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U.S . News & World Report Audit Bureau of Circulations PAID & VERIFIED MAGAZINE PUBLISHER’S STATEMENT Subject to Audit For the six months ended December 31, 2006 Field Served: News and analysis of national and international affairs. Published by U.S. News & World Report, L.P. Frequency: 52 times/year ABC Member # 04-1320-0 1. TOTAL AVERAGE PAID & VERIFIED CIRCULATION Average for the Statement Period Above (Below) % Above (Below) % Rate Base Paid & Verified Circulation: (See Par. 6) Subscriptions: Paid Print Digital Total Paid Subscriptions Verified Total Paid & Verified Subscriptions Single Copy Sales Total Paid & Verified Circulation 1,942,604 38,520 1,981,124 18,471 1,999,595 36,666 2,036,261 95.4 1.9 97.3 0.9 98.2 1.8 100.0 2,000,000 36,261 1.8 Paid & Verified Magazine Publisher’s Statement 2. PRICES Suggested Retail Prices (1) $4.10 $44.75 Net Average Price (2) Gross (Optional) Average Single Copy Subscription Average Subscription Price Annualized (52 issue frequency) Average Subscription Price per Copy (1) For the Statement period June 30, 2006. $27.29 $0.52 For six months ended December 31, 2006 900 N. Meacham Road • Schaumburg, IL 60173-4968 P: 847.605.0909 • F: 847.605.0483 URL: www.accessabc.com 3. PAID & VERIFIED CIRCULATION BY ISSUE Issue July 3 17 24 31 7 14 28 4 11 18 25 2 9 16 23 30 6 13 20 27 4 11 18 25 Paid Subscriptions 1,942,848 1,947,130 1,952,486 1,966,875 1,948,355 1,960,145 1,973,711 1,971,226 1,983,866 1,993,190 2,001,697 1,978,751 2,013,313 2,008,157 1,978,926 1,982,825 1,981,808 2,009,746 2,003,716 2,000,836 1,980,841 1,990,489 1,994,207 1,981,836 Verified Subscriptions 32,651 33,059 33,016 32,963 26,462 27,081 25,156 24,160 24,082 23,999 23,602 23,175 22,390 23,049 22,657 22,721 20,961 926 468 175 138 137 138 137 Total Paid & Verified Subscriptions 1,975,499 1,980,189 1,985,502 1,999,838 1,974,817 1,987,226 1,998,867 1,995,386 2,007,948 2,017,189 2,025,299 2,001,926 2,035,703 2,031,206 2,001,583 2,005,546 2,002,769 2,010,672 2,004,184 2,001,011 1,980,979 1,990,626 1,994,345 1,981,973 Single Copy Sales 29,204 60,348 31,351 34,821 41,036 59,325 45,219 32,410 29,517 44,012 25,401 25,223 26,531 30,422 47,208 32,274 27,169 27,323 27,208 28,311 38,417 36,122 43,116 58,009 Total Paid & Verified Circulation 2,004,703 2,040,537 2,016,853 2,034,659 2,015,853 2,046,551 2,044,086 2,027,796 2,037,465 2,061,201 2,050,700 2,027,149 2,062,234 2,061,628 2,048,791 2,037,820 2,029,938 2,037,995 2,031,392 2,029,322 2,019,396 2,026,748 2,037,461 2,039,982 Aug. Sept. Oct. Nov. Dec. 4. AVERAGE CIRCULATION BY REGIONAL, METRO & DEMOGRAPHIC EDITIONS Edition Blue Chip Executive Florida Texas Atlanta Boston Cincinnati Chicago New York Metro Los Angeles Metro San Francisco Metro Washington DC/Baltimore Houston Denver Detroit Indianapolis Miami/Ft. Lauderdale Milwaukee Philadelphia Phoenix/Tucson Pittsburgh Seattle St. Louis Dallas/Ft. Worth California Number of Issues 3 3 3 4 4 6 1 8 11 3 2 4 2 3 3 1 2 2 3 1 1 2 2 1 8 Paid Subscriptions 1,040,320 632,881 106,103 116,078 36,299 54,323 15,010 86,008 164,775 130,689 85,778 70,082 30,063 26,168 45,935 19,109 30,494 14,028 86,402 37,768 28,089 35,096 24,189 34,644 209,706 Verified Subscriptions Total Paid & Verified Subscriptions 1,040,320 632,881 106,103 116,078 