Source Interlink Companies and American Media Inc. Announce Settlement of Lawsuits

Source Interlink Companies (NASDAQ:SORC) today announced settlement of the claims they have filed against American Media Inc. (AMI) and Distribution Services, Inc., AMI’s in-store magazine marketing and merchandising company and the lawsuit and claims that AMI filed against Source. The resolution of these legal actions assures Source of access to the full range of AMI magazine products including National Enquirer, Star, and Shape magazines and AMI that its publications will continue to be widely available. Source had earlier announced the settlement of a related action against Time Inc. and Time/Warner Retail Sales & Marketing Inc.

“I am pleased in reaching this accord. Not only will both sides benefit, but so will retailers and magazine consumers. We will now be able to restore the full line of AMI product to magazine racks across America,” said Greg Mays, Chairman and CEO of Source. “We are happy to have concluded this legal process through an amicable settlement that ensures Source can continue to supply all our mainstream and specialty distribution clients with these popular titles.”

Mays commented, “This announcement today is gratifying in that it further solidifies what has been a great relationship with an excellent business partner. Settling with AMI adds to the momentum of our growth, as measured by the more than 1,000 new retail store accounts recently added to our network.”

More New Retail Business for Source Interlink Distribution

Source Interlink Companies separately reported today that its magazine distribution unit, Source Interlink Distribution (SID), has increased its new retail accounts by over 400 stores beyond the 662 new stores that it reported on February 18, 2009. The new business announced today includes a combination of supermarkets, drug stores and military retail outlets.

In addition to SID, which is one of the largest mainstream magazine wholesalers in the US, Source also operates the largest distributor of CDs and DVDs, the largest publisher of enthusiast magazines, the largest distributor of magazines to bookstores and other specialty retailers, and the largest importer of foreign magazine titles to US newsstands.