Immediate Release
Contact: Tara McNally
(212) 645-6900 x115
tara@jerichopr.com

IKEA EXPANDS WITH NEW EAST COAST DISTRIBUTION CENTER
IN TOWN OF PERRYVILLE, MD

One of the Largest Warehouse Facilities in the State of Maryland
will Bring Jobs and Tax Revenues to Cecil County

Perryville, MD, January 30, 2002 -- IKEA announced today the company’s increased expansion plans in the Maryland area with the first phase of construction on a 1.7 million square foot distribution center in the Town of Perryville, Cecil County, Maryland. The $50 million investment on the 131 acres of industrially-zoned land will contribute to the Town of Perryville’s economic growth with new jobs and tax revenues. At the final stage of construction the new IKEA Perryville distribution center will be one of the largest state-of-the-art distribution centers in the State of Maryland. The new IKEA Perryville facility precedes the aggressive expansion plan that IKEA will begin in 2003 with the opening of 50 North American stores in the next 10 years, which includes additional stores in existing markets, as well as in new markets.

“We are pleased about this mutually beneficial opportunity,” said Brad Prevost, Real Estate Specialist, IKEA Property, U.S. “The Town of Perryville’s direct port access, as well as its labor force will help us further meet consumer demand for our product in the Maryland, Washington, D.C. and Pennsylvania regions, while providing renewed energy and economic vitality to Perryville.”

The new terminal, which will house IKEA product inventory, is scheduled to open in the summer of 2002 when the first 850,000 square foot phase of the distribution center is completed. The new IKEA terminal site’s proximity to the expanse of Baltimore’s port facilities will increase efficiency with the distribution of product imports on a daily basis.

"We have been taking aggressive action to highlight that Maryland is one of the best places to live and to do business. This decision is a testament to those efforts and to the fundamental strength of the State's economy," said Governor Parris N. Glendening. "The entire region benefits from having an international distribution center like IKEA locate in Cecil County. Best of all, by focusing our economic development in a Smart Growth area, we are bringing 350 new jobs to Maryland without sacrificing any of our precious farmland."

"This is a good example of an adaptive reuse project that takes an abandoned industrial property and brings it back as a productive asset," said Lt. Governor Kathleen Kennedy Townsend. "The State of Maryland is proud to have been a partner with Cecil County in bringing these jobs where they are most needed.”

“We couldn’t be happier that IKEA has chosen Perryville as the location for their new, state-of-the-art distribution center. It would not be an understatement to say that the IKEA project will be the most significant economic development initiative in our town in several decades,” said Steve Pearson, Mayor of Perryville. “Coupled with their well-earned reputation as a company that really ingrains itself in the community, Perryville could not have faired better.”

"The Port of Baltimore enthusiastically welcomes IKEA," said Jim White, Executive Director of the Maryland Port Administration, noting that Maryland has created a transportation network second to none on land and sea that will serve IKEA into the future. "We are eager to put our advantages to work for this world-class company. By choosing to locate their distribution center near the deep-draft port closest to America's heartland, IKEA has created the most efficient, productive link to their customers."

On behalf of the Cecil County Commissioner’s Board President, Nelson K. Bolender said, “We are excited that Perryville has been selected by IKEA as the location for its East Coast distribution center. This is the single largest project to ever be constructed in Cecil County. We couldn’t be more pleased to have a community-minded company like IKEA give a giant boost to the local economy.”

Approximately 300-400 employees from the local region will be hired to join the IKEA co-worker family when the IKEA Perryville Distribution Center is fully constructed.

Since its founding in 1943, IKEA has offered a wide range of home furnishings and accessories of good design and function, at prices so low that the majority of the people can afford them. IKEA is recognized as a socially responsible company, and continuously supports initiatives that benefit causes such as children and the environment. Currently, IKEA has 165 stores in 31 countries, including 15 stores in the United States and eight stores in Canada. To visit the IKEA web site, please go to http://www.ikea-usa.com.