36,299 54,323 15,010 86,008 164,775 130,689 85,778 70,082 30,063 26,168 45,935 19,109 30,494 14,028 86,402 37,768 28,089 35,096 24,189 34,644 209,706 Single Copy Sales 10,556 Total Paid & Verified Circulation 1,050,876 632,881 106,103 116,078 36,299 54,323 15,010 88,388 169,299 132,633 87,444 71,364 30,063 26,168 45,935 19,109 30,494 14,028 86,402 37,768 28,089 35,096 24,189 34,644 213,011 Rate Base 1,000,000 600,000 106,000 118,000 35,000 52,000 14,000 85,000 167,000 128,000 87,000 71,000 27,500 26,000 49,000 19,000 27,000 13,000 85,000 37,000 28,000 35,000 24,000 34,000 213,000 2,380 4,524 1,944 1,666 1,282 3,305 Page 2 of 5 - U.S. News & World Report (04-1320-0) Copyright © 2007 Audit Bureau of Circulations. All rights reserved. 5. TREND ANALYSIS 2002 Subscriptions: Paid Verified Total Paid & Verified Subscriptions Single Copy Sales Total Paid & Verified Circulation Year Over Year Percent of Change Paid & Verified Rate Base Avg. Annualized Subscription Price % 2003 % 2004 % 2005 % 2006 % 1,977,670 97.6 N/A 1,977,670 97.6 48,220 2.4 2,025,890 100.0 -2.4 2,000,000 $34.84 1,975,590 97.7 N/A 1,975,590 97.7 46,528 2.3 2,022,118 100.0 -0.2 2,000,000 $33.99 1,972,641 97.7 N/A 1,972,641 97.7 45,762 2.3 2,018,403 100.0 -0.2 2,000,000 $31.07 1,989,320 98.1 N/A 1,989,320 98.1 38,847 1.9 2,028,167 100.0 0.5 2,000,000 $31.44 1,974,606 97.0 26,037 1.3 2,000,643 98.3 34,692 1.7 2,035,335 100.0 0.4 2,000,000 $27.29 6. SUPPLEMENTAL ANALYSIS OF AVERAGE PAID & VERIFIED CIRCULATION The following averages, as reported below, are included in Par. 1 and annotated here per applicable rules. See Par. 9 for full explanation Print Digital Average for Average for Average for Period Period Period PAID SUBSCRIPTIONS Individual Subscriptions* Loyalty/Award Point* Partnership: Deductible* School* Sponsored Sales TOTAL PAID SUBSCRIPTIONS VERIFIED SUBSCRIPTIONS Individual Use (See Par. 6B) TOTAL VERIFIED SUBSCRIPTIONS TOTAL PAID & VERIFIED SUBSCRIPTIONS SINGLE COPY SALES Single Issue Sales Sponsored Sales TOTAL SINGLE COPY SALES TOTAL PAID & VERIFIED CIRCULATION *Included in Average Price calculation 1,702,505 85,996 14,598 19,868 119,637 1,942,604 159 159 1,942,763 36,321 345 36,666 1,979,429 3,745 1,706,250 85,996 14,598 19,868 154,412 1,981,124 18,471 18,471 1,999,595 36,321 345 36,666 2,036,261 % of Circulation 83.8 4.2 0.7 1.0 7.6 97.3 0.9 0.9 98.2 1.8 0.0 1.8 100.0 34,775 38,520 18,312 18,312 56,832 56,832 6A. ADDITIONAL ANALYSIS OF VERIFIED PUBLIC PLACE The following represents the average public place copies made available during the statement period to the following public areas: None 6B. ADDITIONAL ANALYSIS OF VERIFIED INDIVIDUAL USE The following represents the average individual use copies made available during the statement period to the following individuals: Verified Subscription: Individually Requested Other Total Individual Use Copies Individual Use 18,471 18,471 Page 3 of 5 - U.S. News & World Report (04-1320-0) Copyright © 2007 Audit Bureau of Circulations. All rights reserved. 