Under the terms of the agreement, Redcats USA will commence a tender offer to purchase all of the outstanding shares of United Retail Group for $13.70 per share in cash, which is an aggregate equity value of $198.9 million. The offer represents a 23% premium to the 90-day average of United Retail Group's share price, and 82% premium to the closing price on September 10, 2007. Redcats USA is expected to launch the tender offer shortly, and the merger is expected to close by the end of 2007, subject to customary closing conditions. The acquisition has been unanimously approved by the boards of both companies.