SOURCE: Varsity Group Inc.

September 18, 2006 16:15 ET

Varsity Group Inc. Teams With Collegiate Pacific to Add Sporting Goods to Its Comprehensive List of Scholastic Products and Services

WASHINGTON, DC -- (MARKET WIRE) -- September 18, 2006 -- Varsity Group Inc. (NASDAQ: VSTY) announced today that it will be adding sporting goods, athletic equipment and athletic uniforms to its comprehensive line of school product fulfillment solutions. Mark Thimmig, President and Chief Executive Officer of Varsity Group Inc., stated, "Earlier this year we set forth a strategic plan to dramatically simplify the lives of our customers by offering them a one-stop shop solution for all their purchasing needs, and the ability to offer athletic uniforms, athletic equipment and sporting goods is a big step in that direction. By combining the well-recognized brand of Varsity with the extensive product offering and distribution capability of Collegiate Pacific, there is not one athletic uniform, equipment or sporting good need we cannot satisfy, whether the need is business-to-business or business-to-consumer. In a world where sports play a vital role in campus life, we are very pleased to be able to help our schools and families meet their year round ordering needs in this arena." Thimmig concluded by stating, "Forming this relationship with Collegiate Pacific insures a superior value proposition for all of our schools and families as Adam Blumenfeld and his team have built an extensive organization whose reputation is based upon world class customer service and an expansive, affordably priced product line."

Adam Blumenfeld, President of Collegiate Pacific, stated, "We are very excited to work with a fast-growing, innovative and aggressively managed company like Varsity which never stops thinking about ways to improve the lives of its customers. This relationship with Varsity is definitely a win-win situation for both companies. Varsity will be able to more comprehensively serve its more than 700 private, parochial and charter schools and Collegiate will be adding another important avenue into the purchasing departments of institutional accounts throughout the United States. While in the past Collegiate has primarily relied on relationships with Athletic Directors and Coaches to penetrate the sporting goods market, in this arrangement with Varsity, Collegiate will now be able to directly engage the school principal and purchasing agents as well."

About Varsity Group Inc.

Varsity Group Inc. is a premier outsource solution provider to education institutions nationwide. Under the brands Varsity Books, Varsity Outfitters, Varsity Solutions, and Varsity Finance, Varsity provides A-Z solutions that enable schools to focus on their core educational mission. Varsity Group's solutions include comprehensive online textbook, school supply and office supply procurement, full-service school uniform, athletic uniform and sporting goods outsourcing, scholastic marketing and branding, student aid financing, educational fundraising and online course development and delivery services. Varsity Group's clients comprise a nationwide network including hundreds of educational institutions and hundreds of thousands of students and their families who benefit from these offerings.

About Collegiate Pacific

Collegiate Pacific is the nation's fastest growing manufacturer and supplier of sports equipment primarily to the institutional and team dealer markets. The company offers more than 4,500 products to 300,000 prospective and existing customers. The company distributes approximately 1.5 million catalogs annually and employs approximately 175 professional road salesmen.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Varsity Group's business that are not historical facts are "Forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2005.

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