Interim ResultsInterim ResultsSeptember 6th, 2000September 6th, 2000

INDEPENDENT NEWS & MEDIA PLCINDEPENDENT NEWS & MEDIA PLC

Australia•No. 1 Regional Publisher

•No. 2 Radio Operator

•No. 1 Outdoor Operator

LEADING MEDIA BRANDSLEADING MEDIA BRANDS

Portugal• No. 1 Newspaper Publisher

Hong Kong• No. 2 Transit Advertiser

New Zealand• No. 1 National Publisher

• No. 1 Regional Publisher

• No. 1 Radio Operator

• No. 1 Commercial/ Security Printer

South Africa•No. 1 Publisher

Republic of Ireland •No. 1 National Publisher

•No. 1 Regional Publisher

•No. 1 Newspaper/ Magazine Distributor

•No. 2 Cable Operator

United Kingdom•The Independent, Independent on Sunday

•No. 1 Publisher in Northern Ireland

•No. 1 Recruitment Magazine Publisher

•No. 1 Paid-For Regional Publisher in London

• Dominant Media Company in 4 of 5 MarketsDominant Media Company in 4 of 5 Markets

• Market Share > 50%Market Share > 50%

• Over 200 Newspaper TitlesOver 200 Newspaper Titles

• Over 48m Readers per WeekOver 48m Readers per Week

• Largest Radio/ Outdoor Advertising Operator in AustralasiaLargest Radio/ Outdoor Advertising Operator in Australasia

• Fast-growing New Media DivisionFast-growing New Media Division

LEADING MEDIA BRANDSLEADING MEDIA BRANDS

• Strong Operating Performances from all DivisionsStrong Operating Performances from all Divisions

– Advertising market share advancesAdvertising market share advances

– Circulation market share advancesCirculation market share advances

• Growth in Core Operating MarginsGrowth in Core Operating Margins

• Significant New Media DevelopmentsSignificant New Media Developments

• Successfully Acquired Belfast Telegraph GroupSuccessfully Acquired Belfast Telegraph Group-- Financed out of Euro 1bn Syndicated Bank FacilityFinanced out of Euro 1bn Syndicated Bank Facility

Subsequent to Half YearSubsequent to Half Year

HIGHLIGHTS 2000HIGHLIGHTS 2000

* Continuing activities before exceptionals* Continuing activities before exceptionals** Before exceptional items and amortisation** Before exceptional items and amortisation

2000 1999 ChangeEuro'm Euro'm %

Turnover 629.4 525.7 19.7%

Operating Profit * 101.2 82.6 22.5%

Profit Before Tax 74.5 61.0 22.1%

Net Profit 38.5 32.8 17.4%

EPS ** 8.33c 7.04c 18.3%

DPS 2.50c 2.22c 12.6%

Weighted shares outstanding (m) 514.5 501.5

HEADLINE NUMBERSHEADLINE NUMBERS

* Including the revalued elements of mastheads* Including the revalued elements of mastheads

30 June 30 June2000 1999

Euro'm Euro'm

Fixed Assets * 2,120 2,046

Other Net Assets 49 26

Net Debt ** (967) (850)

Total Shareholders' Funds 1,202 1,222

Interest Cover (EBITDA/ Interest) 4.7x 4.6x

Net Debt to EBITDA 3.8x 3.9x

SUMMARY BALANCE SHEETSUMMARY BALANCE SHEET

2000 1999 ChangeEuro'm Euro'm %

OPERATING PROFIT 101.2 82.6 22.5%

Share of Associates & JVs (0.7) (1.3) -46.2%

Depreciation & Amortisation 24.1 18.7 28.9%

EBITDA 124.6 100.0 24.6%

Working Capital Movements (10.6) (13.4) -20.9%

OPERATING CASH FLOW * 114.0 86.6 31.6%

Operating Cash Flow Conversion * 91% 87% 5.6%

SUMMARY CASH FLOWSSUMMARY CASH FLOWS

* Excluding restructuring payments* Excluding restructuring payments

UK UK 13%13%

Ireland 25%Ireland 25%South Africa 15%South Africa 15%

Australia 25%Australia 25%New New Zealand 22%Zealand 22%

Turnover by Market – H1 2000Turnover by Market – H1 2000Total: Euro Total: Euro 629.4m629.4m

