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TWEETER HOME: Files for Chapter 11 Protection in Delaware

Troubled Company Reporter, June 12, 2007

Tweeter Home Entertainment Group, Inc., disclosed that to address its financial challenges and support its ongoing efforts to evolve its home installation and services business model, the company and seven of its affiliates, on June 11, 2007, filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code with the U.S. Bankruptcy Court for the District of Delaware.

Tweeter has taken this action after determining that a Chapter 11 reorganization is in the best long-term interest of the Company, its employees, customers, creditors, business partners and other stakeholders.

Tweeter also announced that it has secured a $60 million secured debtor-in-possession credit facility provided by General Electric Capital Corporation.

Tweeter, through a first day motion, will seek immediate authority to access that post-petition credit facility.  Tweeter intends to use the post-petition liquidity to purchase merchandise, pay employee salaries and benefits and for other general corporate purposes.

In conjunction with the filing of its bankruptcy petition, the company filed a variety of "first day motions" :

    * to support its employees, vendors, customers and other

    * to obtain interim financing authority and maintain existing
      cash management programs;

    * to retain legal, financial and other professionals;

    * to support the company's reorganization case; and

    * other relief.

Tweeter expects to continue normal business operations today and throughout the reorganization process.  Specifically, it expects to:

    -- Keep all previously designated stores open for business as

    -- Honor its customer service policies such as returns,
       exchanges, credits and layaway programs at each store

    -- Pay vendors, suppliers and other business partners for
       goods and services provided post-petition; and,

    -- Continue to pay employee wages and salaries, offering the
       same medical, dental, life insurance, disability and other
       benefits and to accrue vacation and discretionary time
       without interruption.

"After considering a wide range of alternatives, it became clear that this course of action was a necessary and responsible step toward preserving Tweeter's viability as we address our financial challenges and work to secure our future," said Tweeter President and CEO Joe McGuire.  "I am confident that, with our tremendous talent pool of the best-trained, most knowledgeable sales and installation teams in the business, we will emerge from this process as a stronger, more competitive organization that is well-positioned to respond to and succeed in the ever-changing consumer electronics industry."

About Tweeter Home

Based in Canton, Massachusetts, Tweeter Home Entertainment Group, Inc. (NASDAQ: TWTR) -- -- is a specialty consumer electronics retailer providing home and mobile entertainment solutions.  The company operates 130 stores under the Tweeter, hifi buys, Sound Advice and Showcase Home Entertainment names.  The company's stores are located in the following markets: New England, the Mid-Atlantic, Chicago, the Southeast (including Florida), Texas, Phoenix and Las Vegas.

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