Apax divests partial stake in rue21, inc.

Apax divests partial stake in rue21, inc.
 

4 March 2010

New York, NY, March 4, 2010 - Funds advised by Apax Partners (the "Apax Funds") today announced the completion of the February 25, 2010 secondary public offering of 6,053,877 shares of common stock of rue21, inc. (the "Company") (Nasdaq: RUE) at a price of $28.50 per share. Upon settlement of the over-allotment option, the Apax Funds will realize a 7.3x return on investment and continue to retain meaningful ownership of the Company's shares.

The Apax Retail & Consumer group has worked closely with rue21, inc., a specialty apparel retailer focused on offering the latest fashion trends for consumers at value prices, to support its growth. Since the Apax Funds' investment, the Company has expanded its store base from less than 100 stores in 1998 to more than 535 stores across the United States today.

In the November 12, 2009 initial public offering, rue21 and minority shareholders sold approximately 6.8 million shares at a price of $19.00 per share. The Apax Funds did not sell shares in the IPO.

On March 3, 2010, the underwriters exercised their over-allotment option to purchase additional shares pursuant to which the Apax Funds will sell an additional 908, 081 shares of rue21, inc. common stock at a price of $28.50 per share.

The secondary offering will generate total proceeds to the Apax Funds, net of underwriting commissions, of approximately $187 million. The Apax Funds will continue to own approximately 7.1 million shares of rue21, inc. common stock, or 29% of the outstanding shares.

The successful rue21, inc. growth performance, IPO and subsequent secondary offering was supported by Apax Partners' deep retail sector expertise and reflects its ability to identify and develop strong growth companies over the long-term. Funds advised by Apax Partners have invested more than $3.4 billion of equity in retail and consumer products businesses globally, including companies such as Tommy Hilfiger, New Look, PVH/Calvin Klein, Tommy Bahama, Dollar Tree Stores and Children's Place.

A registration statement relating to shares of rue21, inc. common stock was declared effective by the Securities and Exchange Commission on February 25, 2010. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

Notes to editors

About Apax Partners
Apax Partners is one of the world's leading private equity investment groups. It operates across the United States, Europe and Asia and has more than 30 years of investing experience. Funds under the advice of Apax Partners total over $40 billion around the world. These Funds provide long-term equity financing to build and strengthen world-class companies. Apax Partners Funds invest in companies across its global sectors of Tech & Telecom, Retail & Consumer, Media, Healthcare and Financial & Business Services.

About rue21, inc.
rue21 is a leading specialty apparel retailer offering exclusive branded merchandise and the newest trends at a great value. As of February 25, 2010, rue21 operated 545 store locations in 43 states. For further information, please contact:

For further information, contact:

Ben Harding
Apax Partners
Tel: +44 (0)20 7872 6401
Email: ben.harding@apax.com

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rue21, Inc.

rue21 is a leading specialty retailer of value-priced apparel for ages ranging from pre-teens to mid-thirties