---------- Forwarded message ----------
Date: Wed, 24 Jan 1996 15:42:54 -0500
From: Virginia Roy - Branch <virginia@FAXON.CA>
Subject: 1997 Subscription Price Projections for Canadian Libraries

Preliminary Projections -- February 1996

Based on the latest information on publisher price increases, Canadian and
world economic conditions, and the current value of the Canadian dollar,
Faxon Canada is projecting the following changes in journal prices for
1997 subscriptions. Please note that these are preliminary projections
based on current conditions and will be revised as the year progresses.
Faxon Canada is the only serials agency that makes price projections
solely based on the unique factors that affect Canadian libraries.

The increase detailed in each category below represents the net effect
that each component is expected to have on final subscription price
increases.

               General    Page/Volume  Cancellations  Currency  Total
               Inflation  Changes                     Changes
_________________________________________________________________________
Canadian         1.7%       3.0%          4.5%         n/a        9.2%
Material
_________________________________________________________________________
U.S. Material    2.8%       3.0%          4.5%         2.3%      12.6%
_________________________________________________________________________
European         2.3%       3.5%          4.75%        0.00%     10.55%
Material
_________________________________________________________________________

Faxon Canada estimates that price increases for 1997 will be between 9.2%
- 12.6% depending on the mix of each library collection. To determine your
overall estimated increase multiply the percentage of your collection
originating in each geographic area by the total percentage increase for
that area and add the numbers together.

See example, illustrated below.

Based on a Sample Collection:

                  % of Budget      x    Increase          Total
Canadian             20%                    9.2%           1.84%
US                   60%                   12.6%           7.56%
European             20%                   10.55%          2.11%

Total Estimated Increase for this collection              11.51%

Key Assumptions:

General Inflation: The role of general inflation, while slightly
diminished in Canada, over other years, will continue to be a relatively
significant factor in the US and Europe.

Page/Volume Changes: Increased manuscript submissions and pressures to
publish will continue to increase publisher costs, despite stringent
publication criteria.

Cancellations:  The continued shift from paper based subscriptions to
other technologies will be a major factor in publishers' price increases
for 1997.

Currency Changes:  One of this year's most significant factors is the
increasing strength of the US dollar. A strong US dollar, in relation to
Canadian currency will produce a higher than average price inflation in
libraries with a large component of US based materials.

Postal Subsidies:  On a positive note, Faxon Canada has learned that
postal subsidies to Canadian publishers, which had been threatened, have
been retained. A deal pending with Canada Post will ensure that subsidies
will be maintained through 1999.

Summary: Expectations of a higher US dollar and higher than normal
cancellation rates are the two most significant factors in Faxon Canada's
projected increase of between 9.2% - 12.6% for 1997 subscriptions.

For a hardcopy of this report contact Faxon Canada's Marketing Department
at 1-800-263-2966 or (519) 472-1005

###############################################################
#                                                             #
#   Virginia Roy                                              #
#   Faxon Canada                Phone:    (416) 440-8900      #
#   Marketing Manager             Fax:    (416) 440-0478      #
#   79 Brookdale Avenue         Email:    virginia@faxon.ca   #
#   Toronto, Ontario M5N 1P2                                  #
#                                                             #
###############################################################