Affinity Group Holding, Inc. Announces Year End 2000 Results

    ENGLEWOOD, Colo., March 2 Affinity Group Holding, Inc.
today reported 2000 revenues of $405.1 million and a net income of
$3.3 million compared with 1999 revenues of $386.7 million and a net income of
$6.5 million. The 4.8% increase in total revenues was spread among the
Company's three business segments with gains ranging from 11.3% in
publications, 5.1% in retail sales, to a 0.8% gain in membership services.

    Publication gains were primarily the result of the acquisition of Thunder
Press ("TPI"), a motorcycle trade magazine publisher, and the sale of two new
products, a cd-rom version of the Trailer Life Campground Directory and a
RVers specific road atlas. The growth in retail sales is primarily
attributable to the entry by the Company in April, 2000 into the sale of
recreational vehicles in New Braunfels, Texas combined with a full year of
merchandise sales at the same location which opened in October, 1999. These
gains were partially offset by a decrease of 2.3% in same store sales.
Membership services revenue increases resulted primarily from increased
enrollment in the emergency road service programs and member event
participation at the first annual Great North American RV Rally held in
Gillette, Wyoming.

    Costs applicable to revenues increased $17.2 million or 6.9% over 1999.
Publication costs and expenses increased $5.4 million primarily due to
increased directory expenses related to the new products sold, and the newly
acquired operations of TPI. Retail costs applicable to revenues increased
$7.5 million due to the new recreational vehicle sales operations and
increased merchandise costs associated with the 1.1% increase in merchandise
sales. Membership services costs and expenses increased by $4.3 million due to
increased legal costs incurred in defending the lawsuit by Travel America and
others, which was dismissed by the California state court in July 2000 and is
currently under appeal, and an increase in certain membership club marketing
and promotional expenses. In addition, costs were incurred to enhance our
internet website developed to list new and used recreational vehicles for sale
by both dealers and private parties.

    Operating expenses increased $5.5 million or 5.7% from 1999. Selling,
General and Administrative expenses increased $4.8 million due to increases in
wage and related benefits, additional expenses relating to the full year of
operations at the New Braunfels, Texas retail location, including the addition
of the recreational vehicle sales operations, partially offset by reduced
deferred compensation and limited Y2K computer conversion expenses in 2000.
Depreciation and amortization increased by $0.7 million.

    Income from operations of $35.7 million for 2000 decreased by $4.4 million
or 10.9% compared to 1999. Increased operating expenses of $5.5 million and
reduced gross profit from the membership services segment of $3.4 million were
partially offset by gross profit improvements in the retail and publications
segments of $2.9 million and $1.6 million, respectively.

    Income from continuing operations of $3.3 million in 2000 decreased by
$1.4 million from the prior year. This reduction is attributable to the
$4.4 million decrease in income from operations, partially offset by decreases
in net interest expense, non-operating items, and income tax expense of
$0.8 million, $1.2 million and $1.0 million, respectively.

    Net income for 2000 was $3.3 million compared to $6.5 million for 1999.
This $3.2 million unfavorable variance resulted from a decrease of
$1.4 million in income from continuing operations in 2000 over 1999, and a
$1.8 million gain from the discontinued operations recognized in 1999.

                         AFFINITY GROUP HOLDING, INC.
               SUMMARY OF CONSOLIDATED STATEMENT OF OPERATIONS
                FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999
                                (In Thousands)

                                               2000                 1999

     Revenues                                $405,072             $386,696
     Costs Applicable to Revenues             266,941              249,708
     Operating Expenses                       102,398               96,886
     Income From Operations                    35,733               40,102
     Income From Continuing Operations          3,303                4,703
     Net Income                                $3,303               $6,478

    Effective December 31, 2000, the Company amended the AGI Revolving Credit
and Term Loan Facility to ensure compliance with certain of its restrictive
covenants, principally minimum operating cash flow, as defined, and the total
leverage covenant. In addition, among other things, the Amendment provided for
higher interest rates on the revolver and term loans equal to 0.5% and
prohibits the distribution by its wholly-owned subsidiary, AGI, of any excess
cash flow, as defined, until total leverage is less than 4.75 to 1.