The Right Start Receives Nasdaq Notification

Calabasas, California, UNITED STATES


CALABASAS, Cailf., Aug. 22, 2001 (PRIMEZONE) -- The Right Start, Inc. (Nasdaq:RTST), announced today that it has received notification from Nasdaq indicating that the Company fails to comply with the requirements under Marketplace Rule 4450(a)(2) (market value of public float) and 4450(a)(3) (net tangible assets) for continued listing and that its common stock is, therefore, subject to delisting from The Nasdaq National Market.

The Company has appealed the Nasdaq Staff's determination by requesting a hearing. As a result of such appeal, the delisting of Company's securities is stayed pending a decision by a Nasdaq Listing Qualifications Panel. There can be no assurance the Panel will grant the Company's request for continued listing, but the Company will inform the Panel of the following events which the Company believes bring the Company back into compliance and demonstrate its ability to maintain compliance.

On August 16, 2001, the Company announced that it had agreed to acquire substantially all of the assets of Zany Brainy, Inc. At the same time the Company announced that it expects to sell $20 million of its equity to a private investment group by September 5, 2001. In addition, holders of $3.5 million of the Company's convertible debt have indicated their willingness to convert their debt to common stock in connection with such investment. Finally, in connection with the acquisition, the Company will issue 1.1 million shares of its common stock currently valued at approximately $4.2 million. Together these events would increase the Company's stockholder's equity by over $27 million and, as a result, the Company's net tangible assets will be substantially in excess of the requirement for continued listing. The Company believes that the current market value of its public float, if sustained for the requisite period, would comply with Nasdaq continued listing requirements.

About Right Start

The Right Start, Inc. is the largest, national specialty retailer of high quality developmental, educational and care products for infants and children through age four. The Right Start brand originated in 1985 through the creation of the award-winning Right Start Catalog(tm). The Right Start now operates 68 retail stores nationwide.

The Company is based in Calabasas, Cailf.

This press release may contain certain forward-looking statements with respect to the financial condition, results of operations, continued listing of common stock and expansion projects of The Right Start, Inc. that may be impacted by factors including, but not limited to, the availability of capital, competition from other retailers and potential product liability claims, future stock price, the Nasdaq Panel determination and other risks included in The Right Start's filings with the Securities and Exchange Commission including, but not limited to, The Right Start's Registration Statement on Form S-3 (File No. 333-84319), its Annual Report of Form 10-K for the fiscal year ended February 3, 2001 and its quarterly reports.



        

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