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MEREDITH ANNOUNCES SPECIAL CHARGES TO FOURTH QUARTER EARNINGS

 MEREDITH ANNOUNCES SPECIAL CHARGES TO FOURTH QUARTER EARNINGS
 DES MOINES, Iowa, June 25 /PRNewswire/ -- Meredith Corporation (NYSE: MDP) today announced that it will incur one-time charges for unusual items against earnings in the fourth quarter of its fiscal year ending June 30, 1992.
 In April, Meredith announced the offering of a special voluntary early retirement package to approximately 170 of its employees. The costs associated with the acceptance level of this package, along with other restructuring charges, will result in a charge approximately $13 million against fourth quarter earnings. This amount was previously estimated in the $9-11 million range. The increase in this charge results from a higher than expected acceptance level for the early retirement package.
 The Meredith Corporation board today authorized the adoption of The Statement of Financial Accounting Standards No. 106 -- "Accounting for Post-Employment Retirement Benefits" in the amount of $11.7 million. It also authorized charges totaling $13.4 million for the write-down of Book Group inventory and promotional materials, and certain other assets of the corporation.
 The write-down in the Book Group is from down sizing and repositioning its direct mail operations. These changes created excess and obsolete inventories and unrecoverable promotional costs. Revenue projections do not justify current carrying values of these assets.
 The charge for unusual items and adoption of the Statement of Financial Accounting Standards No. 106 -- "Accounting for Post- Employment Retirement Benefits" will result in an after-tax charge of approximately $23 million, or $1.45 per share loss. Because of these charges the company expects to report a net loss for the fiscal year ending June 30, 1992.
 "While these special charges will depress year-end results," said Jack D. Rehm, Meredith Corporation president and chief executive officer, "the longer term benefits of a leaner, more focused organization will be seen in our fiscal 1993 operating margins from existing operations.
 "The outlook for fiscal 1993 is especially encouraging," Rehm continued, "given the fourth quarter ad page gains currently being posted in many of our magazines and better than expected spring enrollments in the Book Club operations. However, as previously announced, expansion of our cable operations will have an unfavorable effect on earnings in the next fiscal year.
 "Although I'm hesitant to predict that economic forces will remain as favorable as we're experiencing today, the actions we are taking form a solid foundation for the future growth of our operations."
 Meredith Corporation, headquartered in Des Moines, is a Fortune 500 diversified media company involved in magazine and book publishing, television broadcasting, residential real estate marketing and franchising, and investments in cable television.
 -0- 6/25/92
 /CONTACT: Robin Lenocker of Meredith Corporation, 515-284-3386, or (home), 515-279-3744/
 (MDP) CO: Meredith Corporation ST: Iowa IN: PUB SU: ERP


DB -- MN007 -- 3769 06/25/92 12:28 EDT
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Publication:PR Newswire
Date:Jun 25, 1992
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