7th Mar 2000

New Zealand Subsidary Results

Exceptional items include a foreign exchange gain of NZ$161.0m on borrowings and a charge of NZ$2.9 million relating to Year 2000 compliance and rationalisation of certain businesses.

The NZ$28.4 million taxation charge includes the benefit of previous year taxation losses which together with the exceptional items, took WHH's net after tax profit to NZ$185.8 million, compared to the NZ$119.1 million loss recorded in December 1998.

Wilson & Horton Holding's Chairman, John Maasland, said the result was very pleasing and reflected the strong bounce back in trading profits achieved in the second half of 1999 as the New Zealand economy continued to strengthen and the impact of cost reductions came through.

Mr Maasland said that early indications suggest the positive tone to trading conditions has continued into 2000 with a strengthening of advertising volumes and commercial printing revenues.

While leading economic indicators suggest the New Zealand economy will continue to grow by at least 3% this year, Mr Maasland noted that the Reserve Bank's intention to raise interest rates further could have a dampening effect in the second half of 2000.

Mr Maasland highlighted the fact that the underlying value of the listed securities in Wilson & Horton Holdings is determined by the performance of Independent News & Media PLC of Ireland (INM). Under the terms of the WHH cumulative exchangeable preference shares scheme, upon maturity, the WHH preference shareholders can elect to exchange one preference share for either NZ$8.00 cash, or one Independent News & Media PLC ordinary share.

Since the last balance date, the Independent News & Media PLC share price has more than trebled, increasing from EUR3.60 to EUR11.00 at March 3 2000 - NZ$7.05 to NZ$21.56 respectively - based on an exchange rate on March 3, 2000 of NZ$1.00 equals EUR0.51. Independent News & Media PLC is due to announce its 1999 results on 29 March 2000.

In highlighting the relationship of WHH's underlying value to Independent News & Media PLC's performance, Mr Maasland acknowledged the substantial contribution Wilson & Horton Limited made to the results of Independent News & Media in 1999.

The normal dividend of 20 cents a share will be paid on the company's cumulative exchangeable preference shares in accordance with the issue documents. The payment date is May 31, 2000 and this dividend will be fully imputed for taxation purposes.

A meeting will be held on June 8, 2000 in Auckland to brief preference shareholders on the performance of Independent News & Media PLC, including Wilson & Horton Holdings Limited, for 1999.

OPERATIONS REVIEW

In commenting on the performance of the operating entities, CEO of Wilson & Horton, John Sanders, said the vigorous performance of all key subsidiaries had contributed to growth in operating performance for Wilson & Horton Limited and positioned the company well for exciting growth in new directions in 2000.

"The picture was one of strong revenue growth across all of our businesses which combined with the disciplined across-the-board cost-reductions we put in place in late 1998 led to a result which all our managers and employees can be proud of." said Mr Sanders.

"The strong performance of our valuable newspaper brands like The New Zealand Herald, position us well to take advantage of the exciting opportunities electronic commerce presents as we connect people throughout the world with the most valued and professionally packaged information about New Zealand.

"Our online division W&H Interactive has already proven itself ahead of its field winning numerous awards for our websites and online products such as NetClassifieds.

"We will soon be moving strongly into m-commerce as our associate company iTouch New Zealand launches a range of WAP and IVR products to enable mobile telephone users to gain news updates and undertake transactions.

"The number of on line verticals which extend the information we gather to the on line mediums will more than double over March and April. The work our small but very dedicated team has done in positioning us to take advantage of the exciting new opportunities for our content in the electronic mediums will position our company very well for the future.

"We will also be taking equity stakes and forming joint ventures with Internet companies to harness the properties of our key information resources," Mr Sanders said.

Commenting on the Herald's performance, Mr Sanders said the newspaper's market share decline had been arrested with the national, automotive and employment advertising sectors outperforming the market, and real estate and retail performing significantly better than 1998.

"The launch of the Real Estate Tabloid underpinned the Herald's performance in the highly competitive real estate market and further advertising initiatives such as last week's launch of a new entertainment guide "eg" will follow this year.

"The key focus for the Herald in 2000 will be to grow circulation with the production of vibrant newspapers which get to our valuable subscribers constantly on time" said Mr Sanders. "Since the start of 2000 we have seen a noticeable turnaround in circulation trends with Gavin Ellis' appointment to Editor- in-Chief and Stephen Davis' appointment as Editor and some very focused marketing activity by our newspaper sales & marketing team paying dividends.

"Under the new editor Stephen Davis and with some great work by our journalists - none the least has been Suzanne McFadden with her coverage of the America's Cup - the Herald has raised its standards. The publication of articles such as the billionaire drug smuggler story is only one example of the agenda setting content which has New Zealanders and other media in New Zealand talking about the Herald," he said.

"The introduction of the new Cybergraphics editorial system in 2000 will greatly facilitate the editorial department's ability to produce lively on-time newspapers and contribute to the increased work satisfaction of our journalists.

"Installation of additional colour production capacity in late 2000 at Ellerslie will also assist us with producing a vibrant product and meeting increased colour demand by advertisers".

Mr Sanders said the only Herald costs to increase in 1999 were those like newsprint, which resulted from increased tonnage, associated with advertising volume growth. Costs associated with initiatives to develop our valuable customer databases and improve customer service levels have also increased.

Mr Sanders commended the strong growth posted by the regional and community newspaper division, which had successfully reduced its cost-base.

The launch of Hawke's Bay Today, through amalgamating the Napier and Hastings newspapers into one regionally focused title, had been a great success ensuring continued circulation and profit growth and a prestigious marketing award for the launch of the new paper.

W&H Print, New Zealand's largest commercial and security printer, had also posted a strong performance over 1999, positioning itself as a Trans-Tasman business.

Security Plastics won the contract to print the new Drivers' Licenses and W&H Print's investment in production efficiency position it well for further growth.

The Specialist Publishing Division also performed well with UBD and New Zealand Magazines continuing to strengthen their performance in their respective markets.

Mr Sanders commented that initiatives, which were part of the world-wide restructuring announced by Independent News & Media PLC in December, 1998, have already produced significant benefits particularly in the Herald and would contribute to the regional newspaper group's performance in 2000.

"With most of our divisions already making a strong showing in 2000, we are well down the track to achieving our goals of building a world-class business.

"Finally I would like to thank all staff for their commitment during a challenging year."

Ends. Tuesday, 7th March 2000 For Reference: Liam Healy
Independent News & Media PLC Tel: +353 - 1 - 475 8432

Jim Milton/Pauline McAlester

Murray Consultants Limited
Tel: +353 - 1 - 632 6400