Independent News & Media Regulatory News (INM)

APN News & Media Annual General Meeting

Chairman's Address to Shareholders

Ticker: (Bloomberg) INM.ID/ INM.LN and (Reuters) INME.I/ INME.L

Dublin/London - 3 May 2011: Gavin O'Reilly, Chairman of APN News & Media Ltd ('APN'), in which Independent News & Media PLC has a 31% shareholding, made the following address at the APN Annual General Meeting held on 3 May 2011.

The past year saw a welcome return to growth for APN News & Media and an improved dividend for all shareholders.

In 2009 - like so many other Australian companies in the media industry - APN experienced some of the most challenging trading conditions ever seen in recent years.

It is against that backdrop, that APN's performance in 2010 reflected and reinforced the underlying strength of our market-leading businesses, and the economies in which they operate, as well as the great talents and efforts of our staff.

Not all of our business units and territories have yet returned to the trading levels experienced prior to the Global Financial Crisis, however the diversity and underlying durability of our assets should give shareholders encouragement.

This year too has presented its own extraordinary challenges. In late March, we announced that the results for the first quarter of 2011 had been significantly and negatively impacted by the horrendous floods in Queensland and the devastating earthquake in Christchurch, which occurred in two of APN's most important markets. It is extraordinary to experience one natural disaster - but two major natural disasters in two distinct geographies in one quarter is truly, truly extraordinary.

At this point, I would like to particularly commend all of our staff working in the disaster-affected areas, who responded so magnificently and bravely to the many operational challenges presented, despite many experiencing personal difficulties and trauma, themselves.

Despite the tough beginning to the year, the underlying strength of both APN's brand and leading market positions remains unchanged, and as evidence of that, I will provide you with an update on current trading later in this address.

Improved Financial Result

Turning to our financial performance, APN recorded a Net Profit After Tax of $103.1 million, a rise of 9.5% on the prior year, with an increase in Revenue of 2.8%.

Earnings before Interest and Taxation were $205.4 million, an improvement of 8.7%.

As part of that performance, we have also been focused - as you'd expect us to - on reducing the costs in our businesses and APN recorded another strong cost performance, building on significant productivity gains achieved in recent years.

A final dividend of 7 cents per share, which combined with the Interim Dividend of 5 cents per share, or 12 cents for the full year, represented a substantial increase on the total per share dividend paid for 2009.

People and leadership

Allied to the business improvements, we have made some very important changes to our management and Board.

Last year Brendan Hopkins' secondment with APN ended, which resulted in Brendan leaving the company by mutual agreement at the end of 2010. On behalf of shareholders, I would like to thank Brendan for his contribution to the Company.

As you know, an extensive search was undertaken for a replacement CEO, and from the outset, the Board knew we needed someone with a unique blend of skills that would enable APN to make a more purposeful step change in the rapidly evolving media landscape.

In October, the Board was pleased to announce the appointment of Brett Chenoweth as Chief Executive Officer. Brett is an experienced media, communications and technology executive who the Board believes is ideally placed to lead our company through its next phase of growth and strategic development. You'll hear from Brett shortly, and I think you'll agree that he has the requisite skills base to ensure that our radio, outdoor and publishing businesses remain the profitable and successful backbone of APN, but more importantly, he also has the vision, awareness and understanding to leverage these assets to even more profitable growth in an increasingly digital environment. APN is changing and we expect that change to profitably accelerate under Brett's guidance. As I said, Brett will shortly take you through a short overview presentation of your Company, including some of the newer opportunities that he sees for APN.

Board Renewal

Last year, as promised, we continued our program of Board renewal. Today we have a much smaller Board of nine members, with a majority of independent non-executive Directors.

Two long-standing directors retired and I would particularly like to recognise and thank those two Directors who have left the Board, Cameron O'Reilly and Donal Buggy.

As you all know, Cameron has been associated with the Company since its very humble beginnings as Provincial Newspapers Queensland, and he successfully led the Company as Chief Executive from May 1996 to 2000. During this time, he oversaw the rapid and profitable expansion of the business into radio and outdoor advertising, which are now two core pillars in APN's portfolio.

Both Cameron and Donal served the company with great distinction and I know that all shareholders will join me when I say that the Company will miss their invaluable advice and strategic leadership.

However, as part of our Board renewal, it gives me great pleasure to welcome John Harvey to the Board, and I look forward to benefiting from his extensive corporate experience particularly in the New Zealand market.

The new Board composition assures a majority of independent, non-executive Directors and with our 'governance plus' approach to Board development, I should note that we have also commissioned the specialist, Governance-advisory firm, Cameron Ralph, to undertake a review and audit of the composition of the Board, including gender diversity, to ensure that we have the right skills sets around the Board table.

Current Trading

April trading has remained consistent with the update on 21 March, where we outlined the first quarter impact of the natural disasters in Queensland and Christchurch.

Despite some improvement in Queensland, earnings are still being impacted by the repercussions of the earthquake on an already weak New Zealand economy coupled with an extremely strong Australian Dollar. As a result, it is now expected that the first half EBIT will be below last year by $15m-$20m. In response, APN has commenced a round of restructuring initiatives in our publishing operations. Significantly, Outdoor and Radio continue to trade ahead of the prior year.

Notwithstanding such a difficult start to 2011, APN's trading is anticipated to improve in the second half, although it is not expected that the full year result will match APN's 2010 earnings. This return to positive earnings momentum will ensure the continuity of dividends and most importantly, enable the pursuit of growth-orientated initiatives.

Conclusion

I am confident that 2011 will be a year of renewal and reinvigoration under the strategic leadership of our new Chief Executive Brett Chenoweth.

We have a very high quality portfolio of media assets, and a great and loyal team of highly dedicated and talented media professionals who manage them.

On your behalf, I would like to thank all of my APN co-workers and colleagues, and especially my fellow Board members, for their great efforts in 2010.

Finally, I would like to thank you, our shareholders for your continued support.

For Further Information:

Karl Brophy - Director of Corporate Affairs

Tel: +3531 4663200

Mob: +353 86 0471951

Email: karl.brophy@inplc.com