1. 2011 Report 63 - 1 st Quarter Release - Johannesburg 17 May 2011

2. Introduction: International Up-date: International Up-date: USAUSA Figures released Monday by the Audit Bureau of Circulations show average weekday circulation fell 8.7 percent in the six months that ended March 31, compared with the same period a year earlier. Sunday circulation fell 6.5 percent. Figures released Monday by the Audit Bureau of Circulations show average weekday circulation fell 8.7 percent in the six months that ended March 31, compared with the same period a year earlier. Sunday circulation fell 6.5 percent. While the new circulation figures mirror the industry's advertising trends the revenue drop is becoming less extreme. While the new circulation figures mirror the industry's advertising trends the revenue drop is becoming less extreme. The circulation numbers are getting a small boost from certain online editions. The circulation numbers are getting a small boost from certain online editions. In a statement, Newspaper Association of America President John Sturm said that declining circulation does not offer a full picture of the industry's health. He pointed to recent studies by Scarborough Research and Nielsen Online showing nearly 100 million adults still read a printed newspaper every day and that newspaper Web sites averaged more than 74 million unique visitors a month during the first quarter. In a statement, Newspaper Association of America President John Sturm said that declining circulation does not offer a full picture of the industry's health. He pointed to recent studies by Scarborough Research and Nielsen Online showing nearly 100 million adults still read a printed newspaper every day and that newspaper Web sites averaged more than 74 million unique visitors a month during the first quarter.

3. International Up-date: International Up-date: USAUSA Meredith, today announced the launch of digital editions of several of its magazine brands on the Zinio platform. Brands launching include Successful Farming, WOOD, Living the Country Life and Siempre Mujer, as well a number of Special Interest Media titles – including Renovation Style and Diabetic Living. Meredith, today announced the launch of digital editions of several of its magazine brands on the Zinio platform. Brands launching include Successful Farming, WOOD, Living the Country Life and Siempre Mujer, as well a number of Special Interest Media titles – including Renovation Style and Diabetic Living. In March 2011 Meredith launched three of its most popular brands – Better Homes and Gardens, Parents and Fitness – on the iPad. The company plans to also offer several brands as subscriptions on the Android tablet via Next Issue Media. Meredith properties Family Circle and More, are currently available on the NOOKColor platform. In March 2011 Meredith launched three of its most popular brands – Better Homes and Gardens, Parents and Fitness – on the iPad. The company plans to also offer several brands as subscriptions on the Android tablet via Next Issue Media. Meredith properties Family Circle and More, are currently available on the NOOKColor platform. “Launching on Zinio further expands the digital footprint of our media brands,” says Liz Schimel, EVP, Consumer Relationship Management & Digital Media, Meredith National Media Group. “It is part of our overall goal to continue to provide enriching and inspiring content to our audience across multiple platforms and devices.” “Launching on Zinio further expands the digital footprint of our media brands,” says Liz Schimel, EVP, Consumer Relationship Management & Digital Media, Meredith National Media Group. “It is part of our overall goal to continue to provide enriching and inspiring content to our audience across multiple platforms and devices.”

4. Local Up-date: Local Up-date: Our economy remains unsettled. GDP growth (Q4 2010) while a solid 3.8% remains uncertain into the future. Interest rates have been held but clear warnings have been expressed regarding possible increases. Inflation estimates indicate that by end 2011 we may be just over 6%!Our economy remains unsettled. GDP growth (Q4 2010) while a solid 3.8% remains uncertain into the future. Interest rates have been held but clear warnings have been expressed regarding possible increases. Inflation estimates indicate that by end 2011 we may be just over 6%! And with elections only a few days away, most market analysts predict that consumers will remain conservative in their purchasing.And with elections only a few days away, most market analysts predict that consumers will remain conservative in their purchasing. Given this, it is not surprising that we still see a mixed bag of results although the trends established in the past 3 presentations have remained.Given this, it is not surprising that we still see a mixed bag of results although the trends established in the past 3 presentations have remained. Generally:Generally: Single copy sales are still under pressure although within the Weekly newspaper category we see healthy growth. Single copy sales are still under pressure although within the Weekly newspaper category we see healthy growth. Weekend Newspaper sales are down. Weekend Newspaper sales are down. Hybrid category has continued to demonstrate strong growth. Hybrid category has continued to demonstrate strong growth.

