Independent News & Media Regulatory News (INM)

Interim Management Statement

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

Dublin/London 19 May 2014: Independent News & Media PLC ('INM' or the 'Group') today issues an interim management statement covering the period from 1 January 2014 to 16 May 2014.

INM's year-on-year performance for the twenty weeks of 2014, from 1 January to 16 May 2014 (being the latest practicable date for this purpose prior to the date of this announcement) is as follows:

· Total Group Revenues declined by 2.8%;

· Total Newspaper Advertising Revenues declined by 2.4%;

· Total Digital Advertising Revenues increased by 17.8%;

· Total Circulation Revenues declined by 2.5%; and

· Operating Costs reduced by 2.8%, despite a substantial investment in digital activities, in line with the Group's digital strategy.

Trading conditions, since the announcement of the Group's 2013 full year results on 13 March 2014, have improved on the trends experienced up to that date. Total newspaper advertising revenues are down by 2.4% year to date ('YTD'), compared to a decline of 2.8% at 13 March 2014. A number of newspaper advertising categories have shown strong YTD growth, with recruitment, property and inserts showing the largest year-on-year revenue increases. The reduction in newspaper advertising revenue YTD is primarily related to the performance of our Northern Irish ('NI') operations, with the Republic of Ireland newspaper business showing a YTD decline of 1.0%.

Digital revenues are up 17.8% YTD, compared to an increase of 14.6% as at 13 March 2014. This performance is principally due to strong growth in our digital publishing operations, together with our NI classifieds business, with GrabOne showing marginal YTD growth.

Despite the YTD revenue reductions and the substantial investment in our digital operations, which is intended to position the business for future growth, the impact on profitability has been largely mitigated by continued cost reductions (through Project Quantum and the carry forward impact of Project Resolute savings) across the business.

Other Matters

In line with the earlier announcement, Group CEO, Vincent Crowley is resigning from the Board, effective today. In conjunction with the existing executive management team, a sub-committee of the board, consisting of Leslie Buckley, Triona Mullane, Allan Marshall and Terry Buckley, will assume responsibility for the management of the Group pending the appointment of a new CEO. The search for a replacement CEO is ongoing.

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