Press release

Gruner + Jahr economy press titles CAPITAL and IMPULSE remain in Cologne

Hamburg, 27 January 2004 – Comprehensive restructuring of editorial department and publishing house results in clearly improved efficiency and greater closeness to the market / CAPITAL and IMPULSE back in the black in 2004 / Cross-location co–operation with economy titles is further expanded

The editorial departments of CAPITAL, the leading classic economy magazine with the largest print run, and IMPULSE, the leading enterpriser magazine, as well as the publishing house departments of the G+J economy press remain at their location in Cologne. As a business location, Cologne is of particular importance for the current intensive market offensive of CAPITAL and IMPULSE.

As announced in October, 2003, the decision has now been made following intensive dialogue with the works committee, the editorial advisory council and members of staff. The criteria on the agenda were the quality requirements of the titles, the concerns of the Cologne staff and improved efficiency in order to get CAPITAL and IMPULSE back in the black in 2004, as well as to achieve an appropriate profit margin. With this decision, the (leading) market position of the publishing group and its titles is further expanded.

Achim Twardy of the G+J Executive Board for newspapers/economy press said: "In the publishing house and the editorial departments, we all agree that improved efficiency and cross–location co–operation between editorial departments and the departments for all economy titles within the publishing house is possible without moving to Hamburg. With this decision, I did not just have cost cutting measures in mind. My main objective was to further promote our titles with regard to quality and brand leadership."

Within the scope of the market offensive, the advertising sectors have been restructured according to sales regions. The G + J economy press has thus established greater speed and increased closeness within the market. In addition to this, the company is investing in a new communication campaign for the CAPITAL brand. Another aspect of the market offensive is to expand the co–operations of the economy titles, following the example of the already existing successful projects between IMPULSE and the FTD.

In the editorial department of CAPITAL, the efficiency has been improved through structural adjustment measures, including a staff reduction. Three positions have been cut, another four contracts are being adjusted, and vacant positions will not be refilled. Conferences with staff members about satisfactory solutions are already being held.

Matthias Großmann of the G+J Executive Board for CAPITAL and IMPULSE said: "With this bundle of measures, we will considerably add to the improvement in the economic situation of the Cologne–based economy titles. This is why the excellent editorial departments and powerful publishing sections of CAPITAL and IMPULSE can stay in Cologne."

Kurt Otto
Press spokesman
Gruner + Jahr AG & Co KGAm Baumwall 11
20459 Hamburg
Telephone: +49-40-3703-3810
Telefax: +49-40-3703-5617