Petersen Publishing Agrees to Acquire Stereophile, Inc.

On May 18, 1998, James D. Dunning, Jr., Chairman and CEO of the Petersen Companies, Inc., announced an agreement to acquire Stereophile Magazine and Stereophile Guide to Home Theater---two of this country's leading high-end audio and home-theater publications---as well as HI-FI '98, The Home Theater & Specialty Audio Show.

Upon announcing the agreement to acquire Stereophile, Neal Vitale, President and COO of Petersen Publishing, said, "This acquisition continues Petersen Companies' focus in enthusiast markets. The acquisition of Stereophile Magazine and Stereophile Guide to Home Theater represent new markets for Petersen with demonstrated strong demographics in an industry that is poised for further levels of growth. Consistent with our 'marketing solutions' strategy, the acquisition of HI-FI '98, the country's largest consumer show dedicated to high-end audio and home theater, Petersen continues to leverage the strength of our core titles to create integrated packages for our marketing partners."

Larry Archibald, CEO of Stereophile, Inc., commenting on this significant change in the audio and home-theater publishing landscape, said, "We are looking forward with excitement to this opportunity to join the Petersen Publishing family as the first consumer-electronics magazine and trade/consumer shows in their new High Technology group. I have long respected Petersen's marketing strategies and their unique ability to attract enthusiasts. Petersen's marketing savvy will give Stereophile Magazine, Stereophile Guide to Home Theater, our annual HI-FI Show, and any new Stereophile ventures unprecedented access to a wider marketplace."

John Atkinson, Vice President and Editorial Director of Stereophile, Inc., agrees with Archibald that the acquisition presents an exciting opportunity for both publications. "I am delighted to be associated with one of the country's leading enthusiast magazine groups. At Stereophile, Inc. we are rabid enthusiasts about the subjects we cover, just like the people at Motor Trend, Hot Rod, and other Petersen publications. I couldn't be happier seeing our high-performance message reaching a broader market."

Stereophile Magazine, published monthly, was founded in 1962 and is the country's oldest and largest-circulation magazine reviewing high-end audio components. Stereophile Magazine provides the world's most authoritative information about high-end audio and music systems.

Stereophile Guide to Home Theater was founded in 1994 and is published 10 times per year. It delivers in-depth information and unbiased advice about the high-performance video and multichannel audio technologies of today and tomorrow.

Both publications are viewed as the consummate sources of information for those who crave a total music or home-entertainment experience.

HI-FI '98, the country's largest consumer show devoted to high-end audio and home theater, will take place from June 12 to 14, 1998 at the Westin Los Angeles Airport Hotel in Los Angeles, California.

The Petersen Companies, Inc., is a leading multi-media marketing solutions and brand-development company with a diverse portfolio of more than 110 special-interest magazines, television programs, licensing, trade shows, consumer events, databases, custom publishing, and retail promotions. Petersen publications deliver an estimated 70 million readers, including some 52 million adults and 17 million teenagers. Petersen's internationally recognized magazines include Motor Trend, Hot Rod, Teen, Sport, Hunting, Skin Diver, Motorcyclist, and 4-Wheel & Off-Road. The Petersen Companies, Inc., is traded on the New York Stock Exchange under the symbol PTN.