15th Aug 2000

Australian subsidary company results for the half year to 30th June 2000

APN News & Media Limited ("APN") (41% owned by Independent News & Media PLC), the largest operator of regional newspapers, radio stations and outdoor advertising in Australasia, today announced a 31% increase in net profit to a record $21.9 million for the six months ended 30 June 2000. Earnings per share were 9.0 cents, an increase of 30% over the prior period. As a result Directors have increased the interim dividend by 28% from 4.6 to 5.9 cents per share.

The result was the eighth consecutive first half period of net profit and dividend growth since the Company was floated in 1992.

Total revenue for the Group increased by 30% to $294.6 million, total EBIT by 34% to $56.7 million, and pre-tax profit by 35% to $49.3 million. These results were affected by APN's consolidation of The Radio Network ("TRN") since 1 July 1999. On a "like for like" basis, APN's revenue increased by 15% and EBIT by 29%.

APN Chairman, Mr Liam Healy, said he was pleased with the strong result for the first six months of the year. Double digit growth was again achieved in APN's publishing, broadcasting and outdoor advertising divisions with particularly strong performances by outdoor and radio.

"Outdoor advertising had a very strong half, with EBIT up 85%. The benefits of APN's investment in this medium are showing through, with increasing advertiser acceptance of outdoor as a mainstream medium".

Other highlights include:

• Regional newspapers profits up 11%
• Successful integration of Gympie Times and other titles acquired last year
• Broadcasting - ARN EBIT up 20%, TRN EBIT more than doubled on a like for like basis
• Strong profit growth in Buspak Hong Kong and new taxi advertising venture in Singapore
• APN Digital's investment in The Internet Amusement Group and "roll-up" of investment in iTouch
• Performance is on track for our eighth consecutive full year profit growth.

"Continued double digit EBIT growth in the regional newspaper division was a function of strong national advertising, reasonable local revenue growth and cost savings arising from the shared services centre. Newsprint prices increased marginally in the first half, with further increases anticipated later in the year. Year on year circulation volumes continued to grow in the first six months. The titles acquired from Rural Press last year (including The Gympie Times) have been successfully integrated into APN's operations. Specialist Publishing has performed in line with the comparable period last year.

"Our broadcasting division performed strongly, with both Australia and New Zealand contributing to the result. The strong radio advertising market in Australia combined with tight cost control in both countries resulted in a 46% increase in divisional EBIT. TRN is consolidated in this year's half year figures, but was not consolidated in the same period last year. On a "like for like" basis, EBIT increased by 35% which incorporates strong results by both ARN and TRN. Good ratings in New Zealand and some improved ratings in Australia contributed to the result.

"Outdoor's impressive performance was assisted by a range of new "blue chip" advertisers using the medium and by the increasing importance of outdoor in major brand campaigns. All APN outdoor companies, Buspak, Australian Posters, Cody and Adshel, performed well during the six months with further contract wins, particularly by Cody and Australian Posters. Recent industry statistics (CEASA) have shown that both radio and outdoor shares of advertising have increased. Our joint venture in Hong Kong, encompassing both Buspak and Cody, progressed well during the period, with strong profit growth and good contract wins by Cody.

"APN Digital's range of activities continued to expand during the six months. The launch of homehunter.com (regional properties being promoted in major metropolitan centres) will be followed by towntalk.com (community portals) in our regional centres. The innovative datacasting joint venture with Telecasters has recently commenced trials on the Sunshine Coast.

"APN Digital has continued to invest in the new media area, participating in the successful $40 million second capital raising in Peakhour (business to business internet) and increasing our shareholding to 15%. ARN has also invested in The Internet Amusement Group (on line games) with a 51% shareholding. We have also "rolled up" our stake in iTouch Australia (mobile data), obtaining a 4.1% stake in the recently floated iTouch plc. Soprano (mobile data) has won a number of significant contracts, including Telstra and is expanding its activities to Asia.

"Overall the second half has begun strongly and the Directors and management are confident of delivering an eighth consecutive year of profit growth."

Mr Healy thanked the management and staff for their contribution to a successful six months.

An interim fully franked dividend of 5.9 cents per share has been declared and is payable on 4 October 2000. Books will close on 15 September 2000.

Shareholders wishing to participate in the Dividend Reinvestment Plan (the rate of discount of which is 2.5%) who have not already lodged their election must do so on or before 11 September 2000 in order to participate. Registrable transfers received by the Company up to the close of business on 15 September 2000 will be registered before entitlements to the dividend are determined.

Ends. Tuesday, 15th August 2000 For Reference: Jim Milton/Pauline McAlester Murray Consultants Limited
Tel: +353 - 1 - 663 3332

Liam Healy
Independent News & Media PLC Tel: +353 - 1 - 475 8432

A copy of this release and further information on the Company can be found at http://www.apn.com.au.