COMPANY BACKGROUND

　　Forbes is a privately held publishing and new media company. Its flagship publication is Forbes，oldest of the nation's major business magazines.In an industry increasingly dominated by public conglomerates，Forbes remains one of the largest and most successful family businesses of its kind.In recent years the co mpany has expanded to include several new divisions，including Forbes.com；Forbes Managemen Conference Group；and Forbes Custom Communications Partners.The company's American Heritage division publishes American Heritage；American Legacy；and American Heritage of Invention＆Technology magazines.

　　.PublicationsForbes magazine was founded in 1917 by Scottish immigrant B.C.Forbes，then the leading business columnist for the Hearst newspaper chain.Published biweekly，every issue of Forbes contains more than 60 concise，original articles evaluating companies and the people who run them. Articles in Forbes cover a wide array of topics from the worlds of industry，finance，international business，marketing，law，taxes，science，technology，commmunications，investments and entrepreneurship.In2001 the magazine's rate base was increased to 900，000.Together with its international edition，Forbes Global，Forbes reaches a worldwide audience of nearly five million readers.Steve Forbes is the magazine's Editor—in—Chief and contributes a column in each issue called“Fact＆Comment.”William Baldwin has been Forbes'Editor since January 1999，and Rich Karlgaard was named Publisher in 1998.

　　Forbes FYI，an irreverent lifestyle supplement chronicling“The Good LifeTM)，”was launched in 1990. It celebrated its 10th) Anniversary in 2000 with a retrospective exhibition of photos，which had appeared in FYI during the past decade.Currently published quarterly and mailed with Forbes to subscribers，FYI shows its readers how to get the most pleasure from every season with its Spring Travel，Summer Fun，Fall Fashion and Winter Holiday issues.Robert Forbes is President of Forbes FYI，and its Editor is noted humorist Christopher Buckley.Gail Day was named Publisher in August 2001.

　　Forbes ASAP Featuring Best of The Web Created in 1992，Forbes ASAP's mission was to arm Forbes subscribers with an understanding of the coming convergence of business and technology—and the ensuing upheaval. In the years since，it has emerged as the defining magazine of the digital age.In each issue，Forbes ASAP identifies and champions the ideas that become the common language of the digital economy—from biotech to the high—tech ramp to the paradigm—shifting world of the Telecosm.Its stories are marked by unparalleled depth and insights from the most knowledgeable contributors anywhere：Nobel laureates，Pulitzer Prize winners，industry leaders and technology visionaries.Its annual“Big Issue”is a single—topic compilation of essays，artwork and special reports featuring notable contributors such as the Dalai Lama，P.J.O'Rourke，Tom Wolfe，Kurt Vonnegut，Muhammad Ali，Stephen Ambrose，Bill Gates，Elmore Leonard and many others.Patrick Dillon is Editor and Michael Malone serves as Editor at Large.

　　In September 1999，Forbes premiered its Best of The Web special issue focusing on the most useful and interesting features of the consumer and business World Wide Web.Led by Forbes Senior Editor Matt Schifrin，BOW editors review thousands of“sites”in over 100 categories，ranging from brokerage to travel，selecting one“Forbes Favorite”in each.

　　Beginning with the Fall 2001 issue，Forbes ASAP and Best of The Web was combinedsintosone technology magazine. Published four times a year，it is now available on newsstands.

　　Forbes Global was launched in early 1998 to establish a global editorial agenda for Forbes and to provide the magazine with more of an international voice. A strong proponent of entrepreneurial capitalism and free competitive markets，Forbes Global seeks to deliver to the world the Forbes brand of concise，hard—hitting，useful articles that reach conclusions，while extending the editorial franchise to a growing global audience of entrepreneurs，investors and other leading business decision—makers. In 2002，its rate base was increased to 125，000. Tim Ferguson is Editor；Robert Forbes is President；former Canadian Prime Minister Brian Mulroney is Chairman；and Robert Crozier is Publisher.