5. On the Magazine front, subscriptions remain under pressure while digital editions continue to show opportunity for significant growth…one title in particular! On the Magazine front, subscriptions remain under pressure while digital editions continue to show opportunity for significant growth…one title in particular! In terms of magazines, we note that new entrants have lifted the results for many categories. In terms of magazines, we note that new entrants have lifted the results for many categories. Within certain categories, “Consumer” in particular, we see an improvement in single copy and “Core” circulation which bodes well for the future. Within certain categories, “Consumer” in particular, we see an improvement in single copy and “Core” circulation which bodes well for the future. Custom Retail Magazines remain a “power house” of growth and potential advertising opportunity for marketers. Custom Retail Magazines remain a “power house” of growth and potential advertising opportunity for marketers.

6. Rule Amendments effective 1st January 2011: 1. Creation of a new sector – ‘Advertising Brochures’. 2. Change to the definition of a Newspaper: ‘A publication published on a regular basis, consisting of a minimum of 8 pages, and with a minimum of 35% editorial content over a reporting period’. 3. For combined issues, data must be submitted for the period in which the sales are concluded, i.e. a combined December/January issue must be submitted for the January to March quarter, not the October to December quarter. 4. Monies paid to cover postage for free titles do not constitute a subscription.

7. Membership Statistics: 31 December 2010AdmissionsRemovals31 March 2011 Magazines 507 3 -4 506 Consumer 215 1 -2 214 Business to Business 174 - - Custom 103 1 -2 102 Free Magazines 15 1 - 16 Newspapers 313 6 318 Daily 26 - - Weekly 13 - - Weekend 27 - - Community 62 - - Hybrid 5 - 4 Free Newspapers 180 6 - 186 Advertising Brochures 8 - - 8 Total ABC Members 828 9 -5 832

8. SECTOR SIZE RANKED BY AVERAGE CIRCULATION – Quarter 1 2011: POSITIONSECTORCIRCULATION NUMBER OF PUBLICATIONSAVERAGE 1 Custom Magazines13,343,023102130,814 2 Consumer Magazines6,794,99021431,752 3 Free Newspapers5,647,54118630,363 4 Advertising Brochures3,197,6148399,702 5 Weekend Newspapers2,454,5502790,909 6 Free Magazines1,924,23416120,265 7 Daily Newspapers1,790,0862668,849 8 B2B Magazines1,159,6911746,665 9 Weekly Newspapers690,5611353,120 10 Community Press494,825627,981 11 Hybrid Newspapers157,529439,382 TOTAL37,654,64483245,258

9. Approach Approach a) Track Print performance against GDP and Retail Sales b) Trend Analysis: YOY c) Compare Category Circulation Composition YOY Large & Growing Small & declining d) Scatter graph Evolutionary, familiar but better: Evolutionary, familiar but better: Recognizes state of economy / retail sales.Recognizes state of economy / retail sales. 4 year category trends.4 year category trends. YOY category composition comparison – to see where the shifts are coming from.YOY category composition comparison – to see where the shifts are coming from. Familiar scatter graph – but with defining titles.Familiar scatter graph – but with defining titles.

10. Overall Economic Perspective Comment: Comment: 4 th quarter GDP increased by 3.8% compared to the previous year. The largest increase was Mining & Quarrying with a growth of 10.9%. 4 th quarter GDP increased by 3.8% compared to the previous year. The largest increase was Mining & Quarrying with a growth of 10.9%. For the quarter ended February 2011, Retail Sales grew by 6.9% over the corresponding period. The main contributors were ‘General Dealers’ and ‘Retailers in textile, clothing, footwear and leather goods’. For the quarter ended February 2011, Retail Sales grew by 6.9% over the corresponding period. The main contributors were ‘General Dealers’ and ‘Retailers in textile, clothing, footwear and leather goods’.

11. Newspaper Performance Relative to Economic Measures. Comment: Comment: Total newspaper circulation grew by 127,000 copies quarter on quarter, mainly the result of increases in the Free Newspaper category. Total newspaper circulation grew by 127,000 copies quarter on quarter, mainly the result of increases in the Free Newspaper category.

12. Trend Analysis – Total Circulation: Daily Newspapers Comment: Comment: 136,000 fewer copies sold than in Q1 2010 (-8.6%), although a slight improvement on Q4 2010. 136,000 fewer copies sold than in Q1 2010 (-8.6%), although a slight improvement on Q4 2010.

13. Q.1 – Composition Comparison: Daily Newspapers Comment: Comment: PMIE and 3 rd Party Bulk Sales both declined. PMIE and 3 rd Party Bulk Sales both declined. Copy Sales (-9.4%) and Subscriptions (-5.9%) continue to decline. Copy Sales (-9.4%) and Subscriptions (-5.9%) continue to decline. Digital copies increased dramatically, albeit off a very small base. Digital copies increased dramatically, albeit off a very small base.

