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EXHIBIT 99.2
ZALE CORPORATION
Beryl Raff
President
Chief Executive Officer
August 11, 2000
Dear Fellow Zale Employee:
It is our pleasure to inform you that Zale Corporation has entered into an
agreement to acquire Piercing Pagoda, Inc., the largest specialty jeweler of
gold jewelry operating through kiosks and traditional stores in the United
States.
Piercing Pagoda presently operates over 940 stores throughout the United States
and Puerto Rico, offering an extensive selection of popular priced 14 and 10
karat gold chains, charms, bracelets, rings and earrings, as well as a selection
of silver and diamond jewelry.
This acquisition will extend Zale's 'good, better, best' strategy to capture the
opening price point customer while still remaining focused on our core
competency of mall based operations.
Each of you has consistently and successfully executed our strategies, allowing
us to further expand our business. Thank you for your continuing contribution to
that success and for embracing the initiatives that have made our growth
possible. We are looking forward to this latest opportunity, and know that, with
your support, it will be successful as well.
Sincerely yours,
/s/ Beryl Raff
Beryl Raff
