PUBLICATIONS - Newsstand and Deliver

Francis R. Costello, president, Magazine Publishing Services, R.R. Donnelley & Sons: Our forecast for the year 2001 is optimistic, and we think it will be another solid year in the publishing industry. However, a number of publishers are not planning as many launches next year as in 2000. Advertisements have been the primary driver and are dependent on a strong economy. Next year's economy is expected to grow slowly and, with expected cost increases in postage and paper, ad rates will be raised to cover these costs.