Audio Book Club Begins Trading on the American Stock Exchange

Business Wire, Oct 23, 1997

BOCA RATON, Fla.--(BUSINESS WIRE)--Oct. 23, 1997--

Company Sells 2.3 Million Shares in a $23 million IPO

Audio Book Club Inc. began trading on the American Stock Exchange yesterday under the symbol "KLB."

Audio Book Club, Inc., a direct marketer of audio books through mail order and via the Internet, had originally anticipated selling two million shares at $8 to $10 per share, and actually sold 2.3 million shares at $10 per share. The offering was solely managed by L.H. Friend, Weinress, Frankson & Presson, Inc.

The gross spread, or the difference between the price paid to the issuer and the price at which the shares are sold, was $0.80 per share. The selling concession, or the amount per share allocated to members of the selling group, was $0.44. The management fee and the underwriting fee were each $0.18. The reallowance, or the amount per share allocated to firms that are not members of the selling group, was $0.10.

The shares sold represent 37.4% of the company, and reflect a market valuation for Audio Book Club, Inc. of $61.5 million. Settlement is scheduled for October 27, 1997.

CONTACT: Martin E. Janis & Company, Chicago

Hal Schweig, 312/943-1100