7. GEOGRAPHIC DATA for the July 17, 2006 issue Total paid & verified circulation of this issue was 0.2% greater than the total average paid & verified circulation. TOTAL PAID & PAID VERIFIED VERIFIED SINGLE SUBSCRIP- SUBSCRIP- SUBSCRIP- COPY TIONS SALES TIONS TIONS 29,209 318 29,527 453 38,348 616 38,964 239 14,260 185 14,445 1,096 213,225 3,739 216,964 6,769 32,203 619 32,822 534 29,723 536 30,259 1,495 6,693 118 6,811 245 6,229 234 6,463 402 107,080 2,055 109,135 2,272 51,752 863 52,615 1,881 9,030 127 9,157 107 90,388 1,087 91,475 3,144 40,063 433 40,496 673 21,171 211 21,382 374 20,983 228 21,211 197 21,923 230 22,153 435 19,411 397 19,808 544 10,739 170 10,909 197 42,956 1,274 44,230 1,590 47,336 673 48,009 1,996 67,275 796 68,071 1,519 39,497 391 39,888 1,334 15,081 199 15,280 158 39,517 442 39,959 848 9,474 140 9,614 133 13,085 146 13,231 125 14,431 277 14,708 594 11,618 126 11,744 207 67,373 1,641 69,014 1,969 13,240 247 13,487 172 130,148 2,636 132,784 4,761 57,511 839 58,350 902 5,637 110 5,747 46 74,088 854 74,942 7,471 20,619 307 20,926 236 23,518 481 23,999 295 95,002 1,229 96,231 2,820 7,038 124 7,162 212 26,248 439 26,687 379 7,101 58 7,159 73 36,093 441 36,534 436 114,893 2,847 117,740 3,952 14,955 179 15,134 508 TOTAL PAID & VERIFIED CIRCULATION 29,980 39,203 15,541 223,733 33,356 31,754 7,056 6,865 111,407 54,496 9,264 94,619 41,169 21,756 21,408 22,588 20,352 11,106 45,820 50,005 69,590 41,222 15,438 40,807 9,747 13,356 15,302 11,951 70,983 13,659 137,545 59,252 5,793 82,413 21,162 24,294 99,051 7,374 27,066 7,232 36,970 121,692 15,642 TOTAL PAID & PAID VERIFIED VERIFIED SINGLE SUBSCRIP- SUBSCRIP- SUBSCRIP- COPY TIONS SALES TIONS TIONS 5,588 75 5,663 83 60,188 1,591 61,779 1,909 49,824 937 50,761 1,084 9,605 107 9,712 106 38,246 385 38,631 612 4,368 38 4,406 37 1,923,983 5,795 8,741 14,536 1,938,519 3,163 1,941,682 91 101 29 16 1 30 321 6 79 25 699 1,940 2,809 1,947,130 1 32,195 1,956,178 114 206 320 5,909 8,947 14,856 TOTAL PAID & VERIFIED CIRCULATION 5,746 63,688 51,845 9,818 39,243 4,443 STATE Alabama Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah STATE Vermont Virginia Washington West Virginia Wisconsin Wyoming TOTAL 48 CONTERMINOUS STATES Alaska Hawaii TOTAL ALASKA & HAWAII U.S. Unclassified TOTAL UNITED STATES Poss. & Other Areas U.S. & POSS., etc. CANADA Alberta British Columbia Manitoba New Brunswick Newfoundland/Labrador Northwest Territories Nova Scotia Nunavut Ontario Prince Edward Island Quebec Saskatchewan Yukon Territory Canadian Unclassified TOTAL CANADA International Other Unclassified Military or Civilian Personnel Overseas GRAND TOTAL 57,624 2,013,802 226 308 534 6,135 9,255 15,390 32,515 1,971,034 145 3,308 32,660 1,974,342 1 92 101 29 16 1 30 321 6 79 25 700 1,940 58,158 2,029,192 24 3,332 58,182 2,032,524 221 136 20 4 18 68 19 181 3 165 14 1 850 840 313 237 49 20 18 69 49 502 9 244 39 1 1,550 2,780 398 3,207 33,059 1,980,189 476 3,683 60,348 2,040,537 ANALYSIS BY ABCD COUNTY SIZE for the July 17, 2006 issue County Size A B C D % of Households 40 30 15 15 Total Paid & Verified Circulation 815,590 606,154 300,056 292,002 % of Total Circulation 40.5 30.1 14.9 14.5 Index (% of Circulation/ % of Households) 101 100 99 97 County Size Group Definitions by the A.C. Nielsen Company- Data for the conterminous 48 states. 8. ANALYSIS OF TOTAL NEW AND RENEWAL PAID INDIVIDUAL SUBSCRIPTIONS Total gross subscriptions (new and renewal) sold in the six month period ended December 31, 2006 A. DURATION (a) One to six months (1 to 25 issues) ............................ (b) Seven to eleven months (26 to 48 issues) ................ (c) Twelve months (49 to 52 issues) ............................... (d) Thirteen to twenty-four months.................................. (e) Twenty-five months and more .................................. Total Subscriptions Sold in Period ............................. B. USE OF PREMIUMS (a) Ordered without premium .......................................... (b) Ordered with material reprinted from this publication............................................................. (c) Ordered with other premiums, See Par. 9 ................. Total Subscriptions Sold in Period ............................. 23,435 40,311 126,127 363,905 137,290 691,068 % 3.3 5.8 18.3 52.7 19.9 100.0 C.CHANNELS (a) Ordered by subscriber action via direct mail, direct mail agents, inserts, online, renewals, catalogs, or other outlets available to the subscribers............. (b) Ordered by subscribers in response to unsolicited telemarketing and door to door selling................. (c) Ordered by subscribers in response to fund-raising programs of schools, churches, and other similar organizations........................................................ (d) Subscriptions as part of membership in an organization ....................................................................... Total Subscriptions Sold in Period ............................ 31.3 100.0 % 492,294 153,801 44,973 None 691,068 100.0 71.2 22.3 6.5 474,790 None 216,278 691,068 68.7 Page 4 of 5 - U.S. News & World Report (04-1320-0) Copyright © 2007 Audit Bureau of Circulations. All rights reserved. 9. EXPLANATORY (h) School Subscriptions: The average of 19,868 copies per issue, shown in Par. 6 and included in Par. 1, represents copies purchased by schools and served to students. Subscriptions were sold at 12-52 issues at the rate of $6.48-$28.08 and 15-52 issues at the rate of $6.00-$20.80. (i) Sponsored Subscription Sales, an average of 154,412 copies per issue shown in Par. 6, and included in Par. 1, represents copies purchased by business concerns in quantities of 11 or more. (j) Sponsored Single Copy Sales, an average of 345 copies per issue, shown in Par. 6 and included in Par. 1, represents copies purchased by various business concerns in quantities of 11 or more. (k) Use of Premiums: A flip clock calculator, holiday CD, alloy band watch, radio, flashlight lamp, PDA Organizer, and sports watch set, with no advertised or stated values, were offered with some subscriptions sold at suggested retail prices. (l) A sweepstakes contest was conducted by a subscription selling organization during this period. Prizes consisted of both cash and merchandise. Some contestants ordered subscriptions to this publication at publisher suggested prices, although the award was not contingent upon subscribing. (m) U.S. NEWS & WORLD REPORT is published in 25 editions. All editions carry national advertising plus specific regional advertising pages. Editorial material is basically identical in all editions. All advertisers may use one or more editions. (n) It is the practice of the publisher to expire all subscriptions on a monthly basis; therefore, some subscribers may receive one to four issues more than entitled to, but no offer of this kind is made to subscribers. (a) Suggested Retail Prices: Subscriptions: U.S. 2 yrs. $89.50; 3 