4th Mar 2003

Australian subsidiary company results for the year ended 31st December 2002

APN News & Media Ltd (APN), (44% owned by Independent News & Media PLC), today announced a record net profit for the 12 months ended December 31 2002 of A$90.2 million, up 87% from the previous year.

Earnings per share were 20.8 cents, up 16% from 18.0 cents in 2001. The Directors have declared a final dividend of 10.0 cents per share, taking the full year dividend from 14.6 cents per share to 16.0 cents per share.

APN Chief Executive Brendan Hopkins said: "The overall growth in group revenue and profit was driven by a strong second half result from the publishing businesses in both Australia and New Zealand. Radio also had a strong fourth quarter in both markets.

"The group's mix of quality media assets across a variety of economies has produced good growth results. Our publishing assets in Queensland, northern New South Wales and New Zealand have outperformed expectations and have delivered a 16% growth in EBIT on a like for like basis.

"Because of the continuing strength of the business, the Board has declared a 9.6 per cent increase in dividends for the year."

The result includes the full-year benefit of the Wilson & Horton acquisition. Total group revenue was A$1,072 million, up 79% from A$599 million in 2001, and group EBIT was A$205 million, up 77% from A$116 million. On a like for like basis, group revenue improved 8% and EBIT grew 2%. In the second half, EBIT grew 37% on the 2002 H1 result on a like for like basis.

The result also includes an A$4.6 million EBIT contribution from a series of non-operating transactions, the principal one of which was the equalisation of shareholding in New Zealand Radio Network (NZRN) between APN and Clear Channel Communications - a transaction foreshadowed at the time of the Wilson & Horton acquisition.

Profitability of Wilson & Horton Limited performed ahead of the Explanatory Memorandum forecast issued prior to the acquisition.

Publishing

Publishing revenue was A$558 million in 2002, an increase of 171% on the 2001 result and up 9% on a like for like basis. EBIT was A$138 million, up 231% on 2001 and 16% on a like for like basis.

In the second half, revenues were ahead by 15% and EBIT increased by 22% on a like for like basis versus prior year.

In Australia, after a satisfactory first half performance, economic conditions in APN's regional markets improved significantly in the second half. The drought that affected inland areas of Queensland and New South Wales had limited impact on APN's newspapers, which are mostly based along the coast. Good recent rains in Central Queensland and northern New South Wales will we hope reduce fears of any negative impact in 2003.

Major government and private enterprise infrastructure projects in Queensland, continuing strong residential property markets and strong growth in domestic tourism have contributed to generally robust economic conditions in APN's Australian regional markets.

All major classified advertising categories produced volume growth, with particular strength in property and employment. Total advertising revenue was up 8%, with volumes up 7% and advertising yield up 1%. Circulation volumes for APN's Australian titles grew more than 2% in the six months to December 2002 compared with the corresponding period in the prior year.

In New Zealand, the Auckland economy experienced continued strong growth, boosted by net immigration and record tourism numbers. The New Zealand Herald grew advertising revenue by 4% on a like for like basis, maintaining yield and increasing volume. In addition, circulation revenue was up 5.5% on the previous year. A number of new publishing initiatives are being planned for the coming year, including the launch of a quality colour magazine in The Weekend Herald on March 8.

The Company's New Zealand regional newspapers performed ahead of expectations. On a like for like basis, advertising revenue increased by 9%, with a 3% increase in volume and 6% yield improvement.

During the year, APN acquired the Wairarapa Times-Age in Masterton and the Te Puke Times in the high growth region of the Bay of Plenty. Both publications were important in-fill acquisitions in the North Island.

Overall, publishing accounted for 52% of APN group revenue and 64% of group EBIT in 2002, highlighting the ongoing strength of the company's newspaper assets and the markets in which they operate.

Results in the first quarter of 2003 have continued to perform above expectations in Australia and New Zealand.

