All remaining defendants in book diversion lawsuit settle their claims with The McGraw-Hill Companies.

NEW YORK--(BUSINESS WIRE)--June 17, 1996--The McGraw-Hill Companies, Inc. announced today that all of the remaining defendants it had named in the lawsuit, The McGraw-Hill Companies, Inc. vs. Guaranteed Destruction, Inc. et al., have now settled their claims with the Corporation.

In its lawsuit filed December 1994 and amended last July in United States District Court in Newark, New Jersey, The McGraw-Hill Companies had alleged the diversion of its professional and college books -- originally intended for destruction and paper recycling -- into the used book market over a 15-month period, in violation of the Corporation's copyright, contractual and other rights.

The defendants now being dismissed from the lawsuit include Kevin Bates, a used book broker and his company, Book Services, LLC in Michigan; John P. Golden, a used book broker in New Jersey; Hector Bido, a former Guaranteed Destruction, Inc. employee, and three used book wholesalers (TIS, Inc. of Indiana, Wallace's College Bookstores, Inc. of Kentucky and Academic Book Services, Inc. of Georgia.) Finally, The McGraw-Hill Companies has agreed with book retailer and used book wholesaler New Jersey Books, Inc., Textbook Services, Inc., a used book wholesaler, and their owner, Edward Mueller, to dismiss all outstanding claims against one another.

"This litigation and its favorable outcome show that we will fight to uphold our integrity and our intellectual property rights," stated Joseph L. Dionne, chairman and chief executive officer of The McGraw-Hill Companies. "They are key to our business and reputation."

Earlier, the Corporation announced that it had concluded its action against other former defendants in this lawsuit, including a consent judgement against a book destruction company -- Guaranteed Destruction, Inc. (GDI) -- its owner, and four other defendants. The judgement also allowed the Corporation to dispose of McGraw-Hill books previously recovered from GDI and other former defendants that carry an inventory value of approximately $2 million.

None of the former defendants admitted to wrongdoing of any kind.

As stated in The McGraw-Hill Companies' Amended Complaint, the Corporation had entered into a recycling contract with Guaranteed Destruction, Inc. in October 1993 to have certain shipments of McGraw-Hill books removed from its former distribution center in Hightstown, N.J. to be physically destroyed, recycled and disposed. In the contract McGraw-Hill ensured also that it expressly retained title to each of its books until destruction was completed.

Founded in 1888, The McGraw-Hill Companies is a leading information services organization serving worldwide markets in eduction, business, the professions, finance and government. Revenues in 1995 exceeded $2.9 billion.

CONTACT: The McGraw-Hill Companies, New York

Steven H. Weiss

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Mark D. Harrop

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