INDEPENDENT NEWS & MEDIA PLC INTERIM RESULTS th September 2002

Introduction H Scorecard Financial Results Divisional Review Summary/ Outlook

is a leading international media group, with primary operations in Australia, Ireland, New Zealand, South Africa and the United Kingdom. GROUP PROFILE Independent News & Media PLC: -

GROUP PROFILE has delivered 19% compound annual return to shareholders since 1973 is listed on the Irish, London and NZ stock exchanges has a geographically diverse shareholder base Independent News & Media PLC: -

GROUP PROFILE Independent News & Media PLC: - Operates 3 primary CORE business activities, as well as having an integrated interactive digital division:-

Far from being a “sunset industry”, we have an UNSWERVING belief in NEWSPAPERS… … and publish over 200 newspaper & magazine titles per week, with a weekly circulation of over 15 million and a weekly audience of 50 million + GROUP PROFILE

Newspaper Circulation Revenue up 2.1% Aggregate volume market share UP +0.5% Newspaper Advertising Revenue only down 6.8% Aggregate volume market share UP +1.0% Operating Costs down 3.0% Strong Operating Margins at 16.3% APN and W&H integrated successfully Dividend per share up 5.5% H SCORECARD

RADIO H SCORECARD: RADIO Advertising revenues down only 5.2% Market share increases in Local/ Retail advertising – offsetting market sluggishness in National/ Brand advertising. Strong Ratings, particularly in target demographics 25 –54 year olds Perth FM station on-air late 2002

OUTDOOR H SCORECARD: OUTDOOR Advertising revenues down only 4.8% Renewal of Sydney Transit contract, new tender win in Brisbane, and further contract development in Asia (Malaysia and Indonesia) Market share improvements in a difficult year for national advertising New formats for Buspak launched Q3 - Transit TV [‘TVe’] and 3 new panels

PUBLISHING H SCORECARD: PUBLISHING Advertising revenues down only 6.8% with rate increases (despite heavy competitor discounting) offsetting volume contraction in Recruitment and Property Market share increases in all advertising categories ’00-’01 Capex (Citywest and multi-site colour upgrades) providing enhanced competitive response Strong circulation and readership results underpin advertising share (volume and rate) increases

ADVERTISING REVENUES: H – H “Like-for-like” * advertising growth (H1 ’97 – H1 ’02) has grown by a compound 5.9% - a mixture of both rate and volume * Assumes all divisions currently owned were 100% owned from 1997 at constant currencies. CAGR 5.9%

FINANCIAL RESULTS 2002 Donal Buggy Chief Financial Officer

H HEADLINE NUMBERS

H1 GROUP TURNOVER BY MARKET: €635.1m

H1 GROUP PROFIT BY MARKET: €108.5m * * Excluding exceptionals, JV’s & associates and common costs

PEER GROUP COMPARISON – 2002

H SUMMARY BALANCE SHEET

H SUMMARY CASH FLOWS

DIVISIONAL REVIEW 2002 Gavin O’Reilly Chief Operating Officer

Turnover includes low margin contract wins in Wholesaling division GOOD performance in tight advertising market Further ADVERTISING market share gains in all categories Strong CIRCULATION growth – despite continuing UK (loss-making) dumping efforts, with “Irish Independent” achieving a 20-year high and“The Star” achieving an all-time high Good READERSHIP results Strong cost management & newsprint price REDUCTION No. 1NATIONAL publisher with top-5 indigenous titles No. 1 REGIONAL publisher No. 1 COMMERCIAL PRINTER No. 1 WHOLESALER/ DISTRIBUTOR No. 3 News Website (from # 5 in ‘01) – recording over 11.5m pim Turnover by Activity COMPANY PROFILE H PERFORMANCE & OUTLOOK IRISH DIVISION

GOOD performance, well ahead of UK peers in terms of advertising share, despite significant competitor rate discounting Aggregate circulations FIRM, despite heavy discounting by rival publishers (subject to OFT) “The Independent” re-format – and new colour positions – well received by both readers/ advertisers Attractive readership PROFILES Belfast BUCKS soft advertising trend Significant cost/ operational efficiencies across ALL divisions Leading NATIONAL titles in UK with “The Independent” and “The Independent on Sunday” No. 1 PUBLISHER in N. Ireland No. 2 London REGIONAL publisher No. 1 RECRUITMENT magazine publisher – London based No. 1 EDUCATIONAL magazine publisher – London based Turnover by Activity COMPANY PROFILE H PERFORMANCE & OUTLOOK UNITED KINGDOM DIVISION

Strong ADVERTISING revenue growth & good market share gains in all categories Circulations: 12 out of 14 titles UP – market share advances – with most competitors significantly down again NEW Zulu-language daily “ISOLEZWE” successfully launched in April, achieving >33,000 daily sales STRONG cost management, despite newsprint price increase (+24%) OUTDOOR JV showing good growth No. 1 PUBLISHER in both National and Metropolitan Market, 15 out of 26 titles. No. 1 OUTDOOR operator (55% market share) through JV with Clear Channel International and the largest operator in Africa: 16 markets No. 2Commercial Printer in SA No. 1 News Website (IOL) Turnover by Activity COMPANY PROFILE H PERFORMANCE & OUTLOOK SOUTH AFRICAN DIVISION

ENHANCED Management team SUCCESSFUL integration of W&H – and full synergies achieved Newspaper advertising & circulation UP Soft Australian radio (national) but STRONG NZ performance and improved audience ratings (9/02) OUTDOOR market share IMPROVEMENTS in hardening national market – with KEY tender wins in Sydney and Brisbane, and new formats pushing yield and occupancy for H2 H2’02 America’s Cup uplift (Oct to Q1’03) No. 1 NATIONAL publisher in NZ No. 1 REGIONAL publisher in Australasia with 110 titles No. 1 OUTDOOR operator, with fast growing Asian business No. 1 RADIO operator in Australasia with 100 stations No. 1 Commercial Printer in NZ No. 1 Security Printer in NZ No. 1 Mapping & Business Directory operator in NZ Turnover by Activity COMPANY PROFILE H PERFORMANCE & OUTLOOK AUSTRALASIAN DIVISION

DIGITAL – INTERACTIVE DIVISION Extensions of CORE newspaper brands Strong growth in Page impressions/ unique visitors, particularly at Unison.ie Continuing PRUDENT strategy and execution Pro-active cost management and centrally managed under Richard Withey – Director Global Interactive Minimal investment exposure - €11.7m Significant REDUCTION in losses, as forecasted

INM owns 50% - iTouch is separately listed on the LSE Excellent H – Revenue up 127% on H and Q2 revenue up 55% on Q – Good expenditure control; Cash outflow only STG£4.0m in H1 – Growth continuing and expected to be cash positive in ‘03 – Fully funded business model – STG£32.1m in hand INM’s carrying value supported by current market value iTOUCH PLC

GEOGRAPHICALLY diversified - with tight focus on core competencies Unique BRAND leadership positions - dominant in 4 out of 5 markets Major capital expenditure programme now COMPLETED HIGHLY cash generative business – and FOCUS on Cash Significantly REDUCED exposure to New Media Clear strategy for operating margin ENHANCEMENTS SUMMARY

OUTLOOK GLOBAL diversity - a strength in a weak economic environment CORE businesses continue to perform well – with regional strength in Southern Hemisphere operations MARKET SHARE UP – advertising AND circulation CIRCULATION revenues/ volumes trending UP ADVERTISING growing month-on-month – rate firming Continued focus on COSTS across all operations Interest costs DOWN – rate and volume Expect IMPROVEMENT on 2001