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Special Update:

Segram To Purchase

Viacom's Interest

In USA Network

NEW YORK, NY/ SEPT 22 '97--Viacom Inc. (AMEX: VIA and VIAB) and The Segram Company, Ltd., (NYSE: VO) have agreed to all litigation regarding jointly owned USA Networks. Segram will acquire Viacom's 50% interest in USA Networks, including the Sci Fi Channel, for $1.7 billion in cash. The transaction is expected to close in the fourth quarter subject to customary conditions.

Sumner M. Redstone, chairman and chief executive office of Viacom, said, "The sale of USA Networks is Segram another significant step in our continuing commitment to reduce Viacom's debt." We are pleased we were able to amicably settle our differences with Seagram and we look forward to resuming a productive relationship."

Edgar Bronfman, Jr., Segram's president and chief executive officer said: "Universal now has the opportunity to manage a scarce and unique assets in the fast-growing cable network business. USA Networks complements our existing entertainment operations and provides a strong platform for future growth, both domestically and intentionally. And with the law suit behind us, our companies can now focus on further strengthening the many relationships which exist between us across the entertainment world."

USA Networks owns and operates the advertiser-supported USA Network, a general entertainment channel with 732 million subscribers (98% penetration of US cable and direct-to-home households); and Sci-Fi Channel, with 46 million subscribers (63% penetration). USA Networks also owns and operates USA Networks International, with channels in South America, Europe and Africa.

Viacom Inc. is one of the world's largest entertainment and publishing companies and is a leading force in nearly every segment of the international media marketplace. The operations of Viacom include Blockbuster, MTV Networks, 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 that operates approximately 1,100 screens in the US UK and south America, is the parent company of Viacom.

Simon & Schuster

Takes High Tech

Lead in Publishing

Via Cybernetic Commerce

NEW YORK, NY EARLY SEPT '97--Simon & Schuster may have taken the lead in transforming the sluggish publishing business into a streamlined, high-tech industry, where more--rather than fewer-- books can be profitably produced and delivered to market.

The company, second largest trade book publisher, and the largest educational publisher, recently completed Phase I of an enterprise-wide initiative using technology to gain a competitive cost advantage in the marketplace.

Throughout its procurement department, Simon & Schuster has installed intuitive, user-friendly hardware/software systems designed by SAP America. The new streamlined processes are expected to cut internal procurement costs by a whopping 50%, according to Karen Webster, marketing director for SAP's global practice.

Price Waterhouse is overseeing integration of the global, enterprise-wide information management solution for Simon & Schuster. The customized publishing solution, called R3, is the first application of its kind to be installed in the United States.

A far-reaching second phase, now underway, is expected to refine and accelerate order- placing and delivery transactions between Simon & Schuster and customers such as Amazon.com, the online bookstore, and Barnes and Noble, leading bookstore chain which also sells books online. The SAP hardware/software information management solution will be capable not only of speeding delivery and improving ordering accuracy trade to bookstores and other customers worlwide. The system will actually track a single title among millions to insure that it reaches its proper bookstore destination on time.

Simon & Schuster, owned by 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, television stations, and movie screens in 12 countries.

Bill Gates To Keynote

Seybold 12th Annual

Publishing Confernece

Print,Web, Internet

FOSTER CITY, CA/ LATE SEPT '97--More than 300 companies will showcase their latest products and technological advancements for print, Web, and Internet publishing at the 12th Annual Seybold San Francisco/Publishing 97 Conference and Exposition, a SOFTBANK Forums event.

Seybold San Francisco/Publishing 97 will be held Monday, September 29 through Friday, October 3 at the Moscone Convention Center in San Francisco. More than 40,000 publishing executives and professionals from around the world are expected at the annual gathering, which explores the market's latest issues, developments, and trends.

Seybold San Francisco is the premier educational resource for examining publishing's current products, trends, and technologies. It addresses the revolutionary changes facing this growing industry due to the emergence of multimedia publishing, the Web, and Internet. The three-day Main Conference plus a full schedule of Special Interest Seminars, Tutorials, technology demonstrations and exhibits will provide attendees with a comprehensive understanding of what lies ahead for the publishing industry.

Book Stacks Lowers

Prices; Promotes

Small Presses

Deeper Discounts at www.books.com

CLEVELAND, OHIO/ EARLY SEPT '97--Book Stacks Unlimited, a division of CUC International, has mounted an aggressive campaign against competing online booksellers, Amazon.com and BarnesandNoble.com.

The company has cut book club prices by up to 40% and launched an on-going promotion of small presses on both its own website (http://www.books.com), and on netMarket(, CUC International's new shopping site (http://www.netmarket.com).

Book Stacks Unlimited has increased discounts for members of netMarket( and Book Stacks' Frequent Buyer Club to 40% off hardcover books and 30% off paperbacks. All other customers will receive increased discounts of 30% off hardcover books and 20% off list price for paperbacks. Bestsellers and special features will continue to be discounted by 40%. All customers will continue to receive 5% cash-back from most purchases, making Book Stacks Unlimited's prices" the lowest on the Web," according to President Charles Stack.

