EXHIBIT 99.1
FOR: AMREP Corporation
300 Alexander Park, Suite 204
Princeton, New Jersey 08540
CONTACT: Peter M. Pizza
Vice President and Chief Financial Officer
(609) 716-8210
For Immediate Release
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AMREP CORPORATION ANNOUNCES PLANNED UNIFICATION OF PALM COAST DATA AND KABLE
FULFILLMENT SERVICES
Princeton, N.J., October 10, 2008 - AMREP Corporation (NYSE:AXR) announced today
that it will unify the magazine subscription, membership and direct mail
fulfillment services businesses of its subsidiaries, Palm Coast Data and Kable
Fulfillment Services, under one brand: Palm Coast Data -- and into one location:
Palm Coast, Florida. The Company's magazine and product distribution services
businesses will not be affected, and will continue to operate under the Kable
brand from their current locations.
According to Edward B. Cloues, II, the Chairman of the AMREP Board of Directors,
the unification of the fulfillment services businesses is part of a long-range
plan, initiated when AMREP acquired Palm Coast Data in January 2007, to
streamline operations, improve service to clients and create cost efficiencies
through the reduction of overhead costs and the elimination of operating
redundancies. When the program is fully implemented, all of the Company's
magazine subscription, membership and direct mail fulfillment services will be
provided under the Palm Coast Data brand from one location employing a single
operating system. Currently these services are provided under two brands, Palm
Coast Data and Kable, operating from three locations, Palm Coast, Florida,
Louisville, Colorado and Mount Morris, Illinois, with a fourth location in
Marion, Ohio having recently been closed.
"The unification program will position Palm Coast Data to offer the precise
balance of experience, innovation and creativity needed to address the unique
challenges faced by our clients", said John Meneough, the Chief Operating
Officer of the Company's fulfillment services businesses. "We are unifying
operations to enable our staff to be more proactive and more responsive - and
our services to be more cost-effective."
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The Company estimates that full implementation of the program will take
approximately three years, and over that period will require approximately $25.0
million of capital expenditures and will involve approximately $7.0 million of
non-recurring costs for severance, training and transition, facility closings,
equipment relocation and impairment, and accelerated amortization. It is
anticipated that the State of Florida and the City of Palm Coast will provide
incentives for the program, including cash and employee training grants and tax
relief, which could amount to as much as $7.0 million, largely contingent on
existing job retention and new job creation.
ABOUT AMREP
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AMREP Corporation, through its AMREP Southwest Inc. subsidiary, is a major
landholder and leading developer of real estate in New Mexico, and through its
other subsidiaries provides subscription fulfillment and related services to
publishers and others, distributes magazines to wholesalers and provides product
fulfillment services to publishers and others. For more information visit
www.amrepcorp.com.
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The statements in this news release regarding the combination of the magazine
subscription, membership and direct mail fulfillment services businesses are
forward-looking statements within the meaning of the federal securities laws.
These statements are subject to numerous risks and uncertainties, many of which
are beyond the control of AMREP and that could cause actual results to differ
materially from such statements, including, without limitation, the Company's
ability to efficiently unify the components of its fulfillment services
businesses, the time required and costs involved in doing so, the expected
achievement of improved customer service and cost efficiencies, the Company's
ability to migrate customers to an integrated data processing system, and the
availability of economic and tax incentives. Further information about these and
other relevant risks and uncertainties may be found in the Company's Form 10-K
and its others filings with the Securities and Exchange Commission, all of which
are available from the Securities and Exchange Commission as well as from other
sources. Recipients of this news release are cautioned to consider the risks and
uncertainties and to not place undue reliance on the forward-looking statements
contained therein. AMREP disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise.
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