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Viacom Reports

Across-the-Board

2nd Quarter Growth

S&S Posts Gains

NEW YORK, NY/EARLY AUGUST '97--Viacom Inc. (AMEX: VIA and VIAB) has increased revenues to $3.03 billion for the second quarter ending June 30, 1997, from $2.79 billion for the same period last year.

The company, which owns Simon & Schuster, reported growth in every segment, including double-digit gains at MTV Networks, Paramount and Spelling.

Viacom reported earnings before interest, taxes, depreciation and amortization (EBITDA) of $127 million and an operating loss of $137 million for the second quarter of 1997, principally resulting from the previously announced Blockbuster charge and lower operating performance at Blockbuster, which more than offset double digit EBITDA gains at MTV Networks.

"In the second quarter, all of Viacom's business segments, aside from Blockbuster, turned in solid performances," said Sumner M. Redstone, Chairman and Chief Executive Officer of Viacom. "Our publishing sector, which is traditionally a second-half business, posted growth in both revenue and EBITDA."

Publishing revenues for the quarter(Consumer, Educational and International/Reference) rose 4% to $535 million and EBITDA increased 6% to $56 million led by strong International sales in European, Asian and Latin-American markets. Education revenues also increased due to early summer season sales and growth at Computer Curriculum Corporation, the leading provider of educational software and services to the school market.

The Consumer Group's best selling titles in the second quarter included two books by Mary Higgins Clark: Pretend You Don't See Her and Moonlight Becomes You, and Frank McCourt's Pulitzer Prize-winning memoir Angela's Ashes.

Entertainment (Motion Pictures, Television Programming, and Movie Theaters) revenues gained 14% to $862 million, largesly reflecting increased television program license fees and higher home video revenues at both Paramount and Spelling.

Entertainment EBITDA decreased 17% to $95 million, due to lower profits resulting from a change in Paramount's television product mix, coupled with lower profits for feature films released during the second quarter of 1997 at both Paramount and Spelling.

Viacom Inc. is one of the world's largest entertainment and publishing companies and a leading force in nearly every segment of the international media marketplace. The operations of Viacom include Blockbuster video and music, MTV Networks, Paramount Parks, Paramount Pictures, Paramount Television, Showtime Networks, Simon & Schuster, television stations, and movie screens in 12 countries. Viacom also has a majority interest in Spelling Entertainment Group, as well as a half- interest in Comedy Central; UPN; and USA Networks, including the Sci-Fi Channel. National Amusements, Inc., a closely held corporation which owns and operates approximately 1,100 movie screens in the US, the UK and South America, is the parent company of Viacom. More information about Viacom is available at the Company's Web site located at http://www.viacom.com.

Mid-Year

Profits Soar

At Pearson

LONDON/ EARLY AUGUST '97-- Pearson, the UK-based media and entertainment group, has reported a 167-percent increase in half-year pre-tax profits to $131 million dollars from the previous year.

The company's goal is to double its value over the next five years, according to Chief executive Marjorie Scardino, the first woman to head a top British company. She was named to the post in January, 1997.

Pearson, which publishes the Financial Times (FT) business daily, said that the half-year figure includes a 31.3-million-pound infusion from the sale of the British local newspaper group, Westminster Press. Growth was partly attributed to strong increases at Penguin, the company's book operation, which acquired US publisher Putnam Berkley in December, 1996. Strong sales at FT also contributed to the increase.

The newspaper's editor, Richard Lambert, has moved to New York to head an expansion into the United States.

Pearson is actively seeking possible a variety of acquisitions, not all of which are media-related.

HarperCollins

Undergoes Major

Restructuring

No Sale Afterall

NEW YORK, NY/EARLY AUGUST '97--In what has been called one of the largest write-offs in publishing history, Rupert Murdoch's News Corp. will charge $270 million to restructure HarperCollins by eliminating 420 jobs worldwide, and cutting losses on author advances and unsold inventory.

The announcement ended speculation that the giant book publisher would be sold, to German-based Bertelsman AG,which owns Bantam Doubleday Dell. Bertelsman had apparently strongly considered a deal to buy HarperCollins, but the two sides could not reach an agreement.

