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OFFERING OF READER'S DIGEST VOTING STOCK PRICED AT $48.00 PER SHARE

OFFERING OF READER'S DIGEST VOTING STOCK PRICED AT $48.00 PER SHARE
 PLEASANTVILLE, N.Y., March 5 /PRNewswire/ -- A public offering of 4.5 million shares of Class B voting common stock of The Reader's Digest Association, Inc. (NYSE: RDA) has been priced at $48.00 per share.
 As was the case with two earlier offerings of nonvoting common stock, the company is not selling any shares in this offering and will not receive any of the proceeds. Except for voting rights, the Class B voting common stock is identical in rights to the company's Class A nonvoting common stock.
 The voting common stock is being listed on the New York Stock Exchange under the symbol RDB. The company's nonvoting common stock will continue to be listed under the symbol RDA.
 The selling shareholders are the DeWitt Wallace-Reader's Digest Fund and the Lila Wallace-Reader's Digest Fund, two foundations established by the late founders of Reader's Digest that prior to the offering have held 20 million shares, or 96.5 percent, of the company's voting stock. The balance of the company's outstanding voting stock -- 3.5 percent -- is held by the Reader's Digest Employees Profit-Sharing Plan.
 Following the offering, the two Wallace-Reader's Digest Funds will hold over 70 percent of the voting common stock.
 The two Wallace-Reader's Digest Funds are required by tax laws to reduce their ownership of voting common stock to 50 percent by the year 2000, and this offering begins the required disposition. The Funds have previously announced their intention to retain 50 percent of the voting common stock. It is planned that the Employees Profit-Sharing Plan will hold 20 percent of the voting common stock by the year 2000.
 The voting stock offering is being made concurrently in the United States and internationally -- four million shares in the United States and 500,000 shares internationally. The two Wallace-Reader's Digest Funds have granted the U.S. and international underwriters an option for 30 days to purchase up to an additional 15 percent of the offering, or 675,000 shares, solely to cover over-allotments.
 Goldman, Sachs & Co. and Lazard Freres & Co. are co-managing the U.S. offering, and Goldman Sachs International Limited and Lazard Brothers & Co., Limited are co-managing the international offering.
 Prospectuses for the offering of voting common stock may be obtained from Goldman, Sachs & Co., 85 Broad St., New York, N.Y. 10004, or from Lazard Freres & Co., One Rockefeller Plaza, New York, N.Y. 10020.
 Reader's Digest is a global publisher of magazines, books and home entertainment products, and one of the world's leading direct mail marketers. World headquarters is in Pleasantville.
 -0- 3/5/92
 /CONTACT: David Fluhrer of Readers Digest, 914-241-5010 (work) or, 516-379-9454 (home)/
 (RDA) CO: Reader's Digest Association, Inc. ST: New York IN: PUB SU: OFR AH -- NY079 -- 5630 03/05/92 17:02 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Mar 5, 1992
Words:473
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