Musician's Friend to Relocate to California

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Guitar Center, Inc. today announced plans to relocate the operations of its Musician's Friend, Inc. business that are currently located in Medford, Oregon, to Southern California early in 2012. Musician's Friend will continue to operate in Medford through the end of 2011.

“Our customers increasingly appreciate our ability to serve them across our various brands through every potential channel – in-store, online, or from a smart phone or a call center. This relocation will enable us to have our e-commerce experts working side-by-side with our retail experts for the benefit of our customers,” said Greg Trojan, Chief Executive Officer of Guitar Center.

Facilities operated by Musician's Friend in Salt Lake City, Utah, and Kansas City, Missouri, are unaffected by the relocation. Musician's Friend had previously announced that the lease on its current facility in South Bend, Indiana, expires in February 2012, and that future plans were being evaluated.

Musician's Friend currently employs approximately 225 associates at its Medford facility. As a result of the relocation, the Company expects to offer some associates the opportunity to move to Southern California. Those associates who choose not to accept the opportunity to move or are not offered the opportunity to move will be offered retention packages and severance payments.

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