INDEPENDENT NEWS & MEDIA PLC

Independent News & Media PLC, a leading international media group, is today issuing a trading update in respect of the financial year ending 31st December 2001.

This statement is intended to update investors on the Group's progress in the current year, in advance of the Company's full year results announcement planned for 27th March 2002. This trading update follows the successful restructuring of Independent News & Media PLC's Australasian operations, which was announced last week, and represents the first available opportunity to issue a pre-close trading update and provide guidance on our trading prospects for 2002.

Despite negative commentary on media stocks worldwide and the state of the advertising market in general, Independent News & Media PLC is pleased to announce that its worldwide operations continue to outperform its media peer group.

Revenues Our globally diversified operating base - centred in our 5 primary markets of Ireland, Australia, New Zealand, South Africa and the United Kingdom - is expected to deliver total revenues in line with those achieved in 2000, and up over 4% in constant currency terms. Strong circulation volumes and price increases for the vast majority of our 200+ titles have enhanced revenues and have more than offset the recent volatility in advertising seen early in the4th Quarter. While advertising volatility has become more pronounced since the tragic events of September 11th and the resultant global slowdown, our total advertising revenues for the full year are expected to be only down 1% on last year. Immediately following September 11th, our total advertising revenues did contract somewhat - but by less than 4% year on year. However, in recent weeks, advertising has shown an improvement.

Operating Profits Individually, each of our operations continue to trade well, and we expect operating profits for 2001 to be in line with the year to December 2000, despite the unusually volatile and uncertain advertising market conditions. This result will represent an increase of approximately 6% on last year inconstant currency terms.

This strong performance will be achieved having fully accounted for adverse currency movements and newsprint price increases in 2001, which were in excess of 14%. In addition, our market leading newspaper titles continue to deliver good organic growth, and prudent investment in our titles and brands resulted in number of prestigious editorial accolades. Our continued focus on, and relentless pursuit of, cost economies across every division of the Group is also expected to deliver an increase in operating margins for 2001.

Following major strategic investments made during 2000 including the acquisition of the Belfast Telegraph Group, the relocation of the UK Group and the completion of our Euro60m full-colour production facility at Citywest, the Group's interest charge is expected to be over 25% higher than in 2000. However, following the successful Euro102m share placement in October and there cent restructuring of Wilson & Horton into APN News & Media (now 45% owned by Independent News & Media PLC), the interest charge is expected to reduce significantly going forward, due to substantially reduced debt levels and lower interest rates.

Outlook Independent's strong brands, leading market positions, and geographic diversity leaves the Group extremely well positioned to deliver an improvement in earnings for 2002.

Despite a somewhat fickle and hesitant advertising market, advertising visibility is improving and circulation revenues remain very positive. The Group's much lower debt levels, coupled with lower interest rates, will result in a substantially reduced interest charge for 2002. In addition, significant cost efficiencies continue to be delivered within each operation, and the Group anticipates a major fall in newsprint prices through 2002.

The success of our leading editorial products - uniquely serving their local markets - coupled with ongoing efficiencies should sustain our increased margins, and provide a strong platform for future EPS growth. Ends Wednesday, 12th December 2002

For Reference: James Parkinson Group Finance Director Independent News & Media PLC Tel: +353 - 1 - 466 3200

Gavin O'Reilly
Chief Executive - Ireland
Independent News & Media PLC

Tel: +353 - 1 - 705 5455

Jim Milton/Pauline McAlester
Murray Consultants

Tel: +353 - 86 - 255 8400/ +353 - 1 663 3323