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Information Memorandum Borsenzulassungsprospekt (gemal3 0 44 BorsZulV) B E RT E LS MA N N media worldwide Bertelsmann AG (Gutersloh, Federal Republic of Germany) as Issuer and, in respect of Notes issued by Bertelsmann Capital Corporation N.V. or Bertelsmann U. S. Finance, Inc., as Guarantor Bertelsmann Capital Corporation N. V. (Amsterdam, The Netherlands) as Issuer Bertelsmann U. S. Finance, Inc. (Wilmington, Delaware,U. SA.) as Issuer Euro 3,000,000,000 Debt lssua nce Programme The notes (the "Notes") to be issued under the Euro 3,000,000,000 Debt Issuance Programme (the "Programme") are admitted for official quotation on the Frankfurt Stock Exchange and application has been made to list Notes issued under the Programme on the Luxembourg Stock Exchange. Notes issued under the Programme may also be listed on an alternative stock exchange or may not be listed at all. The payments of all amounts due in respect of Notes issued by Bertelsmann Capital Corporation N.V. and Bertelsmann U. S. Finance, Inc. will be unconditionally and irrevocably guaranteed by Bertels- mann AG. Arranger Deutsche Bank Dealers ABN AMRO Commerzbank Securities Credit Suisse First Boston Deutsche Bank Dresdner Kleinwort Wasserstein JPMorgan Merrill Lynch International Schroder Salomon Smith Barney UBS Warburg The date of this Information Memorandum (which for purposes of a listing of Notes on the Frankfurt Stock Exchange serves as "Borsenzulassungsprospekt") is 6 June 2002. The Information Memoran- dum is valid for one year from such date. Bertelsmann AG ("Bertelsmann" and together with all of its affiliated companies within the meaning of the German Stock Corporation Act (Aktiengeserz), the "Bertelsmann Group"), Bertelsmann Capital Corporation N.V. ("Bertelsmann N.V."), Bertelsmann U. S. Finance, Inc. ("Bertelsmann U.S.") (each an "Issuer" and together the "Issuers" Bertelsmann AG in its capacity as guarantor (the "Guarantor") and the financial institutions mentioned on page 199 jointly and severally accept responsibility pur- suant to paragraph 45 of the German Stock Exchange Act for the information contained in the Infor- mation Memorandum. To the best of the knowledge and belief of each Issuer and the Guarantor (each of which has taken all reasonable care to ensure that such is the case), the information contained in the Information Memorandum is in accordance with the facts and does not omit anything likely to affect the import of such information. The Information Memorandum should be read and construed with any amendment or supplement thereto and with any other documents incorporated by reference(') and, in relation to any Series (as defined herein) of Notes, should be read and construed together with the relevant Pricing Supple- ment(s) (as defined herein). Each Issuer and the Guarantor has confirmed to the dealers as set forth on the cover page (the "Deal- ers'') that the Information Memorandum is true and accurate in all material respects and is not mis- leading; that any opinions and intentions expressed by it therein are honestly held and based on rea- sonable assumptions; that there are no other facts with respect to each Issuer and the Guarantor, the omission of which would make the Information Memorandum as a whole or any statement therein or opinions or intentions expressed therein misleading in any material respect; and that all reasonable enquiries have been made to verify the foregoing. No representation or warranty is made or implied by the Dealers or any of their respective affiliates, and neither the Dealers or any of their respective affiliates make any representation or warranty or accept any responsibility, as to the accuracy or completeness of the information contained in this Information Memorandum. No person has been authorized by either of the Issuer or the Guarantor to give any information or to make any representation not contained in or not consistent with the Information Memorandum or any other document entered into in relation to the Programme or any information supplied by either Issuer or the Guarantor or such other information as in the public domain and, if given or made, such information or representation should not be relied upon as having been authorized by the Issuers, the Guarantor, the Dealers or any of them. Neither the delivery of the Information Memorandum nor any Pricing Supplement nor the offering, sale or delivery of any Note shall, in any circumstances, create any implication that the information contained in the Information Memorandum is true subsequent to the date upon which the Informa- tion Memorandum has been issued or most recently amended or supplemented or that there has been no adverse change in the financial situation of the Issuers since the date hereof or, as the case may be, the date upon which the Information Memorandum has been most recently amended or sup- plemented or the balance sheet date of the most recent financial statements which are deemed to be incorporated into the Information Memorandum by reference or that any other information supplied in connection with the Programme is correct at any time subsequent to the date on which it is sup- plied or, if different, the date indicated in the document containing the same. This document may only be communicated or caused to be communicated in circumstances in which section 21 (1) of the Financial Services and Markets Act 2000 ("FSMA") does not apply. The Notes have not been and will not be registered under the United States Securities Act of 1933, as amended, and will include Notes in bearer form that are subject to U.S. tax law requirements. Sub- ject to certain exceptions, Notes may not be offered, sold or delivered within the United States or to U. S. persons. See "General Information - Selling Restrictions'.' The distribution of the Information Memorandum and any Pricing Supplement and the offering, sale and delivery of the Notes in certain jurisdictions may be restricted by law. Persons into whose pos- (l) Incorporation by reference in this Information Memorandum applies - in accordance with its rules and regulations - to the listing on the Luxembourg Stock Exchange only. 2 session the Information Memorandum or any Pricing Supplement come are required by the Issuers and the Dealers to inform themselves about and to observe any such restrictions. For a description of certain restrictions on offers, sales and deliveries of Notes and on the distribution of the Information Memorandum or any Pricing Supplement and other offering material relating to the Notes, see "General Information - Selling Restrictions'.' Neither the Information Memorandum nor any Pricing Supplement may be used for the purpose of an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not author- ized or to any person to whom it is unlawful to make such an offer or solicitation. Neither the Information Memorandum nor any Pricing Supplement constitutes an offer or an invita- tion to subscribe for or purchase any Notes and should not be considered as a recommendation by the Issuers, the Guarantor, the Dealers or any of them that any recipient of the Information Memoran- dum or any Pricing Supplement should subscribe for or purchase any Notes. Each recipient of the Information Memorandum or any Pricing Supplement shall be taken to have made its own investiga- tion and appraisal of the condition (financial or otherwise) of the Issuers and the Guarantor. In connection with the issue of any Tranche (as defined herein) of Notes under the Programme, the Dealer (if any) who is specified in the relevant Pricing Supplement as the stabilising institution or any person acting for him may over-allot or effect transactions with a view to supporting the market price of the Notes of the Series of which such Tranche forms part and any associated securities at a level higher than that which might otherwise prevail for a limited period. However, there may be no obli- gation on the stabilising institution to do this. Such stabilising, if commenced, may be discontinued at any time, and must be brought to an end after a limited period. Such stabilising shall be in compli- ance with all applicable laws, regulations and rules. 3 TABLE OF CONTENTS Page SummaryoftheProgramme ......................................................... 5 Issue Procedures ................................................................... 11 Terms and Conditions of the Notes (German Language Version) ........................... 13 Terms and Conditions of the Notes (English Language Version) ........................... 46 Form of Guarantee (German Version) .................................................. 75 Form of Guarantee (Non-Binding English Translation) .................................... 78 Form of Pricing Supplement .......................................................... 81 Useof Proceeds .................................................................... 95 Description of Bertelsmann AG ....................................................... 96 RecentDevelopment ................................................................ 161 Description of Bertelsmann Capital Corporation N. V..................................... 162 Description of Bertelsmann U.S. Finance. Inc............................................ 172 Taxation ........................................................................... 186 1. Federal Republic of Germany .................................................... 186 2 . The Netherlands ..............................................................