INM Announces Placing of 51,864,150 New Ordinary Shares

The Placing comprises two separate tranches. The first tranche of 25,932,075 Ordinary Shares, representing approximately 5% of the existing issued share capital of the Company prior to the Placing, is within the existing allotment authorities of the Directors of the Company. The second tranche, comprising 25,932,075 Ordinary Shares, representing approximately 5% of the existing issued share capital of the Company prior to the Placing, is conditional on grant of allotment authorities to the Directors of the Company, such authorities to be sought at an Extraordinary General Meeting to be convened for this purpose.

Sir Anthony O'Reilly, Executive Chairman of the Company and beneficially interested in 139,823,116 Ordinary Shares therein, representing 26.90% of the existing issued share capital of the Company, has committed to subscribe for 13,951,456 New Ordinary Shares pursuant to the Placing, being such number as will maintain the percentage represented by his interest in the enlarged issued share capital of the Company.

It is envisaged that the proceeds of the Placing amounting to approximately EUR104 million before expenses (which are estimated to be approximately EUR2 million) will be used to support the growth of the Group, to reduce short-term and long-term indebtedness and for general corporate purposes.

Application will be made to the Irish Stock Exchange Limited and to the London Stock Exchange plc for the New Ordinary Shares to be admitted to the Official List of the Irish Stock Exchange and the Official List maintained by the UK Listing Authority respectively, and to the Irish Stock Exchange and the London Stock Exchange for admission of the New Ordinary Shares to trading. It is expected that admission will be effective and that dealings in the New Ordinary Shares comprising the first tranche of the Placing will commence on 10 September, 2001 and it is expected that, conditional upon the passing at the EGM of resolution(s) necessary to effect this element of the Placing, admission will be effective and that dealings in the New Ordinary Shares comprising the second tranche of the Placing will commence on 2 October, 2001.

The New Ordinary Shares will rank pari passu with the existing ordinary shares in the Company, save that they will not be entitled to the interim dividend announced by the Company on 5 September, 2001.

Ends. Wednesday, 5th September 2001

For Reference: James J Parkinson, Group Finance Director Gavin K O'Reilly, Chief Executive - Ireland Independent News & Media PLC Tel: +353 - 1 - 466 3200

Brendan MA Hopkins Chief Executive - United Kingdom Independent News & Media PLC Tel: +44 - 20 - 7005 3800

Jim Milton Murray Consultants Tel: +353 - 1 - 663 3313/+353 86 2558400

Kyran McLaughlin, Head of Equities Davy Stockbrokers Tel: +353 - 1 - 679 7788