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BAKER & TAYLOR REFUTES HAWAII LIBRARY CLAIMS OF CONTRACT

July 24, 1997--Charlotte--Baker & Taylor officials today challenged the Hawaii
State Public Library System (HSPLS) contention that B&T had defaulted on its
outsourcing contract, and charged State Librarian Bart Kane with trying to
cancel the contract out of "political necessity."

In a strongly worded letter to Kane this week, B&T outlined in detail how it
complied with its obligations under the outsourcing contract, reinforcing its e
arlier position stated in letters delivered to Kane in March.  B&T also respond
ed to these same concerns in its response to the findings of the Board of Educa
tion Blue Ribbon panel, which were released in June.

"This outsourcing contract has turned into a political football, and Bart Kane
wants to use Baker & Taylor as a scapegoat to cover its fatal flaws in the HSPL
S outsourcing model and the failure of the HSPLS to meet its own obligations un
der the contract," said Arnie Wight, senior vice president of Baker & Taylor.

"HSPLS and the other state agencies involved have ignored the facts and have al
leged 'defaults' that simply do not exist as an excuse to cancel the contract,"
 said Wight.  "We intend to challenge the termination of this contract on these
 false grounds, and if necessary we will take legal action to seek compensation
 from the state if they adhere to their decision to cancel the contract for con
venience."

"We have substantial documentation proving that the most troubling issues with
the outsourcing contract-including alleged delays in shipments and problems wit
h book selection-can be attributed directly to decisions made by the HSPLS staf
f or failures by the HSPLS to provide information to B&T as required under the
contract.  The contract was a failure because HSPLS and its leadership were unp
repared to carry out their responsibilities."

Wight said Baker & Taylor had made every effort to work with the HSPLS and the
Hawaii Board of Education to modify the contract or to cancel it in a manner th
at satisfies both parties and provides the best outcome for Hawaii's library pa
trons.  B&T officials met with HSPLS staff and representatives of the attorney
general's office as recently as July 11 to work out a resolution.

Unfortunately, HSPLS was unwilling to work with B&T to reach a reasonable resol
ution, and on July 11 issued a letter lising additional alleged defaults.  Even
 though that letter allowed B&T ten days to "cure" these alleged defaults, Kane
 announced to the media almost immediately his intention to terminate the contr
act.













"The fact is there are no defaults to cure, and Mr. Kane knows it," said Wight.
  "We will prove--in the courts if necessary--that this is a wrongful terminati
on of the contract.  In doing so, we will expose the multitude of problems that
 can be attributed directly to HSPLS management and its administration of the c
ontract."  Wight added, "We acknowledge the state had a right to end the contra
ct for its convenience even though Baker & Taylor is not in default.  However,
the State will have to honor its obligations because Baker & Taylor will not ta
ke the fall for HSPLS."

In correspondence with the HSPLS and the Board of Education over the past nine
months, B&T outlined a number of specific problems with the outsourcing model d
esigned by HSPLS, and provided numerous recommendations for improving the model
 and the operations of the contract.  Wight said all of these concerns and reco
mmendations were ignored.  He said B&T has exhaustive documentation and factual
 data that will prove that HSPLS was involved in and approved the decisions tha
t are now being called defaults.

Wight said Baker & Taylor, which has successfully implemented other outsourcing
 contracts, remains committed to the concept of outsourcing, and intends to co
ntinue working with other library customers to determine the unique requirement
s that will support the needs of the library patrons while creating a more effi
cient and cost-effective system.

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