1. Thomaz Souto Corrêa Vice Chairman Abril Group Opportunities for Cross-border publishing: New Frontiers 26 > 28 May 2003 34th FIPP World Magazine Congress Carrousel du Louvre - Paris

2. BRAZIL: AN OVERVIEW

3. BRAZIL, THE CENTER OF THE WORLD !

4. 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

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

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

7. NATIONAL POPULATION The South and Southeastern Regions represent 74% of total magazine sales Total Population: 176.128.497 Total Readers: 38.971.180 Source: IBGE Marplan IVC

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

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

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

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

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

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

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

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

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

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

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

19. BRAZIL: THE MAGAZINE MARKET Circulation Advertising

20. BRAZIL: THE MAGAZINE MARKET CIRCULATION Market stable at + 410 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

21. Source: IVC - Dinap 319 302 308 331 415 363 413 406 BRAZIL: THE MAGAZINE MARKET 1995 - 2002 Million Copies

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

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

24. Source: IVC - Dinap BRAZIL: THE MAGAZINE MARKET BREAKDOWN OF SEGMENTS 1995 - 2002 Thousand Copies

25. 89 97 109 123 158 164 158 90 Source: IVC - Dinap 69% 31% BRAZIL: THE MAGAZINE MARKET CIRCULATION MARKET WOMEN’S MAGAZINE: 1995 - 2002 Million Copies

26. 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

27. Source: Projeto Intermeios 9.859 9.323 9.636 Magazine Market Share BRAZIL: THE MAGAZINE MARKET ADVERTISING EXPENDITURE: 2000 - 2002 Reais - R$ - Million 10,6% 9,7%

28. Dollar Rate:R$ 1,837R$ 2,350R$ 2,908 5.367 3.967 3.313 Source: Projeto Intermeios BRAZIL: THE MAGAZINE MARKET ADVERTISING EXPENDITURE: 2000 - 2002 US$ - Million

29. Dollar Rate:R$ 1,837R$ 2,350R$ 2,908 5.367 3.967 3.313 Source: Projeto Intermeios BRAZIL: THE MAGAZINE MARKET ADVERTISING EXPENDITURE: 2000 - 2002 US$ - Million

30. TOP ADVERTISING CATEGORIES - 2002 Source: Ibope Monitor/ Projeto Intermeios Reais - R$ - Million

31. American and European Publishers Doing Business in Brazil

32. Source: IVC - Dinap INTERNATIONAL MAGAZINES IN BRAZIL

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