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CONFERENCE CALL TRANSCRIPT



SORC - Q1 2007 SOURCE INTERLINK COMPANIES EARNINGS CONFERENCE CALL



EVENT DATE/TIME: JUN. 08. 2006 / 4:30PM ET





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                                                                FINAL TRANSCRIPT



JUN. 08. 2006 / 4:30PM ET, SORC - Q1 2007 SOURCE INTERLINK COMPANIES EARNINGS

CONFERENCE CALL



CORPORATE PARTICIPANTS



TODD ST. ONGE

Brainerd Communicators, Inc. - Investor Relations



LESLIE FLEGEL

Source Interlink Companies, Inc. - Chairman and CEO



MARK HUMPHREY

Source Interlink Companies, Inc. - SVP of Corporate Finance



CONFERENCE CALL PARTICIPANTS



ARNIE URSANER

CJS Securities - Analyst



RICHARD DAVIS

Needham & Company - Analyst



TIM ALLEN

Jefferies & Co. - Analyst



BARRY SINE

Oppenheimer & Co. - Analyst



EVAN STEEN

Eos - Analyst



ROBERT KIRKPATRICK

Cardinal Capital - Analyst



CHAD BENNETT

MJSK - Analyst



ANAN MAGMADAR

[Lamjack Capital] - Analyst



PRESENTATION



OPERATOR



Good afternoon, ladies and gentlemen. Welcome to the Source Interlink Companies'

fiscal 2007 first quarter earnings teleconference call. Copies of the earnings

release have been sent to you for your information and reference during this

call. If you do become disconnected during the teleconference, please hang up

and dial 800-231-5571 to be reconnected. (OPERATOR INSTRUCTIONS). The conference

is being recorded today, Thursday, June 8, 2006. At this time I would like to

turn the conference over to Mr. Todd St. Onge of Brainerd Communicators to read

the forward-looking statement.



TODD ST. ONGE - BRAINERD COMMUNICATORS, INC. - INVESTOR RELATIONS



Good afternoon. Thanks for joining us for the Source Interlink Companies'

quarterly conference call. Before we begin, we wanted to remind you that

management's remarks today will contain forward-looking statements within the

meaning of the Private Securities Litigation Reform Act of 1995, including

statements relating to, among other things, future business plans, strategies

and financial position, working capital needs, and opportunities for growth.

When used on this call, words of such as anticipate, may, will, believe, intend,

expect, and similar expressions are intended to identify forward-looking

statements. Because such forward-looking statements involve certain risks and

uncertainties, actual results and timing of events may differ on a material

basis from those discussed herein. Factors that could cause or contribute to

such differences include, but are not limited to, the risks and uncertainties as

discussed in reports previously and subsequently filed by us with the Securities

and Exchange Commission, including our annual report on Form 10-K for the fiscal

year ended January 31, 2006 as filed on April 17, 2006.





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(C) 2006 Thomson Financial. Republished with permission. No part of this

publication may be reproduced or transmitted in any form or by any means without

the prior written consent of Thomson Financial.



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                                                                FINAL TRANSCRIPT



JUN. 08. 2006 / 4:30PM ET, SORC - Q1 2007 SOURCE INTERLINK COMPANIES EARNINGS

CONFERENCE CALL



After a short presentation by management we will take your questions. With that,

I turn the meeting over to Source Interlink Companies Chairman and Chief

Executive Officer, Leslie Flegel.



LESLIE FLEGEL - SOURCE INTERLINK COMPANIES, INC. - CHAIRMAN AND CEO



Thank you, Todd. Good afternoon, everybody. First quarter results produced

revenues and earnings that essentially met or exceeded every operating

division's expectations, while at the same time our Shared Services expenses

were actually $500,000 less than anticipated. Company revenues were $200,000

over budget on more than $450 million in total sales, and EBITDA exceeded

expectations also by $200,000 on more than $14 million in income. That is right

on. This is the first quarter following a year of great expansion, not only in

size but in diversification of business services. To have changed as

dramatically as we have in a short time and have an accurate assessment of

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