Exhibit 99.1

The Reader's Digest Association, Inc.
Media: William Adler, (914) 244-7585  william.adler@rd.com
Investor Relations: Richard Clark, (914) 244-5425  richard.clark@rd.com


                  THE READER'S DIGEST ASSOCIATION, INC. LOWERS
                   FINANCING COSTS BY RESTRUCTURING TERM LOANS

PLEASANTVILLE, NY, May 24, 2004 - The Reader's Digest Association, Inc. (NYSE:
RDA) today announced that it has reduced its financing costs through a series of
favorable changes to its senior secured term loan facilities.

Following its successful  offering of unsecured  Senior Notes in March 2004, RDA
paid down a major  portion of its term loans to $437 million as of March 31. The
reduction in total  outstanding  term loan debt enabled RDA to  restructure  its
remaining  term  loans at  significantly  more  favorable  rates than the former
arrangements. In the restructuring, the company has reintroduced bank term loans
and has repriced and  correspondingly  reduced its existing  institutional  term
loans.  Applicable  interest  rates  under the  amended  pricing  grid have been
reduced from the former LIBOR + 300 basis points to LIBOR + 200 basis points for
both the bank and  institutional  term loans. The amended term loan facility now
consists of roughly equal amounts of bank and institutional lenders.

"We are gratified by the lenders'  favorable  reaction to our  continued  strong
cash flows, reduced leverage and diversified capital structure," said Michael S.
Geltzeiler,  Senior Vice President and Chief Financial Officer.  "In addition to
advancing our goal to pay down term loan financing as quickly as possible, these
moves will result in several million  dollars in interest  savings over the next
few years."

The Reader's  Digest  Association,  Inc. (RDA) is a global  publisher and direct
marketer of products that inform,  enrich,  entertain and inspire  people of all
ages and cultures around the world.  Its revenues for the fiscal year ended June
30, 2003 were $2.5 billion.  Global  headquarters are located at  Pleasantville,
New York. The company's Web site is at www.rd.com.




This release may include "forward-looking  statements" within the meaning of the
Private  Securities  Litigation Reform Act of 1995.  Forward-looking  statements
inherently  involve  risks and  uncertainties  that could  cause  actual  future
results  and  occurrences  to  differ   materially   from  the   forward-looking
statements. The Reader's Digest Association,  Inc.'s filings with the Securities
and  Exchange  Commission,  including  its reports on Forms 10-K,  10-Q and 8-K,
contain a discussion of additional  factors that could affect future results and
occurrences.  Reader's  Digest does not undertake to update any  forward-looking
statements.