14. Trend Analysis – by language: Daily Newspapers Comment: Comment: Overall, English titles continue to decline, while Afrikaans and Vernacular titles remain stable. Overall, English titles continue to decline, while Afrikaans and Vernacular titles remain stable.

15. Daily Newspapers ranked by Copy Sales: Comment: Comment: 15 titles declined, 3 remained static, and only 1 grew circulation. 15 titles declined, 3 remained static, and only 1 grew circulation. While still remaining the largest title by far, Daily Sun declined by 17% year on year. While still remaining the largest title by far, Daily Sun declined by 17% year on year. RankingPublication Name Copy Sales > 50% % Change on Prior Year 1 Daily Sun400,654 -17.30% 2 Isolezwe111,216 7.49% 3 Son (Daily)108,987 -10.37% 4 Sowetan91,505 -5.27% 5 Star, The71,538 -9.19% 6 Citizen, The (Daily)52,061 1.97%

16. Q.1 – Year on Year Analysis: Daily Newspapers Comment: Comment: Isolezwe increased circulation (+7.5%), while Daily Sun(-17.3%), Cape Argus (-16.9%) and Son (Daily) (-10.4%) reflected the largest declines. Isolezwe increased circulation (+7.5%), while Daily Sun(-17.3%), Cape Argus (-16.9%) and Son (Daily) (-10.4%) reflected the largest declines.

17. Trend Analysis – Total Circulation: Weekly Newspapers Comment: Comment: Total circulation reflects a dramatic increase of 20.2% compared to the previous year, continuing the trend reflected in the previous quarter. Total circulation reflects a dramatic increase of 20.2% compared to the previous year, continuing the trend reflected in the previous quarter.

18. Q.1 – Composition Comparison: Weekly Newspapers Comment: Comment: Copy Sales increased by 20.2%. Copy Sales increased by 20.2%.

19. Weekly Newspapers ranked by Copy Sales: Comment: Comment: The overall increase in circulation was directly attributable to the significant increase in the circulation of the 3 largest titles. RankingPublication NameCopy Sales > 50% Change on Prior Year 1 Soccer Laduma314,130 27.85% 2 Ilanga139,043 27.40% 3 Mail & Guardian38,657 12.83%

20. Q.1 – Year on Year Analysis: Weekly Newspapers Comment: Comment: Soccer Laduma (+27.9%) and Ilanga (+27.4%) grew significantly, with Mail and Guardian (+12.8%) reflecting a creditable increase – all from single copy sales! Soccer Laduma (+27.9%) and Ilanga (+27.4%) grew significantly, with Mail and Guardian (+12.8%) reflecting a creditable increase – all from single copy sales! UmAfrika declined by 15.1%. UmAfrika declined by 15.1%.

21. Trend Analysis – Total Circulation: Weekend Newspapers Comment: Comment: Circulation declined by 5% over the previous year, a further deterioration over the previous quarter. Circulation declined by 5% over the previous year, a further deterioration over the previous quarter. 4 titles reflected increases, 4 remained static, while 15 titles decreased. 4 titles reflected increases, 4 remained static, while 15 titles decreased.

22. Q.1 – Composition: Weekend Newspapers Comment: Comment: 3 rd Party Bulk Sales fell significantly. 3 rd Party Bulk Sales fell significantly. While Subscriptions increased slightly, Copy Sales fell by 5.9% or 103,000 copies. While Subscriptions increased slightly, Copy Sales fell by 5.9% or 103,000 copies.

23. Trend Analysis – by language: Weekend Newspapers Comment: Comment: English titles fared worse than Afrikaans or vernacular titles. English titles fared worse than Afrikaans or vernacular titles.

24. Weekend Newspapers ranked by Copy Sales: Comment: Comment: Only Ilanga Langesonto showed growth. Only Ilanga Langesonto showed growth. RankingPublication NameCopy Sales > 50% % Change on Prior Year 1 Sunday Times255,525 -3.56% 2 Rapport212,979 -11.15% 3 Sunday Sun211,333 -9.18% 4 City Press139,985 -19.77% 5 Sunday World132,233 -8.41% 6 Ilanga Langesonto87,744 6.13%

25. Q.1 – Year on Year Analysis: Weekend Newspapers Comment: Comment: Sondag grew a significant 28.5 %, while Isolezwe NgeSonto (+9.5%), Sondag Son (+8.1%) and Ilanga Langesonto (6.1%) showed creditable increases. Sondag grew a significant 28.5 %, while Isolezwe NgeSonto (+9.5%), Sondag Son (+8.1%) and Ilanga Langesonto (6.1%) showed creditable increases.

