15th Oct 2002

INM updates Australasian trading outlook as APN strengthens management

Trading

Since the APN interim results were issued to the market in mid-August, there have been a number of developments in INM's Australasian operations.

The New Zealand Herald

Trading continues to perform comfortably ahead of 2001 and in line with expectations set at the time of its acquisition. On 27th September, new distribution agreements were finalised to allow the country's largest circulating newspaper to market and distribute significantly more copies nationally. In August, The New Zealand Herald launched a Super Sports tabloid to cater for the weekend sports market, with early indications showing additional sales of 3,000 copies; average daily sales of The New Zealand Herald are now in excess of 210,000.

Regional Newspapers

The regional newspapers in both Australia and New Zealand experienced improved advertising bookings in September and October, driven by continuing growth in classified advertising, specifically local employment and property. Reflecting the robust nature of local economies, industries such as tourism, mining and housing continue to perform well. In addition, a number of major mineral-based development projects are underway in Central Queensland, further enhancing economic growth prospects. In New Zealand, retail and property advertising also showed continued strength. The newly acquired title, The Wairarapa Times-Age, has delivered better than projected profits since its acquisition in July.

Radio

NM's radio division ['ARN'], the largest radio operator in Australasia with an Australian daily audience in excess of 4 million listeners, showed good advances in the latest ACNielsen ratings (September), with gains in the commercially important 25-54 demographic. In its biggest metropolitan market - Sydney - both Mix106.5 and WSFM were the only FM stations to have grown their audiences this year. In Melbourne, GoldFM secured the number two FM station position. In Brisbane, the new joint venture station, New97.3, continued to build its market share and is already trading ahead of expectations. Though national advertising remains sluggish and ARN's results continue below budget expectations, ARN has seen a recent uplift in its advertising in both national and retail.

Outdoor

The Outdoor division continues to experience slow national advertising, but there is evidence of a seasonal improvement in bookings, specifically for the 4th quarter. However, these improvements have yet to translate into a pronounced financial upgrading. The Outdoor division continued its strategic expansion, with a number of important contract wins. Particularly, Adshel was awarded the contract for Mosman/ Sydney council, and Asia Posters continues to identify and pursue a number of opportunities in different Asian markets.

Specialist Magazines

The Specialist Magazines Group now publishes New Zealand's most popular magazine, New Zealand Woman's Weekly, which increased its sale by 5% in the latest Audit Bureau of Circulation.

Management

Effective immediately, APN's operations will now comprise five separate divisions.

APN Division, Chief Executive, The New Zealand Herald, Ken Steinke

Regional Newspapers (Australia & New Zealand), Martin Simons

Broadcasting, Bob Longwell

Outdoor, Pierce Cody

Print & Specialist Magazines, Phil Eustace

APN also announced a number of other executive appointments. Craig Marsh becomes Chief Operating Officer of New Zealand regional newspapers reporting to Martin Simons; Richard Newsome becomes Group Communications Director; Michael Ellies becomes Head of Group Operational Services; Ming Long becomes Group Financial Controller and Cormac O'Shea becomes Group Finance Manager.

Outlook

APN's trading for the third quarter of 2002 has produced satisfactory results, particularly in its publishing divisions. APN's Chief Executive, Brendan Hopkins, confirmed that on the basis that current trading conditions continue for the balance of the year, the consensus market forecast for a Net Profit After Tax of A$84.7 million in 2002 (from a range of 10 brokers that cover APN) is achievable, and could be exceeded.

INM's Executive Chairman, Sir Anthony O'Reilly said:

"Representing as it does nearly 50% of our business, APN's reaffirmation of its trading prospects for 2002 has major positive implications for shareholders of Independent News & Media.

"Our publishing and newspaper businesses in New Zealand and Australia have performed well, and while Australian radio and outdoor have yet to match last year due to a still sluggish national advertising market, recent trends point to improving conditions for the 4th quarter and beyond. We believe that the company will continue to outperform its peer group.

"The underlying strength of Independent's leading brands and its global market diversity leaves our Group extremely well placed to take advantage of any further pick up in global advertising conditions. Based on APN's guidance for the year-end and a continuing improvement in worldwide advertising, Independent News & Media expects to show an improvement on 2001."

Ends. Tuesday, 15 October 2002

For Reference:

Gavin K. O'Reilly, Chief Operating Officer, Independent News & Media PLC, Dublin: +353 - 1 - 466 3200

Donal J. Buggy, Chief Financial Officer, Independent News & Media PLC, Dublin: +353 - 1 - 466 3200

Jim Milton, Murray Consultants, Dublin: +353 - 1 - 4980300/+353 86 2558400

Elaine O'Mahoney, Murray Consultants, London: +353 - 86 814 3938