yrs. $134.25. Canada 1 yr. $71.42. UK and Europe 1 yr. $103.75. Mexico 1 yr. $124.75. All other countries 1 yr. $144.75. (b) Average non-analyzed non-paid circulation for the 6 month period: copies per issue. (c) Post expiration copies: None. 47,165 (d) The circulation reported in Par. 1 represents recipients of the print or digital version. In situations where a subscriber requests both the print and digital versions, Par. 1 reporting is made net of duplications, reporting only as print or digital. No recipient received both the print and the digital version. (e) This publication publishes double issues during the year. Each double issue represents two copies of service during the subscription period. This publication publishes four double issues during the average calculation period. The average price and the annualized price are based on 52 issues. (f) Loyalty/Award Point Subscription Sales: The average of 85,996 copies per issue, shown in Par. 6 and included in Par. 1, represents copies served to subscribers in exchange for the redemption of Airline Frequent Flyer Miles. These subscriptions were sold at 52 issues for $30.00, in exchange for the redemption of 1,200 to 1,500 points at the rate of 2¢ or 2 ½¢ per mile. (g) Partnership Subscription Sales (Deductible): The average of 14,598 copies per issue shown in Par. 6, and included in Par. 1, represents copies sold in a partnership relationship wherein this publication was bundled with the purchase of a good or service. Purchasers were advised that $7.00 to $30.00 of the sales price was allocated to this publication for a 26-53 issue subscription. 10. VARIANCE Latest released Audit Report for 12 months ended June 30, 2005; Variation from Publisher’s Statements Audit Period Ended^ Rate Base (Paid & Verified) Audit Report (Paid & Verified) Publisher’s Statements (Paid & Verified) Difference (Paid & Verified) Percentage of Difference (Paid & Verified) 06-30-04 2,000,000 2,015,527 2,023,578 -8,051 -0.4 06-30-03 2,000,000 2,037,557 2,026,143 11,414 0.6 06-30-02 2,000,000 2,062,023 2,054,785 7,238 0.4 06-30-01 2,000,000 2,057,098 2,067,495 -10,397 -0.5 06-30-00 (a) 2,161,505 2,162,593 -1,088 -0.1 ^Effective with the June, 2006 Publisher's Statements, publications were given the option of reporting verified circulation. (a) Effective 01/01/00 changed from 2,150,000 to 2,000,000 We certify that to the best of our knowledge all data set forth in this Publisher’s Statement are true and report circulation in accordance with Audit Bureau of Circulations’ Bylaws and Rules. Parent Company: U.S. News & World Report, L.P. U.S. NEWS & WORLD REPORT, published by U.S. News & World Report, L.P. • 450 W. 33rd St. • New York, NY 10001-2681 SUSAN H. BLATTMAN Sr. Vice President, Consumer Marketing P: 212.716.6800 • URL: www.usnews.com WILLIAM D. HOLIBER President Date Signed: January 30, 2007 Sales Office: New York 212-716-6800 Established: 1933 ABC Member since: 1935 Page 5 of 5 - U.S. News & World Report (04-1320-0) Copyright © 2007 Audit Bureau of Circulations. All rights reserved. 04-1320-0 Analyzed Issue Date Analyzed Issue Text (for double month issue date) Average Single Copy Price Association Subscription Price U.S. Subscription Price Canadian Subscription Price International Subscription Price 07/17/06 4.10 44.75 71.42 144.75