PRIMEDIA Announces Plans to Create "New Currencies" To Enable Outside Internet Funding.

NEW YORK--(BUSINESS WIRE)--Dec. 9, 1999--

Will Accelerate use of Advertising

Inventory to Create New Media Equity Stakes

PRIMEDIA's Chairman and CEO Tom Rogers announced today that PRIMEDIA intends to create distinct structures and currencies for its Internet businesses.

"PRIMEDIA has excellent multimedia opportunities to expand its consumer and business-to-business brands," said Rogers. "In order to take full advantage of these opportunities, including attracting new media talent as well as funding the growth of this area from sources that are in addition to PRIMEDIA's own cash flow, we will be pursuing venture structures that maximize value for shareholders and enable alternatives for raising capital.

Rogers also stated, "PRIMEDIA will accelerate its use of advertising inventory as a means of taking equity positions in new media companies. In the traditional media world, what we did at NBC and what CBS has done in this regard is extremely applicable to PRIMEDIA with its 33,000 pages of advertising inventory, not to mention other advertising availability the company has.

"A truly unique aspect of PRIMEDIA's assets," said Rogers, "is that they largely involve content which is connected to a distinct commerce support base that essentially defines P to P. Yes, that's right, P to P - hard core passions that cause pocketbooks to be opened, meaning that PRIMEDIA's areas for new media development are particularly well-suited to creating e-commerce revenue streams."

"During the last nine months, we have built several very successful Internet businesses," said Charles G. McCurdy, President of PRIMEDIA. "Among these are Apartmentguide.com, the most comprehensive site for apartment renters which had 1.35 million visitors in November with an average user session of 10 minutes."

PRIMEDIA's consumer Internet businesses includes properties focused on such vertical markets as teens (Seventeen.com), automotive (a new automotive enthusiast community is expected to launch during the first quarter of 2000), outdoor recreation (Equisearch.com) and key life events (Modernbride.com and Americanbaby.com). PRIMEDIA's business-to-business Internet unit, called IndustryClick, includes properties focused on such markets as entertainment technology (Digibid.com), telecommunications (Internettelephony.com) and media (MediaCentral.com).

Separately, Rogers announced that Michael Jeffrey, a key executive at NBC Interactive, has been named to the new position of vice president, new media development for PRIMEDIA. He will report to McCurdy.

PaineWebber Media Conference Presentation Highlights

(Note that copies of the slides are being made available on the PRIMEDIAInc.com Website)

Rogers, who became chairman and CEO effective October 27, is telling participants at the PaineWebber Media Conference:

- "PRIMEDIA is much more than a magazine company with significant

print, video and Internet assets. We have very strong market

positions in reaching buyers and sellers in niches in such areas

as teens, enthusiasts, key life events and business-to-business.

Our positions in traditional media enable us to quickly take

leadership positions on the Internet.

- "Operations reviews show that the units are basically in good

shape and the Company's focus on targeted media is the right

focus.

- "In many ways, PRIMEDIA might be compared to Martha Stewart

Living Omnimedia, in that we both have strong brands, are focused

on attractive customer bases, have cross promotional

opportunities and are able to exploit multimedia platforms. But

PRIMEDIA can be looked at as containing dozens of Martha Stewart

Omnimedia types of plays. Moreover, PRIMEDIA, with dozens of

brands which are No.1 or No.2 in their category in both

business-to-business and consumer areas, has the added advantage

of a very diversified advertiser base and no dependence on any

one market cluster.

- "PRIMEDIA has tremendous reach, with total circulation of 70

million and total reach of 200 million individuals. This puts us

in a powerful position with users of our content and advertisers.

- "I am slated to announce a full strategy for the company during

the first quarter of 2000. It will focus on accelerating growth,

particularly in new media; building an organization to enable

growth; reviewing the portfolio of businesses for potential

divestiture, and implementing cost controls aimed at increasing

productivity."

Copies of the slides from the PaineWebber Media Conference may be viewed on PRIMEDIA's Internet site, www.primediainc.com.

PRIMEDIA Inc., with 1998 sales from continuing businesses of $1.5 billion, is a targeted media company focused on consumer and business-to-business audiences. Some key brands include Seventeen, New York, Chicago, Fly Fisherman, Channel One Network, Horticulture, Modern Bride, American Baby, Telephony and Ward's.

This release contains certain forward-looking statements concerning PRIMEDIA's operations, economic performance and financial condition. These statements are based upon a number of assumptions and estimates, which are inherently subject to uncertainties and contingencies, many of which are beyond the control of the Company, and reflect future business decisions, which are subject to change. Some of these assumptions may not materialize, and unanticipated events will occur which can affect the Company's results.