1. 1999 Interim Results 2nd September 1999 All numbers in Euros INDEPENDENT NEWS & MEDIA PLC

2. 1st Half Highlights

3. Headline Numbers 1999 1998 Change Euros Euros % Turnover525.7m396.5m +32.6% Operating Profit 82.6m 68.7m +20.2% Profit Before Tax61.0m 41.5m+47.0% Net Profit32.8m 25.9m+26.6% EPS13.08c 10.44c+25.3% DPS4.44c 3.81c+16.5%

4. Turnover by Market - 1999 Total : Euro 555m * Turnover By Market * Including Group share of joint ventures and associates

5. Profit by Market Operating Profit by Market - 1999 Total : Euro 83m * * Excluding exceptional items, but including Group share of joint ventures and associates

6. Summary Balance Sheet Fixed Assets *2,0461,516 Other Net Assets2636 Net Debt(850)(645) Total Shareholders’ Funds *1,222907 Interest cover (EBITDA/Interest)4.6x3.0x Net Debt to EBITDA3.9x3.6x 1999 Euro ‘m 1998 Euro ‘m * Including the revalued element of mastheads

7. Summary Cash Flow Operating profit82.668.7 Restructuring costs-3.4 82.672.1 Share of Associates & JV’s Results(1.3)(7.2) Depreciation & Amortisation18.716.4 EBITDA100.081.3 Operating cash flow *86.652.4 Operating cash flow conversion (%)87%65% 1999 Euro ‘m 1998 Euro ‘m * excluding restructuring payments

8. Acquired 100% of South African businessAcquired 100% of South African business Increased stake in Australia to 41%Increased stake in Australia to 41% Issued 10 Year Euro200m Eurobond at 5.75%Issued 10 Year Euro200m Eurobond at 5.75% Change of name to reflect overall media focusChange of name to reflect overall media focus Corporate Activity

9. Strong recovery in key currenciesStrong recovery in key currencies Returned to double-digit growth in Irish operationsReturned to double-digit growth in Irish operations Recovery of New Zealand economyRecovery of New Zealand economy Strong performance from Australian operationsStrong performance from Australian operations Efficient treasury and tax managementEfficient treasury and tax management Group-wide restructuring successfully implementedGroup-wide restructuring successfully implemented Key Operational Drivers

10. 83% of total planned headcount reduction achieved83% of total planned headcount reduction achieved Ireland - new print plant to be operational by Q4 2000Ireland - new print plant to be operational by Q4 2000 New Zealand - Significant progress on all initiativesNew Zealand - Significant progress on all initiatives South Africa - Commercial initiatives almost complete and the longer-term editorial initiatives underwaySouth Africa - Commercial initiatives almost complete and the longer-term editorial initiatives underway Overall, on-track to achieve planned savingsOverall, on-track to achieve planned savings Restructuring

11. Operating and Financial Performance

12. Brisbane Sydney Adelaide Melbourne Canberra Perth Australia

13. Turnover127.3122.1+4.3% EBITDA29.726.8+10.9% Operating Profit25.122.1+13.9% Margin (%)19.7%18.1% Exceptionals- - 1999 Euro ‘m Change % 1998 * Euro ‘m Australia * including 100% of ARN

14. AUSTRALIAAUSTRALIA AUSTRALIAAUSTRALIA Revenue split …Revenue split … Double digit EBIT growth in all divisionsDouble digit EBIT growth in all divisions Publishing - improved local revenues, cost initiatives & circulation pick-upPublishing - improved local revenues, cost initiatives & circulation pick-up Electronic - Local revenue gains & cost reductionsElectronic - Local revenue gains & cost reductions Outdoor - 46% EBIT growthOutdoor - 46% EBIT growth Best 5 year EPS growth of 8 largest media companiesBest 5 year EPS growth of 8 largest media companies Forecasting 7th year of net profit & dividend growthForecasting 7th year of net profit & dividend growth

15. Auckland Wellington Christchurch New Zealand

16. Turnover104.1106.3-2.1% EBITDA28.529.0-1.6% Operating Profit20.321.1-4.0% Margin (%)19.5%19.5% Exceptionals-(1.4) 1999 Euro ‘m 1998 * Euro ‘m Change % * based on continuing operations

17. NEWZEALANDNEWZEALAND NEWZEALANDNEWZEALAND Revenue split...Revenue split... Strong performance in Quarter 2 1999Strong performance in Quarter 2 1999 NZ Herald - advertising market share gainsNZ Herald - advertising market share gains Successful launch of Hawkes Bay TodaySuccessful launch of Hawkes Bay Today Significant benefits from restructuringSignificant benefits from restructuring Strong performance from Radio operationsStrong performance from Radio operations Forecasted upswing for 2nd halfForecasted upswing for 2nd half

