Thomaz Souto Corrêa Vice Chairman Abril Group Opportunities for Cross-border publishing: New Frontiers 26 > 28 May th FIPP World Magazine Congress Carrousel du Louvre - Paris

BRAZIL: AN OVERVIEW

BRAZIL, THE CENTER OF THE WORLD !

BRAZIL: AN OVERVIEW A 176 MM people, 39 MM readers market; Indicators like GDP and GDP per capita, when measured in dollars, do not reflect the deep changes that affected the country in the past decade. The “Real” was devaluated in 1999 and today is 3 “Reais” to 1 Dollar. The 90’s — significant socio-economic changes: Inflation dropped from 1,600% to less than 10% per year; Above average growth of socio-economic segments B and C; Number of students in primary and secondary schools rose 50%; Illiteracy levels were reduced by more than 40%; These changes were followed by an explosion in the availability of services and technology in the past 5 years. Highlights

BRAZIL, AN OVERVIEW SOCIAL ECONOMIC INDICATORS Source: IBGE Population - Million Inhabitants

BRAZIL, AN OVERVIEW SOCIAL ECONOMIC INDICATORS Source: IBGE Urban Population - % of Total

NATIONAL POPULATION The South and Southeastern Regions represent 74% of total magazine sales Total Population: Total Readers: Source: IBGE Marplan IVC

BRAZIL, AN OVERVIEW Source: Brazil Central Bank Note: 1990 currency converted to Reais GDP - US$ Billion

BRAZIL, AN OVERVIEW Source: Brazil Central Bank Per Capita Income - US$ Thousand

BRAZIL, AN OVERVIEW Source: IBGE Inflation - % Per Year 1621,0

BRAZIL, AN OVERVIEW Source: Brasil em Foco - IBGE A CAGR : 0,47% B CAGR : 1,47% C CAGR : 1,7% Social Classes - Percentage

BRAZIL, AN OVERVIEW SOCIAL ECONOMIC INDICATORS CHILDREN IN SCHOOL Source: INEP / IBGE Students Enrolled In Primary and Secondary Schools - Million

BRAZIL, AN OVERVIEW SOCIAL ECONOMIC INDICATORS Source: IBGE Illiteracy - % Population

BRAZIL, AN OVERVIEW TECNOLOGY DATA Source: ANATEL Cellular Phones - Million

BRAZIL, AN OVERVIEW TECHNOLOGY DATA Source: ANATEL Telephones - Million Fixed Access Lines 38,638,8

Source: IDC / CSFB Internet Users - Million BRAZIL, AN OVERVIEW TECHNOLOGY DATA

BRAZIL, AN OVERVIEW TECHNOLOGY DATA Source: SIMENSEN ASS /FGV Computers - PCs Installed - Million

BRAZIL, AN OVERVIEW TECHNOLOGY DATA Source: ABTA Cable TV - Million

BRAZIL: THE MAGAZINE MARKET Circulation Advertising

BRAZIL: THE MAGAZINE MARKET CIRCULATION Market stable at million copies per year; Share of single copies sales and subscriptions also stable; With the end of a very high inflation rate, a new market was touched: popular magazines. Highlights

Source: IVC - Dinap BRAZIL: THE MAGAZINE MARKET Million Copies

Source: IVC - Dinap BRAZIL: THE MAGAZINE MARKET TOTAL OF TITLES

Source: IVC - Dinap BRAZIL: THE MAGAZINE MARKET TOP 10 MAGAZINES Average Circulation

Source: IVC - Dinap BRAZIL: THE MAGAZINE MARKET BREAKDOWN OF SEGMENTS Thousand Copies

Source: IVC - Dinap 69% 31% BRAZIL: THE MAGAZINE MARKET CIRCULATION MARKET WOMEN’S MAGAZINE: Million Copies

Share of magazines is stable; Significant drop in total advertising expenditure, when measured in dollars, as a result of the devaluation of the “Real”. BRAZIL: THE MAGAZINE MARKET ADVERTISING EXPENDITURE Highlights

Source: Projeto Intermeios Magazine Market Share BRAZIL: THE MAGAZINE MARKET ADVERTISING EXPENDITURE: Reais - R$ - Million 10,6% 9,7%

Dollar Rate:R$ 1,837R$ 2,350R$ 2, Source: Projeto Intermeios BRAZIL: THE MAGAZINE MARKET ADVERTISING EXPENDITURE: US$ - Million

Dollar Rate:R$ 1,837R$ 2,350R$ 2, Source: Projeto Intermeios BRAZIL: THE MAGAZINE MARKET ADVERTISING EXPENDITURE: US$ - Million

TOP ADVERTISING CATEGORIES Source: Ibope Monitor/ Projeto Intermeios Reais - R$ - Million

American and European Publishers Doing Business in Brazil

Source: IVC - Dinap INTERNATIONAL MAGAZINES IN BRAZIL

Foreign Investment A new law, approved in Congress, allows up to 30% of Foreign Capital in Brazilian Media Companies.