NEW YORK, June 14 /PRNewswire/ -- American Media, Inc. ("AMI")
announced today that it is implementing a strategy to refocus the Company,
and devote its full resources to growing its core brands. As part of this
strategy AMI will explore the sale of its five market leading special
interest titles -- Muscle & Fitness, Flex, Muscle & Fitness Hers, Country
Weekly, and Mira! and has engaged J.P. Morgan Securities Inc. and Bear,
Stearns & Co. Inc. as advisors.
    "AMI's strategy going forward will focus on our celebrity weeklies and
active lifestyle magazines," said David J. Pecker, AMI Chairman and CEO.
Included among the 11 top titles AMI will continue to operate and grow are
Star, National Enquirer, Shape and Men's Fitness. Total readership of all
remaining AMI titles will exceed 35 million per month.
    "As part of this strategic refocus, we have decided to explore
divestiture options for our five special interest titles," added Mr.
Pecker. "Each of these titles is a leader in its respective category,
benefits from strong demographic trends and a stable base of customers and
advertisers, and has attractive expansion opportunities."
    Whether American Media, Inc. will engage in a transaction resulting in
the sale of these five magazines has yet to be determined. There can be no
assurance that any transaction will occur or, if undertaken, the terms or
timing of such a transaction. In the aggregate, the five titles generated
an estimated $84.0 million in revenues for the twelve months ended March
31, 2006. Operating income plus depreciation and amortization associated
with these five titles for the same period was an estimated $29.6 million.
    Brief descriptions of the assets under consideration are as follows:
    Muscle & Fitness, Flex, Muscle & Fitness Hers -- An exceptional group
of health and fitness special interest titles written for young men and
women who are serious fitness enthusiasts. Collectively, these three titles
have a U.S. readership of over 8 million and are the acknowledged worldwide
experts in resistance training and nutrition for enthusiasts and athletes
at all levels. Muscle & Fitness has been published for over 60 years and
was the basis for the launch of Flex and Muscle & Fitness Hers,
respectively.
    Country Weekly -- Published for over 10 years, Country Weekly is
Country music's #1 entertainment magazine with a total readership of 3.3
million. It features exclusive news and information about Country music's
biggest stars and benefits from America's passion for Country music, the
most dominant radio genre in the U.S.
    Mira! -- The largest newsstand Hispanic magazine in the U.S. featuring
exclusive news and gossip about the hottest Latino stars. Distributed at
supermarkets, mass merchandisers and bodegas in the top 43 Hispanic
markets, Mira! has a readership of over 850,000.
    Forward-Looking Statements
    This press release contains "forward-looking statements," within the
meaning of the federal securities laws that involve risks and
uncertainties. All statements herein that address activities, events or
developments that the Company expects or anticipates will or may occur in
the future, including the Company's estimates of financial performance and
such things as business strategy, measures to implement strategy,
competitive strengths, goals, references to future success and other events
are generally forward-looking statements.
    The Company's actual results may differ materially from its estimates.
Whether actual results, events and developments will conform to the
Company's expectations is subject to a number of risks and uncertainties
and important factors, many of which are beyond the control of the Company.
Among the risks and uncertainties which could cause the Company's actual
results to differ from those contemplated by its forward looking statements
are the risk that the Company may not be able to successfully develop its
magazine operations so that they continue to generate sufficient cash flow
to enable the Company to meet its obligations under its senior credit
facility and bond indentures, including the financial covenants under its
senior credit facility; actions of rating agencies; industry and economic
conditions; and the risks and uncertainties contained in the Company's
periodic reports filed with the Securities and Exchange Commission.
Consequently, all forward-looking statements made herein are qualified by
these cautionary statements and there can be no assurance that the results,
events or developments referenced herein will occur or be realized.
    About American Media, Inc.
    American Media, Inc. is the leading publisher of celebrity journalism
and health and fitness magazines in the U.S. These include Star, Shape,
Men's Fitness, Fit Pregnancy, Natural Health, and The National Enquirer. In
addition to print properties, AMI owns Distribution Services, Inc., the
country's #1 in-store magazine merchandising company.
    Contact: Carlos Abaunza, SVP/CFO
             American Media, Inc.
             (561) 998-7392

Link to this page: