EXHIBIT 99.1

PALM COAST DATA HOLDCO, INC.

Consolidated Financial Statements

As of June 30, 2006 and for the period from August 10, 2005
(Date of Inception) to June 30, 2006

(With Independent Auditors' Report Thereon)

PALM COAST DATA HOLDCO, INC.

Consolidated Financial Statements

June 30, 2006 and August 10, 2005
(Date of Inception)

Table of Contents

Page

Independent Auditors' Report .......................................... 3

Consolidated Balance Sheet as of June 30, 2006 ........................ 4

Consolidated Statement of Operations for the period from
August 10, 2005 (date of inception) to June 30, 2006 ................ 5

Consolidated Statement of Shareholders' Equity for the period from
August 10, 2005 (date of inception) to June 30, 2006 ................ 6

Consolidated Statement of Cash Flows for the period from
August 10, 2005 (date of inception) to June 30, 2006 ................ 7

Notes to Consolidated Financial Statements ............................ 8 - 15

Independent Auditors' Report

The Board of Directors of
Palm Coast Data Holdco, Inc.

We have audited the accompanying consolidated balance sheet of Palm Coast Data
Holdco, Inc. and its subsidiary (the Company) as of June 30, 2006, and the
related consolidated statement of operations, shareholders' equity, and cash
flows for the period from August 10, 2005 (date of inception) to June 30, 2006.
These consolidated financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these consolidated
financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Company's internal control
over financial reporting. Accordingly, we express no such opinion. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of Palm Coast Data
Holdco, Inc. and its subsidiary as of June 30, 2006, and the results of their
operations and their cash flows for the period from August 10, 2005 (date of
inception) to June 30, 2006 in conformity with accounting principles generally
accepted in the United States of America.

/s/ KPMG LLP

St. Louis, Missouri
November 29, 2006

PALM COAST DATA HOLDCO, INC.
Consolidated Balance Sheet
June 30, 2006
(In thousands, except share data)
June 30,
Assets 2006
---------
Current assets:
Cash ............................................................. $ 2,105
Accounts receivable, net of allowance of $26 ..................... 8,744
Postage deposits ................................................. 111
Prepaid expenses and other assets ................................ 934
--------
Total current assets .............................. 11,894
Property, plant, and equipment, net ................................ 16,210
Goodwill ........................................................... 25,932
Intangible assets, net ............................................. 19,284
Deferred financing costs, net ...................................... 945
Other .............................................................. 467
--------
Total assets ...................................... $ 74,732
========
Liabilities and Shareholders' Equity

Current liabilities:
Accounts payable ................................................. $ 1,584
Accrued expenses ................................................. 4,355
Advances from customers .......................................... 2,163
Current portion of long-term debt ................................ 1,969
--------
Total current liabilities ......................... 10,071
Long-term debt, less current portion ............................... 43,783
Deferred compensation .............................................. 2,196
--------
Total liabilities ................................. 56,050
--------
Shareholders' equity:
Common stock class A, $0.01 par value. Authorized
3,030.9 shares; issued 1,311.1 shares .......................... --
Common stock class B, $0.01 par value. Authorized
23,663.9 shares; issued 21,742.5 shares ........................ --
Additional paid-in capital ....................................... 23,054
Accumulated deficit .............................................. (4,372)
--------
Total shareholders' equity ........................ 18,682
--------
Total liabilities and shareholders' equity ........ $ 74,732
=========
See accompanying notes to consolidated financial statements.

PALM COAST DATA HOLDCO, INC.
Consolidated Statement of Operations
Period from August 10, 2005 (date of inception) to June 30, 2006
(In thousands)

Revenue .................................................... $ 45,513
Cost of revenue ............................................ 30,007
--------
Gross margin ..................................... 15,506
--------
Operating expenses:
Marketing and client services ............................ 4,879
General and administrative ............................... 7,501
Organizational costs ..................................... 349
Amortization of intangible assets ........................ 1,543
--------
Total operating expenses ......................... 14,272
--------
Operating income ................................. 1,234
Interest expense, net ...................................... 5,606
--------
Loss before income taxes ......................... (4,372)
Income tax benefit ......................................... --
--------
Net loss ......................................... $ (4,372)
========
See accompanying notes to consolidated financial statements.

PALM COAST DATA HOLDCO, INC.
Consolidated Statement of Shareholders' Equity
Period from August 10, 2005 (date of inception) to June 30, 2006
(In thousands, except share data)

Common Common Additional Total
stock stock paid-in Accumulated shareholders'
class A class B capital deficit equity
----------------------------------------------------------------------------

Balance, August 10, 2005
(date of inception)......... $ -- $ -- $ -- $ -- $ --
Issuance of common stock ... -- -- 23,054 -- 23,054
Net loss ................... -- -- -- (4,372) (4,372)
--------------------------------------------------------------------------
Balance, June 30, 2006 ....... $ -- $ -- $ 23,054 $ (4,372) $ 18,682
==========================================================================
See accompanying notes to consolidated financial statements.

PALM COAST DATA HOLDCO, INC.
Consolidated Statement of Cash Flows
Period from August 10, 2005 (date of inception) to June 30, 2006
(In thousands)

Operating activities:
Net loss ................................................... $ (4,372)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation ............................................. 1,892
Amortization of intangible assets ........................ 1,543
Amortization of deferred financing costs ................. 209
Interest paid with in-kind notes payable ................. 546
Deferred compensation .................................... 807
Changes in operating assets and liabilities:
Accounts receivable .................................... (17)
Postage deposits ....................................... 187
Prepaid expenses and other assets ...................... (74)
Other long-term assets ................................. (28)
Accounts payable ....................................... 720
Accrued expenses ....................................... 1,231
Advances from customers ................................ (946)
---------
Net cash provided by operating activities ........... 1,698
---------
Investing activities:
Purchase of property, plant, and equipment ................. (1,675)
Proceeds from sale of property, plant, and equipment ....... 7
Net cash paid for acquisition .............................. (69,002)
---------
Net cash used in investing activities ............... (70,670)
---------
Financing activities:
Repayment of long-term debt ................................ (1,031)
Repayment of revolving line of credit ...................... (991)
Proceeds from issuance of common stock ..................... 23,054
Proceeds from long-term debt ............................... 46,256
Payment of debt issuance cost .............................. (1,154)
Proceeds from revolving line of credit ..................... 991
---------
Net cash provided by financing activities ........... 67,125
---------
Net decrease in cash ................................ (1,847)

Cash, beginning of year ...................................... 3,952
---------
Cash, end of year ............................................ $ 2,105
=========
Supplemental cash flow information:
Interest paid ........................................... $ 3,293

See accompanying notes to consolidated financial statements.