Ireland 36%Ireland 36%

South Africa 9%South Africa 9%

Australia Australia 31%31%

New Zealand 24%New Zealand 24%

EBIT by Market – H1 2000EBIT by Market – H1 2000Total: Euro Total: Euro 101.2m101.2m

SEGMENTAL PROFILESEGMENTAL PROFILE

935

1,642

2,4882,437

1,818

0

500

1,000

1,500

2,000

2,500

3,000

1996 1997 1998 1999 2000

Gross Assets * (Euro’m)Gross Assets * (Euro’m)

5 YEAR PERFORMANCE – GROSS ASSETS5 YEAR PERFORMANCE – GROSS ASSETS

* including mastheads

C.A.G.R. + 28%

231.7

367.2

629.4

525.7

396.5

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

1996 1997 1998 1999 2000

Group Turnover (Euro’m)Group Turnover (Euro’m)

5 YEAR PERFORMANCE – TURNOVER5 YEAR PERFORMANCE – TURNOVER

C.A.G.R. + 28%

35.1

65.2

101.2

82.6

70.5

0.0

20.0

40.0

60.0

80.0

100.0

120.0

1996 1997 1998 1999 2000

Operating Profit (Euro’m)Operating Profit (Euro’m)

5 YEAR PERFORMANCE – OPERATING PROFIT5 YEAR PERFORMANCE – OPERATING PROFIT

C.A.G.R. + 30%

4.45

5.16

8.33

7.04

6.29

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

1996 1997 1998 1999 2000

Earnings per Share (cents)Earnings per Share (cents)(Fully diluted before exceptionals & goodwill amortisation)(Fully diluted before exceptionals & goodwill amortisation)

5 YEAR PERFORMANCE – EARNINGS PER SHARE5 YEAR PERFORMANCE – EARNINGS PER SHARE

C.A.G.R. + 17%

1.461.65

2.50

2.221.91

0.00

0.50

1.00

1.50

2.00

2.50

3.00

1996 1997 1998 1999 2000

Dividends per Share (cents)Dividends per Share (cents)

5 YEAR PERFORMANCE – DIVIDENDS PER SHARE5 YEAR PERFORMANCE – DIVIDENDS PER SHARE

C.A.G.R. + 14%

DIVISIONAL PERFORMANCESDIVISIONAL PERFORMANCES

Euro Millions 2000 1999

Turnover 140.0 104.1EBITDA 34.1 28.5OPERATING PROFIT 25.4 20.2Operating Margin 18.1% 19.4%

Turnover by Activity

19%

1%9%

71%

Publishing Printing New Media Radio

Turnover + 34.5%EBIT + 25.7%

First time consolidation of TRN - radio - impacts on operating margin. Underlying margins increase.Increased market shares & disciplined cost control.NZ Herald wins major editorial awards.

Economic growth forecast at 2% to 3%.

Performance Drivers

Commentary:

Harnessing online our valuable newspaper brand.

Circulation Market Share up to 41.5% 1 National: New Zealand Herald

8 Daily Regionals/ 30 communities Growth in NZ Herald circulations Total weekly circulation volumes up 1.7% to 1.3mTotal Advertising Market Share up to 9.9% Newspaper - NZ Herald National market share up to 68.5% Classified market share up to 53.5% Recruitment market share up to 83%Magazines Woman's Weekly: 110,000 copies per week Listener: 85,000 copies per week

Publishing

NEW ZEALANDNEW ZEALAND

Largest Radio Operator (55 stations)

Market share expanded to 51%; reach to 57% EBIT more than doubled 1.5m listeners & strong survey results Continued benefits of rationalisation

