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MUSICLAND STORES CORPORATION FILES SEC REGISTRATION STATEMENT FOR PUBLIC OFFERING

 MINNEAPOLIS, Nov. 3 /PRNewswire/ -- Musicland Stores Corporation (NYSE: MLG) today filed a registration statement with the Securities and Exchange Commission for a public offering of eight million shares of its common stock. Of the shares being offered, four million are being issued by the company, and four million are being sold by certain stockholders of the company. The offering will increase the number of common shares outstanding to 34,228,900 from 30,228,900.
 Musicland Stores Corporation is the largest specialty retailer of prerecorded home entertainment products, such as compact discs, audio cassettes, video cassettes, and related accessories, in the United States. For the year ended Dec. 31, 1992, the company had revenues of $1.0 billion and income from operations of $69.7 million. At Sept. 30, 1993, it operated 1,188 stores -- under the names Musicland, Sam Goody, Suncoast Motion Pictures Company, Media Play and On Cue -- in 49 states and the District of Columbia, Puerto Rico and the United Kingdom.
 In its registration statement, the company indicated that proceeds from the offering by the company, which are estimated to be approximately $84 million, would be used for capital expenditures to support its planned stores growth, including the addition of 30 or more Media Play stores in 1994, and for general corporate purposes. Media Play is a "full-media" stores of 40,000 to 50,000 square feet and offers a complete selection of music, books, video, and entertainment computer software, all at discount prices. As of Nov. 1, 1993, the company operated six Media Play stores.
 As part of the offering, certain of the selling stockholders have granted the firm's U.S. underwriters -- Donaldson, Lufkin & Jenrette Securities Corporation, Merrill Lynch & Co. and Smith Barney Shearson Inc. -- a 30-day option to purchase up to 1.2 million additional shares of common stock from them on the same terms to cover any over- allotments.
 Of the shares being offered, 6.4 million shares are being offered for sale in the United States and Canada, and 1.6 million shares are being offered for sale outside the United States and Canada in a concurrent offering by the international managers of Donaldson, Lufkin & Jenrette Securities Corporation, Merrill Lynch International Limited and Smith Barney Shearson Inc.
 A registration statement relating to the common stock has been filed with the Securities and Exchange Commission but has not yet become effective. The common stock may not be sold nor may offers to buy be accepted prior to the time the registration statement become effective. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the common stock in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
 A written prospectus may be obtained from the underwriters.
 -0- 11/3/93
 /CONTACT: Marcia Appel, 612-932-7742, or Keith Benson, 612-932-7790, both of Musicland/
 (MLG)


CO: Musicland Corporation ST: Minnesota IN: REA SU: OFR

AL-DS -- MN007 -- 0008 11/03/93 09:28 EST
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Publication:PR Newswire
Date:Nov 3, 1993
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