Word Entertainment Plans to Sell UK Subsidiary to STL, Ltd.; Purchaser to Distribute All Word Products in Europe.

Business/Entertainment Editors

NASHVILLE, Tenn.--(BUSINESS WIRE)--May 14, 2001

U.S.-based Word Entertainment, a unit of Gaylord Entertainment Company (NYSE:GET), has signed a non-binding letter of intent to sell its U.K. subsidiary, Word Entertainment Ltd. (Word UK), to Send the Light (STL) Ltd., a company based in the United Kingdom.

The two companies did not disclose financial details of the transaction. The transaction is subject to the completion of due diligence; the negotiation of definitive agreements for the sale and a five-year distribution agreement for Word products in the United Kingdom, Europe and South Africa; board and other stakeholder approvals; and other customary closing conditions. The two companies anticipate the sale to be completed by Sept. 1.

Plans for the transition call for Word UK's current managing director, Graham Williams, to continue to head the existing staff and have the new title of divisional managing director. Williams also will join the STL main board, reporting to STL group chief executive Keith Danby.

Following the sale, Word UK will become known as Premier Music and Books and will continue operating from its facility in Milton Keynes, England. The Premier name is taken from Word UK's consumer record sales club, Premier Music and Book Club.

Commenting on the deal, STL's Danby said, "I am delighted at securing this excellent company, which has a great reputation in the UK and Europe. Its product range will extend our reach into the marketplace, and there will be great synergy between our two teams and products. The greatest area of growth for STL in recent years has been in its distribution of U.S.-originated products, and leading U.S.-based music, book and Bible brands will be formidable additions to our stable. This acquisition will add great value to our operation and we feel very privileged to be entrusted with such valuable products."

"After meeting Keith Danby, it was obvious that the synergies STL has in place complement the operational demands of our UK business," said Mark Funderburg, president of Word Entertainment Distribution. "Graham Williams' years of experience will be a catalyst for the continued success of Word's products in the European markets as he leads STL's music initiatives. The reputation of these two leaders will ensure Word's strong position internationally with our music and video products."

STL, a non-profit organization based in Carlisle, England, is the largest distributor of Christian products in Europe and operator of England's Wesley Owen network of Christian retail outlets, the largest specialist Christian retailer in the United Kingdom. The company's stated mission is to "advance the Christian faith through retailing" by the provision of the best range of Bibles, books, music, software and video products.

This press release contains certain forward-looking statements in connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Gaylord Entertainment cautions investors that future events or operating results of Gaylord Entertainment may differ materially from those projected in the forward-looking statements made by Gaylord Entertainment Company.

Gaylord Entertainment is a diversified entertainment company headquartered in Nashville, Tenn., and its stock is traded on the New York Stock Exchange (symbol:GET). Its businesses operate in two groups: Hospitality & Attractions, and Music, Media & Entertainment. Among its businesses are the Opryland Hotels, the Grand Ole Opry, Acuff-Rose Music Publishing, Word Entertainment and WSM Radio.