New York Media Holdings to Acquire NEW YORK Magazine

NEW YORK--(BUSINESS WIRE)--Dec. 16, 2003--New York Media Holdings, LLC, an entity controlled by Wasserstein family trusts, today announced it has reached a definitive agreement with PRIMEDIA Inc. (NYSE: PRM) to acquire NEW YORK Magazine for $55 million in cash plus the assumption of certain liabilities. The transaction is expected to close within 30 days.

Founded in 1968, NEW YORK has been New York City's weekly magazine of record, with extensive and regular coverage of local and national news, entertainment, media, culture, fashion, real estate and personalities. NEW YORK provides unique opportunities for the country's most sophisticated marketers to reach more than 1.8 million readers each week.

“Our practice has always been to focus on the building and establishing of brands by taking a long-term investment perspective”

Anup Bagaria, Chief Executive Officer of New York Media Holdings, said, "NEW YORK Magazine is a unique property. We have a long-term view and extensive experience in building high-end media properties and consumer brands. We look forward to working with NEW YORK's many talented people and to making the necessary investments to enable the publication to further flourish."

"We believe NEW YORK has significant long-term value and growth potential. It is the leading magazine for successful New Yorkers and we intend to build from this position to enhance this historic franchise and extend the brand," said Bruce Wasserstein, Chairman of New York Media Holdings. He also heads Lazard, the international investment banking house, and is Chairman of Wasserstein & Co., a New York-based private equity firm. Neither Lazard nor Wasserstein & Co. has invested in this transaction.

Kelly Conlin, Chief Executive Officer of PRIMEDIA, "We believe this is an excellent outcome for employees, advertisers and readers alike and I have every confidence that NEW YORK's market leadership will continue in the years ahead."

Bagaria and Wasserstein have extensive principal experience with media investments and build-ups, including several leading media companies that address upscale and professional audiences, including American Lawyer Media, Inc., Real Estate Media, Inc. and The Deal, LLC. They also have significant brand-building experience, having played integral roles in the growth and development of companies such as Maybelline and All Clad Cookware.

"Our practice has always been to focus on the building and establishing of brands by taking a long-term investment perspective," added Bagaria.

In 1999, Wasserstein & Co.'s leveraged buyouts fund, U.S. Equity Partners, LP, launched The Deal, which quickly became an industry standard in both print and electronic versions for investment bankers, lawyers and others in the financial community. Also in 1999, U.S. Equity Partners' Real Estate Media Inc. acquired Schein Publications, a leading publisher of real estate trade publications addressing the New York commercial real estate market. Real Estate Media has since expanded to other cities and launched a related website, GlobeSt.com. In 1997, U.S. Equity Partners acquired American Lawyer Media and, approximately six months later, acquired the New York Law Journal. Since then, American Lawyer Media has launched numerous regional publications as well as trade shows and other product extensions.

Anup Bagaria joined Wasserstein Perella Group (which became Wasserstein & Co.) in 1993. He currently serves as Vice Chairman and is the senior partner responsible for American Lawyer Media, Real Estate Media, The Deal, TrueAdvantage, RealLegal and Sportcraft and serves on the boards of other portfolio companies. He received his B.S. degree from the Massachusetts Institute of Technology.

Bruce Wasserstein has been a leader in the mergers & acquisitions and merchant banking businesses for over 30 years. He has played a strategic oversight role in numerous portfolio companies of investment funds he has controlled, and currently serves as Chairman of The Deal, Real Estate Media and American Lawyer Media Group. He received a B.A. degree with honors from the University of Michigan in 1967, an M.B.A. degree with high distinction in 1971 from Harvard Business School where he was a Baker Scholar, and also in 1971 a J.D. degree cum laude from Harvard Law School. He is the author of Big Deal: 2000 and Beyond (Warner Books, 2000). A member of the Council on Foreign Relations, he has been a member of the Visiting Committees of Harvard Law School, the University of Michigan, and Columbia Journalism School.

Robert Fogelson, a Managing Director of Wasserstein & Co., will serve as Deputy Chairman of New York Media Holdings, LLC. He currently serves on the Boards of Directors of Element K and Sportcraft. Mr. Fogelson joined Wasserstein & Co. in 1998.

PRIMEDIA was represented by Stanley Shuman at Allen & Company.