Independent News & Media Regulatory News (INM)

APN TO PARTNER WITH QUADRANT PRIVATE EQUITY IN OUTDOOR EXPANSION

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

Dublin/London - 23rd February 2012: APN News & Media Ltd ['APN'], in which Independent News & Media PLC ['INM'] has a 30.4% shareholding, today announced that it has reached an agreement to form a joint venture with Quadrant Private Equity to target expansion within the Outdoor advertising segment in Australia, New Zealand and Asia.

The Outdoor joint venture, to retain the name APN Outdoor, will incorporate all of APN's wholly-owned Outdoor businesses in Australia and New Zealand as well as APN's 50% interests in Rainbow Premium Outdoor, in Indonesia. The transaction values APN Outdoor at $272m on an Enterprise Value basis and will generate gross cash proceeds of approximately $190m for APN upon completion. APN's 50% ownership in Adshel (street furniture) and Hong Kong (Buspak and Cody) operations remain outside the new APN Outdoor joint venture.

APN Outdoor will actively pursue digital roll-out and expansion initiatives in Australia and New Zealand and invest in selected Asian-growth markets. APN intends to re-invest part of the transaction proceeds to fund a range of growth opportunities to be pursued by the newly formed joint venture.

In commenting on the agreement, Brett Chenoweth, CEO of APN said: "This partnership is a unique opportunity for APN to fast-track growth in the Outdoor advertising segment, one of APN's most successful businesses and a market leader in Australia and New Zealand. Quadrant is a leading Australian private equity firm and will bring additional strategic and operational focus together with capital to drive growth and profitability for the Outdoor business". We have already identified a number of opportunities that fit with APN Outdoor's growth objectives. We will update the market at the appropriate time on these initiatives."

Chris Hadley, Managing Director, Quadrant Private Equity said: 'Outdoor advertising is one of the fastest growing media sectors, being a beneficiary of changes in the media landscape. We believe a well capitalised business will be able to further drive innovation and capitalise on growth opportunities to thrive in the evolving media landscape. APN's market leading position makes them the ideal partner.'

APN Outdoor will be led by the current APN Outdoor management team - Richard Herring, CEO of APN Outdoor since 2003, Andrew Hines, COO and Wayne Castle, CFO. All current employees of APN's Outdoor division will be employed by the new joint venture. Richard Herring said: "We are excited about the prospect of growing APN Outdoor with Quadrant. APN Outdoor has had an exceptional 2011 with strong operational performance reflected in impressive growth against all of our key financial metrics. We were successful in winning a number of major contracts, including Perth Airport and Brisbane City Council Buses and acquired OGGI Billboards in New Zealand. Advertisers continue to turn to the Outdoor advertising segment to reach a broad cross-section of consumers. APN remains at the forefront of digital roll-out in Australia, a position which will be augmented through the formation of this joint venture. I look forward to building on our track record of innovation, expansion and profitable growth."

"Our goal to aggressively grow the business will be strengthened by this arrangement. The prospects for the industry are very positive with increasing audiences, panel quality improvements and a unique ability to enhance the connection of consumers with smart phone interactivity."

APN Outdoor will have a Board of Directors with equal representation by each partner. Brett Chenoweth will be the Chairman of the APN Outdoor Board.

APN will continue its strong partnership with Clear Channel International through its joint ownership of Adshel (Australia and New Zealand) as well as Buspak and Cody (Hong Kong).

The transaction is subject to customary completion conditions, including:

• Regulatory and third party consents (including FIRB approval)

• Debt funding arrangements

• Section 260B (financial assistance) approval by shareholders at the AGM

• Finalisation of certain ancillary documents

APN was advised by RBS and Baker &McKenzie. Quadrant was advised by Morgan Stanley and Minter Ellison.

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For further information, please contact:

APN - Peter Brookes, Citadel Communications, +61 407 911389

Quadrant - Chris Hadley, Managing Director, +61 418 280240, Hadley@quadrantpe.com.au