<PAGE>
                                       
                                UNITED STATES
                     SECURITIES AND EXCHANGE COMMISSION
                                          
                          Washington, D.C.  20549
                                          
                                 FORM 10-Q
                                          
               Quarterly Report Under Section 13 or 15 (d) of
                     The Securities Exchange Act of 1934
                                          
FOR QUARTER ENDED:                                     COMMISSION FILE NUMBER
June 30, 1998                                                    0-22852

-------------------------------------------------------------------------------

                           AFFINITY GROUP, INC. 
             (Exact name of registrant as specified in its charter)

DELAWARE                                                      13-3377709
(State of incorporation or organization)    (I.R.S. Employer Identification No.)

64 Inverness Drive East                                     (303) 792-7284
Englewood, CO  80112                                  (Registrant's telephone 
(Address of principal executive offices)           number, including area code)

-------------------------------------------------------------------------------

      SECURITIES REGISTERED PURSUANT TO SECTION 12 (b) OF THE ACT:  NONE
        SECURITIES REGISTERED PURSUANT TO SECTION 12 (g) OF THE ACT:   
                  11 1/2% Senior Subordinated Notes Due 2003

Indicate by check mark whether the Registrant (1) has filed all reports 
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act 
of 1934 during the preceding 12 months (or for such shorter period that the 
Registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days.

                            YES  X           NO  
                                ---             ---

Indicate the number of shares outstanding of each of the issuer's classes of 
common stock, as of the latest practicable date.

                                                          OUTSTANDING AS OF
CLASS                                                       JULY 31, 1998 
------                                                    -----------------
Common Stock, $.001 par value                                   2,000
                                       
                      DOCUMENTS INCORPORATED BY REFERENCE:
                                     NONE

<PAGE>
                                       
                                          
                    AFFINITY GROUP, INC. AND SUBSIDIARIES
                                          
                                          
                                    INDEX
                                    -----
                                          
                                                                         PAGE
                                                                         ----
PART I.  Financial Information

     ITEM 1:  FINANCIAL STATEMENTS                                

              Consolidated Balance Sheets                                 1
              As of June 30, 1998 and December 31, 1997
               
              Consolidated Statements of Operations                       2
              For the three months ended June 30, 1998 and 1997
               
              Consolidated Statements of Operations                       3
              For the six months ended June 30, 1998 and 1997
               
              Consolidated Statements of Cash Flows                       4
              For the six months ended June 30, 1998 and 1997
          
              Notes to Consolidated Financial Statements                  5
     

     ITEM 2:  MANAGEMENT'S DISCUSSION AND ANALYSIS OF                     7
              FINANCIAL CONDITION AND RESULTS OF OPERATIONS


PART II.  Other Information                                              17


SIGNATURES                                                               18

     
<PAGE>
                                      
                    AFFINITY GROUP, INC. AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                     JUNE 30, 1998 AND DECEMBER 31, 1997
                               (In Thousands)
                                 (Unaudited)
<TABLE>
<CAPTION>
                                                                         6/30/98          12/31/97
                                                                      -----------       -----------
<S>                                                                   <C>               <C>
ASSETS
   CURRENT ASSETS:
      Cash and cash equivalents                                        $   27,572       $   43,978
      Investments                                                           2,447            2,590
      Accounts receivable, less allowance for doubtful accounts            23,023           25,802
      Inventories                                                          37,234           30,283
      Prepaid expenses and other assets                                    14,685           11,089
                                                                      -----------       -----------
         Total current assets                                             104,961          113,742

   PROPERTY AND EQUIPMENT                                                  56,482           51,559
   LOANS RECEIVABLE                                                        91,219           44,973
   INTANGIBLE ASSETS                                                      197,570          201,758
   DEFERRED TAX ASSET                                                       4,528            8,545
   RESTRICTED INVESTMENTS                                                   1,997            2,096
   OTHER ASSETS                                                             5,948            5,391
                                                                      -----------       -----------
                                                                        $ 462,705        $ 428,064
                                                                      -----------       -----------
                                                                      -----------       -----------

LIABILITIES AND STOCKHOLDER'S EQUITY
   CURRENT LIABILITIES:
      Accounts payable                                                  $  26,662       $   16,334
      Accrued interest                                                      2,896            3,026
      Accrued taxes                                                         9,201            9,639
      Accrued liabilities                                                  19,455           23,498
      Customer deposits                                                   104,959           74,528
      Deferred tax liability - current                                      2,132            2,132
      Current portion of long-term debt                                     6,554            6,132
                                                                      -----------       -----------
         Total current liabilities                                        171,859          135,289