Radio

NZ Herald site award winner 7.2m page impressions/ monthUBD online directories & mapping launched

New Media

Largest Commercial Printer

8 dedicated divisions, covering all market segmentsSecurity Plastics excellent performance from New Zealand drivers licence contract & expansion into Australia

Commercial Print

NEW ZEALANDNEW ZEALAND

Euro Millions 2000 1999

Turnover 159.5 127.3EBITDA 40.6 29.7OPERATING PROFIT 32.0 25.1Operating Margin 20.1% 19.7%

Turnover by Activity

1%

24%

27%

48%

Publishing Outdoor New Media Radio

Turnover + 25.3%EBIT + 27.5%

Double-digit growth from all operating divisions. Regionals - cost savings from shared services.

Radio - good result in a strong market.Expect 8th successive full year of profit growth.

Performance Drivers

Commentary:

Outdoor - continued strong EBIT growth.

Largest Regional Publisher 14 paid-for dailies; 50+ non-dailies Paid-for circulations up 0.3% Paid-for penetration approx. 60% Successful integration of Gympie Times

Advertising Revenue Growth Classified revenue up 9% National/chain revenue up 39% Local revenue up 10%Shared Services Centre

Publishing

AUSTRALIAAUSTRALIA

Largest Operator in AustralasiaMarket share of 25% in Australia Listeners + 4m with strong ratings Buoyant radio marketWorld Movies: 167,000 subscribers

Radio

No. 1 regional classified website - checkout.com.au

No.1 commercial radio website - 961.com.auSoprano (25% stake) signed a major contract with TelstraPeakHour stake increased to 15%Investment in TIAG (51% stake)

New Media

Largest Outdoor Operator: 60%+ share

All 4 divisions advanced strongly: EBIT + 85% Mainstream medium Increased share of advertising dollar Successful launch of Cody & Buspak in Asia

Buspak & Adshel rolled out in New Zealand

Outdoor

AUSTRALIAAUSTRALIA

Euro Millions 2000 1999

Turnover 92.3 83.3EBITDA 12.0 10.6OPERATING PROFIT 9.5 8.9Operating Margin 10.3% 10.7%

Turnover by Activity

Turnover + 10.8%EBIT + 6.7%

Expenditure well controlled, benefitting from thesuccessful restructuring.Positive Balance of Trade.

Group well placed to take advantage of up-turn.

Performance Drivers

Commentary:

Reserve Bank up-beat on economic growth.

Circulation Metropolitan market share up to 65% 14 leading titles: All titles ABC (circulation) up in H1 2000 All daily competitors showing circulation declines

Strong readership results H1 2000 Market share up to 68%

Advertising market share maintained Classified market share up 4.4% to 50% Display market share up to 36%

Publishing

99%1%

Publishing New Media

SOUTH AFRICASOUTH AFRICA

iTouch successfully exported from SA

iol.co.za website - Africa's most visited news site with 4.7m page impressions per month

New Media

SOUTH AFRICASOUTH AFRICA

Joint venture with Conde Nast Magazines

House & Garden profitable - in its 2nd year

GQ building on last year's successful launch

Magazines

18%2%

62%

18%

Nationals Regionals Magazines New Media

Euro Millions 2000 1999

Turnover 84.2 71.4EBITDA 1.0 (2.3)OPERATING PROFIT 0.1 (3.0)

Turnover by Activity

Turnover + 17.9%Losses eliminated

Nationals - 3 year turnaround on plan.Regionals - Performing to expectations.Magazines - Highly competitive environment.

Performance Drivers

Commentary:

New Media - Strong performance.

