News Releases

Jul 1, 2005

DES MOINES, IA/ NEW YORK, NY (July 1, 2005) - Meredith Corporation (NYSE: MDP) announced today that it has completed its acquisition of Parents, Child, Fitness and Family Circle magazines from Gruner + Jahr for $350 million.

"All four of these titles mesh well with our editorial focus on service journalism and we look forward to serving their loyal readers, as well as attracting new subscribers," said Meredith Chairman and Chief Executive Officer William T. Kerr. "We are also eager to begin offering advertising and marketing clients access to our expanded magazine portfolio, which reaches more American women than any other magazine publisher."

Meredith expects the transaction to generate EBITDA (earnings before interest, taxes, depreciation and amortization) in the low-to-mid $30 million range and be modestly accretive to earnings per share in fiscal 2006.

About Meredith Corporation

Meredith ( is one of the nation's leading media and marketing companies with businesses centering on magazine and book publishing, television broadcasting, integrated marketing and interactive media. The Meredith Publishing Group features 24 subscription magazines - including Better Homes and Gardens, Ladies' Home Journal, Parents, Child, Fitness, Family Circle and American Baby - and approximately 150 special interest publications. Meredith owns or operates 14 television stations, including properties in top-25 markets such as Atlanta, Phoenix and Portland, and an AM radio station.

Meredith has approximately 350 books in print and has established marketing relationships with some of America's leading companies including The Home Depot, DIRECTV, DaimlerChrysler, Wal-Mart and Carnival Cruise Lines. Meredith's consumer database, which contains approximately 80 million names, is one of the largest domestic databases among media companies and enables magazine and television advertisers to target marketing campaigns precisely. Additionally, Meredith has an extensive Internet presence that includes 26 Web sites and strategic alliances with leading Internet destinations.

Safe Harbor

This release contains certain forward-looking statements that are subject to risks and uncertainties. These statements are based on management's current knowledge and estimates of factors affecting the company's operations. Actual results may differ materially from those currently anticipated.

Factors that could adversely affect future results include, but are not limited to: downturns in national and/or local economies; a softening of the domestic advertising market; increased consolidation among major advertisers or other events depressing the level of advertising spending; the unexpected loss of one or more major clients; changes in consumer reading, purchase, order and/or television viewing patterns; unanticipated increases in paper, postage, printing or syndicated programming costs; changes in television network affiliation agreements; technological developments affecting products or methods of distribution such as the Internet or e-commerce; changes in government regulations affecting the company's industries; unexpected changes in interest rates; and any acquisitions and/or dispositions.

Non-GAAP Information

EBITDA is a non-GAAP measure. It should not be construed as an alternative measure for income from operations as defined by GAAP or as a measure of liquidity. Meredith has provided an estimate of EBITDA at this time because estimates of income from operations have not been finalized pending the valuation of intangible and other assets to be acquired. Additionally, Meredith can not provide a reconciliation of EBITDA to income from operations until the intangible and other assets are valued and depreciation and amortization can be determined.


Media: Art Slusark (515) 284-3404;

Investors: Jim Jacobson (515) 284-2633;