First-Year Report

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

o Our two-year-old ENVIRONMENTAL PAPER INITIATIVE is most significant of all initia-

tives because the greenhouse gas emissions associated with our domestic paper usage
PAPER alone are more than seven times those from all of our other business activities combined.
In May 2006, Random House, Inc. became the first major U.S. trade book publisher to adopt an
environmental paper policy. We established multiyear incremental targets for recycled fiber content
use, beginning with 10 percent in 2007 and increasing to 30 percent by 2010. We also set standards
for the virgin fiber used in our books.

During 2007, 16 percent of the fiber in our book paper came from recycled sources, which exceeded
our 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 emissions

ENERGYh
companywide from energy consumption. We are doing it in two ways:
by reducing the amount of energy we use and by sourcing clean
CONSUMPTION renewable energy.

AT 1745 BROADWAY:
• We’ve changed the thermostat so the average temperature in the New York office is 1.5° F
warmer in the summer and that much cooler in the winter. This enables us to achieve an
optimal balance between energy savings and personal comfort.
• Our IT group has implemented a software solution that powers down all Random House PCs
when they are not in use.
• We’ve installed energy-efficient lighting, replacing 4,000 60-watt light bulbs with 25-watt
models that use considerably less energy.
• And we’ve changed the source of our energy to a provider that derives 15 percent of its
electricity 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 by
494.5 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 of
223,650 saved trees.
• We have also begun to install motion detectors in both centers to ensure that storage areas
are only lit when someone is working in the vicinity.

RECYCL ING L We currently sort 100 percent of our office trash at our New York and
Shelton, Connecticut facilities. 83 percent of that trash is recycled. At these
locations, we also purchase office paper which is made of 30 percent
recycled material.

Last year we installed TECHNOTRASH BINS on each floor at 1745 Broadway

for the disposal of “retired” and expired batteries and electrical and digital
devices and equipment. To date, we have collected more than 680 lbs of
waste through these bins.

At our Crawfordsville warehouse, we recycle 85 percent of the books and

corrugated products that we scrap. There and in Westminster, 50 percent
of the material used in our shipping cartons is recycled.

In Westminster, we’ve also started a program to recycle office and warehouse paper.
 As a result of the programs underway at 1745 Broadway, as well
RANDOM
HOUSE 8 as our longstanding efforts on behalf of energy efficiency, our
headquarters was certified a Leadership in Energy and
ECO-RECOGNITION Environmental Design (LEED) building by the United States
Green Building Council. It is only the second existing building in New York City to be so designated.
To see a full list of steps taken to qualify for this designation, please visit the Green Committee
section of our corporate website. (http://ourhouse.us.randomhouse.com/green_committee/index.html)

Random House is also the first book publisher to join the EPA
Climate Leaders program. Climate Leaders is an Environmental
®
Protection Agency industry-government partnership that works
with companies to develop comprehensive climate change
strategies. Partner companies commit to reducing their impact on the global environment by
completing a corporate-wide inventory of their greenhouse gas emissions based on a quality
management system, setting aggressive reduction goals, and annually reporting their progress to
EPA. More information about the program and participating corporations can be found at
http://www.epa.gov/stateply/.

OTHER NOTABLE GREEN ACCOMPLISHMENTS:

• Random House has completed carbon audits of our business for 2006 and 2007 and will be
setting a greenhouse gas emissions reduction goal in 2008. The report on our carbon footprint
can be found on our website.

• We added the energy-efficient hybrid Toyota Prius to the leased autofleet used by our sales force.
• Human Resources has gone to paperless pay stub distribution for employees with direct deposit,
thereby saving paper and postage.

FUTURE g While we have accomplished much in our initial year,

GREEN COMMITTEE we are only at the beginning of our environmental-
GOALS AND INITIATIVES awareness and energy-saving efforts.

AMONG OUR PRIORITIES FOR 2008:

• Replacing hard-copy sales materials (manuscripts, galleys, reading notebooks) with electronic
versions that can be downloaded to sales and editorial employees.
• Continuing the installation of motion detectors at our Westminster and Crawfordsville facilities
and completion of energy-efficient replacement lighting fixtures.
• Providing our publishers with a calculation tool to price and purchase carbon offsets during the
acquisition or production process.
• Implementing our newly established program to collect and distribute discarded bound galleys
and Advance Reading Copies (ARCs) for use by charitable organizations.
• Working with our food-service provider, Restaurant Associates, who has partnered with
Environmental Defense to undertake a Green Dining Initiative. The cafeteria at 1745 Broadway
has been selected as a benchmark site (along with the U.S. House of Representatives).
The project will take a comprehensive look at our dining facility on a range of environmental
issues, including the sourcing of food ingredients, energy, waste, recycling, packaging,
cleaning chemicals and other areas and make recommendations for our implementation.

With the posting of this report, the Random House, Inc. Green Committee completes its assignment
for its first year. We thank all of this year’s Committee’s members for their active participation:
Peter Olson, Chairman Ron Nawrot, Westminster
Andrew Van Der Laan, Deputy Chairman Christian Nwachukwu, Doubleday/Broadway
Stuart Applebaum, Communications Quinn O’Neill, Knopf Publishing Group
Avideh Bashirrad, Random House Publishing Group Angel Pastrana, Bantam Dell Publishing Group
Linda Kaplan, Crown Publishing Group Jeff Phipps, Information Technology
Paul Kozlowski, Random House Sales Marie Ruby, Finance
Jack Lienke, Random House Children’s Books Jocelyn Schmidt, Random House Sales
Mariella Molloy, Corporate Services Laura Schwartz, Crown Publishing Group
The members of the second-year Random House, Inc. Green Committee will be announced shortly.

In parting, we invite all our colleagues to join us in the ongoing effort to make Random House a
greener company. For those of you who would like to assess your own carbon footprint and monitor
your personal green progress we suggest you visit www.zerofootprint.net for both a simple as well
as a more detailed calculator.

Thank you for your support.