For the second year in a row, the Coop will issue a rebate to its members, but students say it only amounts to small change.

The Coop announced yesterday that members will receive a 4.5 percent rebate--a 28 percent increase over last year's. Membership in the Coop costs $1. If the store turns a profit during a fiscal year, the Coop divides the profits among its members.

Coop President Jeremiah P. Murphy'-73 said he was enthusiastic about the rebate and that it should show students, "It does pay to be a member of the Coop."

But students were more reserved in their praise. Michael P. Ogilvie '01, a Coop member, said the rebate is better than nothing.

"I try to stay away from the Coop as much as possible, but if this is the best they can do, I hope that I can get as much as possible," he said.

Murphy attributed recent profits to restructuring that freed the Coop of department store products and left day-to-day management to the bookstore chain Barnes and Noble.

"We just could not compete" with larger department stores that can offer discounts, Murphy said. "We had to get out of business that doesn't make sense."

When Harvard was an all-men's school, a large department store was more profitable, Murphy said. Before the restructuring, the Coop's lackluster sales left members without a rebate.

"Now we're financially sound," Murphy said.

Consistently giving rebates is important because "we wanted to regain the loyalty of our members," he said.

Benjamin V.A. Pettigrew '99, a student member of the Board of Directors, said he believed the rebate will lead to increased membership now that studentsknow that "the Coop is not there to rip studentsoff, but there to serve its members." He also saidthe Coop has an unfair reputation.

"I think the few years that the Coop did notgive a rebate hurt its reputation," he said. "Butthe fact that the Coop has given a rebate twoyears in a row shows that the Coop does give backin a tangible way."

The Coop's competitors said they were not fazedby the store's gains, and they were critical ofthe Coop for hiring Barnes and Noble. Carol Horne,merchandise manager of the Harvard Book Store,said the Coop's success will not impact profits.

"People are aware it's not the Coop anymore,it's Barnes and Noble, and in Cambridge thatmatters to people," she said.

In spite of the rebate, student Coop memberssaid they were not buying into the Coop. Keith E.Bernard '99 was one unenthusiastic member.

"I think it is ironic that I've been trying toavoid buying books at the Coop, and now they'reraising the rebate," he said.

Theodore L. Hine '01, a former Coop member,also said he was disappointed.

"I didn't reinstate my membership, now I'mupset," he said. "It will not encourage me to jointhough--they're throwing pen