   DEFERRED REVENUES                                                       84,373           79,572
   LONG-TERM DEBT                                                         145,636          147,729
   OTHER LONG-TERM LIABILITIES                                              5,204            5,467
   COMMITMENTS AND CONTINGENCIES                                              ---              ---
                                                                      -----------       -----------
                                                                          407,072          368,057
                                                                      -----------       -----------

   STOCKHOLDER'S EQUITY:
      Preferred stock, $.001 par value, 1,000 shares authorized,
         none issued or outstanding                                           ---              ---
      Common stock, $.001 par value, 2,000 shares authorized,
         2,000 shares issued and outstanding                                    1                1
      Additional paid-in capital                                          143,290          151,462
      Accumulated deficit                                                 (87,658)         (91,456)
                                                                      -----------       -----------
         Total stockholder's equity                                        55,633           60,007
                                                                      -----------       -----------
                                                                        $ 462,705        $ 428,064
                                                                      -----------       -----------
                                                                      -----------       -----------
</TABLE>
See notes to consolidated financial statements.


                                      1

<PAGE>

                      AFFINITY GROUP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (In Thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                            THREE MONTHS ENDED
                                                     --------------------------------
                                                        6/30/98             6/30/97
                                                     ------------       -------------
<S>                                                  <C>                <C>
REVENUES:
   Membership services                               $   33,998         $   30,024
   Publications                                          11,576             10,618
   Merchandise                                           55,269             51,305
                                                     ------------       -------------
                                                        100,843             91,947

COSTS APPLICABLE TO REVENUES:
   Membership services                                   21,364             16,861
   Publications                                           8,736              7,447
   Merchandise                                           36,729             34,523
                                                     ------------       -------------
                                                         66,829             58,831

GROSS PROFIT                                             34,014             33,116

OPERATING EXPENSES:
   Selling, general and administrative                   18,652             17,801
   Depreciation and amortization                          3,558              3,600
                                                     ------------       -------------
                                                         22,210             21,401
                                                     ------------       -------------

INCOME FROM OPERATIONS                                   11,804             11,715

NON-OPERATING ITEMS:
   Interest expense, net                                 (4,137)            (4,090)
   Other non-operating income, net                           69                 34
                                                     ------------       -------------
                                                         (4,068)            (4,056)
                                                     ------------       -------------
INCOME FROM CONTINUING OPERATIONS BEFORE
   INCOME TAXES AND EXTRAORDINARY ITEM                    7,736              7,659

INCOME TAX EXPENSE                                       (3,980)            (3,391)
                                                     ------------       -------------

INCOME BEFORE EXTRAORDINARY ITEM                          3,756              4,268

EXTRAORDINARY ITEM:
   Loss on early extinguishment of debt, less
     applicable income tax benefit of $145                  ---               (241)
                                                     ------------       -------------

NET INCOME                                           $    3,756         $    4,027
                                                     ------------       -------------
                                                     ------------       -------------
</TABLE>

See notes to consolidated financial statements.


                                      2

<PAGE>


                      AFFINITY GROUP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (In Thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                   SIX MONTHS ENDED
                                            ------------------------------
                                              6/30/98            6/30/97
                                            ----------         -----------
<S>                                         <C>                <C>
REVENUES:
   Membership services                      $   63,714         $   54,274
   Publications                                 24,175             20,351
   Merchandise                                  93,094             51,305
                                            ----------         -----------
                                               180,983            125,930

COSTS APPLICABLE TO REVENUES:
   Membership services                          40,089             31,406
   Publications                                 19,060             15,152
   Merchandise                                  62,336             34,523
                                            ----------         -----------
                                               121,485             81,081

GROSS PROFIT                                    59,498             44,849

OPERATING EXPENSES:
   Selling, general and administrative          36,537             22,026
   Depreciation and amortization                 7,085              5,693
                                            ----------         -----------
                                                43,622             27,719
                                            ----------         -----------

INCOME FROM OPERATIONS                          15,876             17,130

NON-OPERATING ITEMS:
   Interest expense, net                        (8,259)            (8,180)
   Other non-operating income, net                 203                 42
                                            ----------         -----------
                                                (8,056)            (8,138)
                                            ----------         -----------
INCOME FROM CONTINUING OPERATIONS BEFORE
   INCOME TAXES AND EXTRAORDINARY ITEM           7,820              8,992

INCOME TAX EXPENSE                              (4,017)            (4,089)
                                            ----------         -----------

INCOME BEFORE EXTRAORDINARY ITEM                 3,803              4,903

EXTRAORDINARY ITEM:
   Loss on early extinguishment of debt, less
     applicable income tax benefit of $145         ---               (241)
                                            ----------         -----------


NET INCOME                                  $    3,803          $   4,662
                                            ----------         -----------
                                            ----------         -----------
</TABLE>

See notes to consolidated financial statements.