26. Trend Analysis – Total Circulation: Community Newspapers Comment: Comment: Stable performance, with no real growth. Stable performance, with no real growth.

27. Trend Analysis – Total Circulation: Free Newspapers Comment: Comment: Total circulation increased by 7.9% because of new entrants. Total circulation increased by 7.9% because of new entrants. Real circulation remained static. Real circulation remained static.

28. Q.1 – Composition Comparison: Hybrid Newspapers Comment: Comment: The Times grew paid circulation significantly both in copy sales and subscriptions, although the latter could only be obtained as part of a Sunday Times subscription. The Times grew paid circulation significantly both in copy sales and subscriptions, although the latter could only be obtained as part of a Sunday Times subscription.

29. Magazine Performance Relative to Economic Measures. Comment: Comment: Total magazines increased by 12.5% and Consumer magazines by 2.9% respectively over the previous year. Total magazines increased by 12.5% and Consumer magazines by 2.9% respectively over the previous year. Total magazines declined by 1.6% and Consumer magazines by 2.1% over Q4 2010. Total magazines declined by 1.6% and Consumer magazines by 2.1% over Q4 2010.

30. Trend Analysis – Total Circulation: Consumer Magazines Comment: Comment: Whilst total circulation has shown an increase because of new entrants, real circulation declined by 2.5%, compared to the previous year. Whilst total circulation has shown an increase because of new entrants, real circulation declined by 2.5%, compared to the previous year.

31. Q.1 – Composition: Consumer Magazines Comment: Comment: Whilst Copy Sales increased by 3.7% ( mainly from new entrants), Subscriptions declined by a disappointing 9.5%. Whilst Copy Sales increased by 3.7% ( mainly from new entrants), Subscriptions declined by a disappointing 9.5%. Sales below 50% increased significantly, albeit off a small base. Sales below 50% increased significantly, albeit off a small base. Free circulation increased by 5.2%. Free circulation increased by 5.2%.

32. Q.1 – Year on Year Analysis Comment: Comment: The category reflected an overall decline of 9.5%. The category reflected an overall decline of 9.5%. Succeed magazine was the only quarterly reporting magazine to reflect an increase (+19.5%). Succeed magazine was the only quarterly reporting magazine to reflect an increase (+19.5%). Entrepreneur (-33.9%) and Noseweek (-13%) reflected the largest declines. Entrepreneur (-33.9%) and Noseweek (-13%) reflected the largest declines.

33. Q.1 – Circulation Composition: Comment: Comment: Copy sales declined by 6.3% while subscriptions fell significantly by 23.7%. Copy sales declined by 6.3% while subscriptions fell significantly by 23.7%. 3 rd Party bulk sales increased. 3 rd Party bulk sales increased.

34. Q.1 – Year on Year Analysis Comment: Comment: Lig (5.6%) and Drum (4%) reflected the largest increases. Lig (5.6%) and Drum (4%) reflected the largest increases. Reader’s Digest (-12.6%) and The Big Issue (-9.8%) declined the most. Reader’s Digest (-12.6%) and The Big Issue (-9.8%) declined the most.

35. Q.1 – Circulation Composition: Comment: Comment: Copy sales declined by 2% and Subscriptions by 5.3%. Copy sales declined by 2% and Subscriptions by 5.3%.

36. Q.1 – Year on Year Analysis Comment: Comment: Of the quarterly reporting titles, Tuis/Home (+13.6%), House and Leisure (+12.4%), and the regional Property magazines performed best. Of the quarterly reporting titles, Tuis/Home (+13.6%), House and Leisure (+12.4%), and the regional Property magazines performed best. Top Billing fell by 35.8%. Top Billing fell by 35.8%.

37. Q.1 – Circulation Composition: Comment: Comment: Copy Sales increased by 6.8% mainly from new entrants. Copy Sales increased by 6.8% mainly from new entrants. Subscriptions declined by 13.8%. Subscriptions declined by 13.8%.

38. Q.1 – Year on Year Analysis Comment: Comment: Category increased by 2.5%. Category increased by 2.5%. Speed & Sound (+8.3%) and Leisure Wheels (+6.8%) reflected the largest increases. Speed & Sound (+8.3%) and Leisure Wheels (+6.8%) reflected the largest increases. Auto trader declined by 10%. Auto trader declined by 10%.