PALM COAST DATA HOLDCO, INC.
Notes to Consolidated Financial Statements

June 30, 2006

(In thousands, except share data)

(1) Background

Palm Coast Data Holdco, Inc. (Holdco) is a Delaware-domiciled holding company
with a single operating company, Palm Coast Data LLC (PCD) (collectively, the
Company). Holdco was formed for the purpose of acquiring controlling interest in
Palm Coast Data Holdings L.L.C., the prior owner of Palm Coast Data LLC. The
acquisition closed on August 9, 2005, and Holdco commenced operations the next
day (the Acquisition) (see note 3). Acquisition funding was provided by Allied
Capital Corporation (Allied) through revolving and term loan facilities (see
note 7) and equity funding was provided by certain members of the Company's
management and Allied (see note 12). The Company provides magazine publishers
and membership organizations with customer management and fulfillment services,
including front-end processing, account management, direct mail services, letter
shop services, print management, reporting, and online communications.

(2) Summary of Significant Accounting Policies

(a) Basis of Presentation and Consolidation

The consolidated financial statements include the accounts of the
Company and its wholly owned subsidiary. All significant intercompany
balances between the Company and its subsidiary have been eliminated.

(b) Cash and Cash Equivalents

Cash and cash equivalents include deposits in banks, money market
accounts and short-term investments with original maturities, when
acquired, of 90 days or less.

Postage deposits consist of prepaid postage and are carried at cost.

(d) Property, Plant, and Equipment

Property, plant, and equipment are recorded at cost less accumulated
depreciation. Depreciation is computed using the straight-line method
over the estimated useful lives of the related assets, ranging from 4
to 40 years. Depreciation expense for the period from August 10, 2005
(date of inception) to June 30, 2006 was $1,892.

The Company evaluates the recoverability of its carrying value of
property and equipment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable.

(e) Goodwill and Other Intangible Assets

Goodwill represents the excess of costs over fair value of assets of
businesses acquired. Goodwill and intangible assets acquired in a
purchase business combination and determined to have an indefinite
useful life are not amortized, but instead tested for impairment at
least annually in accordance with the provisions of Financial
Accounting Standards Board (FASB) Statement No. 142, Goodwill and
Other Intangible Assets. Intangible assets with estimable useful lives
are amortized over their respective estimated useful lives to their
estimated residual values, and reviewed for impairment in accordance
with FASB Statement No. 144, Accounting for Impairment or Disposal of
Long-Lived Assets.

(f) Deferred Financing Costs

Deferred financing costs are amortized over the life of the related
credit facility using the effective interest method. Amortization
expense was $209 for the period from August 10, 2005 (date of
inception) to June 30, 2006.

(g) Pervasiveness of Estimates

The preparation of consolidated financial statements in conformity
with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the consolidated balance sheet. Although
management believes these estimates and assumptions are adequate,
actual results may differ from the estimates and assumptions used.
Material estimates include those for collectibility of accounts
receivable, deferred tax valuation allowances, certain accrued
expenses, and the fair value of acquired assets and assumed
liabilities.

(h) Revenue and Expense Recognition

Revenue is recognized when the service has been performed. All
expenses are recognized when incurred.

(i) Stock Option Plan

The Company applies the intrinsic value based method of accounting
prescribed by Accounting Principles Board (APB) Opinion No. 25,
Accounting for Stock Issued to Employees, and related interpretations
including Financial Accounting Standards Board (FASB) Interpretation
No. 44, Accounting for Certain Transactions involving Stock
Compensation, an interpretation of APB Opinion No. 25, and FASB
Interpretation No. 28, Accounting for Stock Appreciation Rights and
Other Variable Stock Option or Award Plans, to account for its stock
option agreements. The Company's stock option plan allows the option
holders the right to a net cash settlement on vested options at the
discretion of the holder. Accordingly, when stock options are granted
and at each measurement date, the Company measures compensation as the
amount by which the fair value of the Class B Nonvoting Common Stock
of the Company covered by the grant exceeds the option grant price.
Changes, either increases or decreases (limited to the option grant
price), in the fair value of those options between the date of grant
and the measurement date result in a change in the measure of
compensation for the option. There were no vested stock options at
June 30, 2006. The fair value of the options at June 30, 2006 was
$1,891 per option, and the Company has recorded compensation expense
in the consolidated statements of operations for the period from
August 10, 2005 (date of inception) to June 30, 2006 of $284. The
liability related to the option plan is $284 at June 30, 2006, and is
included in the accompanying consolidated balance sheet in the caption
"deferred compensation."

(j) Income Taxes

Deferred tax assets and liabilities are recognized for the future tax
consequences attributable to temporary differences between the
financial statement carrying amounts of assets and liabilities and
their respective tax bases. Deferred tax assets are also recognized
for credit carryforwards and then assessed (including the anticipation
of future income) to determine the likelihood of realization.
Valuation allowances are recorded when it is more likely then not that
a tax benefit will not be realized. Deferred tax assets and
liabilities are measured using the rates expected to apply to taxable
income in the years in which the temporary differences are expected to
reverse and the credits are expected to be used. The effect of a
change in tax rates on deferred tax assets and liabilities is
recognized in income in the period that includes the enactment date.

(k) Recent Accounting Pronouncements

In December 2004, the FASB issued SFAS No. 123R, Share-Based Payments.
SFAS No. 123R is a revision of SFAS No. 123, Accounting for Stock
Based Compensation, and supersedes APB 25. Among other items, SFAS
123R eliminates the use of Accounting Principles Board ("APB") 25 and
the intrinsic value method of accounting, and requires companies to
recognize the cost of employee services received in exchange for
awards of equity instruments, based on the grant date fair value of
those awards, in the consolidated financial statements. The effective
date of SFAS 123R is the Company's year ending June 30, 2007.
Management does not expect the provisions of SFAS 123R to have a
material impact on the Company's consolidated financial statements.

(3) Acquisition

The purchase price upon consummation of the Acquisition consisted of cash of
$66,403, exchanged members' interest in the predecessor company for Class A
Voting Common Stock in the Company with a fair value of $1,267, and the
incurrence of $1,128 of transaction costs. The Acquisition is being accounted
for under the purchase method of accounting. Accordingly, the results of
operations are included in the consolidated financial statements from the
acquisition date. Subsequent to the acquisition date, the Company paid $204
related to working capital adjustments arising from the Acquisition and
additional transaction costs incurred. The Company recorded the acquired assets
and assumed liabilities at their estimated fair value. The excess of the cost
over the estimated fair value of the recorded assets and liabilities was
recorded as goodwill. Based on the purchase price allocation, goodwill of
$25,932 was recorded. Amounts recorded as goodwill will not be amortized. The
following table summarizes the estimated fair value of the assets acquired and
liabilities assumed.

Current assets ........................... $13,837
Property and equipment ................... 16,434
Goodwill ................................. 25,932
Intangible assets ........................ 20,827
Other assets ............................. 439
-------
Total assets acquired .......... 77,469
-------
Current liabilities ...................... 7,097
Long-term liabilities .................... 1,370
-------
Total liabilities assumed ...... 8,467
-------
Net assets acquired ............ $69,002
=======

(4) Property, Plant, and Equipment

Property, plant, and equipment consists of the following at June 30, 2006:

Land ................................... $ 980
Building and improvements .............. 5,616
Furniture and fixtures ................. 1,148
Equipment .............................. 3,433
Computer software ...................... 6,407
Construction in-progress ............... 518
---------
18,102
Less accumulated depreciation (1,892)
---------
$ 16,210
=========

(5) Intangible Assets

June 30, 2006
------------------------------------------
Weighted
Gross average
carrying amortization Accumulated
amount period amortization
-----------------------------------------

Amortizing intangible assets:
Customer contracts ................ $19,040 12.0 years $ 1,414
Customer relationships ............ 1,787 12.0 years 129
------- -------
$20,827 $ 1,543
======= =======

Aggregate amortization expense for amortizing intangible assets was $1,543 for
the period from August 10, 2005 (date of inception) to June 30, 2006. Estimated
amortization expense for the next five fiscal years is $1,728 for 2007 through
2011.

(6) Accrued Expenses

Accrued expenses consist of the following at June 30, 2006:

Payroll and related expenses ..... $1,878
Insurance ........................ 336
Interest ......................... 1,558
Other ............................ 583
------
$4,355
======

(7) Long-Term Debt

Long-term debt is comprised of the following at June 30, 2006:

PCD senior secured term loan payable to Allied,
maturing August 2010 .................................. $15,569
PCD senior subordinated notes payable to Allied,
due August 2012 ....................................... 28,090
Holdco note payable to Allied, due August 2015 .......... 2,036
Other ................................................... 57
-------
45,752
Less current maturities on term loan .................... 1,969
-------
$43,783
=======

The term loan bears interest at the 90-day LIBOR plus 3.50%. On June 30, 2006,
the applicable interest rate on the term loan was 8.49%. The term loan and the
aforementioned revolver are collateralized by all of PCD's assets and Holdco
provides a guarantee of this obligation. Quarterly principal payments are
required with a balloon payment due at maturity.

PCD also has a revolving credit agreement payable to Allied with an aggregate
principal amount not to exceed $2,500 and a maturity date of August 2010. The
revolver bears interest at 90-day LIBOR plus 3.50%. At June 30, 2006, no
borrowings were outstanding on the revolver.

The senior subordinated note bears interest at a rate of 15.5% per annum
compounded quarterly. Interest is paid quarterly with a required cash payment
equal to 12% per annum and the option to pay all or a portion of the remaining
3.5% interest "in-kind" through the issuance of additional notes. The senior
subordinated note is unsecured and there are no scheduled principal repayments
prior to maturity. Subject to certain restrictions and charges as defined, PCD
can make optional prepayments beginning in August 2008. Additionally, Holdco
provides a guarantee of this obligation.

The Holdco note bears interest at a rate of 15.5% per annum compounded
quarterly. Interest is paid quarterly with a required cash payment equal to 12%
per annum and the option to pay all or a portion of the remaining 3.5% interest
"in-kind" through the issuance of additional notes. The note is unsecured and
there are no scheduled principal repayments prior to maturity. Subject to
certain restrictions as defined, the Holdco can make optional prepayments
beginning in August 2012.

The Allied loan agreements contain certain operating and financial covenants and
restrictions which, among other matters, require the Company to restrict the
incurrence of additional indebtedness, satisfy certain financial ratios,
restrict changes in the capital structure, restrict affiliated transactions,
restrict distributions to shareholders and limit both the sale of assets and
merger transactions.

The scheduled maturities of long-term debt for the next five fiscal years and
thereafter are:

2007 ................ $ 1,969
2008 ................ 2,625
2009 ................ 3,136
2010 ................ 3,273
2011 ................ 4,623
2012 and thereafter 30,126
-------
$45,752
=======

(8) Income Taxes

Since date of inception, the Company has incurred operating loss carryforwards
of $3,666 related to U.S. federal and state jurisdictions. The federal operating
loss expires after fiscal year 2026. The Company has evaluated its operating
loss carryforwards and other net deferred tax assets and determined that
recording a full valuation allowance was appropriate as the positive evidence
required to overcome the recent pre-tax loss and the pre-tax losses expected for
the reasonably foreseeable future periods was not sufficient to support
recognition of the net deferred tax assets. Accordingly, no income tax benefit
has been recorded for the period from August 10, 2005 (date of inception) to
June 30, 2006.

