ÿþ<html><head><title>MagNet's Industry Insights - August 2011</title><style type="text/css"> #VWPLINK {display:none}</style></head> <body topmargin="0" leftmargin="0" rightmargin="0"><!--Copyright (c) 1996-2011 Constant Contact. All rights reserved. Except as permitted under a separate written agreement with Constant Contact, neither the Constant Contact software, nor any content that appears on any Constant Contact site, including but not limited to, web pages, newsletters, or templates may be reproduced, republished, repurposed, or distributed without the prior written permission of Constant Contact. For inquiries regarding reproduction or distribution of any Constant Contact material, please contact legal@constantcontact.com.--><div align="center" style="background-color:#ffffff;padding-bottom:10px;"><div align="left" style="font-family:verdana,arial;font-size:8pt;color:#000000;width:600;"><font face="verdana,arial" size="1" color="#000000" style="font-family:verdana,arial;font-size:8pt;color:#000000;"><center><table bgcolor="#ffffff" width="595" id="VWPLINK"><tr><td style="font-size: 8pt; font-family: Verdana, Arial, Helvetica, sans-serif; color: #000000;" width="100%" rowspan="1" colspan="1">Having trouble viewing this email? <a track="off" shape="rect" href="http://campaign.r20.constantcontact.com/render?llr=tdw4l6dab&v=001PcSdlfM_w930g8_WPYqDcZ193i_o2keqSNMa4nGyrupFyHAcUuQtsCqVBCDdwzxpEdRufNDMNnXSzGXWpXk0aLhqF7pR1-wK920aqXrvLQN2hYRfhjngj51GooP1WY8QiuT0KKMV3nmBKn9APGbxEg%3D%3D" target="_blank">Click here </a></td></tr></table></center></font></div></div> <div id="rootDiv" align="center"> <table style="background-color:#000000;margin:10px 10px 10px 10px;" bgcolor="#000000" border="0" width="100%" cellspacing="0" cellpadding="0"> <tr> <td valign="top" rowspan="1" colspan="1" align="center"> <table style="width:600px;" border="0" width="600" cellspacing="0" cellpadding="0"> <tr> <td valign="top" width="100%" rowspan="1" colspan="1" align="left"> <table border="0" width="100%" cellspacing="0" cellpadding="0"> <tr> <td rowspan="1" colspan="1" align="center"><img vspace="5" name="ACCOUNT.IMAGE.5" border="0" alt="MagNet" src="http://ih.constantcontact.com/fs033/1103718504563/img/5.gif" /></td> </tr> </table> </td> </tr> <tr> <td style="background-color:#28384D;padding:1px;" bgcolor="#28384D" valign="top" rowspan="1" colspan="1" align="left"> <table style="background-color:#FFFFFF;" bgcolor="#FFFFFF" border="0" width="100%" cellspacing="0" cellpadding="0"> <tr> <td valign="top" width="100%" rowspan="1" colspan="1" align="left"> <table style="margin-bottom:5px;DISPLAY: block" border="0" width="100%" cellpadding="5" cellspacing="0" id="content_LETTER.BLOCK2"><tr><td style="color:#F49933;font-family:Verdana,Geneva,Arial,Helvetica,sans-serif;font-size:14pt;TEXT-ALIGN: left" rowspan="1" colspan="1" align="left"> <div style="color:#28384D;font-family:Verdana,Geneva,Arial,Helvetica,sans-serif;font-size:18pt;TEXT-ALIGN: center" align="center"><b>First Half 2011&nbsp;Sales</b></div></td></tr></table> <table style="margin-bottom:5px;DISPLAY: block" border="0" width="100%" cellpadding="5" cellspacing="0" id="content_LETTER.BLOCK3"><tr><td style="color:#28384D;font-family:Arial,Helvetica,sans-serif;font-size:10pt;TEXT-ALIGN: left" rowspan="1" colspan="1" align="left"> <div>MagNet is providing&nbsp;an early read on 2Q-2011 and 1st Half 2011 single copy magazine sales.&nbsp;The 2Q-2011 numbers are based on&nbsp;current return flow and should not&nbsp;be considered final. The 1st quarter 2011 numbers are complete and&nbsp;the updated results are a bit lower than our numbers reported in May due to additional returns flowing through the system. There are many factors contributing to the negative sales trends that&nbsp;we are seeing, from the continuing poor economy&nbsp;to the closing of Borders which is an estimated to have impacted overall&nbsp;sales by a full&nbsp;1.0%&nbsp;in the&nbsp;second quarter.