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PRIMEDIA Acquires Modified Automotive Media Group

NEW YORK--PRIMEDIA Inc. , America's leading targeted media company, today announced that its Enthusiast Media Segment acquired Toronto-based VerticalScope Inc.’s Modified Automotive Group (MAG), publisher of Modified Magazine, Modified Luxury & Exotics Magazine, Modified Mustangs Magazine, and their related event partnerships and websites. Terms of the transaction were not disclosed.

“The Modified Automotive Group has been an outstanding growth company. PRIMEDIA, as a strategic buyer, is ideally positioned to leverage Modified’s assets for growth into the future primarily by cross-selling with PRIMEDIA’s existing brands, and realizing numerous economies of scale, particularly in the areas of sales, production, distribution, and direct mail,” said Steve Parr, President of PRIMEDIA Enthusiast Media.

MAG was founded in July 2002, with the premiere issue of Modified Magazine, a performance magazine for sport compact and import car enthusiasts. MAG has delivered strong revenue growth in each year of its existence. The Modified brand is well known and highly respected by both marketers and enthusiasts.

Modified Luxury & Exotics Magazine was launched in November, 2004, and caters primarily to the high-end market. Modified Mustangs, launched in October 2005, skews toward a younger demographic. All three MAG publications complement PRIMEDIA’s existing assets and broaden PRIMEDIA’s addressable market.

“In addition to the synergies we expect to realize, we intend to expand Modified’s online presence, begin to generate licensing revenue using Modified’s strong brands, and benefit from Modified’s event partnerships,” Parr added.

VerticalScope was represented in the sale by DeSilva & Phillips, LLC.

About PRIMEDIA

PRIMEDIA is the leading targeted media company in the United States. With 2005 revenue from continuing operations of $822 million, its properties comprise over 100 brands that connect buyers and sellers through print publications, Internet, events, merchandise and video programs in two market segments:

  • Enthusiast Media is America’s #1 special interest media company, with more than 75 magazines, 100 websites, 70 events, two television programs, 400 branded products, and such well-known brands as Motor Trend, Automobile, Automotive.com, Equine.com, Power & Motoryacht, Hot Rod, Snowboarder, Stereophile, Surfer, and Wavewatch.com.
  • Consumer Source, Inc. is the #1 publisher and distributor of free consumer guides in the U.S. with Apartment Guide, Auto Guide, and New Home Guide, distributing free consumer publications through its proprietary distribution network, DistribuTech, in more than 60,000 locations. The Group owns and operates leading websites including ApartmentGuide.com, AutoGuide.com, NewHomeGuide.com, Rentals.com, RentClicks.com, and RentalHouses.com.

This release contains forward-looking statements as that term is used under the Private Securities Litigation Act of 1995. These forward-looking statements are based on the current assumptions, expectations and projections of the Company's management about future events. Although the assumptions, expectations and projections reflected in these forward-looking statements represent management's best judgment at the time of this release, the Company can give no assurance that they will prove to be correct. Numerous factors, including those related to market conditions and those detailed from time-to-time in the Company’s filings with the Securities and Exchange Commission, may cause results of the Company to differ materially from those anticipated in these forward-looking statements. Many of the factors that will determine the Company’s future results are beyond the ability of the Company to control or predict. These forward-looking statements are subject to risks and uncertainties and, therefore, actual results may differ materially. The Company cautions you not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. All references to “Company” and “PRIMEDIA” as used throughout this release refer to PRIMEDIA Inc. and its subsidiaries.