The provision for income tax benefit differs from the amount computed by
applying the U.S. statutory income tax rate to the loss before income taxes for
the reasons set forth below for the period from August 10, 2005 (date of
inception) to June 30, 2006:

Statutory income tax at 34% ..................... $(1,487)
State income taxes - net of U.S. tax benefit .... (159)
Nondeductible expenses .......................... 41
Increase in valuation allowance ................. 1,605
-------
Provision for income tax benefit $ --
=======

Deferred income taxes reflect the net tax effects of temporary differences
between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for income tax purposes, as well as operating loss
carryforwards. The tax effect of our temporary differences and carryforwards are
as follows at June 30, 2006:

Deferred tax assets:
Operating loss carryforwards ................................. $ 1,380
Property, plant and equipment ................................ 191
Intangible assets ............................................ 102
Deferred compensation plans .................................. 304
Other employee benefits and compensation related accruals .... 350
Organizational costs ......................................... 107
-------
Total deferred tax assets prior to valuation allowance 2,434
-------
Deferred tax liabilities:
Goodwill deductible for tax .................................. 596
Differences in expense recognition methods ................... 233
-------
Total deferred tax liabilities ....................... 829
-------
Net deferred tax asset before valuation allowance .... 1,605
Valuation allowance .......................................... (1,605)
-------
Net deferred tax asset ............................... $ --
=======

(9) Commitments

Leases

The Company leases office/production space and certain equipment under various
noncancelable operating leases. The following is a schedule of future minimum
lease payments under such noncancelable leases with terms in excess of one year
for the next five fiscal years and thereafter:

2007 .......... $ 540
2008 .......... 474
2009 .......... 372
2010 .......... 283
2011 .......... 265
Thereafter .... 1,279
------
$3,213
======

Operating lease expense for the period from August 10, 2005 (date of inception)
to June 30, 2006 was $1,329.

(10) Employee Benefits

(a) Employee Benefit Plan

All regular employees are eligible to participate in a 401(k)
retirement savings plan and trust on the first day of the month
following six months of employment. Employees may defer 1% to 20% of
pretax wages through payroll deductions to the allowed federal maximum
during each calendar year. The Company currently matches 50% of the
first 6% of eligible compensation. Employees participating in the plan
prior to May 1, 2002 are 100% vested. Employer contributions for new
employees participating in the plan effective May 1, 2002 are 20%,
50%, 75%, and 100% vested after two, three, four, and five years of
service, respectively. The Company's matching contribution for the
period from August 10, 2005 (date of inception) to June 30, 2006 was
$351.

(b) Deferred Compensation Agreements

In conjunction with the Acquisition, the Company entered into deferred
compensation agreements with certain key management employees related
to unrealized appreciation on certain prior equity incentive
agreements. The purpose of the new agreements is to provide an
incentive that links the value of the deferred compensation accounts
to an increase in the value of the Company and to aid the Company in
retaining such management personnel who will largely be responsible
for such growth in the Company's value. A participant shall always be
100% vested in his/her account. The agreements are an unfunded,
unsecured obligation on the part of the Company.

Each participant made a one-time election to have portions of their
deferral allocated to two sub-accounts: a phantom debt account and a
phantom equity account. The deferrals allocated to the phantom debt
account accrue interest and are eligible for quarterly interest
payments in a manner identical to the Company's senior subordinated
notes (see note 7). The deferrals allocated to the phantom equity
account were converted to unit holdings of "phantom stock", the
economic equivalent of the Company's Class B Nonvoting Common Stock.
At the date of date of inception, there were 516 such units of phantom
stock granted. The phantom stock units are revalued at each
measurement date by the relationship of the fair value per share of
the Company's stock as compared to the initial unit conversion price
of $1,000 per share.

The deferrals in the phantom debt accounts total $936 at June 30, 2006
and are included in the accompanying consolidated balance sheet in the
caption "deferred compensation". Interest expense incurred on such
phantom debt accounts during the period from August 10, 2005 (date of
inception) to June 30, 2006 was $149.

For the phantom equity accounts, the Company measures as compensation
expense the amount by which the fair value per share of the Company's
stock exceeds the initial unit conversion price of $1,000 per share.
Changes, either increases or decreases, in the fair value of the
Company common stock between the date of grant and the measurement
date result in a change in the measure of compensation expense for the
phantom equity accounts. There were 516 vested phantom equity units at
June 30, 2006 and the fair value of the Company Class B Nonvoting
Common Stock was $1,891 per share at such time. Accordingly, the
balance in the phantom equity account at June 30, 2006 was $976 and is
included in the accompanying consolidated balance sheet in the caption
"deferred compensation". The Company recorded compensation expense in
the consolidated statement of operations for the period from August
10, 2005 (date of inception) to June 30, 2006 of $460.

(11) Stock Option Plan

The Company has a stock option plan for certain key employees at the discretion
of the Board. Each option represents the right upon exercise to receive the
excess of the value of one share of Class B Nonvoting Common Stock as of the
date of exercise over the base price for such option fixed by the Board on the
grant date. The maximum aggregate number of Class B shares which may be issued
under the stock option plan is 1,911. The exercise and base price are subject to
adjustment under the terms of the stock option plan by the Board. The options
shall vest and become exercisable at such time or times as the Board shall
determine at or subsequent to the grant date as specified in each individual's
stock option agreement. At June 30, 2006, no options were vested and the
contractual remaining life on each option was 9.1 years. The following is a
summary of activity with respect to the options under the Company's 2005 Stock
Option Plan.

