<PAGE> 1
EXHIBIT (a)(12)
[PIERCING PAGODA LOGO] MEMORANDUM
DATE: August 29, 2000
TO: Stock Purchase Plan Participants
CC: Bonnie Weidner
FROM: Michele Sciortino
RE: TERMINATION OF EMPLOYEE STOCK PURCHASE PLAN
As of August 4, 2000, the Piercing Pagoda, Inc. Employee Stock Purchase Plan has
terminated. The merger agreement with the Zale Corporation has Zale Corporation
purchasing all Piercing Pagoda stock shares.
What does this mean for you and your Piercing Pagoda stock shares?
All Piercing Pagoda stock shares (restricted and unrestricted) that you own will
be bought by the Zale Corporation when the merger agreement is finalized. The
selling price will be $21.50 per share.
A final statement of your account has been sent to you and an additional copy
is enclosed for your reference. At this time we have no specific date when you
can expect payment for the sale of your stock shares, however, you will
receive payment before the end of the calendar year.
What do you need to do?
Within the next week, you will be receiving a packet of information regarding
the merger agreement and your Piercing Pagoda stock shares from Morrow and
Company. Please follow the instruction enclosed in that packet. If you have any
questions, you should call the "800" phone number listed on the letter.
If you have any questions regarding this memo, please contact Bonnie Wiedner by
phone (x8758) or email ([email protected]).
Thank you.