                                       3
<PAGE>
                                        
                      AFFINITY GROUP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (In Thousands)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                            SIX MONTHS ENDED
                                                                      6/30/98             6/30/97
                                                                   -------------        ------------
<S>                                                                <C>                  <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                                      $      3,803         $    4,662
   Adjustments to reconcile net income to net cash provided
     by operating activities:
     Deferred tax provision                                               4,017              3,609
     Depreciation and amortization                                        7,085              5,693
     Provision for losses on accounts receivable                            179                252
     Deferred compensation                                                  ---                300
     (Gain) Loss on disposal of property and equipment                       (1)                 9
     Extraordinary item                                                     ---                386
     Changes in operating assets and liabilities (net of
        purchased businesses):
        Accounts receivable                                               2,600             (1,151)
        Inventories                                                      (6,951)              (698)
        Restricted investments                                              143             (1,042)
        Prepaids and other assets                                        (4,153)            (3,042)
        Accounts payable                                                 10,328             (1,143)
        Accrued and other liabilities                                    (4,874)            (4,594)
        Deferred revenues                                                 4,801              5,539
        Net assets and liabilities of discontinued operations               ---             (1,395)
                                                                   -------------        ------------
           Net cash provided by operating activities                     16,977              7,385
                                                                   -------------        ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Capital expenditures                                                  (7,790)            (1,700)
   Net changes in intangible assets                                         (29)            (3,491)
   Net changes in loans receivable                                      (46,246)            (6,210)
   Sale of investments                                                       99                 31
   Purchase of Ehlert Publishing Group, Inc.                                ---            (20,800)
   Purchase of Camping World, Inc., net of cash acquired                    ---            (97,418)
                                                                   -------------        ------------
           Net cash used in investing activities                        (53,966)          (129,588)
                                                                   -------------        ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Capital contribution from Parent                                         ---            126,016
   Dividends paid                                                        (8,177)               ---
   Net change in customer deposits                                       30,431             16,170
   Borrowings on long-term debt                                          30,348             57,150
   Principal payments of long-term debt                                 (32,019)           (54,588)
                                                                   -------------        ------------
           Net cash provided by financing activities                     20,583            144,748
                                                                   -------------        ------------

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                    (16,406)            22,545

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                         43,978              4,278
                                                                   -------------        ------------

CASH AND CASH EQUIVALENTS AT END OF PERIOD                         $     27,572         $   26,823
                                                                   -------------        ------------
                                                                   -------------        ------------

Supplemental disclosures of cash flow information: 
Cash paid during the period for:
   Interest                                                               8,471              8,232
   Income Taxes                                                           5,158                279

</TABLE>


See notes to consolidated financial statements.


                                       4

<PAGE>
                                       
                     AFFINITY GROUP, INC. AND SUBSIDIARIES
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 (UNAUDITED)


(1)  BASIS OF PRESENTATION

The financial statements included herein include the accounts of Affinity 
Group, Inc., and subsidiaries (the "Company") without audit, in accordance 
with generally accepted accounting principles, and pursuant to the rules and 
regulations of the Securities and Exchange Commission.  These interim 
consolidated financial statements should be read in conjunction with the 
consolidated financial statements and notes in the Company's 10-K report for 
the year ended December 31, 1997 as filed with the Securities and Exchange 
Commission.  In the opinion of management of the Company, these consolidated 
financial statements contain all adjustments of a normal recurring nature 
necessary to present fairly the financial position, results of operations and 
cash flows of the Company for the interim periods presented. 

On March 6, 1997, the Company acquired the stock of Ehlert Publishing Group 
("EPG").  EPG is a specialty publisher of sports and recreation magazines 
focusing on five niches: snowmobiling, personal watercraft, archery, 
all-terrain vehicles and motorcycles.  Further, on April 2, 1997, the Company 
acquired the common stock of Camping World, Inc. ("CWI").  CWI is a national 
specialty retailer of merchandise and services for RV owners.  The operating 
results of EPG and CWI have been included in the Company's consolidated 
results of operations from the dates of acquisition.  The acquisitions have 
been accounted for using the purchase method of accounting and, accordingly, 
the assets and liabilities of EPG and CWI have been recorded at the estimated 
fair market value at the dates of the acquisitions.

(2) RECENT ACCOUNTING PRONOUNCEMENTS

Effective January 1, 1998, the Company adopted Statement of Financial 
Accounting Standards No. 130, "Reporting Comprehensive Income," which 
establishes standards for reporting and presentation of comprehensive income 
and its components.  It requires that all changes in equity during a period, 
except those resulting from investment by owners and distributions to owners, 
be reported as a component of comprehensive income and that comprehensive 
income be displayed in annual financial statements with the same prominence 
as other financial statements that constitute a full set of financial 
statements.  The Company's comprehensive income for the six months ended June 
30, 1998 and 1997 is the same amount as the Company's net income for these 
periods.