Shares Range of Weighted
under grant average
option prices grant price
-------------------------------------------------

Outstanding at August 10, 2005
(commencement of operations).................... -- $ -- --
Granted ........................................ 1,790 1,000 1,000
Cancelled ...................................... --
--------
Outstanding at June 30, 2006 1,790 1,000 1,000
========

(12) Equity and Related-Party Transactions

Certain officers and employees own substantially all of the Class A Voting
Common Stock (Class A Common). Allied owns all of the Class B Nonvoting Common
Stock. All shareholders are subject to the terms of a shareholders' agreement.
This agreement provides for various restrictions on the holders of the Class A
Common including their ability to sell, transfer, and assign the common stock
and provides for Allied having the first right of purchase in certain
situations. Additionally, the agreement provides for certain drag-along and
tag-along rights and duties between the different classes of common stock that
indicate the rights of common stockholders in the event Allied desires to sell
or transfer 50% or more of its shares of common stock.

In conjunction with the Acquisition, the Company issued Allied a warrant to
purchase 1,719.8 shares of Class A Common. The purchase price under the warrant
is equal to the fair market value of the Class A Common at the time of exercise
plus a voting premium of an additional 5% of such fair market value. The warrant
is exercisable at any time for all but not less than all of the 1,719.8 shares.

All of the holders of Class A Common have entered into call option agreements
with Allied. These agreements provide for certain situations in which Allied may
require the holders to sell their shares of Class A Common to Allied for fair
market value of the Class A Common at the time of such a call plus a voting
premium of an additional 5% of such fair market value. A determination by Allied
that the Company has not performed or complied with its obligations under the
aforementioned warrant agreement or the Company becoming subject to a bankruptcy
event, as defined, are the two primary triggering events to Allied's ability to
exercise the call features.

Effective on the date of inception, the Company entered into a consulting
services agreement with Allied with an initial term of ten years. Under this
agreement, Allied provides certain consulting, financial, and managerial
functions for a fee. The annual fee is $500 plus reimbursement of certain costs
and expenses. Cost incurred under this agreement and charged to expense was $469
for the period from August 10, 2005 (date of inception) to June 30, 2006.

For services related to the Acquisition, the Company paid Allied $681 which has
been included in the purchase price of the Company.

For structuring and closing fees on the debt financing provided by Allied, the
Company paid Allied a total of $1,032 which has been included in the deferred
financing costs. These fees have been attributed to each specific credit
facility and are being amortized to expense over the life of the respective
credit facility.

(13) Concentration of Credit Risk

The Company's financial instruments that are exposed to concentrations of credit
risk consist primarily of cash and trade accounts receivable. The Company places
its cash with what it believes to be high credit quality institutions. At times
such cash balances may be in excess of the FDIC insurance limit. The Company
routinely assesses the financial strength of its customers and, as a
consequence, believes that its trade accounts receivable credit risk exposure is
limited. The Company's four largest customers comprised 53% of the Company's
accounts receivable balance at June 30, 2006 and 55% of the Company's revenue
for the period from August 10, 2005 (date of inception) to June 30, 2006.

(14) Subsequent Event

In November 2006, the Company entered into an agreement to be acquired by Kable
Media Services, Inc., a subsidiary of AMREP Corporation. The total transaction
value is approximately $92 million, subject to working capital and other
adjustments. The closing of the transaction is subject to regulatory review and
other customary closing conditions and is expected to occur early in 2007.

PALM COAST DATA HOLDINGS L.L.C.

Consolidated Financial Statements

As of August 9, 2005 and December 31, 2004 and for the
Period from January 1, 2005 to August 9, 2005
and for the Years Ended December 31, 2004 and 2003

(With Independent Auditors' Report Thereon)

PALM COAST DATA HOLDINGS L.L.C.

Consolidated Financial Statements

August 9, 2005, December 31, 2004 and 2003

Table of Contents

Page

Independent Auditors' Report .................................... 18

Consolidated Balance Sheets as of August 9, 2005 and
December 31, 2004 ............................................. 19

Consolidated Statements of Income and Comprehensive Income for the
period from January 1, 2005 to August 9, 2005 and
the years ended December 31, 2004 and 2003 .................... 20

Consolidated Statements of Members' Equity for the period from
January 1, 2005 to August 9, 2005 and the years ended
December 31, 2004 and 2003 .................................... 21

Consolidated Statements of Cash Flows for the period from
January 1, 2005 to August 9, 2005 and the years ended
December 31, 2004 and 2003 .................................... 22

Notes to Consolidated Financial Statements ...................... 23 - 27

Independent Auditors' Report

The Members of
Palm Coast Data Holdings L.L.C.:

We have audited the accompanying consolidated balance sheets of Palm Coast Data
Holdings L.L.C. and its subsidiary (the Company) as of August 9, 2005 and
December 31, 2004 and the related consolidated statements of income and
comprehensive income, members' equity, and cash flows for the period from
January 1, 2005 to August 9, 2005 and the years ended December 31, 2004 and
2003. These consolidated financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
consolidated financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Company's internal control
over financial reporting. Accordingly, we express no such opinion. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of Palm Coast Data
Holdings L.L.C. and its subsidiary as of August 9, 2005 and December 31, 2004,
and the results of their operations and their cash flows for the period from
January 1, 2005 to August 9, 2005 and the years ended December 31, 2004 and
2003, in conformity with accounting principles generally accepted in the United
States of America.

As discussed in note 1, the members' units of Palm Coast Data Holdings L.L.C.
were acquired by Palm Coast Data Holdco, Inc. on August 9, 2005.

