1

INVESTOR MEETINGS

May/June 2004

2

Directories – a Highly Attractive Industry

Simple, cost-effective advertising medium – first stop for SMEs

High cash conversion, low capex, attractive margins

Growth opportunities – Increasing penetration of SMEs

– Shareshift and consolidation

Recession resilient

$26bn Global Directories

Revenues

Source: The Kelsey Group, May 2004

29%Europe

55%US

16%Rest of World

3

The Yell Group at a Glance

Group FY 2004

Turnover up 6.5% to £1,186.9m UK 53% : US 47%

Adjusted EBITDA up 11.5% to £360.1m UK 65% : US 35%

Operating cash flow £303.5m

Pro forma diluted EPS before amortisation 25.3p

Dividend 9p per share

UK

• 5% turnover CAGR FY 00 - 04

• Yellow Pages price capped at RPI - 6%

• 8% growth in volume and yield

• Yell.com 23% turnover CAGR FY 02 - 04 36%

US

• 42% turnover CAGR FY 00 - 04

• Organic growth 11.5%

• Expansion through acquisition

• Strong margin progression

4

The Yell Proposition

Focused strategy: Win, Keep, Grow

Target driven remuneration

Sales excellence

World class processes

Usage and brand building

Proven management team

Focus on strong revenue, margin growth and cash conversion

Acquisition and integration experience

5

UK - Driving Growth in a Regulated Environment (1)

Win

Move In / targeted pricing

Sales Segmentation

Rescoping

Growth in addressable market

Keep

First Year Renewals price offers

Sales channel focus

Proven value

Unique advertisers (000’s)CAGR 6% FY00 - FY04

UK directories turnover growth (£m)CAGR 5% FY00 - FY04

495

518

541

574

594

2000

2001

2002

2003

2004

378

418

438

451

480

2000

2001

2002

2003

2004

UK printed directories only

6

UK - Driving Growth in a Regulated Environment (2)

Grow

Colour– 6 options across 10 sizes

– price premium from 30% to 75%

Move Up price offers

Advert size / multi-heading / multi-book

High impact adverts

Cross-sell - Yell.com

Average turnoverper unique advertiser

£1,309

£1,239

£1,234

£1,272

£1,237

2000

2001

2002

2003

2004

Does not include Yell.com cross sell

7

8.3

14.9

20.3

25.8

2001

2002

2003

2004

Driving Growth in the UK - Yell.com

27% turnover growth– searchable advertisers up 37%

– page impressions up 72%

Established SME relationships

Sales expertise

Proven usage and brand -building competencies

Broad range of online products

Usage growth page impressions per month (m)

Turnover growth (£m)

67

39

33

16 Mar-01

Mar-02

Mar-03

Mar-04

8

Competing for the SME £

Yell thrives through building relationships with SMEs based on delivering better value than competitive

media

CUSTOMERS

Online

Consumer magazines

Local press

Directories

National press

Business magazines

9

Regulatory Environment – the Last Review

*Affected books published from March 2002

Discounts require OFT permission to be withdrawn

1996 - 2001 2001

Yell can introduce new overlapping directories if no competitor in same area after 2 years from undertakings

“Changes in Business Practice” e.g. new ad sizes or features such as colour require OFT permission

Restriction removed

Restriction removed

Formula for setting maximum price of ads in re-scoped directories - unchanged

RPI-6% from January 2002 *RPI-2%

Formula for setting maximum price of ads in re-scoped directories

No new overlapping directories

10

US Expansion – 53% share of Independents

536 OUT OF 6500 US DIRECTORIES

Yellow Book (acquired August 1999)

McLeodUSA (acquired April 2002)

NDC (acquired December 2002

Feist (acquired March 2004)

11

Trends in US Market Shares

Source: The Kelsey Group with Yell estimates for 2002 to 2004. Independents include online only publishers.

% Revenue growth for publishers

% Independents’ market share

4 43

20

25

20

25

1314

20

16

-1.5-0.5

1998 1999 2000 2001 2002 2003 2004

Incumbents Independents

8

1011

12 12

15

17

1998 1999 2000 2001 2002 2003 2004

Independents' Market Share

12

US Growth Strategy

Win Content Price point New launches / relaunches Usage and brand focus Service

Keep Rescoping In-product development Maintain service levels

Grow Headings development programme ‘Step Up’ price offer Geographic footprint

Expansion through acquisition Opportunities arising from

continued consolidation Platforms In-fills

Build margins Portfolio development Integration benefits

13

Compelling Financial Characteristics

Balanced group

High levels of recurring revenues

Early revenue visibility

High margins and improving profitability

Integration benefits

High earnings growth

High cash generation

Low capex

14

200 206 210 226

1628 35

97127

233

2000 2001 2002 2003 2004

US

UK

Yell Group - Strong Historic Growth

523 554 581 615 635

99220

284

499552

2000 2001 2002 2003 2004

US

UK

CAGR 18%

34.7%30.2%28.3%29.0%30.3%

EBITDA margin

CAGR 14%

Adjusted EBITDA excludes buyout arrangement under BT ownership in FY02, IPO costs and restructuring costs relating to the closure of a Yellow Book West production site in FY03

Turnover (£m) Adjusted EBITDA (£m)

15

200 206 210226 233

2000 2001 2002 2003 2004

523554

581615

635

2000 2001 2002 2003 2004

CAGR 5%

Turnover (£m) Adjusted EBITDA (£m)

38.2% 37.2% 36.2%36.8%36.7%

EBITDA margin

CAGR 3%

Adjusted EBITDA excludes buyout arrangement under BT ownership in FY02, IPO costs and restructuring costs relating to the closure of a Yellow Book West production site in FY03

Yell UK - Growth under Regulation

+1.3% + 0.6% -0.4% -4.4%

-4.8%

Effective Yellow Pages price

reduction

16

41.050.0

215.9

151.0

2001 2002 2003 2004

Yell US – Organic and Acquisition Growth

331.0409.0

939.6

775.0

2001 2002 2003 2004

CAGR 42%

Turnover ($m) Adjusted EBITDA ($m)

12.7%

CAGR 74%

EBITDA margin 12.3% 19.4% 23.0 %

Acquired

Existing

17

Building US Margins

0%

11%

31%

23%

1 Year 2-3 Years 4+ Years All Directories

EBITDA margin of new directories since launch

7% 30% 63%

100%

Share of turnover

18

Cash Conversion and Operating Free Cash Flow

Group cash conversion 83% 72% 76% 95% 84%

Capex £m (11) (23) (14) (16) (25)

Working capital £m (26) (43) (46) (0) (32)

216234 245

323

179 168186

307 304

360

2000 2001 2002 2003 2004

Adjusted EBITDA (£m)

Operating Free Cash Flow (£m)

19

Use of Free Cash Flow

Acquisitions

c 2/3 FCF

Under 10x proforma EBITDA

Positive net present value

Earnings accretive, before goodwill amortisation and one-off costs

Dividends

c 1/3 FCF

1/3 interim, 2/3 final

Growth in line with earnings

20

Value Creation

Right model in the right markets

Strong positioning for growth

Driving performance

Investor Relations: Jill Sherratt +44 (0)118 950 6984

www.yellgroup.com

Yell, Queens Walk, Oxford Road, Reading, Berkshire RG1 7PT

™Trade mark of Yell Limited