Statement re iQu-digital.com.

Quarto Group Inc 5 June 2000 Quarto Establishes Subsidiary to Sell Content to Internet Sites Quarto, the London-based international book publisher, has set up a subsidiary, iQu-digital.com. The company will license material from Quarto's significant backlist, which comprises some 5,000 books and three million images, to Internet sites and portals. iQu-digital.com has developed a system to identify and target Internet enterprises around the world with an interest in developing the content of their sites. As a predominantly remote sales-only operation, iQu-digital.com has no establishment or production costs, relatively small overheads, and hence minimal risk. iQu-digital.com will mirror Quarto's traditional publishing activities: Quarto will retain ownership of all licensed text and images, and licences will be for a limited period, usually three years, and for Internet activity only. iQu-digital.com and Quarto will work in tandem, licensing the same data at the same time, to different companies in different markets. iQu-digital.com has recently signed its first agreements, worth US$145,000 over three years. These are to provide content to Ewines, for its www.wineplanet.com.au website, and to the international Internet portal devoted to wines, Winepros Limited, for its winebuyer.com and winepros.com.au websites. According to Isobell King, Managing Director of Ewines, the company was using Quarto material because of the 'breadth and quality of information provided'. Similarly, Sally Evans, Managing Director of Winepros, said that the decision to acquire content from Quarto was 'based on the high quality of the contributors, editors and publishers involved' with the company. Laurence Orbach, chairman and chief executive of Quarto, said: 'Quarto is very different from nearly all other publishers in that we own the content of our books. We already sell licences to our books to 'traditional' publishers, so branching out by selling existing intellectual property to new media companies is a natural extension of our business. Internet licensing through iQu- digital.com provides us with a new and exciting market.' Enquiries: The Quarto Group, Inc. Terry Hancock (Chief Operating Officer) 020-7700 9000 Mick Mousley (Finance Director) Bankside Consultants Limited Charles Ponsonby 020-7220 7477
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