Kappa Books Publishers Announces Acquisition of Business and Intellectual Property of Modern Publishing

(Press Release) FORT WASHINGTON, Pa., Jan. 27, 2012—Kappa Books Publishers, LLC ("Kappa Books") announced today it has reached an agreement to acquire the business, intellectual property and other assets of Modern Publishing, a division of Unisystems, Inc. ("Modern"), a New York-based mass market publisher of children's coloring and activity books. The transaction closed on January 26, 2012. Kappa Books plans to retain the Modern name and will offer the Modern line through a newly formed division of Kappa Books.

"We are very excited about adding the reputable Modern name to the ever-expanding line of Kappa products," noted Despina McNulty, President of Kappa Books Publishers, LLC. "Both family-owned companies, whose lines complement each other, have been serving the retail market with high-quality children's coloring and activity books, story books, puzzle and reference books for many years."

Andrew Steinberg, President of Modern, will join Kappa Books as President of its new Modern Publishing Division and believes "the combination of our respective product lines and licenses will create a powerful offering for our customers." "Enhancing our line to include Modern's impressive list of licensing partnerships," added Despina McNulty, "is a significant and noteworthy commitment to the market and our customers." Lawrence Steinberg, founder of Modern, remarked, "The Kappa organization has a history that is as long as our own 40-plus years and in searching for the right home for Modern, we're comfortable that the name and company we created will continue to prosper as part of the Kappa family of companies."

About Kappa Books

Headquartered in Fort Washington, Pennsylvania, Kappa Books is a promotional book publisher selling direct to major retailers and specializing in the children's book, adult puzzle book and reference book fields. Kappa Books offers a wide variety of formats and designs in proprietary generic product as well as licensed items created in conjunction with our partners at Sesame Street, Woman's Day, Chicken Soup for the Soul and TV Guide and now with Lisa Frank, Fisher Price, Hot Wheels, Zhu Zhu Pets, Hello Kitty, Smurfs, Rio, Chuggington, Lalaloopsy and Planet Earth.