Total circulation market share up to 9.5% Total advertising market share up to 19.0% - Strong advertising revenues - up 21% H1 2000Move to new offices in 2nd half

Advertising revenue up 7%Further margin improvement

Advertising revenue up 7%, principally as a result of new product development

Nationals

Regionals

Magazines

UNITED KINGDOMUNITED KINGDOM

lam-online.comlam-online.com

independenceavenue.comindependenceavenue.com

londoncareers.netlondoncareers.net

careerworld.netcareerworld.net

mba-direct.commba-direct.com

executives-direct.comexecutives-direct.com

H2 Developments:• Belfasttelegraph.co.uk• SME site• Student site• Joint sites with iTouch• Classifieds online

Key Statistics:• Top 10 UK content Website• 14 million combined page impressions per month for UK group

UNITED KINGDOM - NEW MEDIAUNITED KINGDOM - NEW MEDIA

independent.co.ukindependent.co.uk

BELFAST TELEGRAPH ACQUISITIONBELFAST TELEGRAPH ACQUISITION

Background

• Founded in 1870

• Northern Ireland’s leading daily newspaper

• Acquired from Trinity Mirror in July 2000

• Competitive bid process – 17 1st round & 5 2nd round bidders

• Consideration of Stg£295m

• Earnings enhancing in 1st year

• Moves IN&M into the top 10 UK regional publishers

Publishing

• Belfast Telegraph circulation: 117,000 (Mon. – Sat.)

• Over 50% home delivered

• Sunday Life circulation: 95,000

• Other titles: Communities, Farm Trader, Ads for Free

Printing

New Media

• Substantial contract printer

• 2 Goss Metroliners (double-width)

• Freehold premises

• No. 1 site with 4.5m page impressions

BELFAST TELEGRAPH ACQUISITIONBELFAST TELEGRAPH ACQUISITION

Key Characteristics

• Unique metropolitan franchise

• Excellent track record

• Proven management/editorial

team

• Strong growth prospects

• Dynamic new media resource

Future Prospects

• Significant revenue growth envisaged

• Double digit advertising growth

• New product development

• The weekend opportunity

• Group editorial resource

• Economies of scale

• Enhanced printing resource

• Further expansion opportunities

Turnover by Activity

Turnover + 9.9%EBIT + 11.6%

Continued strong growth across all divisions. Market share gains in all categories.All titles well positioned for new Euro 60m full colour

Citywest project 1 month ahead of plan & on budget.

Performance Drivers

Commentary:

production facility.

Circulation Market Share 52% (including imports)

No. 1 Publisher in each newspaper category No. 1 Regional Publisher: 11 titles (40% share) Buoyant circulations: - Irish Independent 17 year high - Total avge. volumes up 0.2% to 1.2m

Advertising Market Share up to 54% Classified strong: market share advances

Publishing

Euro Millions 2000 1999

Turnover 153.4 139.6EBITDA 40.8 36.2OPERATING PROFIT 37.4 33.5Operating Margin 24.4% 24.0%

23%2%

75%

Publishing Distribution New Media

IRELANDIRELAND

Unison portal - via set top box for TV - launched March launch: 30,000+ subscribers

PHL -- Irish Multi-channel over 250,000 subscribers

New Media

Euro 60m investment Full colour facility: IndoMAN press (64pp colour) Integrated Mailroom: Ferag (260pp/ inserts/ mag)Substantial Cost Savings Headcount halved to 63 operatives Elimination of all colour pre-printing

Citywest Production Facility

IRELANDIRELAND

Leading newspaper & magazine wholesaler

Distribution

NEW MEDIANEW MEDIA

Independent DigitalIndependent Digital

Euro Millions 2000

Turnover 4.8Operating Losses (6.8)

Total Investment to Date 65Value of Quoted Investment 160

Statistics: Group Web Sites 50 Group Page Impressions per month 61m

Staged e-Volution: " A HYPE-LESS FUTURE"1. Understand/ enforce regulatory/ copyright issues2. Identified 5 Areas of Strategic Focus/ Execution3. Utilised Ads & Content for equity as "currency for investment" 4. Leveraged our leading media assets/ brands in the online space5. Invested in appropriate technology to perform infomediary role across

all communication platforms

Digital Strategy/ Execution

DIGITAL eVOLUTIONDIGITAL eVOLUTION

Australia

Ireland

New Zealand

South Africa

United Kingdom

Northern Ireland

INDEPENDENT DIGITAL *INDEPENDENT DIGITAL *

Ireland Australia

Ireland Ireland Ireland

United KingdomAustralia

IrelandUnited KingdomIreland

* denotes country of origin/ not served markets* denotes country of origin/ not served markets

telephony

education

business 2 businessinternet - portal

wap/ sms cellular

Ireland

Ireland's 2nd largest cable/ TV transmission operator - jointly owned (50:50) by INM and Liberty Media (USA) - 250,000 subscribers - 650,000 homes passed (60% of all homes in Ireland) - exclusive licence franchise areas