HarperCollins will focus on literary and commercial fiction, psychology, religion, new age/spiritual, self-help books, children's books, science fiction and business books, according to President Anthea Disney.

Already, 220 jobs have been cut, and another 200 cuts are planned, including 40 US positions. The company will cancel or buy-out a number of author contracts, and will write off unsold book inventories.

HarperCollins' book publishing revenues for this year are estimated at $785 million.

Texas Legislature

Passes $361 Million

Textbook Budget AUSTIN,TX/EARLY AUGUST--The Texas Legislature has approved a $361 million budget for textbook adoptions in fiscal 1998 and 1999, and has passed a $32 million reading initiative bill, favored by Governor George Bush.

The new textbook budget represents an 11.1% increase over the previous year's budget. The bill assures more funding for spelling, art and foreign language adoptions in 1998, and for K-8 math programs in 1999.

Lawmakers also approved the Texas Reading Initiative, allocating $32 million over two years for diagnostic reading tests and instructional materials for elementary children. The amount was less than half of the $70 million requested by Governor Bush. Funds will go to school districts on a competitive grant basis, and will be applied to local assessments programs for measuring reading proficiency, and to professional development and preliminary reading materials.

The legislature also asked the Texas Education Agency to conduct a study on the feasibility of using computer networks to deliver updated textbook supplements to public schools.

Tiny Publisher

Hits Bestseller

List Three Times

SEATTLE,WA/EARLY AUGUST '97-- Lighthouse Publishing Group Inc., a tiny Northwest publishing house with only 15 titles in print, has made the New York Times Business Bestseller list with three books, all authored by Wde B. cook of Wade Cook Seminars, Inc.

Lighthouse is a subsidiary of the publicly-traded Profit Financial Corp., Inc. (OTC Bulletin Board: PFNL) which also owns Wade Cook Seminars.

The three successful titles by Cook are: Wall Street Money Machine, fifteen months on the list and currently number five; Stock Market Miracles, four months on the list and currently number four; and Business Buy The Bible, a new release now listed as number six.

Lighthouse Publishing will release it's next book this September, entitled Don't Set Goals.

The Lighthouse list includes books on education, business, and motivational issues. The company's goal, according to Executive Director Cheryle Hamilton, is to provide exceptional products that enhance personal vision and success in all of life's opportunities.

Lonely Planet

Buys Gulf's

Pisces Books

OAKLAND, CA/EARLY AUGUST '97--Lonely Planet, publisher of travel and adventure guidebooks, has purchased Pisces Books, a popular diving and snorkeling series, from Gulf Publishing.

Included in the Pisces acquisition are 55 snorkeling and diving titles, along with how-to guides for snorkeling and underwater photography, shipwreck diving, and underwater nature.

The Pisces line will now be published from Lonely Planet's Oakland office.

A spokesman said the Pisces acquisition will help meet a growing demand by travelers for adventure-based vacation guides.

Adventure travel is the largest growing segment of the travel market and the dive market alone is a 1.7 billion dollar industry

Lonely Planet's list includes nearly 300 guidebooks, phrasebooks, walking guides, videos, atlases and travel literature. The company has earned a reputation for providing outstanding travel information for independent, adventurous travelers.

Pisces Books are the best-selling of the category and are carried by dive shops throughout the world.

Lonely Planet was founded in 1973 by Tony and Maureen Wheeler, and is headquartered in Melbourne, Australia with satellite offices in Paris, London and Oakland. The Oakland office handles sales, marketing and distribution for the Americas and production of Lonely Planet's USA, Caribbean and Latin American guidebooks.

Houston-based Gulf Publishing, publisher of regional travel guides and technical manuals, acquired Pisces Books in 1989 from original owners Herb and Cora Taylor.

Penguin Teams

With Red Storm

On Clancy Products

NEW YORK,NY/EARLY AUGUST '97-- Pearson plc, through The Penguin Group, has entered a long-term strategic agreement with Red Storm Entertainment Inc. to market a new generation of multiplayer online games and other multiple media products.

Red Storm is a multiple media entertainment company founded by best selling author Tom Clancy and Virtus Corporation, a leader in interactive 3D business applications.

