29th Mar 2000

Independent News & Media PLC announces results

RESULTS 1999 1998 Change EURm EURm % Turnover 1,168 799 +46.2 Operating Profit* 192 139 +38.1 Profit before tax 143 85 +68.2 Fully diluted earnings per share** 30.72c 24.56c +25.1 Dividends per share 13.33c 11.43c +16.7

HIGHLIGHTS FOR THE YEAR - Strong performances in Ireland, Australia and New Zealand. - iTouch expands internationally. - Unison launches "internet on TV" initiative in Ireland. - UK Independent makes circulation gains - losses reduced. - South African economy set for recovery. - EUR200 million 10 year bond issued at coupon of 5.75%. - Group restructuring plan substantially completed. - Successful bid for Belfast Telegraph since year end.

• Continuing activities before exceptional items ** Before exceptional items and amortisation

Commenting on the results and prospects Dr AJF O'Reilly, Chairman said:

"After a challenging start to the year, when many economies were only emerging from the Asian crisis, your Group achieved steady and sustained performance growth throughout 1999, demonstrating the vitality and breadth of our market leading brands.

"Since 1973 the compound annual return to shareholders with dividends reinvested is 27%.

"Our restructuring plan is achieving significant savings in our core operations, and Independent Digital is producing tangible results in the new media area.

"I believe the current year will bring further growth and exciting developments for your Group."

INDEPENDENT NEWS & MEDIA PLC

PRELIMINARY ANNOUNCEMENT OF RESULTS

FOR THE 54 WEEKS ENDED 31ST DECEMBER 1999

PRE TAX PROFIT UP 68% TO EUR143 MILLION

INDEPENDENT DIGITAL GROWING STRONGLY

Independent News & Media PLC announces record turnover of EUR1.17 billion for the 54 weeks ended 31st December 1999 compared with EUR799 million in 1998, an increase of 46%.

Group operating profit from continuing operations before exceptionals at EUR192 million is 38% up on the 1998 figure.

Fully diluted earnings per share, excluding exceptional items and amortisation were 30.72c, up 25% from 24.56c in 1998.

Independent News & Media is a fast growing international media and communications group. Ten year performance in terms of shareholder return, is a very impressive 25% compound per annum. Annual EPS growth (fully diluted before exceptionals and amortisation), is a very satisfactory 14.3%. In the same ten year period, the Group achieved a 22% compound annual growth in turnover, 27.3% in operating profits before exceptional items, 31.4% in pre tax profits and 14.9% in dividends per share. Market capitalisation to date has grown from EUR115 million to over EUR2.6 billion since 1990. A shareholder who invested the equivalent of EUR1,000 in 1990, with dividends reinvested, has a holding currently worth EUR9,600. Since 1973 the compound annual return to shareholders with dividends reinvested is 27%.

The Board is recommending a final dividend of IR7p (8.89c) per share, making a total dividend for the year of IR10.5p (13.33c), an increase of 16.7% on 1998. A scrip issue alternative is again available to shareholders. Relevant Share Certificates and/or Dividend Warrants will be posted on 31st May 2000 to ordinary shareholders registered at the close of business on 14th April 2000.

Operations

In Australia, APN News & Media reported a 56% increase in operating profits to a record A$109.3 million (EUR66.1m) together with a 20% increase in net profit after tax and minority interests to A$42.4 million (EUR25.6m). This is the company's seventh consecutive year of profit and dividend growth since its flotation in 1992.

APN is 41% owned by Independent News & Media PLC and is the top performing media stock in terms of EPS growth in Australia over the last five years. APN is the largest operator of regional newspapers, radio stations and outdoor advertising in Australasia and achieved double digit growth in each of these divisions, confirming the success of the company's unique multi-media strategy.

The Outdoor Advertising division in particular had a very successful year, increasing operating profits by 51%.

In the Regional Newspapers division, solid growth continued with operating profits up by 11% over the previous year.

APN's Broadcasting division posted another good result with operating profits up 11%.

APN has been at the forefront of acquiring stakes in new media companies on a 'space for equity' basis. A number of investments have been made and include 12% of Peakhour (business to business services); 25% of Soprano (WAP e-commerce design) and iTouch Australia (mobile information services). APN Digital has also established a number of successful internally generated internet sites and is working on building a portfolio of internet assets that will build real value around the group's existing print and radio franchises.

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

In Ireland, operating profits grew by 17% to EUR63.3 million and turnover grew by 11% to EUR310.5 million. The Irish economy continues to grow strongly and all of the group's market leading brands benefited from increased advertising, buoyant circulations and readership.

Independent titles cumulatively enjoyed very strong growth in advertising and outpaced the overall market growth of 12%, with strong market share gains in colour, technology (dot.com), classified and display.

Circulations and readership grew year on year, and the flagship Irish Independent achieved a seventeen-year circulation high of 165,500, despite significant competitor activity. The group's titles remain the undisputed market leaders in every segment in which we compete with a very strong 50% ABC market share and an even more impressive 72% readership penetration.

The construction of the new EUR60 million print plant is well advanced and on schedule. Union negotiations are at an advanced stage and the state-of-the-art facility will be fully operational before year end.

Early in the current year, Unison - the Irish internet service provider - launched a revolutionary initiative to enable internet access through conventional television. This followed the acquisition of Internet Ireland in February. Unison is a joint venture with Princes Holdings (PHL), and the exclusive portal for PHL which is Ireland's second largest cable operator currently managing over 250,000 subscribers (versus 150,000 in 1998) throughout Ireland, with homes passed in excess of 650,000. The response to this internet initiative has been very strong and Unison has accelerated the purchase of additional digital set top boxes from Netgem SA of France which now exceeds IR