29th Feb 2000

Australian subsidiary company results for the year ended 31 December 1999

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 20% increase to a record $42.4 million net profit for the year ended 31 December 1999. Excluding goodwill, APN's net profit increased by 23% to $45.4 million, and in the period July-December 1999 increased by 31%.

Directors have increased the final dividend by 25% from 6.4 to 8.0 cents per share, bringing the total payout for the year to 12.6 cents per share, a rise of 20% over last year's 10.5 cents per share.

The result was the seventh consecutive year of net profit and dividend growth since the Company was floated in 1992.

Total revenue for the Group increased by 35% to $521 million, total EBIT by 56% to $109.3 million, and pre-tax profit by 66% to $95.8 million. These figures incorporate the consolidation of ARN from 1 January 1999, and TRN from 1 July 1999.

APN Chairman Liam Healy said the strong result was driven by the broad nature of the group's assets. Double digit profit growth was achieved in each of APN's divisions - publishing, broadcasting and outdoor advertising - thus confirming the success of the Company's unique multi-media strategy.

"The Outdoor Advertising division in particular had a great year, increasing operating profits by 51%," he said.

Other highlights include:

• Regional newspapers profits up 11%
• Acquisition of Gympie Times and other Queensland newspapers
• Specialist publishing achieving a small profit
• Broadcasting - ARN profits up 11%, TRN EBITDA up 50%
• PanTV exceeding 170,000 subscribers
• Outdoor joint venture in Hong Kong with Clear Channel
• APN Digital's mobile data investments (Soprano and iTouch) and Peakhour
• EBIT margin growth in all divisions
• Early signs positive for eighth consecutive year of profit growth
• Total assets and market capitalisation exceeding $1 billion

"In the Regional newspapers division, solid growth continued with operating profit up by 11% over last year. Improved growth in local display revenue, up 6% over 1998, and a strong recovery in national advertising in the second half helped deliver a good result. Circulation volumes continued to improve in the second half with the total Group ABC result up 2% for H2 1999. The ongoing regionalisation of classified call centres has delivered improved performances in classified lineage, and greater operational efficiencies. Another productivity measure, APN Newspapers' Shared Service Centre based in Maroochydore, has also improved efficiencies in the finance and administration area.

"The specialist publishing unit had a satisfactory result, achieving a small profit versus a loss of approximately $1 million in 1998, following the sale of the Daily Commercial News and 5 small business magazines for $12 million.

"Our broadcasting division posted another good result with operating profits in Australia up 11%. Strong local revenues and a continued focus on costs offset sluggish ratings to generate double digit profit growth again in 1999. The turnaround in New Zealand continued, with The Radio Network achieving an EBITDA performance 50% ahead of 1998. The ratings survey in late 1999 was also strong for TRN, with the network continuing to hold the number one position in the three major markets - Auckland, Wellington and Christchurch. PanTV, in which ARN has a 30% share, continues to grow rapidly, with subscriber numbers now in excess of 170,000.

"Outdoor's impressive performance was the result of the substantial consolidation and restructuring work done in previous years. The Outdoor medium has been traditionally under-valued in the Australian market but is now increasingly being recognised as a true mass-market medium."

Mr. Healy said some of the growth in Outdoor could be traced to the emergence of internet companies as a new advertising category. "Advertising spend by the 'dot com' businesses on APN's Outdoor assets increased by more than six times the 1998 figure, and underlines part of our digital strategy of making real operating profits today from the internet. We expect this growth to continue as the internet industry becomes more competitive over the next few years."

"APN's Outdoor companies are the market leaders in each of the four main Outdoor categories in Australia: Transit (Buspak), Street Furniture (Adshel), Posters (Australian Posters) and Supersites (Cody Outdoor). Important gains have also been made in Hong Kong through Buspak and Cody, with contract wins and acquisitions opening new markets to the group. Major contract wins in Australia throughout 1999 point towards a continued strong performance from this division.

"Subsequent to the year-end, APN and Clear Channel entered into a joint venture agreement focussing on the development of outdoor advertising activities in Hong Kong, and encompassing the existing activities of Buspak and Cody in that market."

"The Group's new media division, APN Digital, had a promising first year of operations, launching a number of new internal internet ventures as well as undertaking three strategic investments with start-up new media companies. The division has established a number of internet sites to protect the Publishing group's classified and real estate display advertising revenues from online competitors, and is working on a portfolio of internet assets that will build real value around the Group's existing print and radio franchises.

"APN Digital has identified categories in the new media area that have good business potential, and has used spare advertising inventory from around the Group as a currency to acquire equity in three companies. The market has responded positively to the investments of 12% of Peakhour (business-to-business internet), 35% of iTouch Australia and 25% of Soprano Design (both in mobile data).

"Since 1993, APN's first full year as a public company, APN has had a compound average growth rate in pre-tax profits of 24%, net profits of 18%, earnings per share of 12%, and dividends of 14%. According to independent research, APN has had the highest growth (compound average growth rate) in normalised earnings per share over the last five years of any of the eight largest listed media companies in Australia.

"The 2000 year has begun strongly across all divisions. Directors and management are determined to deliver an eighth consecutive year of profit growth.

"During 1999 APN Chief Executive, Cameron O'Reilly, announced his retirement from executive duties and his return to Europe to pursue private business interests effective 1 July 2000. He will retain his position on the Board. I would like to pay a special tribute to Cameron O'Reilly for all he has done for APN during his 12 years with the Company, and especially while he has been Chief Executive. Since 1996, he has guided the Group through a period of successful development which has seen APN's market capitalisation grow from under $500 million to more than $1 billion. He leaves APN as one of the most broadly-based media companies in Australasia, consistently delivering above-average shareholder value. Cameron O'Reilly will be replaced as Chief Executive by Group Finance Director, Vincent Crowley, who with Cameron, has played a central part in the company's success over the last few years. In addition, I would like to thank the management team and all APN employees for their contribution towards producing another good result for shareholders.

A final fully franked dividend of 8.0 cents per share has been declared and is payable on 4 May 2000. Books will close on 27 April 2000.

Shareholders wishing to participate in the Dividend Reinvestment Plan (the rate of discount of which is now 2.5%) who have not already lodged their election must do so on or before 17 April 2000 in order to participate. Registrable transfers received by the Company up to the close of business on 27 April 2000 will be registered before entitlements to the dividend are determined.

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

Ends. Tuesday, 29th February 2000

For Reference:

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

Jim Milton/Pauline McAlester, Murray Consultants Limited, Tel: +353 - 1 - 632 6400