In June 1997, the Financial Accounting Standards Board issued SFAS No. 131, 
"Disclosures about Segments of an Enterprise and Related Information," which 
will be effective for the Company beginning January 1, 1998.  SFAS No. 131 
redefines how operating segments are determined and requires disclosure of 
certain financial and 


                                       5

<PAGE>

(2) RECENT ACCOUNTING PRONOUNCEMENTS (CONTINUED)


descriptive information about a company's operating segments.  The Company 
believes the segment information required to be disclosed under SFAS No. 131 
will be more comprehensive than previously provided, including expanded 
disclosure of income statement and balance sheet items for each of its 
reportable operating segments.  SFAS No. 131 will be first reflected in the 
Company's 1998 Annual Report.


                                       6

<PAGE>
 
                      AFFINITY GROUP, INC. AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS


ITEM 2:

The following table is derived from the Company's Consolidated Statements of 
Operations and expresses the results from operations as a percentage of 
revenues and reflects the net increase (decrease) between periods:

<TABLE>
<CAPTION>
                                                                 THREE MONTHS ENDED
                                                  ------------------------------------------------
                                                    6/30/98            6/30/97           Inc/(Dec)
                                                  ----------         ----------         ----------
<S>                                               <C>                <C>                <C>
REVENUES:
   Membership services                                 33.7%            32.7%              13.2%
   Publications                                        11.5%            11.5%               9.0%
   Merchandise                                         54.8%            55.8%               7.7%
                                                  ----------         ----------         ----------
                                                      100.0%           100.0%               9.7%

COSTS APPLICABLE TO REVENUES:
   Membership services                                 21.2%            18.3%              26.7%
   Publications                                         8.7%             8.1%              17.3%
   Merchandise                                         36.4%            37.6%               6.4%
                                                  ----------         ----------         ----------
                                                       66.3%            64.0%              13.6%

                                                  ----------         ----------         ----------
GROSS PROFIT                                           33.7%            36.0%               2.7%

OPERATING EXPENSES:
   Selling, general and administrative                 18.5%            19.4%               4.8%
   Depreciation and amortization                        3.5%             3.9%              (1.2%)
                                                  ----------         ----------         ----------
                                                       22.0%            23.3%               3.8%
                                                  ----------         ----------         ----------

INCOME FROM OPERATIONS                                 11.7%            12.7%               0.8%


NON-OPERATING ITEMS:
   Interest expense, net                               (4.1%)           (4.4%)              1.1%
   Other non-operating income, net                      0.1%              ---             102.9%
                                                  ----------         ----------         ----------
                                                       (4.0%)           (4.4%)              0.3%
                                                  ----------         ----------         ----------
INCOME FROM CONTINUING OPERATIONS BEFORE
   INCOME TAXES AND EXTRAORDINARY ITEM                  7.7%             8.3%               1.0%

INCOME TAX EXPENSE                                     (4.0%)           (3.7%)             17.4%
                                                  ----------         ----------         ----------

INCOME BEFORE EXTRAORDINARY ITEM                        3.7%             4.6%             (12.0%)

EXTRAORDINARY ITEM:
   Loss on early extinguishment of debt, less
     applicable income tax benefit of $145              ---             (0.2%)              ---
                                                  ----------         ----------         ----------

NET INCOME                                              3.7%             4.4%              (6.7%)
                                                  ----------         ----------         ----------
                                                  ----------         ----------         ----------
</TABLE>


                                      7

<PAGE>

                      AFFINITY GROUP, INC. AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

ITEM 2:

The following table is derived from the Company's Consolidated Statements of
Operations and expresses the results from operations as a percentage of
revenues and reflects the net increase (decrease) between periods:

<TABLE>
<CAPTION>
                                                                     SIX MONTHS ENDED
                                                       ----------------------------------------------
                                                        6/30/98            6/30/97          Inc/(Dec)
                                                       ---------          --------         ----------
<S>                                                    <C>                <C>              <C>
REVENUES:
   Membership services                                    35.2%             43.1%             17.4%
   Publications                                           13.4%             16.2%             18.8%
   Merchandise                                            51.4%             40.7%             81.5%
                                                       ---------          --------         ----------
                                                         100.0%            100.0%             43.7%

COSTS APPLICABLE TO REVENUES:
   Membership services                                    22.2%             24.9%             27.6%
   Publications                                           10.5%             12.0%             25.8%
   Merchandise                                            34.4%             27.5%             80.6%
                                                       ---------          --------         ----------
                                                          67.1%             64.4%             49.8%

                                                       ---------          --------         ----------
GROSS PROFIT                                              32.9%             35.6%             32.7%

