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READER'S DIGEST ANNOUNCES END TO JAPANESE LITIGATION

 READER'S DIGEST ANNOUNCES END TO JAPANESE LITIGATION
 PLEASANTVILLE, N.Y., Dec. 20 /PRNewswire/ -- The Reader's Digest


Association, Inc. (NYSE: RDA), today agreed to end extensive litigation involving 30 employees of its former Japanese subsidiary by paying them a sum equal to the severance package offered when the company was closed almost six years ago.
 "We are glad that these individuals recognize that our original offer was an equitable one and that it was futile to continue pursuing this matter in court," said George V. Grune, Reader's Digest chairman and chief executive officer.
 The litigation followed the closing of Reader's Digest Japan, the company's Japanese subsidiary, in February 1986. In December 1985, the company announced plans to cease operations after years of significant losses, repeated restructuring and no prospects of a turnaround in the future.
 At that time, all employees of Reader's Digest Japan were offered the severance they were due under company policy and Japanese labor laws plus an additional one month's salary.
 Of the 86 employees, all but 33 accepted the offer. Afterward, their union sued. They claimed that Reader's Digest was closing the company in order to break the union.
 Although terms of the settlement were not disclosed, the company said it will pay the union an additional sum of money. The company also noted the settlement will not materially affect its financial results.
 The agreement was reached through mediation, which both sides entered into at the request of the union and under the supervision of the Tokyo District Court.
 During its 40 years in Japan, Reader's Digest found it increasingly difficult to sell its products by direct mail, which is the company's principal marketing method around the world.
 The Reader's Digest Association, Inc. is a global publisher and one of the world's leading direct mail marketers of magazines, books, music and video products.
 -0- 12/20/91
 /CONTACT: Craig Lowder of Reader's Digest, 914-241-5159, or home, 914-741-2390/
 (RDA) CO: The Reader's Digest Association, Inc. ST: New York IN: PUB SU:


GK-TS -- NY007 -- 4221 12/20/91 08:40 EST
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Dec 20, 1991
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