Bertelsmann successfully places two benchmark Eurobond issues

Strong oversubscription with broad investor base

Bertelsmann AG has successfully placed two new benchmark Eurobond issues with a combined new issue volume of EUR 1.5 billion. The issue consists of a 6-year and a 10-year tranche. The 6-year tranche with a volume of EUR 500 million was issued at 99.803 percent and pays a coupon of 4.375 percent. The 10-year tranche with a volume of EUR 1 billion was issued at 99.222 percent and pays a coupon of 4.75 percent.

The transaction was launched following a four day roadshow across Europe creating strong investor demand which led to an early closing of the order book on Thursday afternoon. The transaction was more than twice oversubscribed and was targeted primarily at European institutional investors, including renowned asset managers, insurance companies, pension funds and other financial institutions. Bertelsmann will use the proceeds of the issue to partially redeem the bridge facility that financed the acquisition of the Bertelsmann AG stake held by Groupe Bruxelles Lambert (GBL).

Bertelsmann Chief Financial Officer Thomas Rabe stated: "The successful placement of a bond issue of this size, following the affirmation of our credit ratings, is further confirmation of our financing strategy for the repurchase of the GBL stake. The recently announced sale of our Music Publishing business and high operating cash flows will allow us to fully regain our financial flexibility by the end of 2007. The high level of investor interest shows further that Bertelsmann, as a privately owned and operated company, is well respected in the international capital markets. I am especially pleased with the number of renowned new investors that participated in the transaction". 

The joint lead managers for the transaction were Barclays Capital, BNP Paribas, Deutsche Bank and Royal Bank of Scotland. The Transaction was sold to 210 investors from 15 countries. Bertelsmann is rated “BBB+” by Standard & Poor's and “Baa1” by Moody's.

Journalists please contact:

Bertelsmann AG

Andreas Grafemeyer

Senior Vice President Media Relations

Phone: +49 – 52 41 – 80 – 24 66

andreas.grafemeyer@bertelsmann.de

Analysts and investors please contact:

Bertelsmann AG

Roger Schweitzer

Corporate Finance / Treasury

Phone: +49 – 52 41 – 80 – 22 49

roger.schweitzer@bertelsmann.de

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