OPERATING EXPENSES:
   Selling, general and administrative                    20.2%             17.5%             65.9%
   Depreciation and amortization                           3.9%              4.5%             24.5%
                                                       ---------          --------         ----------
                                                          24.1%             22.0%             57.4%
                                                       ---------          --------         ----------

INCOME FROM OPERATIONS                                     8.8%             13.6%             (7.3%)

NON-OPERATING ITEMS:
   Interest expense, net                                  (4.6%)            (6.5%)             1.0%
   Other non-operating income, net                         0.1%               ---            383.3%
                                                       ---------          --------         ----------
                                                          (4.5%)            (6.5%)            (1.0%)
                                                       ---------          --------         ----------
INCOME FROM CONTINUING OPERATIONS  BEFORE
   INCOME TAXES AND EXTRAORDINARY ITEM                     4.3%              7.1%            (13.0%)

INCOME TAX EXPENSE                                        (2.2%)            (3.2%)            (1.8%)
                                                       ---------          --------         ----------

INCOME BEFORE EXTRAORDINARY ITEM                           2.1%              3.9%            (22.4%)

EXTRAORDINARY ITEM:
   Loss on early extinguishment of debt, less
     applicable income tax benefit of $145                  ---             (0.2%)              ---
                                                       ---------          --------         ----------

NET INCOME                                                 2.1%              3.7%            (18.4%)
                                                       ---------          --------         ----------
                                                       ---------          --------         ----------
</TABLE>


                                      8

<PAGE>

                             RESULTS OF OPERATIONS
                                          

THREE MONTHS ENDED JUNE 30, 1998 
COMPARED WITH THREE MONTHS ENDED JUNE 30, 1997

REVENUES

Revenues of $100.8 million for the second quarter of 1998 increased by 
approximately $8.9 million or 9.7% from the comparable period in 1997.

Membership services revenues of $34.0 million for the second quarter of 1998 
increased by approximately $4.0 million from the comparable period in 1997, a 
13.2% increase.  This revenue increase was largely attributable to a $2.0 
million increase in financial and insurance services revenue, a $2.2 million 
increase from the extended vehicle warranty program, and a $1.1 million 
increase from the Rapid Response emergency road service contracts acquired 
August 4, 1997.  These increases were partially offset by a membership 
services revenue decrease of approximately $0.9 million primarily associated 
with reduced Coast to Coast Club enrollment and a $0.4 million revenue 
decrease associated with member events.

Publication revenue of $11.6 million for the second quarter of 1998 increased 
by $1.0 million from the comparable period in 1997.  This revenue increase 
was largely attributable to additional issues published by EPG.

Merchandise revenue was $55.3 million and was related entirely to the 
acquisition of CWI in April 1997.  Merchandise revenue for the quarter 
increased $4.0 million or 7.7%.  This increase was principally attributable 
to a $2.5 million increase in retail sales and a $1.4 million increase in 
mail order sales resulting from increased promotional efforts, and an 
increase in catalogs distributed.

COSTS APPLICABLE TO REVENUES

Costs applicable to revenues totaled $66.8 million for the second quarter of 
1998, an increase of $8.0 million or 13.6% over the comparable period in 1997.

Membership services costs and expenses increased by approximately $4.5 
million or 26.7% to $21.4 million in the second quarter of 1998 compared to 
$16.9 million in 1997.  This increase was largely as a result of increased 
expenses of $2.2 million associated with financial and insurance services, 
$2.0 million associated with the increase in extended warranty policies, and 
$1.1 million in costs associated with the Rapid Response emergency road 
service contracts.  This increase was partially offset by $0.8 million in 
reduced expenses for membership services, primarily due to reduced enrollment 
in the Coast to Coast Club.


                                       9

<PAGE>

Publication costs and expenses of $8.7 million for the second quarter of 1998 
increased $1.3 million or 17.3% compared to the second quarter of 1997.  This 
increase consisted of $0.7 million associated with increased issues published 
by EPG, $0.3 million due to increased book sales, and $0.3 million in other 
expenses, primarily increased marketing efforts for the TRAILER LIFE 
CAMPGROUND/ RV PARK & SERVICES DIRECTORY.

Merchandise costs applicable to revenues were $36.7 million and related 
entirely to CWI acquired in April 1997.  The $2.2 million increase in 
merchandise costs for the quarter was primarily attributable to the 7.7% 
increase in merchandise sales.  The gross profit margin increased by $1.8 
million from 32.7% in the second quarter of 1997 to 33.5% for the same period 
in 1998.  The increase in the gross profit margin was primarily due the 
consolidation of vendor product lines and the utilization of enhanced 
merchandising software.

OPERATING EXPENSES

Selling, general and administrative expenses of $18.7 million for the second 
quarter of 1998 were $0.9 million over the comparable period in 1997.  This 
increase was primarily as a result of increased CWI promotional efforts, and 
an increase in computer consulting, which included Year 2000 conversion 
efforts, and wage-related expenses.  Depreciation and amortization expenses 
of $3.6 million remained relatively unchanged from the second quarter of 1997.