&nbsp;We will be providing a more complete report on&nbsp;1st Half 2011 sales at the end of August.</div></td></tr></table> </td> <td valign="top" width="0" rowspan="1" colspan="1" align="left"> <table border="0" width="100%" cellpadding="0" cellspacing="0" id="content_LETTER.BLOCK4"><tr><td style="TEXT-ALIGN: right" rowspan="1" colspan="1" align="right"><img vspace="5" border="0" width="155" src="https://imgssl.constantcontact.com/ui/stock1/9r4r0q3v.jpg" /></td></tr></table> </td> </tr> </table> <table style="background-color:#FFFFFF;" bgcolor="#FFFFFF" border="0" width="100%" cellspacing="0" cellpadding="0"> <tr> <td style="background-color:#AAB8C3;padding:0px;" bgcolor="#AAB8C3" valign="top" width="100%" rowspan="1" colspan="1" align="left"> <table border="0" width="100%" cellspacing="0" cellpadding="0"> <tr> <td valign="top" rowspan="1" colspan="1" align="left"><img height="33" vspace="0" border="0" hspace="0" width="600" style="display:block;" optionname="HISP_PRO1DIV_TOP" src="http://img.constantcontact.com/letters/images/1101101060094/hisp_pro1div_top1.jpg" /></td> </tr> </table> <table style="margin-bottom:5px;" border="0" width="100%" cellpadding="10" cellspacing="0" id="content_LETTER.BLOCK6"><tr><td style="color:#FFFFFF;font-family:Arial,Helvetica,sans-serif;font-size:10pt;TEXT-ALIGN: left" valign="top" rowspan="1" colspan="1" align="left"> <p style="TEXT-ALIGN: center; MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="center"><span style="COLOR: #000000; FONT-SIZE: 12pt"><strong>First Half 2011 Sales&nbsp;Comparison by&nbsp;Quarter</strong></span></p> <div style="color:#28384D;font-family:Verdana,Geneva,Arial,Helvetica,sans-serif;font-size:10pt;"><b>&nbsp;</b></div> <p style="color:#28384D;font-family:Verdana,Geneva,Arial,Helvetica,sans-serif;font-size:10pt;MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="center"><img height="797" vspace="5" name="ACCOUNT.IMAGE.89" border="0" hspace="5" width="563" alt="1st Half Vertial" src="http://ih.constantcontact.com/fs033/1103718504563/img/89.jpg" /></p></td></tr></table> <table style="BACKGROUND-COLOR: #000000" bgcolor="#000000" border="0" width="100%" cellpadding="0" cellspacing="0" id="content_LETTER.BLOCK8"><tr><td style="TEXT-ALIGN: left" height="1" rowspan="1" colspan="1" align="left"><span class="ccAddStyle">&nbsp;</span></td></tr></table> <table style="margin-bottom:5px;" border="0" width="100%" cellpadding="10" cellspacing="0" id="content_LETTER.BLOCK15"><tr><td style="color:#FFFFFF;font-family:Arial,Helvetica,sans-serif;font-size:10pt;TEXT-ALIGN: left" valign="top" rowspan="1" colspan="1" align="left"> <div style="TEXT-ALIGN: center" align="center"><span style="COLOR: #000000; FONT-SIZE: 20pt; TEXT-DECORATION: underline"><strong>MagNet-ism</strong></span><br /><br /><p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; COLOR: #000000">Using our Cover Analyzer Module, MagNet determined the top three personalities featured on magazines covers in the first half of 2011.&nbsp;Justin Bieber, President Obama and Kate Middleton were those three personalities. MagNet reviewed the covers of the&nbsp;titles/issues for each personality and&nbsp; indexed the sales to previous issues&nbsp;of the same&nbsp;titles. A synopsis for each personality is outlined below.</p></div> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</p> <p style="TEXT-ALIGN: center; MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; COLOR: #000000" align="center"><img height="328" vspace="5" name="ACCOUNT.IMAGE.90" border="0" width="545" alt="Bieber Covers" src="http://ih.constantcontact.com/fs033/1103718504563/img/90.jpg" title="0.9332191780821918" /></p> <p style="TEXT-ALIGN: center; MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; COLOR: #000000" align="center">While Justin Bieber may have been a "hit" in 2010, 2011 has not been as rewarding for this celebrity/personality.