The Book Stacks site will feature a different small press each week, with a link to a page giving detailed information about the press; its history, notable books, and featured front list. Additionally, Book Stacks is adding a Small Press section to its popular gift area, where many small press titles will be featured, along with reviews by Book Stacks' editors.

Book Stacks launched the small press promotion on both websites in late August, broadcasting readings from authors and poets featured over the years in the Pushcart Prize anthology, the annual small press reader. Among participating authors are Saul Bellow, Bobbie Ann Mason, W.S. Merwin, U.S. Poet Laureate Robert Pinsky, and James Scully.

Book Stacks Unlimited is the original online bookstore, fulfilling the first-ever Internet commerce order in 1993. The online bookstore provides a searchable database of 1/2 million titles, 190,000+ online reviews, 35,000+ cover images, a daily Internet Radio Show, friendly customer service, online order tracking and low shipping charges.

Book Stacks is a wholly owned subsidiary of CUC International, based in Stamford, CT. CUC International (NYSE: CU) is a leading technology-driven, membership-based consumer services company that currently provides approximately 68 million consumers worldwide with access to home shopping, travel, insurance, automobile, dining, home improvement, lifestyle clubs, checking account enhancement, and discount coupon programs. In addition, CUC provides educational and entertainment interactive media products through its CUC Software division.

Bookseller Dillons'

Domain Name

Stirs Confusion

Porn Or Prose?

LONDON, ENGLAND/ LATE SEPT--Respected British bookseller Dillions, which launched its new website this month, is reportedly abashed by the similarity of its website name (http://www.dillions.co.uk), to a US site (http://www.dillons.com), which offers soft pornography, and hires dancers, models and escorts.

The bookstore has made a statement that they are not associated in any way with the site by a smiliar name.

UPN Network

Buys Numerous

Sci-fi Films

NEW YORK,NY/ LATE SEPT '97--The UPN network has placed orders for 36 original sci- fi movies with Paramount Studios, and its Viacom Pictures and Wilshire Court subisidaries. The films will air on UPN's new primetime movie night. US Filmmakers

And World Customs

To Fight Piracy

EASTERN BRUSSELS, BELGUIM--U.S. Filmmakers and the World Customs Organization have joined forces in an effort to stamp out product piracy.

According to the Motion Picture Association, commercial piracy and counterfeiting of audiovisual materials across international borders costs American filmmakers about $2.5 billion a year. and continues to soar. The MPA represents American filmmakers in the effort.

Piracy is expected to continue to soar as new digital technologies make it easier to generate multiple copies of films, videos and television programs of equal quality to original programs.

The World Customs Organization represents the customs operations of 144 nations. The MPA will help train customs agents to identify counterfeit material and share information.

China remains the world leader in audiovisual piracy. Frequent offenses also occur in Italy, Russia and other former Soviet bloc countries.

Novelist Gloss

Gets Film Option

From Longstreet

Film rights for "The Jump-Off Creek," a novel by Molly Gloss, have been optioned by Longstreet Productions. The announcement was made by Renee and Harry Longstreet, principles in the production company.

The novel, published in 1989, earned the H.L. Davis Oregon Book Award for fiction that same year, and won the Pacific Northwest Booksellers Association Award for Fiction in 1990. "The Jump-Off Creek" was also one of five nominees for the coveted PEN/Faulkner Award for Fiction.

Ms. Gloss is the author of numerous short stories and three novels. In 1996 she won a Whiting Foundation award which annually recognizes emerging writers. Past winners include Tobias Wolff, Tony Kushner, Mary Karr, August Wilson and Mona Simpson. Ms. Gloss is a native of Oregonian.

Troubled Cinergi

Pictures Approves

Management Buyout

EARLY SEPT '97--Struggling independent film company Cinergi Pictures Entertainment Inc. has agreed to a management buyout of about $31 millioln ($2.30 per share).

Under the deal, Cinergi would be merged with CPEI Acquisition Inc., a company formed for the buyout by Andrew Vajna, Cinergi's president and chief executive, and Valdina Corp. In August, Cinergi reported a second-quarter loss of $7 million on revenue of $17 million. In April, it agreed to sell the bulk of its movie library, including "Evita" and "Nixon," to Walt Disney Co. in exchange for cancellation of $38 million in production advances.

The Disney deal, due to close by Nov. 22, is key to the success of the management buyout.

The buyers said they will increase their offer if the company earns more than $1.5 million from the "Evita" soundtrack, collects more than $1.57 million it is owed for "An Alan Smithee Film," or if it realizes any profit from its first-look rights to several Oliver Stone development projects.

The company has about 13.4 million shares of outstanding stock, including nearly 5.5 million held by Vajna and nearly 1 million held by Valdina.