INCOME FROM OPERATIONS

Income from operations for the second quarter of 1998 increased by $0.1 
million or 0.8% to $11.8 million compared to $11.7 million for the second 
quarter 1997. This net increase was due to a $1.8 million increase in gross 
profit from the merchandise segment, largely offset by increased operating 
expenses of $0.8 million, decreased gross profit from the membership services 
segment of $0.5 million, and decreased publication gross profit of $0.3 
million.

NON-OPERATING EXPENSES

Non-operating expenses were $4.1 million for the second quarter of 1998 and 
remained relatively unchanged as compared to the same period in 1997.

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EXTRAORDINARY ITEM

Income from continuing operations before income taxes and extraordinary item 
in the second quarter of 1998 was approximately $7.7 million and remained 
relatively unchanged as compared to the second quarter of 1997.  


                                       10

<PAGE>

INCOME TAX EXPENSE

In the second quarter of 1998, the Company recognized a $4.0 million tax 
expense compared to $3.4 million tax expense in the second quarter of 1997.

EXTRAORDINARY ITEM

The Company refinanced its senior term and revolving credit facilities April 
2, 1997.  As a result, the Company incurred a write-off of unamortized 
financing cost of $0.2 million, net of tax.

NET INCOME

The net income in the second quarter of 1998 was $3.8 million compared to net 
income of $4.0 million for the same period in 1997.

SIX MONTHS ENDED JUNE 30, 1998 
COMPARED WITH SIX MONTHS ENDED JUNE 30, 1997

REVENUES

Revenues of $181.0 million for the six months ended June 30, 1998 increased 
by approximately $55.1 million or 43.7% from the comparable period in 1997. 
Excluding the EPG operations acquired March 1997 and the CWI operations 
acquired April 1997, revenues were $74.6 million for the first six months of 
1998 compared to $67.2 million for the comparable period in 1997, an 11.1% 
increase.

Membership services revenues of $63.7 million for the first six months of 
1998 increased by approximately $9.4 million from the comparable period in 
1997. Excluding the CWI membership services operations, membership services 
revenue increased by approximately $6.8 million to $57.6 million, a 13.3% 
increase. This revenue increase was largely attributable to a $3.8 million 
increase in financial and insurance services revenue, a $3.2 million increase 
from the extended vehicle warranty program, and a $1.8 million increase from 
the Rapid Response emergency road service contracts acquired August 4, 1997.  
These increases were partially offset by a membership services revenue 
decrease of $1.3 million, principally associated with reduced Coast to Coast 
Club enrollment, a $0.4 million revenue decrease from reduced Good Sam 
emergency road service enrollment, and a net $0.3 million decrease in revenue 
associated with ancillary products.

Publication revenue of $24.2 million for the first six months of 1998 
increased by $3.8 million from the comparable period in 1997.  Excluding EPG, 
publication revenue increased by approximately $0.6 million largely 
attributable to increased revenue from new book title sales.


                                      11

<PAGE>

Merchandise revenue was $93.1 million and was related entirely to CWI 
acquired in April 1997.  On a pro forma basis, assuming the CWI acquisition 
had occurred at January 1, 1997, merchandise revenue for the first six months 
increased $4.1 million or 4.7%.  This increase was principally attributable 
to a $2.1 million increase in mail order sales and a $2.0 million increase in 
retail sales resulting from increased promotional efforts.

COSTS APPLICABLE TO REVENUES

Costs applicable to revenues totaled $121.5 million for the first six months 
of 1998, an increase of $40.4 million or 49.8% over the comparable period in 
1997. Excluding the EPG and CWI operations, costs applicable to revenues 
increased $8.5 million for the first six months of 1998 compared to 1997, a 
20.1% increase.

Membership services costs and expenses increased by approximately $8.7 
million or 27.6% to $40.1 million in the first six months of 1998 compared to 
$31.4 million in 1997.  Excluding the CWI acquisition, membership services 
costs increased $7.2 million to $37.4 million largely as a result of 
increased expenses of $4.0 million associated with the financial and 
insurance services, $2.9 million associated with the increase in extended 
warranty policies, and $1.6 million in costs associated with the Rapid 
Response emergency road service contracts.  These increases were partially 
offset by $1.0 million in reduced membership services expenses, primarily 
associated with the Coast to Coast Clubs, and $0.3 million in reduced 
expenses associated with ancillary products and services.

Publication costs and expenses of $19.1 million for the first six months of 
1998 increased $3.9 million or 25.8% over the comparable period in 1997.  
Excluding the EPG acquisition, costs increased by $1.3 million over the 
comparable period in 1997.  This increase was primarily due to increased book 
sales, and increased marketing and paper costs.

