Press release

Gruner + Jahr Invests $55m in Brown Printing subsidiary / Clear commitment to American Printing business

Hamburg, 06 February 2005 –

Gruner + Jahr is investing in the futureof its American print subsidiary Brown Printing (BPC): As part of aninvestment project, it plans to install two state-of-the-art offsetrotary presses at its production plant in Waseca, Minnesota.The print finishing capacities, too, will be expanded by two modernadhesive binder lines, a flowline trimmer and an automaticallyequipped high-rack warehouse with automated guided vehicles.The total investment volume for this project exceeds $55 million.

The major reason behind the decision to invest was BPC´s goodoperating performance in recent years and the attendant growth inthe competitive American market. Among other things, BPC won amajor contract from Time Inc., to produce "Time," "People," and"Sports Illustrated" magazines.

Volker Petersen, Director of G+J´s Printing Division, said:"With its newly augmented capacity, Gruner + Jahr lays the cornerstonefor continued growth on the American printing market. The investmentsrepresent a clear commitment to the US printing business and willhave a positive effect on BPC´s revenues and results."

Brown Printing is the fourth-biggest printer of magazines andcatalogs in the U.S. Print jobs produced for G+J publishers accountfor a mere 9 percent of total turnover. The remaining 91 percentof revenues is distributed among over 300 American customers.

For further information:

Alexander Adler
Gruner + Jahr AG & Co KG
Am Baumwall 11
D-20459 Hamburg
Phone: +49-40-3703-2244
Fax: +49-40-3703-5617

The Gruner + Jahr printing and publishing company is Europe´s biggestmagazine publisher. Its more than 11,000 employees produce more than125 magazines and newspapers in 10 countries on three continents, aswell as the accompanying online sites. G+J publications includeSTERN (D), BRIGITTE (D), GEO (D, E, F, RU), CAPITAL (D, E, F),GALA (D, F, PL, RU), ELTERN (CHN, D, E, PL, USA),the P.M. group of magazines (D), FINANCIAL TIMES DEUTSCHLAND (D),ESSEN ; TRINKEN (D), NATIONAL GEOGRAPHIC (D, F, PL, NL) and INC,YM and FAMILY CIRCLE (all U.S.). Revenues in 2003 amounted to €2.5bn.With an international revenue share of 63 percent, G+J is the world´smost international publishing company. Bertelsmann AG owns 74.9 percentof the company; the Jahr publishing family in Hamburg owns 25.1 percent.