New York, NY, November 11, 2003
In response to various erroneous news reports today, Gruner + Jahr USA is issuing the following statement:

Much of the incorrect information came from an early Associated Press newswire report that contained several errors and misquotations. That report has since been substantially corrected.

Gruner + Jahr CFO Larry Diamond´s testimony showed that he was neither questioned about, nor did he make any statement about, specific circulation figures or ABC (Audit Bureau of Circulation) reporting. To the contrary, Mr. Diamond testified that for financial reporting purposes, G+J estimated first-half 2002 newsstand average sales in a manner that was discussed with O´Donnell representatives at the time and was consistent with the numbers that were eventually reported in the ABC white sheets. Though newsstand sales were projected to be higher than actual sales, the total circulation guaranteed to advertisers was within acceptable industry standards. At no point in Mr. Diamond´s testimony was he asked anything about rate base.

In addition, Michael J. Lavery, President of the ABC, stated to reporters outside the courtroom that the annual circulation numbers for Rosie magazine in 2002 fell within the permissible 2% variance between pink sheets and white sheets.

At no time did G+J USA misstate financial information. As the record shows, G+J USA relied upon actual data and estimates consistent with industry practices, some of which were for internal purposes and had no bearing on the actual performance of the business.

O´Donnell´s fall-back position of alleging accounting manipulation is a smoke screen for her failed argument that G+J USA somehow wrested editorial control away from her. In fact, G+J USA never asserted its ultimate degree of editorial control. Nothing was ever published in the magazine to which O´Donnell objected and nothing was ever withheld for publication that she approved.

Daniel B. Brewster Jr., President and CEO of Gruner + Jahr USA states: "The O´Donnell team is trying to construct an argument that she should have been permitted to withdraw from the venture without liability, which was her plan as early as July 15, 2002, if not sooner. Their case has been built largely upon irrelevant or discredited claims. Conversely, our assertion that she walked away from her contractual obligations without legal cause is fully supported by the record."

As one of the top-ranked magazine publishers in America, reaching one of the largest readerships in America, Gruner + Jahr USA publishes Child, Family Circle, Fast Company, Fitness, Inc., Parents and YM. Gruner + Jahr is 25.1% owned by the Jahr Group and 74.9% owed by Bertelsmann Group, the largest privately held and the fifth largest media company overall in the world with yearly revenues at $17.86 billion dollars.