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INFORMATION AMERICA AGREES TO ACQUIRE INFORMATION SERVICES AND SOFTWARE UNITS FROM PARAMOUNT PUBLISHING

 ATLANTA, June 23 /PRNewswire/ -- Information America, Inc. (NASDAQ: INFO) announced today it has agreed to purchase three information services and software units of Paramount Publishing, the publishing arm of Paramount Communications Inc.
 The purchase will be a non-cash transaction with Information America issuing to the seller common stock, debt, preferred stock, common stock warrants, and options. At closing, Paramount will own approximately 49 percent of Information America's outstanding common stock. Information America's executive team will continue to manage the company.
 The three operating units to be acquired are: Prentice Hall Legal and Financial Services (PHLFS), Prentice Hall Legal Practice Management (PHLPM), and Prentice Hall Professional Software (PHPS). Together they employ approximately 900 people and had 1992 revenues of approximately $83 million. PHLFS provides online services similar to those offered by Information America, as well as search, retrieval and filing services, and corporate representation services. PHLPM provides office automation software for law firms and a database service for the management of intellectual property rights. PHPS provides software to accounting and tax professionals as well as the real estate property management industry.
 Commenting on the transaction, Burton B. Goldstein Jr., chairman of Information America, said: "Combining these units with Information America creates an unequaled transaction services company. We will occupy a leading position in three critical product segments: online, search and retrieval, and corporate services. The combination also substantially strengthens us in government and corporate areas, offers the opportunity for considerable operating benefits with the combined sales forces and offices, and provides cross-selling advantages for both companies. We will be delighted to have Paramount as a major shareholder and partner as we begin to build on the strong foundation provided by this combination."
 Richard E. Snyder, chairman of Paramount Publishing, which had total revenues of $1.6 billion in fiscal 1992, commented: "By joining forces with Information America, we can build a dynamic information services company that will surpass anything either of us could have done alone. This agreement will allow us to further sharpen our focus on the creation of intellectual property, our principal publishing business, while continuing to maintain a strong presence in the transaction services business, where we have high expectations for continued success. We are excited about becoming a major shareholder in Information America," Snyder added, "and we look forward to participating in its growth and expansion."
 The proposed acquisition is subject to the completion of due diligence, regulatory approval, other conditions including the execution of a shareholders agreement, and a favorable vote of Information America's shareholders. Management contemplates the acquisition will close in the fourth quarter of 1993.
 Information America also announced, that in contemplation of the proposed acquisition, Howard A. Tullman has joined the company. Tullman most recently served as CEO of COIN Inc., in Atlanta (a $70 million computer software and hardware vendor) where, in the last 10 months, he concluded a successful restructuring and turnaround. Tullman will assist the company's senior management in completing the due diligence associated with the acquisition and, upon closing, he will become the CEO of Prentice Hall Legal Practice Management and Prentice Hall Professional Software with the presidents of those units reporting to him. In addition, he will participate in the integration of IA and PHL&FS.
 In addition to business, technical and professional services, Paramount Publishing is America's leading publisher of educational materials from textbooks to computer-based learning systems, and has significant operations serving consumer publishing markets. Paramount Communications is a global entertainment and publishing company.
 Information America provides attorneys, other legal professionals, banks, government entities, and private investigative firms with online information designed to satisfy needs arising from commercial transactions and business litigation. The company's information products and services are used to search for background data about businesses, determine the existence of liens on real estate, locate assets of all kinds, obtain government records, and resolve many other transaction-related issues. The company serves 97 of the 100 largest law firms in the United States.
 -0- 6/23/93
 /CONTACT: Mary A. Madden, president of Information America, 404-892-1800, Carl O. Folta, senior director of Paramount Communications, 212-373-8530, or Janice J. Kuntz, investor relations of A. Brown-Olmstead, 404-659-0919, for Information America/
 (INFO)


CO: Information America, Inc.; Paramount Communications Inc.;
 Paramount Publishing ST: Georgia IN: CPR SU: TNM PER


BR -- AT001 -- 4833 06/23/93 07:40 EDT
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Publication:PR Newswire
Date:Jun 23, 1993
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