/s/ KPMG LLP

St. Louis, Missouri
November 15, 2006

PALM COAST DATA HOLDINGS L.L.C.
Consolidated Balance Sheets
August 9, 2005 and December 31, 2004
(In thousands)
August 9, December 31,
Assets 2005 2004
-------------------------

Current assets:
Cash ..................................................................... $ 4,299 $ 4,766
Accounts receivable, net of allowance of $43 and $59,
respectively ........................................................... 8,727 8,002
Postage deposits ......................................................... 298 541
Prepaid expenses and other assets ........................................ 1,019 813
-----------------------
Total current assets ............................................. 14,343 14,122
Property, plant, and equipment, net ........................................ 14,428 15,355
Goodwill ................................................................... 2,349 2,349
Deferred financing costs ................................................... 78 134
Other ...................................................................... 439 415
-----------------------
Total assets ..................................................... $ 31,637 $ 32,375
=======================
Liabilities and Members' Equity

Current liabilities:
Accounts payable ......................................................... $ 1,154 $ 1,603
Accrued expenses ......................................................... 3,133 3,009
Advances from customers .................................................. 3,109 3,153
Current portion of long-term debt ........................................ 2,360 2,360
-----------------------
Total current liabilities ........................................ 9,756 10,125
Long-term debt ............................................................. 1,370 2,550
Deferred compensation ...................................................... 3,339 2,075
-----------------------
Total liabilities ................................................ 14,465 14,750
-----------------------
Members' equity ............................................................ 13,082 13,082
Accumulated other comprehensive loss ....................................... -- (12)
Retained earnings .......................................................... 4,090 4,555
-----------------------
Total members' equity ............................................ 17,172 17,625
-----------------------
Total liabilities and members' equity ............................ $ 31,637 $ 32,375
=======================
See accompanying notes to consolidated financial statements.

PALM COAST DATA HOLDINGS L.L.C.
Consolidated Statements of Income and Comprehensive Income
Period from January 1, 2005 to August 9, 2005
and the years ended December 31, 2004 and 2003
(In thousands)

2005 2004 2003
---------------------------------
Revenue ........................... $ 29,498 $ 48,055 $ 43,181
Cost of revenue ................... 19,185 32,057 29,623
---------------------------------
Gross margin ............ 10,313 15,998 13,558
---------------------------------
Operating expenses:
Marketing and client services ... 2,814 4,623 4,256
General and administrative ...... 5,185 8,394 6,799
---------------------------------
Total operating expenses 7,999 13,017 11,055
---------------------------------
Operating income ....... 2,314 2,981 2,503
Interest expense, net ............. 208 608 779
---------------------------------
Net income ............. 2,106 2,373 1,724
Other comprehensive income ........ 12 6 11
---------------------------------
Comprehensive income ... $ 2,118 $ 2,379 $ 1,735
=================================

See accompanying notes to consolidated financial statements.

PALM COAST DATA HOLDINGS L.L.C.
Consolidated Statements of Members' Equity
Period from January 1, 2005 to August 9, 2005
and the years ended December 31, 2004 and 2003
(In thousands)

Accumulated
Capital other Total
Members' contribution comprehensive Retained members'
equity receivable (loss) income earnings equity
------------------------------------------------------------------

Balance, December 31, 2002 ........... $ 13,257 $ (371) $ (29) $ 458 $ 13,315
Capital contributions .............. 116 -- -- -- 116
Receivable for capital contributions (371) 371 -- -- --
Other comprehensive income ......... -- -- 11 -- 11
Net income ......................... -- -- -- 1,724 1,724
------------------------------------------------------------------
Balance, December 31, 2003 ........... 13,002 -- (18) 2,182 15,166
Capital contributions .............. 80 -- -- -- 80
Other comprehensive income ......... -- -- 6 -- 6
Net income ......................... -- -- -- 2,373 2,373
------------------------------------------------------------------
Balance, December 31, 2004 ........... 13,082 -- (12) 4,555 17,625
Distributions to members ........... -- -- -- (2,571) (2,571)
Other comprehensive income ......... -- -- 12 -- 12
Net income ......................... -- -- -- 2,106 2,106
------------------------------------------------------------------
Balance, August 9, 2005 .............. $ 13,082 $ -- $ -- $ 4,090 $ 17,172
==================================================================

See accompanying notes to consolidated financial statements.

PALM COAST DATA HOLDINGS L.L.C.
Consolidated Statements of Cash Flows
Period from January 1, 2005 to August 9, 2005
and the years ended December 31, 2004 and 2003
(In thousands)

2005 2004 2003
-----------------------------------

Net income .................................... $ 2,106 $ 2,373 $ 1,724
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation ................................ 1,383 2,212 2,097
Amortization of deferred financing costs .... 68 201 204
Loss on disposal of property and equipment .. 36 184 74
Noncash compensation expense ................ 1,264 1,890 --
Changes in operating assets and liabilities:
Accounts receivable ....................... (725) 646 (1,053)
Postage deposits .......................... 243 (94) 232
Prepaid expenses and other assets ......... (206) 54 232
Other long-term assets .................... (24) (50) 112
Accounts payable .......................... (449) 180 40
Accrued expenses .......................... 124 (57) 627
Advances from customers ................... (44) (108) 335
-----------------------------------
Net cash provided by
operating activities ................ 3,776 7,431 4,624
-----------------------------------
Investing activities:
Purchase of property, plant, and equipment .. (492) (796) (1,114)
-----------------------------------
Net cash used in investing activities (492) (796) (1,114)
-----------------------------------
Financing activities:
Repayment of long-term debt ................. (1,180) (4,590) (1,750)
Capital contributions ....................... -- 80 116
Distributions to members .................... (2,571) -- --
-----------------------------------
Net cash used in financing activities (3,751) (4,510) (1,634)
-----------------------------------
Net increase (decrease) in cash ..... (467) 2,125 1,876
Cash, beginning of year ....................... 4,766 2,641 765
-----------------------------------
Cash, end of year ............................. $ 4,299 $ 4,766 $ 2,641
===================================
Supplemental cash flow information:
Interest paid ............................... $ 159 $ 380 $ 760

See accompanying notes to consolidated financial statements.

