Australian Subsidiary Company Results for the Half Year to 30 June 2001

The Directors have increased the fully franked interim dividend from 5.9 to 6.0 cents per share.

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

Total revenue for the group was down marginally to $285.2 million and pre-tax profit was down by 5 per cent to $46.7 million. However, net profit increased by 1 per cent to $22.1 million, due to a lower taxation charge and reduced outside equity interests. APN's earnings per share were 8.7 cents compared to 8.9 cents in the previous period.

The tough advertising market affected all divisions, with regional newspapers continuing to experience the challenging conditions previously reported in the second half of last year. However, the radio and outdoor divisions continued to show profit growth, which is noteworthy as both benefitted from a very strong advertising market last year in the lead up to the Sydney Olympics.

Other highlights included:

• Continued tight cost controls in the regional newspapers division.
• Brisbane licence win in a 50/50 joint venture with DMG.
• Promising outdoor investment opportunities being examined in Asia.
• Continued benefits of broad base of APN's media activities seen with slowdown in regional newspapers being largely offset by profit growth in outdoor.

Difficult regional economic conditions continued to affect revenues in the publishing division. However, effective cost controls have mitigated the impact of the revenue drop, with revenues down $9.1 m, but EBIT down $4.4m. Encouragingly, recent weeks have seen some pick up in trading in some regional centres, as the effect of improved regional economic conditions begin to take effect.

The broadcasting showed marginal profit growth with EBIT increasing to $23.1 million for the six months. The very strong advertising market in the first half last year was not replicated this year resulting in a tough half year comparison. The drop in revenues were countered by sensible cost controls resulting in a small profit increase. Continued emphasis on programming should improve results later in the year. The launch of the new Brisbane FM station, a joint venture with DMG to be managed by ARN, is expected towards the end of the year.

The outdoor division profits continued to grow, despite difficult conditions in the second quarter and the favourable effect of the build up to the Olympics in the previous period. Revenues grew by 6 per cent to $86.2 million and EBIT grew by 5 per cent to $14.1 million. The acquisition of Kablow and contract wins by all outdoor companies continue to provide major benefits to APN. The Buspak Sydney contract has been extended to the end of September and a decision on the tender is expected prior to that date.

Outdoor in Asia also showed profit growth with all operations contributing to the result. Further acquisition opportunities are being examined, with the recently acquired operations in Singapore and Malaysia performing well.

The outlook for the year is hard to predict, with advertising remaining volatile, albeit with some evidence of a pick up in trading conditions in our regional newspapers.

An interim fully franked dividend of 6.0 cents per share has been declared and is payable on 3 October 2001. Books will close on 14 September 2001.

Shareholders wishing to participate in the Dividend Reinvestment Plan (the current rate of discount of which is 2.5 per cent) who have not already lodged their election must do so on or before 10 September 2001 in order to participate. Registrable transfers received by the Company up to the close of business on 14 September 2001 will be registered before entitlements to the dividend are determined.

Ends. Tuesday, 14th August 2001

For Reference: Jim Milton/Pat Walsh Murray Consultants Limited Tel: +353 - 1 - 663 3332

James Parkinson Independent News & Media PLC Tel: +353 - 1 - 466 3200