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


           READER'S DIGEST ASSOCIATION PAYS DOWN $200 MILLION IN DEBT


           PLEASANTVILLE, NY, January 3, 2005 - The Reader's Digest Association,
Inc. (NYSE: RDA) today announced it paid down approximately $200 million in debt
in the Fiscal 2005 second quarter ended December 31, 2004. The company reduced
its debt using its second-quarter cash flows from operations and proceeds (net
of transaction costs) from $49 million received in December related to its
agreement to sell and partially lease back its corporate headquarters in
Westchester.

           The agreement between RDA and a venture of Greenfield Partners, LLC
and Summit Development, LLC, announced November 22, includes provisions for an
additional $10 million in cash payable to RDA in December 2006. RDA also expects
to benefit from annual cost savings of approximately $10 million related to
lower facility-related operating costs and interest savings from the sale
proceeds.

           "Free cash flow from operations, along with the closing of our
real-estate transaction, afforded us the opportunity to significantly reduce our
debt," said Michael S. Geltzeiler, Senior Vice President and Chief Financial
Officer. "Over the past three years, the company has aggressively reduced its
debt levels at an accelerated pace. Based on the current strong cash flows, we
expect our debt-to-EBITDA ratio to be below 2.5 times by year-end Fiscal 2005.
This would meet our target level for debt that we identified in 2002 when we
leveraged the balance sheet to acquire Reiman Publications and recapitalize the
company."

           Geltzeiler added: "The strong performance in operating cash flows
reflects the continued strength of our RD North America and RD International
segments, offset by continued weakness at the Consumer Business Services
segment."

           The Reader's Digest Association, Inc. is a global publisher and
direct marketer of products that inform, enrich, entertain and inspire people of
all ages and cultures around the world. The company had revenues of $2.4 billion
for the fiscal year ended June 30, 2004. The company's main Web site is
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.


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