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February 8 February 15, 2007 Edition
PLEASANTVILLE, NY/2/2/07The Reader’s Digest Association, Inc. (NYSE: RDA) has announced that stockholders have approved a merger agreement between RDA and entities formed by an investor group led by Ripplewood Holdings L.L.C.
As announced on November 16, 2006, the Ripplewood-led investor group will acquire all of the outstanding common stock of RDA for $17.00 per share in cash and assume all outstanding debt. The deal is expected to close by the end of February 2007.
The Reader’s Digest Association, Inc. is a global publisher and direct marketer of products that inform, entertain and inspire people of all ages and cultures around the world. RDA had revenues of $2.4 billion for the fiscal year ended June 30, 2006. RDA’s corporate web site is www.rda.com.
Among the companys products are illustrated reference books, books about reading and childrens books.
RD announced fiscal 2007 second quarter financial results on January 25, 2007. Revenues were up from $765 million to $802 million, and operating profits were $114 million, versus a loss of $(76) million for the previous year. Net Income was $62 million, versus a loss of $(122) million.
Reader’s Digest, the largest-selling magazine in the world, now appears in 50 editions and 21 languages, following new launches during the past year in Romania, Slovenia and Croatia. The magazine is sold in more than 60 countries.