39. Q.1 – Circulation Composition: Comment : Comment : Sales below 50% and free circulation grew significantly (mainly derived from Commercial Trader), albeit off small bases. Sales below 50% and free circulation grew significantly (mainly derived from Commercial Trader), albeit off small bases.

40. Q.1 – Year on Year Analysis Comment: Comment: Mamas & Papas grew a significant 30.6%, whilst the free regional Joburg’s Child grew by 15.6%. Mamas & Papas grew a significant 30.6%, whilst the free regional Joburg’s Child grew by 15.6%. Living & Loving declined by 14%. Living & Loving declined by 14%.

41. Q.1 – Circulation Composition: Comment: Comment: Copy sales declined by 7.4%. Subscriptions increased by 16.5%. Copy sales declined by 7.4%. Subscriptions increased by 16.5%. Free circulation fell by 16.4%. Free circulation fell by 16.4%. Other has grown from an increase in sales below 50% of cover price. Other has grown from an increase in sales below 50% of cover price.

42. Q.1 – Year on Year Analysis Comment: Comment: Category declined by 10.4%. Category declined by 10.4%. Of the quarterly reporting titles, Amakhosi grew 23% - all in copy sales ! Of the quarterly reporting titles, Amakhosi grew 23% - all in copy sales ! Golf Digest declined by 73% after termination of World of Golf contract. Modern Athlete declined by 23.6%. Golf Digest declined by 73% after termination of World of Golf contract. Modern Athlete declined by 23.6%.

43. Q.1 – Circulation Composition: Comment: Comment: Subscriptions fell by 44.3% for the reason previously mentioned. Subscriptions fell by 44.3% for the reason previously mentioned.

44. Q.1 – Year on Year Analysis Comment: Comment: Overall category increased by 27% because of new entrants. Overall category increased by 27% because of new entrants. Weg/Go reflected the largest decline of 5.4%. Weg/Go reflected the largest decline of 5.4%.

45. Q.1 – Circulation Composition: Comment: Comment: Copy sales increased by 39% because of new entrants. Copy sales increased by 39% because of new entrants. Subscriptions increased by 8.5%. Subscriptions increased by 8.5%.

46. Q.1 – Year on Year Analysis Comment: Comment: Category remained static (-1%). Category remained static (-1%). Kuier grew by 106% (off the chart – doubled copy sales!!!). Kuier grew by 106% (off the chart – doubled copy sales!!!). Sarie grew by 17.5% and Elle by 13.6%. Sarie grew by 17.5% and Elle by 13.6%. Finesse (-12.1%), Vroue Keur (-10.7%) and Cosmopolitan (-10.7%) reflected the largest declines. Finesse (-12.1%), Vroue Keur (-10.7%) and Cosmopolitan (-10.7%) reflected the largest declines.

47. Q.1 – Circulation Composition: Comment: Comment: Subscriptions showed an encouraging 14.2% increase, while free circulation and 3 rd Party Bulk both fell. Subscriptions showed an encouraging 14.2% increase, while free circulation and 3 rd Party Bulk both fell. Copy sales remained static. Copy sales remained static.

48. Trend Analysis – Total Circulation: B2B Magazines Comment: Comment: Whilst overall circulation remained static, real circulation declined by 2.6%. Whilst overall circulation remained static, real circulation declined by 2.6%.

49. Q.1 – Circulation Composition: B2B Magazines Comment: Comment: Paid circulation declined by 7.9%, while Bulk distribution fell by 15.7%. Paid circulation declined by 7.9%, while Bulk distribution fell by 15.7%. Encouragingly, Individual distribution increased by 7.2%. Encouragingly, Individual distribution increased by 7.2%. Digital increased 10 fold, albeit off a small base. Digital increased 10 fold, albeit off a small base.

50. Q.1 – Year on Year Analysis Comment: Comment: Category declined by 31.2% Category declined by 31.2% Business Traveller Africa declined by 16.3%. Butler (six monthly) declined by 89%, and Conference Venues (annual) by 50%. Business Traveller Africa declined by 16.3%. Butler (six monthly) declined by 89%, and Conference Venues (annual) by 50%.

