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Prestone,

Although I'm sure you don't need to hear this from me, since you knew it already, but you are correct on the debt issue. The SEC filings confirm that ANF has no longterm debt. Apparently they paid off the debt that they inherited from the limited with cash and the proceeds from the issuance of some stock.

As to ANF's products' appeal, my wife recently bought me some ANF shirts and sweaters for my birthday (32nd) and I have to tell you that I think their product appeals to broader age group than 14 to 26 year olds (although maybe I'm just immature). The clothes seem very well made and are very comfortable.

I've been interested in this company since Tom Gardner wrote his article on the company awhile back but haven't done any intense reasearch other than scanning the SEC filings (since I haven't had any extra cash laying around until recently). However, everything I've seen looks great, as you indicated. My only concern is that it appears that the Limited is providing a lot of infrastructure support for the company (shipping, office space, etc.) and that ANF is paying the Limited's cost plus 5%. I believe that I read that this arrangement expires sometime next year. Has your research uncovered what the company's plans are for extending the agreement or finding alternatives and what, if any, effect this will have on the company's margins?

Any info that you have would be greatly appreciated.

Greg
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