APN News & Media Limited updates Trans-Tasman Trading Trends

APN reported its 2004 interim result to the market on August 17, 2004. Since then, trading across the group has remained positive. All major Divisions continue to perform well and Quarter 4 is trading in line with expectations. APN is hosting fund managers and analysts in Queensland on November 19 and is issuing this statement in advance. Copies of the presentation to be used at the briefing will be posted on the APN website, http://www.apn.com.au.

Highlights of Quarter 3 trading by Division are as follows:

New Zealand National Publishing

New Zealand National Publishing, incorporating The New Zealand Herald, the Herald on Sunday, The Aucklander and New Zealand Magazines, continues to perform above expectations. Advertising in The New Zealand Herald recorded good growth in Quarter 3, with particular strength in employment. Advertising yields showed a near double-digit increase in Quarter 3 compared with the same period in 2003, with volumes remaining steady. Circulation for The New Zealand Herald in the six months to September 30 was up by more than 1,000 copies on the corresponding period last year, to more than 208,000. The Herald on Sunday was launched on October 3 and has achieved average weekly circulation of more than 115,000 copies, ahead of expectations. Support from advertisers has tracked ahead of budget. The Aucklander continues to perform in line with expectations. Both the New Zealand Women's Weekly and The Listener have recorded good readership gains. Divisional revenues in local currency were ahead by 8% and EBIT by 14% compared with Quarter 3 2003.

Regional Newspapers

In Australia, advertising in the key categories of employment, real estate and retail remained strong across the 14 daily newspapers. Advertising in Quarter 3 returned good double-digit growth, driven predominantly by yield, but with a 5% increase in volume over the same period in 2003. Circulations for the Australian daily newspapers recorded continued growth in the six months to September 2004. APN now publishes the seven fastest growing daily newspapers in Australia. In New Zealand, advertising revenue in the nine daily titles for employment, real estate and motoring grew strongly, achieving an overall double-digit increase year-on-year, split evenly across gains in yield and volume. Local economies returned consistent growth with a slight easing in real estate volumes from high levels experienced the previous year. Circulation in the six months to September 2004 was steady overall. Divisional revenues were ahead by 10%, with strong double-digit EBIT growth compared with Quarter 3 2003.

Radio

Sustained strong survey results have delivered good agency advertising market share gains for the Australian Radio Network. Equally, ARN's continued strong presence in direct advertising has produced good overall growth in advertising revenue in Quarter 3. In New Zealand, The Radio Network has continued the rollout of new and existing radio streams throughout the country, launching 13 new formats so far this year. Divisional EBIT returned strong double-digit growth over a buoyant Quarter 3 in 2003.

Outdoor

The new structure for APN Outdoor in Australia has now been introduced nationally, with 16 offices consolidating into six. A number of contracts have been renewed, which will produce good revenue gains in 2005. These include the Stagecoach bus contract in New Zealand - the largest in the country - and in Hong Kong, Buspak was awarded the KMB bus contract, making Buspak the largest supplier of transit advertising in the territory. Due to a number of uneconomic contracts that expire over the next 12-18 months, APN believes the results from this Division will gain momentum throughout 2005.

Print & Specialist Publishing

The New Zealand commercial print operations have secured a number of new contracts, which will come into effect in 2005. An additional press has been commissioned in the Manukau print centre to increase capacity to produce high quality magazine work. Continued good retail activity is also delivering good growth in catalogue production.

Outlook

APN continues to enjoy consistent advertising growth across all its major markets. Forward bookings are encouraging and advertising across the major Divisions remains appropriate to expectations. These conditions are expected to continue through to year-end, and on that basis the company believes it will be in line with the recently increased consensus Net Profit After Tax forecast of A$129 million before Non-Recurring Items.

ENDS 18th November 2004