IDG Books Worldwide Buys Stake in Canadian Publisher; Hillman Named President of Newly Created Company

Business Wire, Dec 22, 1998

FOSTER CITY, Calif.--(BUSINESS WIRE)--Dec. 22, 1998--IDG Books Worldwide (IDGB) announced that it has purchased a 49 percent ownership in a new company to be formed with Macmillan Canada (a division of Canada Publishing Corporation), a leading Canadian consumer book publisher. IDGB, a global knowledge company and publisher of best-selling book series and computer-based learning tools, paid approximately US$1.7 million for its minority ownership.

Steven Berkowitz, President of IDGB and Ronald Besse, President of Canada Publishing Corporation (CPC), jointly announced the deal which will create a new Canadian company called CDG Books Canada, Inc. They named Hart Hillman as President.

"This new venture is a great opportunity for us to expand our business in Canada," said Steven Berkowitz, IDGB's President. "Macmillan Canada has been our distributor since IDGB was founded and we have built a profitable working relationship. One of our strategic goals is to expand our global publishing and we're pleased that our first major endeavor in this regard is with our long-standing Canadian partner."

"We were looking for a partner to help us build our business," said Ronald Besse, President of CPC. "We have excellent books and authors and we are delighted to now have enhanced access to the strong marketing, distribution and publishing capabilities of IDG Books to help us expand our market share."

Hart Hillman, who recently joined Macmillan Canada as President of their Consumer Publishing Group will become President of the newly-formed company. Hillman previously worked at Prentice Hall Canada (owned by Simon & Schuster Inc.) where he was President of the Professional, Trade & Reference Division.

IDGB's Berkowitz said the acquisition creates new publishing opportunities. "The success of books like Personal Finance For Dummies(R), Canadian edition shows there is high demand for customizing our publications for the Canadian market. There are also many excellent books and brands in Macmillan Canada's portfolio such as the Canadian Global Almanac, Who's Who in Canada and a variety of cooking and sports titles that we look forward to publishing. This new company will enable us to accelerate the localization of our publishing program."

Canada is the second largest market for IDG Books Worldwide. Widespread consumer recognition and demand for their branded series such as the over 50 million selling ..For Dummies(R) series as well as its Secrets(R), Bibles, MSCE Study Guides(R) and Novell Press(R) brands have earned IDGB strong market share. In eight years, IDGB's net Canadian sales have totaled over US$30 million.

IDG Books Worldwide, headquartered in Foster City, Calif., is a leading global knowledge company featuring a diverse portfolio of technology, business and self-help books and computer-based learning tools, including the bestselling ...For Dummies(R), ...Secrets(R) and Teach Yourself(R) brands. IDG Books Worldwide has more than 700 active titles plus translations in 36 languages around the world. More information about IDG Books Worldwide is available from the company's SEC filings or by visiting its World Wide Web site http://www.idgbooks.com. Information about our "...For Dummies(R)" series can also be found at http://www.dummies.com. IDG Books Worldwide is a subsidiary of International Data Group, a leading global provider of information technology media, research, conferences and expositions.

About Macmillan Canada

Macmillan Canada has a long and distinguished track record of publishing in Canada. It has published such well known authors as Robertson Davies, Alice Munro, Hugh MacLennan and W.O. Mitchell, to mention only a few. Today it is a leading publisher of cookbooks, business management, health and reference books, as well as biographical books in sports, history and life styles.

This news release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the company's limited operating history, competitive pressures and the risk factors detailed from time to time in the company's periodic reports and registration statements which are filed with the Securities and Exchange Commission.