Red Storm Entertainment, Inc. currently is developing four game titles, the first of which will release this Fall. The Fall release is based on Tom Clancy's Politika, a multiplayer game about a power struggle among factions in Russia following the death of President Boris Yeltsin.

As part of the agreement, Putnam Berkley, Tom Clancy's longtime US publisher, and now part of Pearson's Penguin Group, will obtain global English language rights to two major novels which will be published in England by Penguin UK

Tom Clancy, founder and Chairman of Red Storm Entertainment, Inc., said, "Putnam and I have been partners for over 12 years, and now we can be partners for the invention of a new art form. This is the beginning of a new form of storytelling, partnering one of the world's leading publishers and Red Storm Entertainment, a new company with a new vision."

Pearson plc is an international media group with interests in publishing, television production, broadcasting, electronic and multimedia businesses, including The Penguin Group, the second largest English-language trade book publisher in the world. Penguin acquired the Putnam Berkley Group in November 1996.

UK Booksellers

Model Websites

After US Rivals

Waterstone's and Dillons, two of the UK's largest book chains, will launch electronic bookstores this Fall, each offering more than 1 million titles online.

Modeling their websites after Amazon.com and BarnesAndNoble online, Waterstone's and Dillons have redesigned their initial Internet sites to provide some of the same services available from the two successful US online booksellers.

Following their US counterparts, both Waterstone's and Dillons are expected to provide deep discounts on their new sites, at the risk of disrupting relationships with UK publishers. Waterstone's, in a highly controversial move, also plans to sell imported US editions, before they are released in the UK.

Barnes & Noble's webiste offers 30 per cent off the list price of hardbacks and 20 per cent off paperbacks. Amazon.com matches those discounts, and offers 40 per cent off bestsellers.

The Internet book market remains small, but it is one of the fastest-growing online retail segments. Amazon.com's sales, while a mere $16 million last year, are increasing at an average of 34 per cent monthly.

Waterstone's will sell 150,000 at its new superstore scheduled to open in Glasgow next month, compared to 1.4 million titles it will make available from its new waterstones.uk.com site in November.

Meredith Posts

Record Year-end

Earnings Per Share

DES MOINES, IOWA/EARLY AUGUST '97--Meredith Corporation (NYSE: MDP) today reported a 34 percent increase in comparable earnings per share for the fiscal year ended June 30, 1997.

It was the fifth consecutive year the company reported improved comparable earnings over the previous year. The company's publishing holdings include Better Homes and Gardens, Country Homes and other magazines. Meredith also owns a number of television stations in Las Vegas, Phoenix, Kansas City and elsewhere.

Earnings from continuing operations for fiscal 1997 totaled $67.6 million, or $1.22 per share, up from comparable earnings of $51.3 million, or 91 cents per share, in fiscal 1996. Earnings from continuing operations were $54.7 million in fiscal 1996, including a gain on the sale of the company's book clubs.

Net earnings for the fiscal year were $95.3 million, or $1.72 per share, including a post-tax gain in discontinued operations of $27.7 million, or 50 cents per share, from the second quarter sale of the company's remaining interest in a cable television system.

"All of our business segments reported increased operating profits for the year and the fourth quarter, with record results in Publishing and Broadcasting for both periods," said William T. Kerr, Meredith Corporation President and CEO. "The strength of each of our operations positions us well, and we're beginning fiscal 1998 with strong earnings momentum."

Operating profit in Publishing for fiscal 1997 grew 26 percent to $80.6 million from $64.1 million in the prior year. For the fourth quarter, Publishing operating profit grew 11 percent, to $21.2 million in fiscal 1997 from $19.1 million in fiscal 1996.

Broadcasting operating profit for fiscal 1997 increased 12 percent year-over- year, to $58.5 million from $52.3 million. For the fourth quarter, operating profit grew 21 percent to $17.7 million.

Copies of Meredith Corporation news releases and quarterly reports are available by calling Company News On-Call toll-free at 800-758-5804. This electronic, menu-driven system requires a six-digit code (554850) and will fax information immediately upon inquiry.

