[Marc]

American Eagle Outfitters, Inc. is a retailer that designs, markets and sells its own brand of clothing targeting 15 to 25-year-olds in its United States and Canadian retail stores. Its collection includes standards, such as jeans and graphic T-shirts, as well as essentials, such as accessories, outerwear, footwear, basics and swimwear that are marketed under its American Eagle Outfitters, American Eagle and AE brand names. It also distributes merchandise via its e-commerce operation, ae.com, which offers additional sizes, colors and styles of AE merchandise. As of January 28, 2006, it operated 869 American Eagle Outfitters stores in the United States and Canada. On January 27, 2006, the Company entered into an agreement to sell certain assets of National Logistics Services (NLS) to 6510965 Canada Inc. On February 28, 2006, it completed the sale of these assets. NLS was a distribution center near Toronto, which handled all of the distribution needs for the Company's Canadian stores.