21st Aug 2000

New Zealand Subsidiary Results for the Half Year Ended 30 June 2000

Wilson & Horton Holdings Limited "WHH" today announced an unaudited operating profit before interest and exceptional items of $42.9 million for the six months ended June 30, 2000, which was 24.1% ahead of the previous half year's result of $34.5 million. Excluding operating losses from New Media businesses, operating profit was up 31.6% on the corresponding period last year.

Operating revenue for the group increased by 8.3% to $227.4 million after a buoyant start to trading conditions in the first quarter of 2000 reflecting strong growth from advertising and a strong performance within the commercial printing division. This revenue increase coupled with good cost control resulted in the operating margin increasing from 16.5% to 18.9%.

Wilson & Horton Holdings chairman John Maasland said that this excellent result was a very pleasing performance and demonstrated the strength of the Wilson & Horton brands.

Exceptional items totalled a negative $30.1 million, the major portion being realised foreign exchange losses which occurred when the group restructured the majority of its foreign currency borrowings into New Zealand dollar denominated debt in May. The foreign exchange loss has no impact on Independent News & Media PLC's consolidated profit and loss account under Irish Accounting Standards.

Mr Maasland said that the refinancing of the group's borrowings into New Zealand dollars eliminates most of the impact of foreign currency fluctuations on local debt levels.

Mr Maasland highlighted the fact that the underlying value of the exchangeable listed securities in Wilson & Horton Holdings is determined by the performance of Independent News & Media PLC of Ireland (INM), which has market leading newspaper positions in New Zealand, Australia, Ireland and South Africa, as well as substantial interests in the UK.

Since the balance sheet date, Independent News & Media PLC has further strengthened its operations with the acquisition of the Belfast Telegraph, Northern Ireland's most prestigious newspaper brand.

INM has also taken a significant stake in iTouch plc, the mobile data operator that successfully floated on the London Stock Exchange late last month.

Mr Maasland said the strong increase in operating cash flows generated by Wilson & Horton Holdings reinforced the group's underlying value to Independent News & Media PLC.

Operations Review

Wilson & Horton chief executive John Sanders said the good start to the trading year had been reflected in strong revenue growth and operating surpluses across all of the group's businesses.

"This excellent performance has been achieved within a business environment which has been negatively affected through the uncertainty introduced by the Employment Relations Bill and other Government initiated policy changes," Mr Sanders said.

"Wilson & Horton has been very pro-active in advocating changes to Government policies which adversely affect business and consumer confidence.

"In spite of the current market conditions, our strategy to increase market shares and continue with disciplined cost-reductions positions Wilson & Horton well for the full year."

One of the major initiatives during the first half of 2000, has been the company's move through, W&H Interactive, into e-commerce online, and, mobile commerce initiatives taken through associate company, iTouch New Zealand.

"By harnessing online our valuable newspaper brands like the Herald, together with the rich databases other group companies such as UBD can provide, we are well down the track to realising our strategy to become the main source for news and information within this country," Mr Sanders said.

"The New Zealand Herald is a wonderful brand with more than 130 years as a newspaper serving its readers and advertisers as their main source of all the news and information which influences their daily decisions.

"The exciting steps we are now taking to further enrich our readers' and advertisers' experiences of the Herald, will ensure we strengthen its position as Aucklanders' most influential source of news and information across a variety of channels from newspaper, to online websites and mobile destinations," Mr Sanders said.

The Herald's editorial team has achieved a rare "triple crown" this year by taking top honours at three major editorial awards for 1999/2000, winning 'Newspaper of the Year' at the Qantas Media Awards, the Commonwealth Awards, as well as the inaugural Pacific Newspaper Publishers' Association (Panpa) 'Newspaper of the Year Award'.

" We are enormously proud of our whole editorial department, "Mr Sanders said. "The Herald has triumphed over some of the best newspapers from Australia and Asia, as well as New Zealand. This is a great tribute to Editor-in-Chief Gavin Ellis and Editor Stephen Davis."

The Herald has also achieved significant successes at the International Newspaper & Marketing Association (INMA) Awards, Panpa and New Zealand marketing awards competitions.

The introduction of the new cybergraphic computer system will further enable the Herald's editorial staff to reshape the newspaper offering.

The Herald has continued to increase its share of the total advertising market with a particularly strong performance in the employment sector. The real estate market has been adversely affected by the drop in confidence, but there are recent signs that optimism may be returning.

The launch of the new television and entertainment guide e.g. in March, has ensured revenue growth and increased Herald sales on Thursday. The commissioning of new colour towers at the Herald's Ellerslie printing plant in October is a response to our customers' increasing demand for colour advertising.

"One of the most pleasing aspects of the first half is the increase in circulation which the Herald has experienced," Mr Sanders said. "Editorial improvements, the control of our subscriber base, and well-targeted promotions have all contributed."

The Regional Newspapers Division also reported a strong first half performance with Hawkes' Bay Today posting a circulation increase. The division will expand online through the launch of 'MyTown.co.nz', uniting the group's regional titles.

The award-winning websites built by W&H Interactive are enabling the company to extend its trusted brands into new mediums such as the Internet and mobile telephony.

W&H Interactive has recently launched travel.co.nz to enable customers to book travel online and take out travel insurance with Norwich Union. "Forming strategic alliances with other credible and trusted brands, will be the hallmark of how we grow our future businesses," Mr Sanders said.

W&H Print, the company's commercial and security printing arm, is also forging strong business growth in Australia and Asia. Security Plastics has continued to benefit from the New Zealand Drivers' Licenses contract. Further investment in "enabling" technologies for plastic cards has opened up new opportunities in the Smartcard market. Expansion into the Australasian market will assist the speed of growth for Security Plastics. Bankprint has also increased its Australian market-share through winning the Australian ANZ Bank cheque printing contract.

In the highly competitive magazines' market, the NZ Woman's Weekly and the New Zealand Listener continue to create excellent environments for their advertisers at a time when discretionary spending has been adversely affected.

UBD has created a new market in website developments for small business players and is now moving to introduce route optimisation as the next phase in taking mapping online.

Background

Wilson & Horton Holdings is a wholly owned subsidiary of Independent News & Media PLC of Ireland ("INM"). WHH's listed securities are cumulative exchangeable preference shares exchangeable into INM's ordinary shares and therefore the underlying value of these shares is determined by the performance of the INM group as a whole. Under the terms of the cumulative exchangeable preference shares, upon maturity in 2003, the preference shareholders can elect to exchange one preference share for either $8.00 cash, or two INM ordinary shares.

As at 18th August, 2000, Independent News & Media PLC's ordinary shares were quoted on the Irish Stock Exchange at Euro 4.10 ($NZ8.26) which translates to $NZ16.52 for each WHH share.

Ends. Monday, 21st August 2000 For Reference: Jim Milton/Tom Byrne Murray Consultants Limited
Tel: +353 - 1 - 663 3313

James Parkinson
Independent News & Media PLC Tel: +353 - 1 - 475 8432