Merchandise costs applicable to revenues were $62.3 million and were related 
entirely to CWI acquired in April 1997.  On a pro forma basis, assuming the 
CWI acquisition had occurred at January 1, 1997, merchandise costs for the 
first six months of 1998 increased $1.7 million.  The increase in merchandise 
costs was primarily attributable to the 4.7% increase in merchandise sales.  
The gross profit margin increased by $1.0 million from 31.9% in the first six 
months of 1997 to 33.0% for the same period in 1998 primarily due to 
consolidation of vendor product lines and the utilization of enhanced 
merchandising software.

OPERATING EXPENSES

Selling, general and administrative expenses of $36.5 million for the first 
six months of 1998 were $14.5 million over the comparable period in 1997.  
Excluding the EPG and CWI acquisitions, general and administrative expenses 
increased by $0.8 million compared to the prior year primarily as a result of 
an increase of $0.4 million in consulting expenses, which includes Year 2000 
conversion efforts, and a $0.9 million increase in wage-related expenses, 
which were partially offset by a $0.2 million reduction in legal expenses and 
$0.3 


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<PAGE>

million in reduced deferred executive compensation for the first six months 
of 1998. Depreciation and amortization expenses of $7.1 million were $1.4 
million higher than the first six months of 1997, primarily due to 
depreciation and amortization of assets attributable to the EPG and CWI 
acquisitions.

INCOME FROM OPERATIONS

Income from operations for the first six months of 1998 decreased by $1.3 
million or 7.3% to $15.9 million compared to $17.1 million for the first six 
months of 1997.  Excluding income from operations recognized from the 
acquired operations of EPG and CWI, income from operations decreased by $1.6 
million. This decrease was due to increased operating expenses of $0.5 
million, decreased gross profit from the membership services segment of $0.4 
million, and decreased publication gross profit of $0.7 million.

NON-OPERATING EXPENSES

Non-operating expenses were $8.1 million for the first six months of 1998 and 
remained relatively unchanged as compared to the same period in 1997.

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EXTRAORDINARY ITEM

Income from continuing operations before income taxes and extraordinary item 
in the first six months of 1998 was approximately $7.8 million compared to 
$9.0 million for the first six months of 1997.  This decrease was principally 
due to increased operating expenses and reduced operating profit as mentioned 
above.

INCOME TAX EXPENSE

In the first six months of 1998, the Company recognized a $4.0 million tax 
expense compared to $4.1 million tax expense in the first six months of 1997.

EXTRAORDINARY ITEM

The Company refinanced its senior term and revolving credit facilities April 
2, 1997.  As a result, the Company incurred a write-off of unamortized 
financing cost of $0.2 million, net of tax.

NET INCOME

The net income in the first six months of 1998 was $3.8 million compared to 
net income of $4.7 million for the same period in 1997.


                                       13

<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

At June 30, 1998 the Company's senior subordinated debt and the Senior Credit 
Facility ("SCF") totaled $151.0 million compared to $152.9 million at 
December 31, 1997.

Cash, cash equivalents and investments of the Company totaled $30.0 million 
at June 30, 1998 compared to $46.6 million at December 31, 1997.  This 
reduction is due to increased loan production at Affinity Bank ("AB").  
Included in the June 30, 1998 cash, cash equivalents and investments is $24.8 
million which is restricted for use by AB and Affinity Insurance Group 
("AINS") subsidiaries. The assets of AB and AINS are subject to regulatory 
restrictions on dividends or other distributions to the Company and are 
unavailable to reduce Company debt. In addition, both AB and AINS, although 
required to be consolidated with the Company, are recognized as 
"unrestricted" or non-guarantying subsidiaries as defined in the SCF, as 
discussed further below, and AB only is an "unrestricted" subsidiary under 
the indenture (the "Indenture") pursuant to which the $120.0 million 11.5% 
senior subordinated notes of the Company were issued.

Both AB and AINS are subject to regulatory guidelines which, among other 
things, stipulate the minimum capital requirements for each entity based on 
certain operating ratios.  The Company was not required to contribute and did 
not contribute capital to AB and AINS during the first six months of 1998 to 
maintain these ratios.  It is anticipated that capital contributions of $6.0 
million will be made to AB during the remainder of 1998.