18. London United Kingdom

19. *based on 100% of UK operations United Kingdom Turnover71.477.4-7.7% EBITDA(2.3)1.4 Operating Profit(3.1)0.5 Margin (%)-4.4%0.6% Exceptionals-(0.9) 1999 Euro ‘m 1998 * Euro ‘m Change %

20. UNITEDKINGDOMUNITEDKINGDOM UNITEDKINGDOMUNITEDKINGDOM Revenue split...Revenue split... Good start to 1999Good start to 1999 Independent turnaround:Independent turnaround: Only UK broadsheet to record circulation growthOnly UK broadsheet to record circulation growth Circulation share up to 9.5%Circulation share up to 9.5% Group editorial epicentreGroup editorial epicentre New Editor named Editor of the Year in MarchNew Editor named Editor of the Year in March Regionals & Magazines: performing strongly in a competitive marketplaceRegionals & Magazines: performing strongly in a competitive marketplace

21. Dublin Cork Limerick Ireland

22. Turnover 139.6127.0+9.9% EBITDA36.232.8+10.5% Operating Profit33.530.3+10.7% Margin (%)24.0%23.8% Exceptionals-(0.9) % Change 1999 Euro ‘m Ireland 1998 Euro ‘m

23. IRELANDIRELAND IRELANDIRELAND Revenue split...Revenue split... Strong advertising growth and enhanced market shareStrong advertising growth and enhanced market share All titles increased circulation (H1’99)All titles increased circulation (H1’99) Launch of Sunday colour magazineLaunch of Sunday colour magazine Value of cable business growingValue of cable business growing Continued economic growth forecastContinued economic growth forecast New printing plant on scheduleNew printing plant on schedule

24. Cape Town Durban Johannesburg South Africa Pretoria Kimberley

25. South Africa Turnover83.398.4-15.3% EBITDA10.613.9-23.3% Operating Profit8.812.0-26.6% Margin (%)10.5%12.2% Exceptionals-(0.6) 1999 Euro ‘m 1998 Euro ‘m Change %

26. Revenue split...Revenue split... Circulation increase for The StarCirculation increase for The Star Readership increases across all titles in Gauteng and KwaZulu NatalReadership increases across all titles in Gauteng and KwaZulu Natal Significant benefits from restructuringSignificant benefits from restructuring Planned launch of GQ with Conde NastPlanned launch of GQ with Conde Nast Well positioned for the economic recoveryWell positioned for the economic recovery SOUTH AFRICASOUTH AFRICA SOUTH AFRICASOUTH AFRICA

27. Independent Digital Creatively led; Commercially driven

28. Digital Mission We recognise the mobility of our 45 million daily consumers, and will invest in digital technology to perform the Infomediary role across all communication channels

29. Digital Mission Independent Digital leverages the Group’s local, national & international content as well as new content produced and packaged specifically for digital distribution

30. Digital Mission Our media investments will act as a potent signpost to our digital activities, and accelerate our ambition to become key global destination sites

31. Current Activities Significant investment to date Current global activity:40+ sites 20m page impressions/month Broad coverage of key destination categories: NewsCurrent AffairsEntertainment Music Recruitment Merchandising ITFinancialClassifieds Directories

32. Future Expansion E-commerce engines / e-commerce enabled sites Identifying the next e-categories and making strategic investments Potential links with global entertainment player Potential links with global online auction player Business-to-business investments

33. Future Expansion Consumer and business ISPs Ads-for-equity investments produce equity opportunities with significant potential upside Investment in global technology solutions that will enhance our ability to reach new markets, including areas such as copyright protection, database technologies and e-commerce mechanisms

34. Telephony Independent Digital’s global rollout of InTouch as part of 3rd generation SMS and WAP technology –Banking –Gaming –Ticketing –Trading Expansion of existing telephony activities into more broad-based telecommunications, eg. call cards, account-based residential, mobile services & SMEs Facilitates entry to internet telephony

35. Group Strategy & Outlook

36. Group Strategy Geographically diversifiedGeographically diversified Tight focus on CORE competenciesTight focus on CORE competencies Brand market leadership positionsBrand market leadership positions Margin enhancementsMargin enhancements Primary content provider across diverse media platformsPrimary content provider across diverse media platforms

37. Target 20%+ Operating MarginsTarget 20%+ Operating Margins Migrate into revenue & profit enhancing New Media opportunitiesMigrate into revenue & profit enhancing New Media opportunities Deliver double-digit earnings growthDeliver double-digit earnings growth Enhance shareholder valueEnhance shareholder value Targets

38. Strong performance from New Zealand economyStrong performance from New Zealand economy Strong performance from Irish economyStrong performance from Irish economy Strong performance from Australian economyStrong performance from Australian economy Recovery in South African economyRecovery in South African economy Further circulation improvements in the UKFurther circulation improvements in the UK Significant benefits from restructuringSignificant benefits from restructuring On-track for double-digit earnings growthOn-track for double-digit earnings growth Outlook for 2nd Half

39. Independent News & Media PLC