MIRA INFORM REPORT

Report Date :

05.11.2007

IDENTIFICATION DETAILS

Name :	LERNER PUBLISHING GROUP
Registered Office :	1251 Washington Ave N, Minneapolis, Mn 55401-1036
Country :	United States
Date of Incorporation :	02/05/1960
Legal Form :	Institutions
Line of Business :	Book Publishing Management Consulting Services

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

Company Information

LERNER PUBLISHING GROUP
1251 WASHINGTON AVE N
MINNEAPOLIS, MN 55401-1036
(612) 332-3344

Business Identification Number:

759503509

File Established:

PRIOR TO 01/1977

Date of Incorporation:

02/05/1960

SIC code:

BOOK PUBLISHING - 2731

Executive Summary

  Intelliscore for LERNER PUBLISHING GROUP

61.52

0-32.47

32.48-58.63

58.64-70.19

70.2-77.71

77.72-100

0

100

High risk

Low risk

MEDIUM RISK
45% of businesses indicate a higher risk of becoming seriously delinquent than this business

Key score factors:

	NUMBER OF RECENT COLLECTION ACCOUNTS
	NUMBER OF DEROGATORY PUBLIC RECORD ACCOUNTS
	NUMBER OF RECENTLY ACTIVE ACCOUNTS
	NUMBER OF GOOD ACCOUNTS

  Current DBT range compared to all industries*

0 DBT
($2,700 Balance)

0-15

16-50

51+

80%

11%

9%

% of US businesses falling within DBT range

DBT Norms:
All industries: 6 DBT        Same industry: 4 DBT

Legal Filings and Collections

Bankruptcy filings:

0

Tax lien filings:

0

Judgment filings:

0

Total collections: details (PLACED 08/07)

1

Sum of legal filings:

$0

UCC filings: details (FILED 07/05-05/07)

3

Cautionary UCC filings present?

Yes**

Trade Information

Monthly average DBT:

1

Highest DBT previous 6 months:

3

Highest DBT previous 5 quarters:

3

Total continuous trades:

9

Current continuous trade balance:

$2,700

Trade balance of all trades (17):

$5,200

Average balance previous 5 quarters:

$5,360

Highest credit amount extended: details

$25,000

6 month balance range:

$2,000 - $6,300

* Days Beyond Terms (DBT) is a dollar weighted calculation of the average number of days that payment was made beyond the invoice due date based on trades on file that have been updated in the previous 3 months.

** Cautionary UCC Filings include one or more of the following collateral: Accounts, Accounts Receivable, Contracts, Hereafter Acquired Inventory, Leases, Notes Receivable or Proceeds.

  7 month DBT trends

90+

60

30

1

0

2

3

0

0

0

0

Apr07

May07

Jun07

Jul07

Aug07

Sep07

Current

  Quarterly DBT trends (previous 5 quarters)

90+

60

30

0

0

2

1

1

0

3Q06

4Q06

1Q07

2Q07

3Q07

Performance Analysis

Predicted DBT for 01/02/2008: 1 DBT

Payment Trend Indication:
Are Improving Toward Term Requirements

Industry payment comparison:
Has paid sooner than 50% of similar firms

Most Frequent Industry Purchasing Terms:
NET 30, 0000000, and CONTRCT

Legal Filings and Collections

Collections
Date Placed	Status	Original Balance	Outstanding Balance	Date Closed	Agency	Agency Phone
08/2007	Paid in Full	$56	$0	08/2007	RECEIVABLE MANAGEMENT SERVICES	(484) 242-4000

Trade Payment Information

Trade Payment Experiences (Trade Lines With an (*) after date are newly reported)						Account Status Days Beyond Terms
Business Category	Date Reported	Last Sale	Payment Terms	Recent High Credit	Balance	Cur	1-30	31-60	61-90	91+	Comments
+AIR TRANS	09/2007			$8,000	$1,800	100%					CUST 21 YR
BUS SERVCS	08/2007	07/2007	NET 30		$0
BUS SERVCS	10/2007		VARIED	$200	$0
COMPUTERS	10/2007	12/2005	CREDIT	$25,000	$0
+FREIGHT	09/2007	11/2005	VARIED	$300	$300	100%
FRGHT FWRD	09/2007	06/2007	NET 30	$2,200	$0
PACKAGING	10/2007		NET 30	$2,000	$0						CUST 7 YR
TRUCK DLR	10/2007		CONTRCT	$200	$0
+WAREHOUSE	09/2007	09/2007	VARIED	$1,200	$600	100%					CUST 4 YR

