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IDG Books Worldwide, Inc.
919 E. Hillsdale Blvd., Suite 400, Foster City, CA 94404 * (650) 300-3000

The company is a leading publisher of computer, business and self-help books designed to make learning accessible and fun.

Primary Underwriting Group
ManagerTierPhone
Morgan Stanley Dean Witter Discover & Co.Lead Manager (212) 761-5900
Goldman, Sachs & Co.Co-manager (212) 902-5959
Merrill Lynch & Co.Co-manager (212) 449-4600

Offering Information
NASNTL:IDGB Manufacturing: SIC 2731
Type of Shares:Class A Common Shares Filing Date:5/22/98
U.S. Shares:3,180,000 Offer Date:7/27/98
Non-U.S. Shares:0 Filing Range:$14.50 - $16.50
Primary Shares:3,180,000 Offer Price:$15.50
Secondary Shares:0 Gross Spread:$1.09
Offering Amount: $49,290,000 Selling:$0.65
Expenses: - Reallowance:$0.10
Post-IPO Shares: -
Spin out parent firm: International Data Group, Inc.
Employees:436

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Wilson, Sonsini, Goodrich & Rosati
Bank's Law Firm: Davis, Polk & Wardwell
Auditor: Deloitte & Touche

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
6 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Audited
Income
Balance
Sheet
9/30/97 3/31/98 3/31/97 3/31/98
Revenue:$120.69$71.92$62.46Assets:$73.69
Net Income:$7.04$6.87$4.99Curr Assets:$61.45
EPS:$0.63$0.62$0.45Liabilities:$36.42
Prior EPS:$0.58Curr Liab:$36.42
Cash Flow/Oper:$7.82$0.97-$1.65Equity:$37.26
Cash Flow/Fin:-$4.58$3.95$2.32Cash:$0.05
Cash Flow/Inv:-$3.25-$4.95-$0.68Working Cap:$25.02

Competition
The Company faces competition in each of its areas of publication directly from other publishers and indirectly from nonprint media and expects that competition will remain intense in the future. The Company competes on the basis of editorial quality, timely introduction of new titles, product positioning, pricing and brand name recognition. In addition to the Company, Simon & Schuster, Microsoft Press and McGraw-Hill all share a strong market presence in the United States and internationally in technology publishing. The principal competitors for the Company's business/self-help/lifestyle titles include Random House, Simon & Schuster and HarperCollins. Each of these competitors have substantially greater financial resources than the Company. Nonprint media, such as the Internet, CD-ROMs and instructional video tapes, may also present substantial competition to the Company. Computer users increase their reliance on instructions and information disseminated online. The Company's business could be adversely affected.

Business Plan
We strive to provide a consistent, accessible and rewarding learning experience to our readers by offering quality products supported by mass marketing which is timed to coincide with the introduction of new technology or the emergence of new trends. To implement these objectives, we have adopted the following operating strategies: (I) Focus on Branded Content and Mass Marketing, (ii) Make Knowledge Accessible and Enjoyable and (iii) Maintain Efficient and Proven Publication Process.

Use of Proceeds
The proceeds from the proposed offering will be used to repay indebtedness owed to International Data Group, Inc., and for general corporate purposes, including working capital and capital expenditures.

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