Notes: On May 5, 2009, Handleman Company filed a Certificate of Dissolution with the Michigan Department of Energy, Labor and Economic Growth, Bureau of Commercial Services, Corporate Division. As a dissolved company, Handleman shall continue its corporate existence, but shall not conduct business, except for the purpose of winding up its affairs. Under State of Michigan law, before making any distribution to Shareholders, a dissolved corporation must pay or make provision for its non-barred, valid debts, including those obligations that arise after the effective date of dissolution, but before the bar date and before the distribution. Accordingly, Handleman’s activities are now limited to: (i) selling, collecting or otherwise realizing the value of its remaining assets; (ii) making tax and other regulatory filings; (iii) winding up the Company’s remaining business activities; (iv) paying (or adequately providing for the payment) of all non-barred, valid claims and obligations in full, if possible, but if the assets are insufficient to pay them in full, they will be paid according to their priority and pro rata within the priority category; and (v) distributing to Handleman’s Shareholders, in proportion to their interests, any proceeds remaining after the payment in full of the liabilities of Handleman. Handleman cannot make any assurance that the proceeds from liquidation will be sufficient to provide payment in full to its Creditors. It is also likely that payment will not be made before the expiration of one year in order to provide funds for payment of unknown Creditors. On May 6, 2009, Handleman Company petitioned the Circuit Court for Oakland County, State of Michigan, for an Order of Limited Supervision over the Liquidation of Handleman post-dissolution, which would declare the shares of Handleman common stock to be non-transferable post-dissolution.