PALM COAST DATA HOLDINGS L.L.C.
Notes to Consolidated Financial Statements

For the Period from January 1, 2005 to August 9, 2005
and the Years Ended December 31, 2004 and 2003

(In thousands, except membership unit amounts and price)

(1) Background

Palm Coast Data Holdings L.L.C. is a limited liability company with a single
operating company, Palm Coast Data LLC (collectively, the Company). The Company
provides magazine publishers and membership organizations with customer
management and fulfillment services, including front-end processing, account
management, direct mail services, letter shop services, print management,
reporting, and online communications. The members' units of Palm Coast Data
Holdings L.L.C. were acquired by Palm Coast Data Holdco, Inc. on August 9, 2005
(the Acquisition).

(2) Summary of Significant Accounting Policies

(a) Basis of Presentation and Consolidation

(b) Cash and Cash Equivalents

Cash and cash equivalents include deposits in banks and short-term
investments with original maturities, when acquired, of 90 days or
less. The Company had no cash equivalents at August 9, 2005 and
December 31, 2004.

Postage deposits consist of prepaid postage and are carried at cost.

(d) Property, Plant, and Equipment

Property, plant, and equipment are recorded at cost less accumulated
depreciation. Depreciation is computed using the straight-line method
over the estimated useful lives of the related assets, ranging from 4
to 40 years. Depreciation expense for the period from January 1, 2005
to August 9, 2005 and the years ended December 31, 2004 and 2003 was
$1,383, $2,212 and $2,097, respectively.

The Company evaluates the recoverability of its carrying value of
property and equipment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable.

(e) Goodwill

Goodwill represents the excess of the cost over the fair value of net
tangible assets and identifiable intangible assets acquired. Goodwill
is tested for impairment at least annually using a two-step process
that begins with an estimation of the fair value of a reporting unit.
The first step is a screen for potential impairment and the second
step measures the amount of impairment, if any.

In connection with the Acquisition, all long-term debt agreements were
paid in full and deferred compensation became fully vested.

(f) Deferred Financing Costs

Deferred financing costs are amortized over the life of the related
long-term debt. Amortization is computed using the effective interest
method over the 60-month life of the loan, ending March 31, 2007.
Amortization expense was $56, $189 and $189 for the period from
January 1, 2005 to August 9, 2005 and the years ended December 31,
2004 and 2003, respectively.

(g) Pervasiveness of Estimates

The preparation of consolidated financial statements in conformity
with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the consolidated balance sheets. Although
management believes these estimates and assumptions are adequate,
actual results may differ from the estimates and assumptions used.
Material estimates include those for collectibility of accounts
receivable and certain accrued expenses.

(h) Revenue and Expense Recognition

Revenue is recognized when the service has been performed. All
expenses are recognized when incurred.

(i) Equity Appreciation Rights Plan

The Company applies the intrinsic-value-based method of accounting
prescribed by Accounting Principles Board (APB) Opinion No. 25,
Accounting for Stock Issued to Employees, and related interpretations
including Financial Accounting Standards Board (FASB) Interpretation
No. 44, Accounting for Certain Transactions involving Stock
Compensation, an interpretation of APB Opinion No. 25, and FASB
Interpretation No. 28, Accounting for Stock Appreciation Rights and
Other Variable Stock Option or Award Plans, to account for its equity
appreciation rights. When equity appreciation rights (EAR) are granted
and at each measurement date, the Company measures compensation as the
amount by which the fair value of the member units of the Company
covered by the grant exceeds the EAR price. Changes, either increases
or decreases (limited to the EAR price at grant date), in the fair
value of those EAR's between the date of grant and the measurement
date result in a change in the measure of compensation for the EAR.
There were 666 and 377 vested appreciation rights at August 9, 2005
and December 31, 2004, respectively. The fair value of the EAR's at
August 9, 2005 and December 31, 2004 was $4,544 and $3,520 per unit,
respectively, and the Company has recorded compensation expense in the
consolidated statements of income and comprehensive income for the
period ended August 9, 2005 and the years ended December 31, 2004 and
2003 of $1,074, $1,425 and $0, respectively. The liability related to
the EAR plan is $2,499 and $1,425 at August 9, 2005 and December 31,
2004, respectively, and is included in the accompanying consolidated
balance sheets in the caption "deferred compensation."

(j) Income Taxes

The Company is a limited liability corporation (LLC). Under provisions
of the Internal Revenue Code, an LLC is generally not subject to
Federal income tax because its taxable income or loss accrues to its
members. Accordingly, no provision for income taxes has been recorded
in the accompanying consolidated financial statements.

(3) Property, Plant, and Equipment

Property, plant, and equipment consists of the following:

August 9, December 31,
2005 2004
------------------------
Land ........................ $ 938 $ 938
Building and improvements ... 7,661 7,671
Furniture and fixtures ...... 1,520 1,487
Equipment ................... 5,292 5,062
Computer software ........... 5,872 5,737
-----------------------
21,283 20,895
Less accumulated depreciation (6,855) (5,540)
-----------------------
$ 14,428 $ 15,355
=======================

(4) Accrued Expenses

Accrued expenses consist of the following:

August 9, December 31,
2005 2004
------------------------

Payroll and related expenses. $ 2,036 $ 1,865
Insurance ................... 390 420
Interest .................... 9 28
Other ....................... 698 696
----------------------
$ 3,133 $ 3,009
======================

(5) Long-term Debt

The Company has a term loan with $3,730 and $4,910 outstanding at August 9, 2005
and December 31, 2004, respectively. The loan bears interest at LIBOR plus 3.25%
with respect to the portion of the term loan that is Eurodollar loans and at
prime plus 2.00% with respect to term loans that are alternate base rate loans.
On August 9, 2005 and December 31, 2004, the applicable interest rates on the
term loan were 6.74% and 5.81%, respectively. The term loan is collateralized by
all of the Company's assets. The agreement also requires the Company to maintain
certain financial ratios. The term loan is payable in 20 consecutive quarterly
installments beginning June 30, 2002. The aggregate maturities for the term loan
are as follows:

Twelve months ended August 9, 2006 ........... $ 2,360
Twelve months ended August 9, 2007 ........... 1,370
--------
$ 3,730
========

Mandatory term loan prepayments may be required after each fiscal year-end and
are calculated based on excess annual cash C OMITTED] flows, as defined in the
credit agreement. For fiscal year 2004 and for the period ended August 9, 2005,
no additional prepayments were required due to voluntary prepayments made by the
Company during the year. Related to fiscal year 2003, a mandatory prepayment of
$500 was made in February 2004.