51. Q.1 – Composition: Comment: Comment: All categories of circulation declined. All categories of circulation declined.

52. Q.1 – Year on Year Analysis Comment: Comment: Of the quarterly reporting titles, RiskSA increased by 3%, while SA Jewellery News fell by 8%. Of the quarterly reporting titles, RiskSA increased by 3%, while SA Jewellery News fell by 8%. Resource (annual) increased by 24%. Resource (annual) increased by 24%.

53. Q.1 – Composition: Comment: Comment: Individual distribution showed a significant increase because of new members. Individual distribution showed a significant increase because of new members.

54. Q.1 – Year on Year Analysis Comment: Comment: HR Future grew by 344%! (off the Chart), all from free digital circulation. HR Future grew by 344%! (off the Chart), all from free digital circulation. Black Business quarterly (annual) grew by 23.3%. Black Business quarterly (annual) grew by 23.3%. Profiles Stock Exchange Handbook (annual) fell by 24.7% and Business Brief (six monthly) fell by 21.6%. Profiles Stock Exchange Handbook (annual) fell by 24.7% and Business Brief (six monthly) fell by 21.6%.

55. Q.1 – Composition: Comment: Comment: Bulk distribution declined significantly, because a large title ceased publishing. (Big News for the Business Owner) Bulk distribution declined significantly, because a large title ceased publishing. (Big News for the Business Owner)

56. Q.1 – Year on Year Analysis Comment: Comment: Category increased by 3.8%. Category increased by 3.8%. DIY Trade News increased by 14.8% DIY Trade News increased by 14.8% Trader’s Friend declined by 39.3%. Trader’s Friend declined by 39.3%.

57. Trend Analysis – Total Circulation: Custom Magazines Comment: Comment: In spite of the loss of 2 titles (totaling 500 000 copies) we see growth. In spite of the loss of 2 titles (totaling 500 000 copies) we see growth. Growth attributed to the inclusion of two new titles. Growth attributed to the inclusion of two new titles. Real circulation increased by 3.2%. Real circulation increased by 3.2%.

58. Q.1 – Composition: Custom Magazines Comment: Comment: Individual and Bulk Distribution are higher as a result of the 2 new titles mentioned previously. Individual and Bulk Distribution are higher as a result of the 2 new titles mentioned previously.

59. Q.1 – Year on Year Analysis Comment: Comment: Total category increased by 27.9%. Total category increased by 27.9%. M and magic declined by 19.4% and 33.3% respectively. M and magic declined by 19.4% and 33.3% respectively.

60. Q.1 – Circulation Composition: Comments: Comments: Individual distribution increased by 39.3%. Individual distribution increased by 39.3%.

61. Q.1 – Year on Year Analysis Comment: Comment: Category declined by 10.9%. Category declined by 10.9%. The Blue Train declined by 19.4%, and Vision Magazine increased by 6.4%. The Blue Train declined by 19.4%, and Vision Magazine increased by 6.4%. Mitsubishi Xplore (6 monthly) increased by 30.5%, while Private Edition (6 monthly) declined by 20%. Mitsubishi Xplore (6 monthly) increased by 30.5%, while Private Edition (6 monthly) declined by 20%.

62. Q.1 – Year on Year Analysis Comment: Comment: Category grew 20%. Category grew 20%. Club X (+121.9% off the chart!), Foschini Sports (+44.5%), Legit (annual)(+31%)and Super Club for Kids (+30.9%) showed the largest increases. Club X (+121.9% off the chart!), Foschini Sports (+44.5%), Legit (annual)(+31%)and Super Club for Kids (+30.9%) showed the largest increases.

63. Trend Analysis – Total Circulation: Free Magazines Comment: Comment: Total circulation increased by 3.2% as a result of new entrants. Total circulation increased by 3.2% as a result of new entrants.

64. Overall Conclusion: The uncertainty reflected in these results, we believe, will continue through 2011, and will to some degree mirror the international trends. Growth in single copy sales remain the clue to those titles connecting with consumers …and there are many such titles. Valuable insights can be gleaned from keen analysis of these titles and their recent activity. Digital remains a huge area for title growth (as long as you’re not a printer!) and should receive even greater attention in future Quarterly reports. The arrival of several global “icon” category titles should instill more advertiser confidence in the magazine category – but care should be taken by publishers to ensure that these titles are still relevant to the local market. With the launch of these brands come huge responsibility to deliver – which should not be taken lightly. In conclusion, while considerable efforts have been made by many publishers in gaining greater efficiency, success remains underpinned by presence (being accessible), passion (which drives belief and innovation) and delivering real (measurable) value to all parties.

65. Thank you.

66. Your ABC - Transparency you can see -