First-Year Report

As we complete our first year, the RANDOM HOUSE, INC. GREEN COMMITTEEis proud toreport that our company is making substantial progress in assessing the environmental impactof our business—in collaboration with our Corporate Service, Publishing Operations and otherdivisions—in understanding what we are currently doing well and where we can improve.The committee is identifying and implementing meaningful companywide green initiativesand partnering with organizations that can help us achieve the goal of reducing our carbonfootprint. Our focus these past twelve months has been on paper, energy consumption at ourfacilities, and recycling.

Our two-year-old

ENVIRONMENTAL PAPER INITIATIVE

is most significant of all initia-tivesbecause the greenhouse gas emissions associated with our domestic paper usagealone are more than seven times those from all of our other business activities combined.

PAPER

In May 2006, Random House, Inc. became the first major U.S. trade book publisher to adopt anenvironmental paper policy. We established multiyear incremental targets for recycled fiber contentuse, beginning with 10 percent in 2007 and increasing to 30 percent by 2010. We also set standardsfor the virgin fiber used in our books.During 2007, 16 percent of the fiber in our book paper came from recycled sources, which exceededour 2008 goal of 15 percent.

Because of our move to recycled fiber, in 2007 we saved:

•309,058 trees worth of timber.•Enough purchased energy to power 1,476 homes for a year.•50 swimming pools full of waste water.•454 garbage truck loads of solid waste.

And prevented greenhouse gas emissions equivalent to those generated by 2,970 cars in a year.

Random House, Inc. is committed to minimizing our emissionscompanywide from energy consumption. We are doing it in two ways: by reducing the amount of energy we use and by sourcing cleanrenewable energy.

AT 1745 BROADWAY:

•

We’ve changed the thermostat

so the average temperature in the New York office is 1.5°Fwarmer in the summer and that much cooler in the winter. This enables us to achieve anoptimal balance between energy savings and personal comfort.

ENERGY

CONSUMPTION

•

Our IT group has implemented a software solution

that powers down all Random House PCswhen they are not in use.•

We’ve installed energy-efficient lighting,

replacing 4,000 60-watt light bulbs with 25-wattmodels that use considerably less energy.•

And we’ve changed the source of our energy

to a provider that derives 15 percent of itselectricity from wind-power.

Largely because of these initiatives,

the energy consumption at 1745 Broadway went down by 264,000 kilowatt hours

in the last six months of 2007 compared to 2006.Saving that electricity resulted in reducing carbon dioxide emissions into the atmosphere by494.5 metric tons!

AT OUR WESTMINSTER AND CRAWFORDSVILLE FACILITIES:

•

We have replaced 2,196 light fixtures

with models that use up to 52 percent less energy,resulting in nearly 3 million kilowatt hours saved annually—the equivalent of223,650 saved trees.•

We have also begun to install motion detectors

in both centers to ensure that storage areasare only lit when someone is working in the vicinity.

We currently sort 100 percent of our office trash

at our New York andShelton, Connecticut facilities. 83 percent of that trash is recycled. At theselocations, we also purchase office paper which is made of 30 percentrecycled material.Last year we installed

TECHNOTRASH BINS

on each floor at 1745 Broadwayfor the disposal of “retired” and expired batteries and electrical and digitaldevices and equipment. To date, we have collected more than 680 lbs ofwaste through these bins.At our Crawfordsville warehouse, we recycle 85 percent of the books andcorrugated products that we scrap. There and in Westminster, 50 percentof the material used in our shipping cartons is recycled.In Westminster, we’ve also started a program to recycle office and warehouse paper.

RECYCL

ING