5th Mar 2002

Australian subsidiary company results for the year ended 31 December 2001

APN News & Media Ltd (APN) (45% owned by Independent News & Media PLC), the largest operator in each of regional newspapers, radio broadcasting and outdoor advertising in Australasia and the leading metropolitan newspaper publisher and commercial printer in New Zealand, today announced a net profit of $48.2 million for the twelve months ended 31 December 2001. The result was marginally better than the forecast net profit included in the explanatory memorandum issued in November 2001 as part of the Wilson & Horton acquisition. While the assets and liabilities of Wilson & Horton have been consolidated in the closing balance sheet, no profits from their operations have been included in these results.

The Directors have declared a final dividend of 8.8 cents per share, taking the full year dividend from 14.7 cents per share to 14.8 cents per share.

Total revenue for the group was $598.7 million, down 3 per cent compared with last year, while net profit fell 5 per cent from $50.7 million to $48.2 million. APN's earnings per share were 18.0 cents compared to 19.7 cents in the previous year. The breadth of the group's geographical and operational base has provided a good buffer to the tough advertising market conditions which have affected all media companies.

These conditions affected all divisions to varying degrees. However, regional newspaper revenues have shown a recovery in the second half, which has continued in the current year. The radio and outdoor divisions have continued to experience weak advertising market conditions, especially in comparison with the 2000 Olympic year when advertising expenditure recorded significant growth.

The major development during the year was the acquisition in December of Wilson & Horton Limited for A$1.2 billion from Independent News & Media PLC. This was a transformative acquisition for APN and has positioned the company well for future growth. High quality assets were acquired, including The New Zealand Herald, the major metropolitan title in New Zealand, eight regional daily newspapers, and a strong commercial printing operation. The acquisition is earnings per share enhancing.

Other highlights of the year and more recently included:

• Important tender wins by Buspak in Sydney and Brisbane
• Radio licence wins in Brisbane and Perth in a joint venture with DMG
• Continued expansion in outdoor, both in Australia (Kablow and Claude Neon) and in Asia (Malaysia, Indonesia and Thailand).

In the regional newspaper division, economic conditions improved as the second half progressed with a noticeable strengthening in local and classified revenues. While Earnings Before Interest and Tax (EBIT) fell 11% for the year, the second half showed improved performances in both revenue and profit. The division's strong focus on cost control assisted performance throughout the year.

The broadcasting division's EBIT, encompassing operations in Australia and New Zealand, decreased by 5 per cent, reflecting a weak national advertising market in Australia. However, the division continued its strategic growth with important licences won in Brisbane and Perth, the latter following year end. The new Brisbane station (97.3FM) had a very successful debut, with strong ratings continuing in 2002. Continued emphasis on programming has led to generally more stable ratings as the year progressed.

In outdoor, advertising conditions got much tougher in the second half, with all group companies being affected. EBIT was down 12 per cent for the year as a result. Important contract wins by Buspak (in Sydney and post year-end, in Brisbane), together with continued investment in new businesses and operations in Australia and Asia, leaves the division well positioned when advertising market conditions improve.

Advertising bookings remain short term, therefore making advertising revenue hard to predict. However, based on the anticipated recovery in advertising in the second half, the Directors expect to achieve the forecast net profit after tax included in the Explanatory Memorandum issued as part of the Wilson & Horton acquisition last year.

A final fully franked dividend of 8.8 cents per share has been declared and is payable on 3 May 2002. Books will close on 26 April 2002.

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 19 April 2002, in order to participate. Registrable transfers received by the Company up to the close of business on 26 April 2002 will be registered before entitlements to the dividend are determined. Ends

For Reference:

James Parkinson Pat Walsh Group Finance Director Murray Consultants Ltd Independent News & Media PLC
Tel: 00-353-1-466 3200 Tel: 00-353-1-663 3318

Gavin O'Reilly
Chief Operating Officer
Independent News & Media PLC
Tel: 00-353-1-705 5455

Vincent Crowley
Chief Executive
APN News & Media Limited
Tel: 00-353-1-466 3200

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. 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.