PRIMEDIA Reports Third Quarter 2006 Results.

NEW YORK -- PRIMEDIA Inc. (NYSE: PRM) today reported Third Quarter 2006 results.

 
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"We continue to aggressively execute our strategies in both the Enthusiast Media and Consumer Guides Segments, positively impacting our largest businesses despite difficult market conditions. We expect similar positive results as we apply our strategies through our entire portfolio," said Dean Nelson, Chairman, President, and CEO of PRIMEDIA Inc.

"The Company has made significant progress toward addressing a number of the challenges that have hindered performance in recent years, including improving product quality, increasing circulation efficiencies, establishing a significant Enthusiast Media Internet business, creating and growing New Home and Auto Guides, and turning around Films Media and PRIMEDIA Healthcare. Enthusiast Media's Consumer and Performance Automotive, Soaps, and Outdoors businesses are performing in line with our expectations despite very difficult market conditions, reflecting the strength of our brands and the successful execution of our strategies. Consumer Guides' New Home Guide business continues to deliver outstanding results, and management team has taken a number of positive actions to improve the performance of Apartment Guide during this period of extraordinarily high occupancy rates.

"However, the magnitude of other challenges has increased, causing us to reduce 2006 guidance. Channel One is having a worse-than-expected 2006 selling season. Enthusiast Media's International Automotive category continues to decline as the overall tuner market has not yet stabilized. Additionally, expenses related to assessing the potential spin-off, which are non-recurring, are expected to total approximately $5 million in 2006, or $3 million more than forecasted, principally as a result of having to perform extensive tax work relating to NOLs," said Nelson.

Consolidated Guidance: In 2006, the Company expects PRIMEDIA Inc. to deliver low single digit percentage revenue growth, and flat Segment EBITDA growth, both lower than previous guidance of mid single digit and low-to-mid single digit percentage growth, respectively. The Company expects that the declines in Channel One and International Automotive, combined with the increase in spin-related expenses, will reduce 2006 revenue by approximately $17 million, and 2006 Segment EBITDA by approximately $13 million below the Company's original forecast.

Guidance provided by PRIMEDIA remains in force unless revised by the Company and does not reflect the impact of any potential transactions.