　　Forbes Nihonban is a Japanese—language edition licensed to Japanese publisher Gyosei. Launched in 1991，it has a circulation of 83，000.

　　Forbes Brasil is a Portuaguese—language edition licensed to Brazilian publisher Editora Camelot in Sao Paolo. Launched in September2000，sixty to seventy percent of the editorial content of this new edition will relate to Brazilian business news and commentary，while the remainder will be content from Forbes'U.S.edition.

　　.DivisionsForbes Management Conferencesgroupswas created in 1995 and has since established itself as a premier producer of peer—driven forums for senior executives.It brings these executives together with prominent thought leaders and policy—malers to share insights on business，management and geopolitical issues that may impact the future of their companies and their effectiveness as leaders.Signature events include The Forbes CEO Forum；The Forbes CFO Forum；The Forbes Forum on Brand Marketing；Forbes Executive Women's Summit；and Gilder/Forbes Telecosm Conference.In September 2001，the inaugural Forbes Global CEO Conference was held in Singapore.In May 2002 The Forbes Forum on the Global Economy will take place for the first time in New York City，September 2002，The Forbes Global CEO Conference will be held in Hong Kong.Lisa Weiner is Vice President and General Manager of the group.

　　Forbes Custom Communications Partners was formed in December 2000 by merging Custom Communications Partners with Forbes' existing Special Interest Publications Group.The new unit will provide its clients with dynamic，customized print and electronic publication services in areas such as financial services，technology，travel and healthcare，in addition to business—to—business markets.Publications currently in production include：Four Seasons Hotels and Resorts Magazine；The Official New York City Guides；Fidelity Focus；Fidelity Advisor Pulse；Fidelity Active Trader；Fidelity Funds；Harvard Pilgrim Health Care/Your Health；Creative Living；UK＆USA；IBM Case Studies and IBM Web.In April 2001，WPP，the global advertising and communications servicessgroupsand Forbes Custom Communications Partners announced a joint venture to establish a new custom publishing group. The venture，named Custom Media Group，will provide custom communications，such as magazines，newsletters，epublishing，web sites and annual reports，for clients of WPP companies.John B.Caldwell，Jr.is CCP President.

　　Forbes.com Inc.，(www.forbes.com)A leading Internet media company，is among the most trusted resources for the world's business and investment leaders，providing them the uncompromising commentary，concise analysis，relevant tools and real—time reporting they need to succeed at work，profit from investing and have fun with the rewards of winning.Forbes.com includes real—time original reporting on business，technology，investing and lifestyle；stock and mutual fund quotes；comprehensive company profiles；a wide array of interactive tools，calculators and databases，including People Tracker，the annual Forbes Lists；a Lifestyle section that currently focuses on high—end vehicles，collecting，real estate and travel；and the complete online editions of Forbes' magazines. In January 2001，Paul Maidment was named Editor and James J.Spanfeller was named President and Chief Executive Officer of Forbes.com.

　　The American Heritage division of Forbes publishes American Heritage，the noted magazine that looks to the past to explain the present. Since the magazine's acquisition in 1986，its circulation has more than doubled and is now 340，000.Its Editor is Richard Snow.The division also publishes American Heritage Of Invention＆Technology，with Editor Fred Allen；and American Legacy，a quarterly magazine celebrating African—American history and culture，which was launched in February 1996 by Founder and Publisher Rodney J.Reynolds.Audrey Peterson is its Editor. Edward Hughes was appointed President of the division in April 2001.

　　.Other

　　Forbes Television In May 2001 Forbes，with Fox News Channel，launched a co—branded show“Forbes on Fox”to expand the company's media platforms. A rotation of Forbes editors and writers give their unique，contrarian perspectives on breaking business news and markets.Cablecast every Saturday and Sunday，by year—end 2001 the show was seen by over a million viewers per week.

