Press release

Publishing houses Sanoma Magazines International, Gruner + Jahr and Styria intend to join forces in the Adriatic region.

Hamburg, 20 December 2005 – Partnership of Styria, Gruner + Jahr and Sanoma Magazines International / Gruner + Jahr intends to take over all magazines of German publisher Burda in Croatia, Serbia and Montenegro, and Slovenia / Joint Venture of Gruner + Jahr and Sanoma Magazines International / Styria to become a local partner of the Joint Venture

Sanoma Magazines International, Gruner + Jahr and Styria have signed a Letter of Intent to establish a partnership for magazine publishing in the Adriatic region.

Presently Sanoma Magazines International publishes magazines in Croatia and Serbia and Montenegro. Gruner + Jahr and Styria have joint operations in Croatia.

Before the partnership is set up, Gruner + Jahr intends to take over all magazine businesses operated by the Hubert Burda Media group in Croatia, Serbia and Montenegro, and Slovenia. These businesses will be contributed to the partnership.

The partnership will be embedded into Adria Magazines Holding (AMH), a new joint venture between Sanoma Magazines International and Gruner + Jahr, who will each hold 50% of the shares in AMH. AMH plans to begin its operations in spring 2006. The joint venture and its subsidiaries will employ some 275 people.

Adria Magazines will have local companies in Zagreb (Croatia), Belgrade (Serbia and Montenegro) and Ljubljana (Slovenia).

Styria will act as a partner of the joint venture and will hold shares of the local AMH companies (Croatia and Slovenia each 25 %, Serbia and Montenegro 10 %).

The final agreements to be negotiated between the parties are subject to approval of the Competition Authorities.

"The new partnership opens up considerable growth potential in the Adriatic region. Successful concepts and new content will become available to readers and clients through transfer of expertise, professionalism, and investments from established European publishing companies", the parties say.

For more information:

Gruner + Jahr AG & Co KG
Mr. Alexander Adler
Director Media Relations
Corporate Communications and Public Affairs
Phone: +49-40-3703-2244
Telefax: +49-40-3703-5617
E-Mail: Adler.alexanderguj.de
Sanoma Magazines International
Mr Koos Guis
Chief Executive Officer
Phone: +31-20-851-21-51
Telefax: +31-20-851-21-99
E-Mail: j.guissanomamag-int.com
Styria Media International
Dr Klaus Schweighofer
Phone: +43-316-8063-1010
Telefax: +43-316-8063-3014
E-Mail: klaus.schweighoferstyria.com