Thomas Nelson

Sees Slight Dip

in 1st Quarter '98

Operations Income Up

NASHVILLE, TN/EARLY AUGUST-- Thomas Nelson (NYSE: TNM) posted a slight decline in revenues for the first quarter of fiscal 1998, but saw an increase in income from continuing operations.

In the three months ended June 30, 1997, revenues totaled $54.5 million, a 1.3% decline from the comparable prior year quarter. Earnings per share in the recent period rose to $0.06 compared to $0.01 per share from continuing operations in the corresponding quarter of 1997. Income from continuing operations rose to $1.0 million for the first quarter of fiscal 1998 from $0.2 million in the prior year.

Thomas Nelson Chairman and President Sam Moore attributed the dip to "soft business conditions in the book industry."

"Our sales were down slightly from last year's, but we think this is a better showing than will be seen by the book industry overall, " said Moore. "We continued to solidify our position as the largest publisher of Christian and inspirational literature. It is clear that our focus on cost controls, increased productivity and greater selectivity throughout our product lines has resulted in improved profitability."

Moore said Thomas Nelson will continue developing new products for markets where they see great opportunity.

Thomas Nelson Inc. is a leading publisher, producer and distributor of books emphasizing Christian, inspirational and family value themes. The company also designs, manufactures and markets a broad line of gift and stationery products.

Harcourt Finances

$500 Million Debt

In Public Offering

CHESTNUT HILL, MASS/AUGUST '97--Harcourt General, Inc. (NYSE:H) has completed a $500 million public offering for debt financing. Net proceeds will be used to repay about $300 million in bank loans incurred with Harcourt General's recent acquisition of National Education Corporation.

Funds also will be used for general corporate purposes, possibly including capital expenditures, working capital requirements, reduction of other indebtedness and acquisitions.

Financing was done in three segments:

• $150 million in 10 year senior notes due 2007
• $200 million in 30 year senior debentures due 2027
• $150 million in 100 year senior debentures due 2097

Harcourt General, Inc. is a growth-oriented operating company with core businesses in publishing and specialty retailing. The Company also provides professional outplacement services to clients worldwide.

Chapters, Inc.

Revenues Down,

But Sales Soar

TORONTO,CANADA/EARLY AUGUST '97--Canada's largest book retailer, Chapters Inc.(TSE CHP), reported a loss of $3.4 million ($0.41 per share) on revenues of $80.5 million for the 13 weeks ended June 28, 1997. The figures showed improvement over last year's loss of $4.1 million ($0.77 per share) on revenues of $71.7 million for the comparative period.

Sales from Chapters' book superstores soared to $22.4 million in the first quarter of Fiscal 1998 , doubling last year's figure of $9.8 million.

The company--largest book retailer in Canada and third largest in North America-- operates 330 traditional book stores in Canada and plans 2-15 new store openings this year. Another 13 stores are operated by Chapters under various names.

Chapters Inc. reportedly plans to go public. In a pre-IPO move this past May, Barnes & Noble, Inc. became a 20% owner of Chapters, purchasing an additional 736,795 common shares in Chapters.

In other moves this year, Chapters prepaid $11 million of subordinated debt and accrued interest, due between April 1998 and April 1999, and refinanced an additional $5 million of its long-term debt at lower interest rates. Chapters also increased its operating line of credit and reduced its interest costs on its long-term debt.

Torstar Makes

Key Changes

In Management

TORONTO,CANADA/EARLY AUGUST '97-- Torstar Corporation(TSE, ME TS) has made three key changes in top management. David Galloway, President and Chief Executive Officer of Torstar Corporation, made the announcement.

Brian Hickey has been named Chairman and Chief Executive Officer of Harlequin and the Children's Supplementary Educational Publishing Division (CSEP). Stuart Campbell has been appointed President and Chief Operating Officer of Harlequin, and Donna Hayes has been named President and Chief Operating Officer of the CSEP Division.

Brian Hickey will devote a significant amount of time to the recently-acquired Troll Communications. Troll, now part of Torstar's CSEP Division, represents about one-fourth of the division's annual $350 million revenues.

Stuart, reporting to Brian Hickey, will be responsible for the day-to-day operations of all aspects of Harlequin.

