Advanced Marketing Services to Acquire Publishers Group West

Posted on January 22, 2002

Advanced Marketing Services, Inc. (AMS), a distributor of books to membership warehouse clubs and other speciality retailers, announced that it has entered into an agreement for the acquisition of Publishers Group West (PGW). PGW is North America's largest distributor of independent publishers and represents over 125 independent publishers. The closing is currently scheduled for January 31, 2002. The New York Times reported that the merger could have a big influence on book sales.

"Expanding our higher-margin distribution presence is a perpetual goal for Advanced Marketing Services," said Michael Nicita, President and Chief Executive Officer. "Publishers Group West has one of the world's leading book distribution channels. As a part of AMS, PGW should create a significant positive impact in meeting our vision of rapid growth in distribution and a continued diversification of our business model."

Charlie Winton, Chairman, CEO and President, and a founder of PGW, will continue to serve as the company's President for the next year. "Our whole team is incredibly supportive of this merger," said Winton. "Our clients and customers are certain to appreciate AMS' world-class international platform, and I'm looking forward to working with Mike Nicita and the executive group of AMS to create a smooth transition."

Immediately prior to the acquisition, a new company controlled by the management and employees of Avalon Publishing Group (Avalon), PGW's sister company, will purchase Avalon Publishing Group from the parent company of PGW and Avalon Publishing Group. Charlie Winton will continue as Chairman and Chief Executive Officer of Avalon Publishing Group. AMS will have no ownership interest in Avalon Publishing Group. Avalon Publishing Group, including Avalon Travel Publishing, in Emeryville, CA, and Avalon Publishing Group, in New York, will continue to be distributed by PGW.

Concurrently, Raincoast Books, a distributor of independent publishers in Canada, will be acquiring the Canadian distribution business of PGW Canada including sales and marketing. AMS owns a 25 percent minority interest in Raincoast Books.