Bertelsmann increases operating profit after €1 billion

• Adjusted revenues up by 1.2 percent to €13.3 billion
• Operating profit reaches €1.0 billion at the nine-month mark

Gütersloh, November 14, 2007 – The international media company Bertelsmann increased adjusted revenues and operating profit after nine months of fiscal 2007. Adjusted for portfolio and exchange rate effects, revenues rose by 1.2 percent to €13.3 billion.

Operating EBIT rose by 4.7 percent to €1,028 million (previous year: €982 million). Adjusted for main portfolio effects – the sale of both BMG Music Publishing and its stake in the French pay-TV broadcaster TPS – Operating EBIT increased by 13.6 percent compared to the previous year period. ROS rose to 7.7 percent after nine months, and is now above the comparable figure from last year of 7.2 percent.

In the third quarter of 2007, adjusted revenues were at the level of the previous year at €4.3 billion. Operating EBIT improved during the third quarter by 11.7 percent to €314 million (previous year: €281 million).

According to CFO Thomas Rabe, “Bertelsmann further improved its operating profitability in the first nine months. For the full year, we also expect to exceed the results of fiscal 2006 in terms of revenues and operating results adjusted for portfolio and exchange rate effects.”

Consolidated net income amounted to €132 million after the first nine months (previous year: €384 million). Against the previous year’s period, this primarily reflects the previously reported special items resulting from settlements in connection with Napster. Furthermore, a one-time expense of €96 million arose in the third quarter for the settlement of antitrust proceedings against the advertising time marketer IP Deutschland.

The company is on schedule in repaying its commercial financial liabilities. The rating agencies Standard & Poor’s and Moody’s raised the outlook for the Bertelsmann ratings (“BBB+”/ “Baa1”) to stable in the third quarter.

At the end of September 2007, Bertelsmann employed 101,572 employees worldwide (December 31, 2006: 97,132 employees).

Figures in overview (in € million)

Definition of operating EBIT: the earnings before financial results and taxes and before special items.

1) adapted due to the change in reporting of actuarial losses in accordance with IAS 19.93A
2) net financial debt plus pension provisions and profit participation capital, excluding changes from IAS 19.93A