&nbsp;On almost every&nbsp;cover where his image&nbsp;appeared, the sales indexed negatively&nbsp;compared to previous issues of the same title,&nbsp;up to as much as a 40.0% decline. &nbsp;</p> <p style="TEXT-ALIGN: center; MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="center"><img height="430" vspace="5" name="ACCOUNT.IMAGE.91" border="0" width="547" alt="Obama" src="http://ih.constantcontact.com/fs033/1103718504563/img/91.jpg" title="0.9750445632798574" /></p> <p style="TEXT-ALIGN: center; MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="left">&nbsp;</p> <p style="TEXT-ALIGN: center; MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; COLOR: #000000" align="left">President Obama was on the covers of many magazines across multiple categories,&nbsp;from news and financial, to tabloid and ethnic titles. President Obama's sales results were&nbsp;mixed. Sales of President Obama covers as compared to previous issues of the same title were all over the board, ranging from a negative impact of -37.0% to a positive impact&nbsp;of 30.0%. That trend seems very similar to his popularity among his electorate.</p> <p style="TEXT-ALIGN: left; MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="left">&nbsp;</p> <p style="TEXT-ALIGN: center; MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="center"><img height="337" vspace="5" name="ACCOUNT.IMAGE.92" border="0" width="543" alt="Middleton" src="http://ih.constantcontact.com/fs033/1103718504563/img/92.jpg" title="0.9679144385026738" /></p> <p style="TEXT-ALIGN: center; MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="left">&nbsp;</p> <p style="TEXT-ALIGN: center; MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; COLOR: #000000" align="left">Kate Middleton was simply "golden".&nbsp;Each time she graced the cover of a magazine&nbsp;the issue sold significantly higher than the previous issues of the same title.</p></td></tr></table></td> </tr> <tr> <td valign="top" width="100%" rowspan="1" colspan="1" align="left"> <table border="0" width="100%" cellspacing="0" cellpadding="0"> <tr> <td rowspan="1" colspan="1" align="left"><img height="33" vspace="0" border="0" hspace="0" width="600" optionname="HISP_PRO1DIV_BOTT" src="http://img.constantcontact.com/letters/images/1101101060094/hisp_pro1div_bott1.jpg" /></td> </tr> </table><table style="margin-bottom:5px;" border="0" width="100%" cellpadding="5" cellspacing="0" id="content_LETTER.BLOCK10"><tr><td style="color:#28384D;font-family:Arial,Helvetica,sans-serif;font-size:10pt;TEXT-ALIGN: left" rowspan="1" colspan="1" align="left"><br /><img name="ACCOUNT.IMAGE.5" border="0" src="http://ih.constantcontact.com/fs033/1103718504563/img/5.gif"><br />MagNet Business Insights<br />MagNet<br /></img></td></tr></table> <table style="background-color:#28384D;" bgcolor="#28384D" border="0" width="100%" cellpadding="5" cellspacing="0" id="content_LETTER.BLOCK13"><tr><td style="color:#9AAAB8;font-family:Arial,Helvetica,sans-serif;font-size:8pt;TEXT-ALIGN: left" rowspan="1" colspan="1" align="left">Note: Sales are reported from wholesaler OR figures. 2Q-2011 numbers are considered preliminary and still have returns in the channel to be processed. This should be considered an early indicator.</td></tr></table> <table style="margin-bottom:5px;DISPLAY: block" border="0" width="100%" cellpadding="5" cellspacing="0" id="content_LETTER.BLOCK16"><tr><td style="TEXT-ALIGN: left" rowspan="1" colspan="1" align="left"></td></tr></table></td> </tr> </table> </td> </tr> <tr> <td height="10" valign="top" width="100%" rowspan="1" colspan="1" align="left"> &nbsp;</td> </tr> </table> </td> </tr> </table> </div> </body> </html>