Magazines

PRESS RELEASE

PCS: Gruner + Jahr USA's Complaint Distracts Attention From Internal Circulation Shortcomings

MARGATE, Fla. -- Publishers Communication Systems, Inc. (PCS), a magazine subscription clearing agent for over 30 years based in Margate, Florida, today called the allegations filed against them by Gruner + Jahr USA (G+J) unfounded, without merit and a result of G+J's circulation shortcomings.

After reviewing the complaint relating to G+J's problems with the Audit Bureau of Circulations (ABC), PCS and its President and CEO, Walter Stevens, issued the following statement:

"G+J's circulation and rate base problems are no secret in the industry. The allegations in the complaint are unfounded and without merit.

"Motivated solely by rate base pressures, G+J has taken an unprecedented self-serving action publicly vilifying a subscription clearing company with 31 years of providing reliable and responsible service to multiple publisher clients.

"This action, designed for advertiser consumption and to injure the reputation of PCS with other publishers, serves no purpose other than to distract attention from G+J's internal circulation shortcomings. Further, it is a conspicuously rash action in that PCS is still in the process of communicating with ABC on documentation related to this issue.

"PCS categorically denies any wrong doing in this matter and will vigorously defend the litigation."

PCS and Stevens were served with the official complaint against them in the U.S. District Court of the Southern District of Florida on Thursday, January 20th, 2005.