The U.S. District Court for the District of Columbia has denied the Federal Trade Commission’s (FTC) request for a preliminary injunction related to the proposed merger between Whole Foods Market, Inc., Austin, TX, and Wild Oats Markets, Inc., Boulder, CO.

“The District Court’s ruling affirms our belief that a merger between Whole Foods and Wild Oats is a winning scenario for all stakeholders,” said John Mackey, chairman, CEO, and co-founder of Whole Foods Market. “We believe the synergies gained from this combination will create long-term value for customers, vendors, and shareholders as well as exciting opportunities for team members.”

Whole Foods Market and Wild Oats Markets have agreed with the FTC to not close the merger prior to noon, Eastern time, on Monday, August 20, 2007. Absent a stay pending appeal, the companies may close the transaction at any point after noon, Eastern time, on Monday, August 20, 2007.

“We are very pleased with the court’s ruling and always had confidence that, once presented with the facts, the judge would rule in favor of this merger,” said Gregory Mays, chairman and CEO of Wild Oats Markets. “We continue to believe this merger is in the best interest of our stakeholders, as it will mean significant career opportunities for our store associates, capital investment in our stores to enhance the shopping experience for our customers, and value-creation for our shareholders. We look forward to closing the transaction.”

Speaking on behalf of the FTC, Jeffrey Schmidt, FTC competition director, expressed regret at the federal district court decision in the Whole Foods/Wild Oats case, calling it a loss for both consumers and competition.

“We respect the Court’s decision, which we currently are reviewing. We brought this challenge because the evidence before us showed that the merger would most likely result in higher prices and reduced choices for consumers who shop at premium natural and organic supermarkets,” Mr. Schmidt said. “We are reviewing our options.”

On February 21, 2007, Whole Foods Market entered into a merger agreement with Wild Oats, pursuant to which Whole Foods Market, through a wholly-owned subsidiary, has commenced a tender offer to purchase all of the outstanding shares of Wild Oats at a purchase price of $18.50 per share in cash.

On June 5, 2007, the FTC authorized its staff to seek a federal district court order to prevent Whole Foods from acquiring Wild Oats. The FTC argued in court in Washington, D.C., on July 31 and August 1, 2007 that the merger would violate federal antitrust laws by substantially reducing competition in the market for premium natural and organic supermarkets in several geographic areas throughout the U.S. The federal district court decision allows the transaction to proceed, pending the FTC’s filing of a request for emergency stay with the district and appellate courts prior to its appeal being heard. The Commission also has authorized the staff to act on its administrative complaint to permanently enjoin the merger.