Donna Hayes will be responsible for CSEP start-up businesses (home clubs, mass market retail and international, with the assistance of Harlequin.

Brian Hickey has held a number of senior positions with Harlequin including vice-president and Regional Director South East Asia and Executive Vice President North America.

Stuart Campbell joined Harlequin in November 1990 as Executive Vice President of Direct Marketing for North America. Since January 1992 he has held the position of Executive Vice President leading the North American Division.

Donna Hayes was appointed Vice President and General Manager of the CSEP Division in February 1995. Prior to the creation of the CSEP Division, Ms. Hayes was with Harlequin, joining in 1985 as a Product Manager.

Torstar Corporation is a broadly based information and entertainment communications company. Its operations include The Toronto Star, Canada's largest daily newspaper; Metroland Printing, Publishing & Distributing, publishers of community newspapers and distributors of advertising materials; Harlequin Enterprises, the world's largest publisher of series romance fiction; the Children's Supplementary Educational Publishing Division, which publishes and produces educational products for teachers, parents and children under the names: Frank Schaffer, Tom Snyder Productions, Delta Education, Brighter Vision and Troll. The company also has an interest Hebdo Mag Inc.

Torstar's news releases are available on the Internet at http://www.torstar.com/corporate .

McGraw Hill

Names Witmer

As President

NEW YORK/NY/EARLY AUGUST '97--The McGraw-Hill Companies has named Jack E. Witmer president of its Educational and Professional Publishing Group, which includes the Educational Publishing, Higher Education and Consumer, and Professional Publishing groups.

Witmer succeeds Peter Jovanovich, who resigned to join Pearson, plc as chairman and CEO of Addison Wesley Longman, Inc.

Witmer will report to Harold McGraw III, president and chief operating officer.

Founded in 1888, The McGraw-Hill Companies is a leading information services organization serving worldwide markets in education, business, finance, the professions and government. Revenues in 1996 were $3.1 billion.

Peter Jovanovich

To Head Addison

Wesley Longman

LONDON/ EARLY AUGUST '97--Peter Jovanovich succeeds J.Larry Jones as chairman and chief executive of Pearson's Addison Wesley Longman educational publishing unit. The appointment becomes effective September 1.

Jovanovich, 48, joins Addison Wesley Longman after having served as president of McGraw-Hill's Educational and Professional Publishing Group since 1995.

Lynton To Handle

Pearson Intellectual

Property Rights

Michael Lynton, chairman and chief executive of Pearson's Penguin books division, has been assigned to enhance intellectual property rights throughout the various divisions of Pearson,plc.

Rosenberg Named

President Of HBO

International

NEW YORK, NY/EARLY AUGUST '97-- Steven Rosenberg has been named president of HBO International, succeeding Curt Viebranz, who left to seek other interests. The announcement was made by Jeff Bewkes, chairman and chief executive officer of Home Box Office.

Rosenberg, formerly executive vice president of HBO International, will be responsible for all of HBO's worldwide basic and pay television ventures, and will report directly to Bewkes.

Rosenberg joined HBO in 1990 as vice president, International, and has been instrumental in the company's efforts to establish HBO in Latin America, Asia, and Central and Eastern Europe.

Home Box Office has become a major player in the expanding international media arena. Currently, HBO International has interests in HBO services in Latin America, Asia, and Central and Eastern Europe. Outside the US, HBO services are available in nearly 35 countries and are watched by more than 7 million viewers.

Wagner Named

Seattle Times

New Media Exec

SEATTLE,WA/AUGUST '97-- Dave Wagner has been named to the newly-created position of Manager of New Media Technology and Operations by The Seattle Times Co.

Wagner will be responsible for helping the company make technological decisions and for managing alliances in the rapidly-developing new media area. He will report directly to Nancy Bruner, Director of New Media. Wagner joins the New Media department after serving the IS department for 17 years.

The Seattle Times Co. owns the Seattle Times and jointly operates the Seattle Post-intelligencer. Together the two newspapers represent the 16th largest newspaper buy in the nation. The combined Sunday newspaper - largest Sunday newspaper in the Northwest - has a circulation of more than half a million , and ranks 20th nationally.