THOMAS NELSON ANNOUNCES TEST RESULTS FOR NEW FELT NEEDS BIBLE MERCHANDISING SYSTEM

Thomas Nelson, Inc. has announced the test results from their newly developed Felt Needs Bible Merchandising System. The overall goal of the publisher-neutral system is to help simplify the shopping experience by enabling consumers to find a Bible in three steps or less, using simple color-coded merchandising and a clearly-defined shopping guide categorized by customer need. Other than an easier purchasing experience for consumers, the new merchandising system also allows for greater flexibility in cross merchandising opportunities for stores. After collecting sales data from the 11 test stores located across the country and analyzing the average weekly Bible sales, it was found that they experienced better than industry average increases in Bible product movement.

“Overall we were very pleased with what we learned from the test and the positive impact the new Felt Needs Bible Merchandising system had on increasing Bible sales,” commented
Wayne Hastings, Sr. Vice President and Group Publisher for Thomas Nelson, Inc.’s Bible group.

An analysis of the test stores and industry data found that:

* The test stores, during the 5 week test period (Oct/Nov 2006), experienced a 20% increase (or lift), in their combined weekly average Bible sales compared to their 2006 weekly average prior to the test being implemented; and a 12% increase over their
2005 weekly average.

*The CBA industry, according to ECPA STATS data, experienced a 14% decline in Bible sales during the 2006 test period compared to its 2005 weekly average, which shows a remarkable 26% increase for the test stores over the industry.

These results offer proof that stronger Bible sales come through a focus on customer need and the implementation of the new Felt Needs Bible Merchandising System.

“What makes this result even better is that we did nothing to change the participating stores’ inventory mix, traffic patterns or marketing. We simply gave them a merchandising
solution based on customer need that replaced a feature/translation system,” added Hastings.

“Aside from having an impressive impact on sales, we received some great feedback that allowed us to upgrade the system based on consumer insights, making the final kits even more helpful for stores and their customers,” said Rodney Hatfield, VP of Marketing for Thomas Nelson, Inc.’s Bible group.

Retailers and consumers can expect to see elements of the system’s designs reflected in future Thomas Nelson Bible product packaging. This is being implemented to further help
customers identify Bibles to fill their need, as well as aid clerks in easily identifying store placement and assisting customers.

Thomas Nelson, Inc. has also developed a new Bible Translation Guide as an extension
of the new Felt Needs Merchandising System. Although Thomas Nelson’s research partnership with the Barna Group found that translation was not a primary reason for customers entering a store and making a purchase decision, understanding a translation is still contributing to consumer Bible selection confusion. The company took an open approach with all publishing houses affiliated with translations by offering them the opportunity to review the guide and give their suggestions and feedback. A copy of this updated translation guide will be included in every Felt Needs Merchandising
System kit that ships to retail.

“I want to personally thank all of the test stores for partnering with us over the last few months. We couldn’t have done this important step without their help and we are
grateful for their participation and support,” noted Hatfield.

Sales representatives for Thomas Nelson,Inc. began shipping the merchandising kits to stores this week.

Thomas Nelson, Inc. is a leading publisher and distributor of books emphasizing Christian, inspirational and family value themes and is the largest publisher of Bibles and inspirational books in the English language. For more information on the company and titles visit http://www.thomasnelson.com (http://www.thomasnelson.com/) and http://www.nelsonbibles.com (http://www.nelsonbibles.com/).

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