Advanced Marketing Services, Inc. Announces Developments Regarding Settlements of Private Securities Litigation.

SAN DIEGO -- Advanced Marketing Services, Inc. (Pink Sheets:MKTS) ("the Company"), a leading provider of customized merchandising, wholesaling and contract distribution services, today announced that:

--the United States District Court for the Southern District of California has granted preliminary approval of a proposed settlement of the purported securities class actions that were filed against the Company and certain former officers in early 2004 and consolidated as In Re Advanced Marketing Services, Inc. Securities Litigation (Case No. 04-CV-00121 RTB (AJB) ("the class action");

--a stipulation of settlement will be filed soon with the Superior Court of the State of California, County of San Diego, to seek court approval of a settlement of the purported stockholder derivative actions that were filed against the Company and certain current and former officers and directors in early 2004 and consolidated as In Re Advanced Marketing Services, Inc. Derivative Litigation (Lead Case No. GIC 824845) ("the state court derivative action"); and

--in connection with the settlement of the state court derivative action, the purported stockholder derivative action that was filed in the United States District Court for the Southern District of California against the Company and certain former officers and directors in early 2004, bearing the caption Dubbert v. Bartlett et al. (Case No. 05-CV-706 RTB (AJB) ("the federal court derivative action"), has been dismissed.

Subject to final court approvals of the settlements of the class action and the state court derivative action, the settlements and the dismissal will resolve all of the civil litigation that was filed against the Company and certain current and former officers and directors following the Company's public announcement, on January 14, 2004, of the restatement of the Company's financial statements.

The class action, subject to completion of the claims process and final court approval, will be settled for $6 million in cash, which will be paid with insurance proceeds. The state court derivative action, subject to court approval, will be settled by the payment of $300,000 in cash and the issuance of 75,000 shares of the Company's common stock to the attorneys for the plaintiffs in the state court derivative action and the attorneys for the plaintiffs in the federal court derivative action. The cash portion of the settlement will be paid with insurance proceeds. As part of the settlement, the Company has agreed to implement and maintain certain corporate governance policies and procedures.

The Company's stockholders will be notified in writing, by third-party administrators, of the details of the litigation and the claims process in connection with the class action settlement and the details of the litigation and the settlements of the state court derivative action and the federal court derivative action. The Company requests that stockholders address questions concerning the settlements to the third-party administrators after stockholders receive the written notifications.

ABOUT ADVANCED MARKETING SERVICES

Headquartered in San Diego, California, the Company is a leading provider of customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The Company has operations in the U.S., Mexico, the United Kingdom and Australia, and employs approximately 1,400 people worldwide. The Company provides a wide range of value-added services that provide its retailer customers with book buying advice, promotional support and expert supply chain management, to ensure the success of their book programs. The Company's proprietary Vendor Managed Inventory (VMI) software is a unique tool that allows its book specialists to manage efficiently and effectively the book distribution supply chain for the benefit of its membership warehouse club customers. Publishers Group Worldwide (PGW), an alliance of the Company's global contract distribution operations, provides independent publishers with exclusive full service English language sales and distribution services.

Recent public announcements about the Company are available on both the Company's Website, www.advmkt.com, and on BusinessWire, www.businesswire.com.

Forward-looking statements in this public announcement are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements that involve risks and uncertainties, including the following: the settlements of the class action and the state court derivative action are subject to final court approvals, and it is possible that the courts may not grant such final approvals.

Certain important factors could cause results to differ materially from those anticipated by the forward-looking statements including factors discussed from time to time in reports filed by the Company with the Securities and Exchange Commission.