renegotiates Loan Agreement

Sacramento, CA -- MTS, Incorporated, dba Tower Records, the world's largest
independent entertainment software retailer, today announced the completion of
an amendment to its bank loan agreement with its consortium of 11 banks led by
JP Morgan Chase.

The original loan agreement with its accelerated pay down schedule has been
significantly amended to provide Tower Records greater credit availability.
Prior to the amendment, credit available under the facility was $195 million
from October 1 through December 31, and $100 million thereafter. Following the
amendment, Tower's credit facility will be $205 million through December 31 and
$195 million through April 2002.

Michael Solomon, President and CEO for Tower Records said, "We are delighted
with our new bank deal, which provides our company with good financial
flexibility to maintain operations. We will continue to implement the solid
business plan we put into effect, in order to meet industry and economic
challenges. As a music retailer with 40 years in the business, we are committed
to our business partners, our customers, and to ensuring that Tower Records
thrives."

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 4 decades has made Tower Records a
household name.

Tower Records owns and operates 173 stores worldwide with 57 franchise
operations in 5 countries. 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 in Fall 2000.

The recent founding of Tower Records own exclusive and independent record label
33rd Street has enabled the retailer to release popular and niche hit driven
music, while placing great emphasis on both marketing and artist development.

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.

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, uncertainties
concerning the completion of the amendment to the Company's credit facility
contemplated above, performance of the Company's obligations there under, the
availability of financing therefore and the other risk factors disclosed in the
Company's filings 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.