The $75.0 million SCF provides a term loan of $30.0 million (reducing in 
quarterly principal installments of $1.5 million) and a $45.0 million 
revolving credit line.  The interest on borrowings under the facility is at 
variable rates based on the ratio of total cash flow to outstanding 
indebtedness (as defined). Interest rates float with prime and the London 
Interbank Offered Rates (LIBOR), plus an applicable margin ranging from 0.75% 
to 2.75% over the stated rates. The Company also pays a commitment fee of 
0.5% per annum on the unused amount of the revolving credit line.  The SCF is 
secured by a security interest in the assets of the Company and its 
subsidiaries and a pledge of the stock of the Company and its subsidiaries.  
The Indenture limits borrowings under the SCF to 150% of the Company's 
consolidated cashflow (as defined) for the preceding four fiscal quarters.  
At June 30, 1998, $8.5 million was outstanding and permitted borrowings under 
the undrawn revolving credit line of the SCF were $36.5 million.  At June 30, 
1998, $22.5 million remained outstanding under the term portion of the SCF.

The SCF and Indenture allow for, among other things, the distribution of 
payments by the Company to Affinity Group Holding, Inc. ("AGHI"), the 
Company's parent, to service the semi-annual interest due on the AGHI $130.0 
million 11% senior notes and the annual amounts due under the Camping World 
Management Incentive Agreements.  Such distributions are subject to the 
Company's compliance with certain restrictive covenants, including, but not 
limited to, an interest coverage ratio, fixed charge coverage ratio, minimum 
operating cash flow, and limitations on capital expenditures and total 


                                      14

<PAGE>

indebtedness.  During the first six months of 1998, the Company made 
distributions of $8.2 million to AGHI.

During the six months ended June 30, 1998, payments under the terms of 
several phantom stock agreements totaled $1.8 million.  Additional phantom 
stock payments of $0.2 million are scheduled to be made for the remainder of 
1998.

Capital expenditures in the six months ended June 30, 1998 totaled $7.8 
million compared to capital expenditures of $2.2 million during the same 
period in 1997. This increase is partially attributable to the purchase of a 
commercial building by Affinity Bank, for Affinity Bank's corporate 
headquarters and branch office and the purchase of the Bolingbrook, IL 
Camping World supercenter for $1.3 million and $2.7 million, respectively.  
The balance of the increase is primarily computer software and hardware, of 
which the largest component is an enhanced retail merchandising system for 
CWI's retail operations.  Capital expenditures are anticipated to be 
approximately $1.5 million for the remainder of 1998.  The anticipated 
expenditures will include continued enhancements to membership marketing 
databases, inbound and outbound telecommunications, computer software and 
hardware, and the addition of two new Camping World supercenters.

Regarding the Year 2000 compliance issue for information systems, the Company 
has recognized the need to ensure that its computer operations and operating 
systems will not be adversely affected by the upcoming calendar Year 2000 and 
is cognizant of the time sensitive nature of the problem.  The Company has 
assessed how it may be impacted by Year 2000 and has formulated and commenced 
implementation of a comprehensive plan to address known issues as they relate 
to its information systems.  The plan, as it relates to information systems, 
involves a combination of software modification, upgrades and replacement.  
The Company preliminarily estimates that the cost of Year 2000 compliance for 
its information systems will be in the range of $1.0 to $1.5 million and all 
necessary modifications will be completed by the first quarter of 1999.  The 
Company is not yet able to estimate the cost of Year 2000 compliance with 
respect to subcontracted production systems, products, customers and 
suppliers. However, based on a preliminary review, management does not expect 
that such costs will have a material adverse effect on the future 
consolidated results of operations of the Company. 

Management believes that funds generated by operations together with 
available borrowings under its revolving credit line will be sufficient to 
satisfy the Company's operating cash needs, debt obligations and capital 
requirements of its existing operations during the next twelve months.

This filing contains statements that are "forward looking statements," and 
includes, among other things, discussions of the Company's business strategy 
and expectations concerning market position, future operations, margins, 
profitability, liquidity and capital resources, as well as statements 
concerning the integration of acquired operations and the achievement of 
financial benefits and operational efficiencies in connections with 
acquisitions.  Although the Company believes that the expectations reflected 
in such forward looking statements


                                      15

<PAGE>

are reasonable, it can give no assurance that such expectations will prove to 
have been correct.  All phases of the operations of the Company are subject 
to a number of uncertainties, risks and other influences, including consumer 
spending, fuel prices, general economic conditions, regulatory changes and 
competition, many of which are outside the control of the Company, and any 
one of which, or a combination of which, could materially affect the results 
of the Company's operations and whether the forward looking statements made 
by the Company ultimately prove to be accurate. 


                                      16

<PAGE>

PART II:  OTHER INFORMATION

          Items 1-6:  Not Applicable


                                      17

<PAGE>

SIGNATURES:

Pursuant to the requirements of the Securities Exchange Act of 1934, the 
Registrants have duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.

                                                  

                                             AFFINITY GROUP, INC.



                                             /S/  Mark J. Boggess     
                                             ------------------------------
Date:  July 31, 1998                         Mark J. Boggess
                                             Senior Vice President
                                             Chief Financial Officer


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