20th Aug 2002

Australian subsidiary company results for the half year to 30 June 2002

APN News & Media Ltd (APN), (44% owned by Independent News & Media PLC) - owner of The New Zealand Herald and Australasia's largest operator of regional newspapers, radio broadcasting and outdoor advertising - today announced a 63 per cent rise in net profit after tax from $22.1 million to $36.0 million for the six months ended June 30, 2002.

For the first time, the result included the contribution to the group of New Zealand publisher Wilson & Horton, which was successfully acquired by APN in December 2001. The integration has gone smoothly and the new assets are performing well.

APN's earnings per share were maintained at 8.4 cents a share, despite difficult trading conditions. The Directors have announced a fully franked interim dividend of 6.0 cents per share, maintaining last year's interim cash dividend.

It was the tenth consecutive first half period of net profit growth since the group was floated in 1992.

Total reported revenue for the group increased 67 per cent from $285.2 million to $476.2 million, and Earnings Before Interest and Tax (EBIT) rose 62 per cent from $53.3 million to $86.6 million.

A good result from the publishing division in Australia and New Zealand offset softness in the Australian broadcasting and outdoor advertising markets. Good economic conditions in regional NSW and Queensland, as well as in the New Zealand economy, stabilised the overall group result despite challenging conditions that have adversely affected the results of most local media companies.

Highlights included:

• The successful ongoing integration of Wilson & Horton and the identification of annualised synergy savings exceeding $2.5 million
• Good profit growth for the regional newspaper group
• A number of important contract wins for the expanding Asia Posters group
• Buspak's Brisbane tender win, locking in place its national transit advertising network
• Confirmation of the benefit of APN's strategic mix of media assets across sectors and geographies to help offset slowdowns in any one market
• The winning of the Perth radio Licence auction in a joint venture with DMG.

Publishing

Following the Wilson & Horton acquisition, the publishing division now includes New Zealand's premier metropolitan newspaper, The New Zealand Herald, as well as 14 regional dailies in Australia, nine regional dailies in New Zealand, more than 90 non-dailies across the two countries and a significant printing group. Total divisional revenue increased 2.8 per cent to $301.3 million on a like for like basis, returning a 6.6 per cent rise in EBIT to $64.3 million. Two highlights of this performance were the increases in underlying operating performance of 6 per cent in the New Zealand Herald and 12 per cent in the Australian regional newspapers. The result was driven by a greater concentration on local advertising and serving the needs of local readers and businesses. Total group circulation was up, both in volume and revenue.

Broadcasting

In line with softer advertising expenditure across the Australian radio market, the broadcasting division's revenue fell 5.2 per cent to $89 million, with EBIT down to $19.7 million. However New Zealand's TRN network maintained growth and market share, while ARN's new Brisbane joint venture station 97.3FM has established itself as the city's second highest rating station just a few months after its launch.

Outdoor

The outdoor division's revenue fell 4.8 per cent to $82.1 million and EBIT fell to $7.2 million. The result reflects the slowdown of the world market in outdoor advertising and heavy price competition in Australia. However the division maintained its leading market share in Australia, while winning important domestic and Asian contracts.

Outlook

The Board believes that, assuming the expected upturn in the advertising market and the continuation of operational improvements over the remainder of the year, profit forecasts for the full year remain achievable.

An interim fully franked dividend of 6.0 cents per share has been declared, maintaining last year's interim cash dividend, but representing an increase of 3.5 per cent over last year's adjusted interim dividend. The dividend is payable on 2 October 2002. Books will close on 16 September 2002. 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 9 September 2002 in order to participate. Registrable transfers received by the Company up to the close of business on 16 September 2002 will be registered before entitlements to the dividend are determined.

APN News & Media Ltd is a broadly-based Asia-Pacific media company. It is Australia's largest operator in regional newspapers, radio broadcasting and outdoor advertising with interests also in educational publishing and pay television. In New Zealand, the group also publishes the leading metropolitan newspaper, The New Zealand Herald, as well as leading regional and community newspapers and magazines. It also has significant printing operations.

Ends. Tuesday, 20th August 2002

For Reference:

Gavin O'Reilly, Chief Operating Officer, Independent News & Media PLC, Tel: +353 - 1- 4663200

Donal Buggy, Chief Financial Officer, Independent News & Media PLC, Tel: 353 - 1- 4663200

Pat Walsh, Murray Consultants Ltd, Tel: +353-1-4980300