Business News

Gruner + Jahr sells G+J Russia to Axel Springer AG

Tuesday 24. November 2009 - As part of the strategic realignment of its international activities, Gruner + Jahr has sold its Russian operations to Axel Springer AG.

The takeover of G+J Russia (OOO G+J Magazines) will become effective on
December, 1 2009. The magazines GEO, GEOLenok, GEOTraveller and GALA Biografia
and the www.geo.ru, www.moiroditeli.ru and www.moizvezdi.ru websites will be
continued by Axel Springer Russia, a wholly owned subsidiary of Axel Springer,
under license.

Dr. Torsten-Jörn Klein, a member of the G+J executive board and President of
G+J International, commented: “We will continue to systematically apply
ourselves to those international markets where we already command an
outstanding position or have hopes of attaining such a position. In Russia,
Gruner+Jahr would have managed to do so only through a disproportionate number
of expensive acquisitions. For this reason we are withdrawing from the Russian
market. In Axel Springer, we have found a partner who will successfully
maintain our brands in Russia going forward.”

Ralph Büchi, President Axel Springer International, said: “G+J Russia’s print
and online offerings enhance Axel Springer Russia’s focus on the premium
segment by adding excellent, established media brands such as GEO, GALA
Biografia and the Russian ‘Eltern’ website. This expansion of our portfolio
safeguards the long-term future success of our Russian subsidiary and is an
important step on our strategic path of internationalization and digitization.”

The sale is subject to approval by the Russian antitrust authorities.