August 12, 2005

Primedia announced earlier this week that it has agreed to sell its Business Information division to PBI Media Holdings Inc., an corporate entity controlled by Wasserstein & Co. LP, through its U.S. Equity Partners II, LP investment partnership for $385 million in cash.

The closing will take place following standard U.S. regulatory approval and satisfaction of other normal conditions. The transaction is expected to close in the fourth quarter.

"The turnaround of the Business Information segment, delivering five quarters of revenue growth after twelve quarters of decline, is a tribute to the dedicated employees of this business and also to PRIMEDIA's ability to deliver on its operating strategies," said Kelly P. Conlin, President and CEO of PRIMEDIA.

"This transaction not only allows us to realize the value of this turnaround, but also to increase our focus on the segments of our business, particularly Enthusiast Media and Consumer Guides, that can be superior sources of long-term value creation."

The Business Information segment consists of business-to-business targeted publications, Web sites, and special events with a focus on bringing sellers together with qualified buyers in numerous industries.

The Business Information segment consists of 70 publications, more than 100 Web sites, 25 events and 50 directories and data products, serving professionals in diverse market sectors. In 2004, Business Information generated $224.8 million in revenue. The Ward's business will not be sold as part of this transaction.

"We are delighted with our agreement to purchase PRIMEDIA's Business Information segment," said Anup Bagaria, Vice Chairman of Wasserstein & Co.

"The Company's publications, events, Web sites and data products have long been leaders in their respective markets. We look forward to working with the Company's talented management team and personnel to build on the Company's strong growth momentum."

Credit Suisse First Boston acted as advisor to PRIMEDIA in this transaction and Jones Day provided legal representation to Wasserstein & Co.

Source: Primedia Inc.