Radio

In 2002, radio revenues grew 22% to A$239 million, and EBIT was A$55 million, up 6% on 2001. The result includes a one-off revenue and EBIT contribution from the NZRN share equalisation. On a like for like basis, radio revenue grew by 1.3% and EBIT was marginally down. Excluding the impact of the NZRN equalisation, second half revenues were up 7%, with EBIT 7% ahead on a like for like basis.

In Australia, the strong fourth quarter largely compensated for the earlier weakness in national advertising. ARN's continued strength in local direct sales, representing more than 50% of total revenue, reduced the network's exposure to the sluggish national market.

Good survey results for the Classic Hits stream produced a gain of 180,000 listeners over the year, with strong results in the commercially important Sydney and Melbourne markets. The Mix music format was steady in Sydney and Melbourne and achieved good market share gains in Brisbane and Adelaide. The new Perth FM joint venture with DMG Radio launched in December.

In the latest survey results, Mix in Sydney and Gold in Melbourne were the only FM stations to increase audience share in their markets.

In New Zealand, The Radio Network (TRN) continued to lead the local market with the number one audience share in the three main markets of Auckland, Wellington and Christchurch. In total, 55% of New Zealanders listened to one of the Company's stations each week.

The Radio division has performed above expectations in the first quarter of 2003 and while forward bookings are short, early indications for the second quarter are positive in both Australia and New Zealand.

Outdoor

Market conditions improved in the second half, however revenue for the year was down 6% to A$176 million, and EBIT down 46% to A$16 million.

Important gains in market share were achieved through the securing of a number of strategic contracts together with the planned reduction of inefficient inventory in the marketplace.

Buspak: New advertising formats were launched that further extended the versatility of bus advertising. Significant work was also completed for a trial of an in-bus television advertising system in Sydney, which has attracted strong advertiser interest. In New Zealand, the business produced strong growth over the year, with good advertiser support for the medium.

Cody: The business achieved a major contract win at the end of 2002 in the Melbourne marketplace with the acquisition of the Victrack tender. The contract provides more than 80 additional quality sites throughout Victoria and will complement existing Cody sites at Melbourne Airport and Citylink.

Adshel: Adshel in Australia secured strategic market growth during the year. The New Zealand market performed well, with new signage plant launched in major local regions. Overall, Adshel had a strong fourth quarter, however the market remains competitive.

Australian Posters: Significant work was undertaken to improve signage presentation. Taxi Media also experienced good growth with the introduction of a new illuminated rooftop module.

Asia Posters: The division's Asian operations continued to experience good growth, particularly in Malaysia and Indonesia.

The Outdoor division performed below its peaks of previous years but forward orders are improving, which bodes well for a better outcome in the second half of 2003.

Print

APN's print assets, acquired with Wilson & Horton, represented 8% of overall group revenue and 4% of group EBIT. The print companies include high quality colour sheet fed and web presses, as well as security cards and cheque printing. Overall revenue was steady and EBIT was down 27% on a like for like basis due to reduced margins in a strongly competitive market.

The market remains competitive for print operations. The first quarter in 2003 is in line with expectations, however results are below last year's equivalent performance.

Outlook

Group revenues and EBIT for the first quarter have continued the positive trend from the last quarter of 2002. Each of the five trading divisions is trading in line with or above expectation, and in aggregate significantly ahead of the first quarter of 2002.

Subject to current market conditions prevailing, the Board believes an improvement in results in 2003 is likely.

A final fully franked dividend of 10.0 cents per share has been declared and is payable on 1 May 2003. Books will close on 22 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 14 April 2003, in order to participate. Last year 9.5% of shareholders elected to join the DRP. Registrable transfers received by the Company up to the close of business on 22 April 2003 will be registered before entitlements to the dividends are determined.

Ends 4 March 2003

For Reference:

Pat Walsh
Murray Consultants Ltd
Tel: 00-353-1-498 0300

Gavin O'Reilly
Chief Operating Officer
Independent News & Media PLC
Tel: 00-353-1-466 3200

Donal Buggy
Chief Financial Officer
Independent News & Media PLC
Tel: 00-353-1-466 3200

Brendan Hopkins
Chief Executive
APN News & Media Limited
Tel: 00-353-1-466 3200