Trade Payment Totals

Trade Payment Experiences				Account Status Days Beyond Terms
Type	Lines Reported	Recent High Credit	Balance	Cur	1-30	31-60	61-90	91+	Comments
Continuously Reported	9	$39,100	$2,700	100%					DBT: 0
Newly Reported	0								DBT:
Trade Lines Totals	9	$39,100	$2,700	100%					DBT: 0

Additional Payment Experiences

Trade Payment Experiences (Trade Lines With an (*) after date are newly reported)						Account Status Days Beyond Terms
Business Category	Date Reported	Last Sale	Payment Terms	Recent High Credit	Balance	Cur	1-30	31-60	61-90	91+	Comments
ADMIN	05/2005		CREDIT		$0						CUST 37 YR
COMPUTERS	10/2006			$12,600	$0
FREIGHT	06/2007		VARIED	$2,400	$0
+LEASING	09/2007		CONTRCT	$300	$100	100%
+LEASING	06/2007		CONTRCT	$24,300	$2,400	100%
OFFC SUPPL	06/2007	05/2007	NET	$1,800	$0						CUST 11 YR
TELECOM	07/2005	07/2005	NET 30		$0						CUST 3 YR
TRANSPORTN	11/2004		VARIED		$0

Monthly Payment Trends

Payment Trends Analysis
BOOK PUBLISHING INDUSTRY SIC: 2731

Account Status
Days Beyond Terms

Date Reported

Industry

Cur

DBT

Business
DBT

Balance

Cur

1-30

31-60

61-90

91+

CURRENT

N/A

N/A

0

$2,700

100%

SEP07

85%

4

0

$3,400

100%

AUG07

85%

5

0

$2,000

100%

JUL07

85%

5

3

$4,000

82%

18%

JUN07

85%

5

2

$6,300

87%

13%

MAY07

84%

5

0

$3,100

98%

2%

APR07

84%

5

1

$5,300

97%

3%

Quarterly Payment Trends

Payment History - Quarterly Averages				Account Status Days Beyond Terms
Quarter	Months	DBT	Balance	Cur	1-30	31-60	61-90	91+
Q3 - 07	JUL-SEP	1	$3,000	92%	8%
Q2 - 07	APR-JUN	1	$4,900	93%	6%	1%
Q1 - 07	JAN-MAR	2	$6,700	86%	14%
Q4 - 06	OCT-DEC	0	$7,000	100%
Q3 - 06	JUL-SEP	0	$5,200	99%	1%

UCC Profile

The UCC Filings are summarized and listed below.

UCC Summary		Filings
Date Range	Year	Cautionary UCCs^**	Total Filed	Released/ Term'd	Cont	Amended/ Assigned
JUL - PRESENT	2007
JAN - JUN	2007	1	1
JUL - DEC	2006
JAN - JUN	2006	1	1
JUL - DEC	2005	1	1
PRIOR TO JUL	2005
Total		3	3

** Cautionary UCC Filings include one or more of the following collateral: Accounts, Accounts Receivable, Contracts, Hereafter Acquired Inventory, Leases, Notes Receivable or Proceeds.

  UCC Filings

UCC FILED Date: 05/15/2007

Filing Number: 200716775500

Jurisdiction: SEC OF STATE MINNESO

Secured Party: US BANK NATIONAL ASSOCIATION WI OSHKOSH 54901 400 CITY CENTE

Collateral: HEREAFTER AQUIRED PROP, UNDEFINED

UCC FILED Date: 03/30/2006

Filing Number: 200611236504

Jurisdiction: SEC OF STATE MINNESO

Secured Party: YALE MATERIALS HANDLING - MINNESOTA, INC MN HAM LAKE 55304 1

Collateral: EQUIP, HEREAFTER AQUIRED PROP, UNDEFINED

UCC FILED Date: 07/11/2005

Filing Number: 200517199664

Jurisdiction: SEC OF STATE MINNESO

Secured Party: YALE MATERIALS HANDLING - MINNESOTA INC. MN HAM LAKE 55304 1

Collateral: EQUIP, HEREAFTER AQUIRED PROP, UNDEFINED

Company Background Information

  Corporate Registration

THE FOLLOWING INFORMATION WAS PROVIDED BY THE STATE OF MINNESOTA

State of Origin: MN

Date of Incorporation: 02/05/1960

Business Type: Institutions - Profit

Charter Number: X-142DC

  Additional Company Background Information

Key Personnel

Principal(s):	HARRY LERNER, CEO
	GARY HANSEN, GENERAL MA
	DAVID WEXLER, VICE PRESI

Operating Information

Business Type: Institutions

Primary SIC Code: BOOK PUBLISHING - 2731

Secondary SIC Code: MANAGEMENT CONSULTING SERVICES - 8742

Number of Employees: 30

Sales: $60,000

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions