27th Feb 2001

Australians Subsidiary Company Results for the Year Ended 31 December 2000

APN News & Media Limited (APN) (41% owned by Independent News & Media PLC), the largest operator in each of regional newspapers, radio broadcasting and outdoor advertising in Australasia, today announced a 20 per cent rise in net profit to a record A$50.7 million for the year ended 31 December 2000.

APN's earnings per share increased from 17.4 cents to 20.4 cents, an increase of 17 per cent over the previous period.

As a result the Directors have increased the final dividend from 8.0 to 8.8 cents per share, taking the full year dividend from 12.6 cents to 14.7 cents per share, an increase of 17 per cent.

The result was the eighth consecutive year of net profit and dividend growth since the company was floated in 1992, and directors expect further profit growth in the current financial year.

Total revenue for the Group increased by 18 per cent to A$615.2 million, total EBIT by 17 per cent to $128.0 million, and pre-tax profit by 18 per cent to A$113.0 million.

The group's four outdoor advertising operations were the standout performers last year, with their EBIT (Earnings Before Interest and Tax) rising 62 per cent, continuing the strong growth trend evident in the last two years.

Other highlights include:

• Tight cost controls and innovative revenue initiatives countered tough regional economic conditions in the second half.
• In broadcasting, ARN management has been strengthened with the recent appointment of the new Group Programme Director from Clear Channel, Mr Alan Furst. The new Chief Executive Officer of ARN, Mr Bob Longwell was appointed in November, also from Clear Channel, and both have already provided significant benefits to the group through their experience and expertise.
• APN's outdoor expansion in Asia will be assisted greatly with the recent move of John Smallwood, former CEO of Australian Posters, to Singapore.
• Specialist Publishing rationalisation was largely completed during the year.

Commentary by Chairman, Liam Healy:

"APN's broadly based media operations have enabled the group to continue its strong profit growth, lessening the impact of a slowdown in any particular area, an example of which was weaker second half trading in our regional newspaper division. Of particular satisfaction is the financial performance in the second half where the increase in APN's EBIT and net profit is in contrast to the downturns reported by a number of our media peers in recent weeks.

While the regional newspaper division posted a flat EBIT, this was a good performance in light of exceptionally tough trading conditions, especially with the impact of GST, rising petrol prices and interest rates, as well as weak commodity prices. Double digit growth in newsprint prices also affected the second half results. However, strong cost controls (costs in the second half were down on the comparable half last year, despite the newsprint price increases) and innovative advertising and circulation initiatives helped lessen the impact of the tough economic conditions.

With a greater emphasis on targeting the most affluent audience demographics, our broadcasting EBIT grew by 18 per cent with both New Zealand and Australia contributing to the growth. Like a number of companies, our broadcasting second half performance in Australia was adversely affected by the Sydney Olympics. In New Zealand, The Radio Network continued its strong profit growth. Our recent restructuring and programming appointments are already delivering further improvements as evidenced by the recent survey results in the key markets of Sydney and Melbourne.

Our Outdoor divisions continued their record of strong revenue and profit growth. All our outdoor companies - Adshel, Australian Posters, Buspak and Cody - performed strongly during the year. Contract wins by Cody and Australian Posters and expansion of our outdoor activities through the recent acquisition of a stake in Captive Media, a company operating in mobile billboards, continue the expansion of this division, despite the recent loss of the Adelaide Buspak tender which will have little impact on profitability.

Outdoor in Asia developed on a number of fronts. Good profit growth was recorded by Buspak and Cody in Hong Kong and Citydreams, the taxi advertising business, in Singapore. Subsequent to year end, a further acquisition was made, a 51% initial stake in Kurnia Outdoor in Malaysia.

APN's modest investment in new media activities continued to build their market presence through the launch of homehunter.com and the recent launch of towntalk.com on the Sunshine Coast. No new external investments were made and existing investments in Peakhour, Soprano and iTouch continued to develop satisfactorily during the year.

APN's group profit is expected to grow in the current year, despite the uncertain economic backdrop in our markets, due to the benefits of a broad base of activities and geographic diversification.

A final fully franked dividend of 8.8 cents per share has been declared and is payable on 2 May 2001. Books will close on 24 April 2001.

Shareholders wishing to participate in the Dividend Reinvestment Plan (the current rate of discount of which is 2.5%) who have not already lodged their election must do so on or before 18 April 2001 in order to participate. Registrable transfers received by the Company up to the close of business on 24 April 2001 will be registered before entitlements to the dividend are determined.

Ends. Tuesday, 27th February 2001 For Reference: James Parkinson Group Finance Director Independent News & Media PLC Tel: +353 - 1 - 466 3200

    Vincent Crowley

Chief Executive APN News & Media Limited Tel: +61 - 2- 9368 1499

Jim Milton/Pauline McAlester Murray Consultants Limited Tel: +353 - 1 - 663 3332

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

APN News & Media Ltd is a broadly-based Asia-Pacific media company. It is Australasia's largest operator in regional newspapers, radio broadcasting and outdoor advertising with interests also in educational publishing and pay television. The company has leveraged its marketing assets, particularly in radio and outdoor, to secure equity in promising new media companies.