November 18, 1996

Publishers are increasingly generating new revenue by marketing products branded with their magazines' name; ventures can also make magazine more visible and attractive to readers and advertisers; now produce almost 10 percent of most magazines' total earnings and are expected to rise to 20 percent in five years; photos; graphs (M)

Federal authorities arrest unidentified CIA career employee on charges of passing highly classified information to Russia for several years; arrest reportedly follows one of most important and tightly controlled espionage investigations during Clinton Administration; employee reportedly had access to array of security information about former Eastern bloc, was instructor who trained other officials of agency and had been stationed abroad; was reassigned in recent months to limit his access to classified materials; espionage began at least as early as 1994, but officials say it is possible employee was recruited earlier by Russia, possibly before collapse of Eastern bloc in 1991, although precise period is uncertain (M)

The New Pentagon Reality Behind McDonnell's Loss When the Pentagon dropped McDonnell Douglas and chose Boeing to compete with Lockheed Martin to build new multi-purpose combat aircraft, it was ushering out the age of the military-industrial complex. With its decision on the Joint Strike Fighter, the Pentagon was trying to encourage companies that do not rely so heavily on military contracts. News analysis. $(Page D2.$) Support for Texaco Station Owners Despite calls for a boycott, black motorists continued to patronize Texaco stations, with many saying that station owners should not be punished because of the comments of some corporate executives while discussing a bias suit brought against the company. $(B10.$) Sudden Departure at Apple When the executive in charge of Apple Computer's troubled operating systems division resigned, he raised new questions about the company's ability to solve its problems and differentiate its operating software from Microsoft's Windows 95. $(D9.$) Dueling Standards for Cellular Primeco Personal Communications has made good on its pledge to introduce its new type of wireless telephone service, known as P.C.S., last week in 15 metropolitan markets including Chicago and Miami. The Primeco rollout was the first United States market test in a battle between an established AT&T technology and a newer format upon which Primeco, Sprint Spectrum and most other P.C.S. providers are staking their futures. $(D9.$) Outsourcing and the Valujet Crash Representatives of Valujet and its maintenance contractor, Sabretech, which blame each other for the crash of a Valujet airliner last May, will appear in National Transportation Safety Board hearings that are expected to be confrontational. $(A12.$) Comdex Unleashes New Technology Seven computer companies, including Casio, Compaq, Hewlett-Packard and Philips, are introducing paperback-sized computers that run on Microsoft's Windows CE operating software at Comdex, the trade show. $(D8.$) The show floor at Comdex can be a madhouse, attracting people who want to see and be seen -- and party, gossip and collect freebies. $(D9.$) U.S.-Britain Telecommunications The United States and Britain are moving rapidly to relax the remaining restrictions on phone competition into and out of their countries. The changes are likely to further reduce prices for calls between the countries -- the most heavily used international communications pathway. $(D8.$) Finding New Life in Enhanced CD's Enhanced CD's record digital music, graphics and video on the same disk, but have not taken off. Now more creative material from an independent recording label may do the trick. Denise Caruso: Digital Commerce. $(D9.$) Fading Sources of African News For in-depth coverage of crises in Africa like the current troubles in Zaire and Rwanda, people have depended on smaller, African-focused publications. But three sources of African news -- Africa Report, Africa News Service and Africa Notes -- are defunct, or about to be. $(D10.$) Measuring an Event's Worth When Federal Express paid $2.5 million to sponsor the Orange Bowl, and wanted to know whether it was getting its money's worth, it turned to the Bonham Group, a firm that evaluates the amount of exposure a sponsor gets. Advertising. $(D13.$) New Sheriff in Broadcast Town The defeat of Senator Larry Pressler likely sets John McCain up as head of the Senate Commerce Committee. Broadcasters may find him less compatible than his predecessor. Mark Landler: Broadcasting. $(D10.$)

Joyce Purnick Metro Matters column on Ronald S Lauder notes that heir to Estee Lauder cosmetics fortune and onetime unsuccessful mayoral candidate organized and financed effort to get term-limits on New York City ballot in 1993 and opposed 1996 ballot proposition that would have extended limit to three terms (M)

Bruce Springsteen will perform at Asbury Park's recently remodeled Paramount Theater on Nov 25 and 26; concerts will benefit Boys and Girls Club of Monmouth County (New Jersey Daily Briefing) (S)