14th Aug 2001

New Zealand Subsidary Company Results

Operating revenue for the group increased by 4.0% to $236.4m which is an excellent performance following the strong performance in 2000 on the back of the America's Cup campaign. This revenue increase coupled with good cost control resulted in the operating margin increasing from 18.9% to 19.7%.

Last year WHH restructured the majority of its foreign currency borrowings into New Zealand denominated debt, thereby ensuring that most of the adverse currency movements, which had been a feature of the group's results in past years, are now eliminated. As a result, exceptional items for the half year to 30 June 2001 include a foreign exchange gain of $1.9m compared to a foreign exchange loss of $30.1m in the corresponding period last year.

The interest charge has increased by $12.5m compared to last year due to increased debt at local interest rates which are currently higher than the overseas rates applied last year.

Net surplus after interest and tax was $6.0m compared to a loss of $9.1m in the corresponding half year.

Highlights of the results are as follows:

2001

2000

NZ$000

NZ$000

Total operating revenue

236,753

227,507

Operating surplus
46,714

42,914 Net interest charge
(36,801)

(24,315) Net operating surplus
9,913

---

18,599

---

Net surplus/(deficit)

6,305

(9,089)

WHH is a wholly owned subsidiary of INM which is a global newspaper and media company with leading market positions in New Zealand, Australia, Ireland, South Africa and the United Kingdom. Upon maturity in 2003, holders of WHH cumulative exchangeable preference shares ("CEPS") may elect to exchange one preference share for either $8.00 cash, or two INM ordinary shares. As a result the underlying value and performance of the CEPS is determined by the consolidated performance of INM. At 15 August 2001, INM's ordinary shares were quoted on the Irish Stock Exchange at EUR2.33 (NZ.$4.92) which translates to NZ.$9.83 for each CEPS.

Operations Review

Although trading continues to be competitive in the present tight economy, some noticeable milestones have been achieved across the group.

Following strong cost containment newspaper EBIT was up 2.7% on flat revenue.

The major initiatives for the New Zealand Herald have been editorially focused and include the relaunch of the Weekend Herald, the "Our Turn" articles and support for the recent "Catching the Knowledge Wave" conference.

The relaunched Weekend Herald is now a very substantial paper with an improved sequence of sections for readers offering increased editorial content and depth of stories. The content is more relevant to readers and the redesign has also increased the availability of colour advertising on editorial pages.

Support of the "Catching the Knowledge Wave" conference was the culmination of a six month project which included an extensive seven week overseas research tour by reporter Simon Collins and photographer Paul Escourt resulting in the publication of the outstanding series entitled "Our Turn".

The regional newspapers are investigating a press rationalisation proposal, with the Northern Advocate at Whangarei due to be printed at the Ellerslie plant in the last quarter. The strategy is intended to improve colour capacity and print quality whilst maximising existing infrastructure.

Following a number of product enhancements to increase core circulation sales, W & H Regionals took the top four positions for daily circulation growth for titles under 25,000 circulation in 2001.

The Regional daily newspapers have recently launched a "readership leadership" project aimed at aligning content even more closely with local reader needs and enhancing their position as crusading champions on behalf of the regions they serve.

In the group's Print division, Bankprint Australia performed well in the period and has established a strong presence in the Australian market.

On 1 January 2001, Cardcorp Pty Limited was acquired and renamed Security Plastics Pty Limited, Australia. This has strengthened the group's Australian presence in the plastic and Smartcard markets and enables Security Plastics to leverage plant capacity in both New Zealand and Australia to make further expansion into Asia. The global future of Smartcard growth provides a positive picture for both plastic businesses in the years ahead.

Given the downturn in paging in the magazine market both Comprint and Webprint performed well gaining marketshare in key categories.

In the Specialist Publications division, it is pleasing to report that following a strong readership growth of 3.6% or 31,000 to 888,000 the New Zealand Woman's Weekly has today announced a circulation growth of 2% which further strengthens the title's position as the country's most popular women's magazine.

The New Zealand Listener announced a 1% increase in circulation and further strong growth in subscriptions.

UBD, the directory and mapping business has substantially improved its results. The division has an approach of continually endeavouring to add value for customers and has been rewarded following the repositioning of the directory and mapping products to incorporate new electronic distribution channels.

In the group's New Media division, W & H Interactive underwent a major restructure in late 2000, which has lowered its cost base and substantially improved its trading position.

Despite the uncertainty in global markets the group expects the result for the full year to show an improvement over last year.

Ends. Thursday, 16th August 2001

For Reference: Jim Milton/Pat Walsh Murray Consultants Limited Tel: +353 - 1 - 663 3318

James Parkinson Independent News & Media PLC Tel: +353 - 1 - 466 3200