The Company also has a revolving credit agreement (the Revolver) with an
aggregate principal amount not to exceed $2,000 with a maturity date of March
31, 2007. The Revolver bears interest at LIBOR plus 3.00% with respect to the
portion of the Revolver that is Eurodollar loans and prime plus 1.75% with
respect to the portion of the Revolver that is alternate base rate loans. As of
August 9, 2005 and December 31, 2004, no borrowings were outstanding on the
Revolver.

(6) Commitments

Leases

The Company leases office space and certain equipment under various
noncancelable operating leases. The following is a schedule of future minimum
lease payments under such noncancelable leases with terms in excess of one year:

Twelve months ended August 9, 2006 $ 732
Twelve months ended August 9, 2007 614
Twelve months ended August 9, 2008 460
Twelve months ended August 9, 2009 372
Twelve months ended August 9, 2010 274
Thereafter ....................... 1,521
--------
$ 3,973
========

Operating lease expense for the period from January 1, 2005 to August 9, 2005
and the years ended December 31, 2004 and 2003 was $994, $1,824 and $1,834,
respectively.

(7) Employee Benefits

(a) Employee Benefit Plan

All regular employees are eligible to participate in a 401(k)
retirement savings plan and trust on the first day of the month
following six months of employment. Employees may defer 1% to 20% of
pretax wages through payroll deductions to the allowed federal maximum
during each calendar year. The Company currently matches 50% of the
first 6% of eligible compensation. Employees participating in the plan
prior to May 1, 2002 are 100% vested. Employer contributions for new
employees participating in the plan effective May 1, 2002 are 20%,
50%, 75%, and 100% vested after two, three, four, and five years of
service, respectively. The Company's matching contribution for the
period from January 1, 2005 to August 9, 2005 and the years ended
December 31, 2004 and 2003 was $217, $356 and $330, respectively.

(b) Phantom Unit Plan

The purpose of the Phantom Unit Plan is to provide an incentive for
key employees that links the value of their deferred compensation
accounts to an increase in the value of the member units of the
Company and to aid the Company in retaining management personnel who
will largely be responsible for such growth in the Company's value. A
participant shall always be 100% vested in his/her account. The
Phantom Unit Plan is an unfunded, unsecured obligation on the part of
the Company.

The Company measures compensation as the amount by which the fair
value of the member units of the Company exceeds the Phantom Unit Plan
grant price of $1,000 per unit. Changes, either increases or
decreases, in the fair value of those member units between the date of
grant and the measurement date result in a change in the measure of
compensation for the phantom units. There were 185 vested Phantom
Units at both August 9, 2005 and December 31, 2004. The fair value of
the member units at August 9, 2005 and December 31, 2004 was $4,544
and $3,520, respectively, and the Company has recorded compensation
expense in the consolidated statements of income and comprehensive
income for the period from January 1, 2005 to August 9, 2005 and the
years ended December 31, 2004 and 2003 of $190, $465 and $0,
respectively. The liability related to the Phantom Unit Plan is $840
and $650 at August 9, 2005 and December 31, 2004, respectively, and is
included in the accompanying consolidated balance sheets in the
caption "deferred compensation."

(8) Equity Appreciation Rights Plan

The Company has an EAR plan for key employees at the discretion of the Board.
Each EAR represents the right upon exercise to receive the excess of the value
of one member unit as of the date of exercise over the base price for such EAR
fixed by the Board on the grant date. The base price for each EAR includes an
increase of 7% per annum, accruing from the grant date and compounding on each
anniversary of the grant date. The exercise and base price are subject to
adjustment under the terms of the EAR plan by the Board. The EARs shall vest and
become exercisable at such time or times as the Board shall determine at or
subsequent to the grant date as specified in each individual's incentive
agreement. The following is a summary of activity with respect to equity
appreciation rights under the Company's 2002 Equity Appreciation Rights Plan.

Equity Range of Weighted
appreciation grant average
rights prices grant price
---------------------------------------------------

Outstanding at December 31, 2002 1,144 $ 1,000 1,000
Granted 250 1,000 1,000
Cancelled (188) 1,000 1,000
----------
Outstanding at December 31, 2003 1,206 1,000 1,000
Granted -- -- --
Cancelled (13) 1,000 1,000
----------
Outstanding at December 31, 2004 1,193 1,000 1,000
Granted -- -- --
Cancelled -- -- --
----------
Outstanding at August 9, 2005 1,193 1,000 1,000
==========

The following table summarizes information about the EAR's outstanding at August
9, 2005:

Outstanding Exercisable
------------------------------------------ ------------------------
Adjusted Equity Remaining Equity EAR
exercise appreciation contractual Base appreciation fair
prices rights life price rights price
- ---------------------------------------------------------------------------------------------

$ 1,254 943 6.6 $ 1,000 566 $ 4,544
1,186 200 7.5 1,000 80 4,544
1,179 50 7.6 1,000 20 4,544
------------- ------------
Total 1,193 666
============= ============

(9) Concentration of Credit Risk

The Company's financial instruments that are exposed to concentrations of credit
risk consist primarily of cash and trade accounts receivable. The Company places
its cash with what it believes to be high credit quality institutions. At times
such cash balances may be in excess of the FDIC insurance limit. The Company
routinely assesses the financial strength of its customers and, as a
consequence, believes that its trade accounts receivable credit risk exposure is
limited. The Company's four largest customers comprised 47% and 40% of the
Company's accounts receivable balance at August 9, 2005 and December 31, 2004,
respectively, and 55%, 49% and 47% of the Company's revenue for the period from
January 1, 2005 to August 9, 2005 and the years ended December 31, 2004 and
2003, respectively.