　　The Forbes Family Collection is open to the public at various locations，including The FORBES Magazine Galleries in New York Tity；The FORBES Magazine Galleries in Burlingame，California；and the Musee des Ballons，adjacent to Forbes' Chateau de Balleroy in Normandy，France. Other portions of the collection，not open to the public，are housed at Forbes operations around the world，including：Old Battersea House in London，England；the Forbes Trinchera Ranch in Fort Garland，Colorado；and on board the Forbes yacht，The Highlander.Among other items，the collection encompasses nearly 400 objets d'art created by Russian jeweler Peter Carl Faberge；more than 4，000 American historical documents and items of Presidential Memorabilia；and a toy boat and soldier collection with over 500 boats and 10，000 soldiers. Margaret Kelly Trombly serves as Vice President，The FORBES Collections.

　　The Forbes Collection(上方TM) Licensing Program has licensees with products ranging from home and office furnishings to jewelry，collectibles and accessories.The products are designed to capture the entrepreneurial spirit of Forbes magazine，coupled with the consummate style of the Forbes family，as expressed through their art collections and international residences. Begun in 1997，the program today has nineteen licensees，all under the direction of Margaret Kelly Trombly，VP，The Forbes Collections，and Joan Stanley，J.G.Stanley＆Company，licensing agent.

　　.History

　　After the death of Founder B.C.Forbes in 1954，his son Bruce Forbes became President of Forbes. Son Malcolm S.Forbes became Editor—in—Chief and Publisher，becoming President upon Bruce's death in 1964. After Malcolm Forbes' death in 1998，his eldest son，Steve，was given the titles of President and Chief Executive Officer of Forbes and Editor—in—Chief of Forbes magazine，which he continues to hold today.Other officers of Forbes include his brothers，Timothy C.Forbes，Chief Operating Officer；Robert Forbes，Vice President；and Christopher Forbes，Vice Chairman. In addition，former U.S.Defense Secretary Caspar W.Weinberger，is Forbes Chairman；and James Berrien is President，Forbes Magazine Group.

　　Steve Forbes

　　Steve Forbes is President and Chief Executive Officer of Forbes and Editor—in—Chief of Forbes magazine. Since he assumed these positions in 1990，the company has undergone unprecedented growth. Forbes became the country's leading business magazine in advertising pages，and its parent company launched a variety of new ventures，including Forbes Global and Forbes.com.In March 1999，Mr.Forbes took a leave of absence from the company to launch his second campaign for the Republica Presidential nomination.He continues to write editorials for his Fact and Comment section，which appears in each issue of Forbes.

　　Robert L.Forbes

　　Robert L.Forbes is Vice President of Forbes and President of Forbes Global，which made its debut in March 1998.He is also President of Forbes FYI，which he launched in 1998.USA Today called Forbes FYI，“the magazine that GQ and Esquire want to be.”Mr.Forbes oversees operations for both publications from the company's London office.He has authored numerous articles on food and travel，in addition to producing documentary films for Forbes.

　　Christopher ForbesChristopher(“Kip”)Forbes is Vice Chairman of Forbes and has been responsible for the advertising and promotion departments of Forbes magazine since 1989.Mr.Forbes has also had a lifelong interest in art and collecting.Initially collaborating with his father，the late Malcolm Forbes，he directed the restorations of the Chateau de Balleroy in Normandy，France，and Old Battersea House in London，England，whose art collections and antiques were the inspiration for The Forbes Collection(上方TM) of home furnishings. While studying art history at Princeton University，he worked as a Curator of The Forbes Magazine Collection. Mr.Forbes has written numerous books and catalogues about art and collecting，including，Faberge：The Forbes Collection，co—authored with Robyn Tromeur，published by Hugh Lauter Levin.

　　Timohty C.Forbes

　　Timothy C.Forbes is Chief Operating Officer of Forbes.He assumed this position in April 1996.Mr.Forbes joined the company in 1986 after negotiating the acquisition of the American Heritage division. Since then，American Heritage magazine has more than doubled its circulation，and advertising pages have quintupled. Prior to joining Forbes，Mr.Forbes was an independent producer and screenwriter. His documentaries on historical subjects and current affairs have been broadcast nationally on PBS.