Dear Business Partner:

For several months now, you’ve heard the Kable team talk about some exciting new prospects on the horizon – for our company and for yours.

I am pleased to report that the elusive horizon we’ve been referring to isn’t so far away! It is with great excitement that I announce several developments at Kable News Company which promise to have a significant impact on the services we provide in both the fulfillment and distribution arenas.

First, after months of research, discussion and negotiation, Kable News Company has finalized a business partnership with SuperStand, the Texas-based magazine specialty chain. The first-ever magazine “superstore,” SuperStand boasts outlets in the Dallas, Houston and Chicago areas with plans to reach approximately 500 individual locations by the end of 2004.

Our alliance with SuperStand yields a new joint venture company called Magazinet, which will become the exclusive distributor to all SuperStand outlets. Magazinet – run cooperatively by Kable and SuperStand —will receive product from all national and direct distributors with a complete selection of titles available by the beginning of 2001.

To kick off this partnership, we recently broke ground on a state-of-the-art distribution center located in Rockford, Illinois. This distribution center will utilize the latest advancements in pick-and-pack technology. Also, scan sales data will be available to each publisher and supplier daily without additional cost. Up-to-the-minute sales information will greatly enhance the circulation planning process for all publishers.

In addition, we are in the process of unveiling a revolutionary new sales research database called KACTUS – Kable Analytical Client Technology Utilization System. This cutting-edge technology will enhance our current K-Net system, acknowledged as the most advanced system in the entire industry, for storing, monitoring and tracking magazine sales data.

nFinally, I am pleased to report that I assumed the position of president and chief operating officer of Kable News Company effective with Dan Friedman’s October 31 retirement. Although it is certainly impossible to “replace” such a dedicated and skilled leader, I look forward to perpetuating the progress our company has recently enjoyed and, perhaps more importantly, to exploring the countless new avenues that have presented themselves as a result of our ongoing development.

 

As always, I firmly believe that one of the biggest keys to success in our industry is cooperation and ongoing communication among the various partners in the magazine distribution process. Please don’t hesitate to contact us with any questions or comments, especially during this exciting and dynamic time at Kable.

 

In the meantime, thank you for your continued confidence and support.

 

Sincerely,

Michael Duloc
President & Chief Operating Officer