Acquired CMI & Suir Nore in H1 2000

Launched Unison ISP in conjunction with INM

Awarded wireless local loop licences for broadband & narrowband

Euro 360m syndicated loan secured August 2000, facilitating: - broadband, high-speed network build - launch of full multi-media (bundled Digital TV, Internet & telephony)

Details

CABLE DIVISION - PHLCABLE DIVISION - PHL

1995: Founded in Capetown by Wayne Pitout & Avi Azulai specialising in theprovision of packaged information content, corporate and commercialservices via fixed and mobile telephony.

1997: Secured R&D contract with Vodacom - SA's largest mobile network operator.

1998: INM takes initial 20% stake.1999: INM builds stake to 70% (diluted to 50% post IPO).2000: iTouch services (including WAP portals) successfully launched in UK,

Ireland, Australia, New Zealand, South Africa and Israel.- iTouch successfully brought to market (LSE) at Euro 320m valuation, raising Euro 80m for business development / expansion.

Background

-- Aggregate, package and transmit real-time information to cellular/ fixed telephony consumers via WAP, SMS & IVR-- Provide full interactivity via m & v-commerce-- B2B Focus: Facilitating full-service Corporate Connectivity-- Key Relationships: Independent News & Media PLC & Vodafone Group

Business Focus

iTOUCH PLCiTOUCH PLC

* Before New Media losses* Before New Media losses** Continuing activities before exceptionals** Continuing activities before exceptionals*** Before exceptional items and amortisation*** Before exceptional items and amortisation

2000 1999 ChangeEuro'm Euro'm %

Turnover 629.4 525.7 19.7%

Operating Profit * 108.0 82.6 30.8%

Operating Profit ** 101.2 82.6 22.5%

Profit Before Tax 74.5 61.0 22.1%

Net Profit 38.5 32.8 17.4%

EPS *** 8.33c 7.04c 18.3%

DPS 2.50c 2.22c 12.6%

Weighted shares outstanding (m) 514.5 501.5

HEADLINE NUMBERSHEADLINE NUMBERS

• Track record of unbeatable shareholder returnTrack record of unbeatable shareholder return

• Geographically diversified - with tight focus on core competenciesGeographically diversified - with tight focus on core competencies

• Unique brand leadership positions - dominant in 4 out of 5 marketsUnique brand leadership positions - dominant in 4 out of 5 markets

• All divisions advancing well on 1999 All divisions advancing well on 1999

• Belfast Telegraph Belfast Telegraph acquisition - EPS enhancingacquisition - EPS enhancing

• Citywest development to further enhance Irish performanceCitywest development to further enhance Irish performance

• ““Hype-Less” new media strategy delivering quantifiable resultsHype-Less” new media strategy delivering quantifiable results

• Increasing value of our Irish cable/ telephony businessIncreasing value of our Irish cable/ telephony business

SUMMARYSUMMARY

1,000 3,900 8,500

47,500

128,500

190,500

479,000

1973 1978 1983 1988 1993 1998 2000

Euro 1,000 invested in 1973Euro 1,000 invested in 1973

SHAREHOLDER RETURN – Since 1973SHAREHOLDER RETURN – Since 1973

C.A.G.R. + 25%

Interim ResultsInterim ResultsSeptember 6th, 2000September 6th, 2000

INDEPENDENT NEWS & MEDIA PLCINDEPENDENT NEWS & MEDIA PLC