Due to a large increase in profits, the Coop announced yesterday that all eligible members will receive a 5 percent rebate on purchases made last year.

The rebate is the largest since the Harvard Cooperative Society completed an extensive internal restructuring project in 1996. Last year's rebate was 4.5 percent.

Students shopping for textbooks at the Coop yesterday said they were glad to hear about the rebate.

"It is a nice statement on the part of the Coop," said Peggy T. Lim '01, who just learned of the rebate. "It shows that they are not out to get us."

Jeremiah P. Murphy '73, president of the Harvard Cooperative Society, said this year's larger rebate can be traced back to the restructuring of the business to reduce costs three years ago.

The Coop has been able to boost its rebates every year since 1997, when the rebate was 3.5 percent.

"The high percentage increase this year is due to the continuation of the trend over the last couple of years to control costs," he said.

Checks will be available at the Coop on Oct. 20. Any checks not picked up after three weeks will be mailed to members, Murphy said.

The 5 percent rebate applies to purchases made during the 1998-99 fiscal year at any of the six Coop locations as well as purchases made from its on-line catalogs.

Coop members from the Class of 1999 don't have to worry about getting their share, Murphy said.

"We try to notify [the graduated seniors] of their check through e-mail and alumni associations. Most of them get around to cashing it," he said.

he Coop attributed its profits last year to strong book sales at their Harvard Square location and increased orders from their Web-based catalog. In addition, Murphy said Coop membership has been expanding significantly both among students and alumni.

According to Murphy, competition from the on-line market for textbooks has not yet had a major impact on Coop sales.

While undergraduate mail centers continue to receive packages of books from on-line sites, Murphy maintains that many students have found that it is "not worth the small difference in price" to shop on-line compared to the convenience of shopping and returning books from the Square's store.

And after factoring in the costs of shipping and the added bonus of the annual rebate, the Coop's prices were competitive with other vendors, Murphy said.

Jamie B. Hall '02 agreed that the Coop was as convenient place to shop as the Internet.

"I bought most of my books [at the Coop], but I got some on-line," Hall said. "I'll be glad to get this money back."

While on-line competition will inevitably have some effect on sales, Murphy says the Coop is attempting to use the Internet for its own advantage.

It eventually hopes to sell books and non-insignia merchandise through its on-line catalog.