INM Chairman Sir Anthony O'Reilly

Independent News & Media PLC said today, that it has noted the significant and unwarranted decline in INM’s share price and believes that the current market capitalisation does not fairly reflect the true value of the underlying assets, the current trading performance and the inherent profitability and cash generative nature of the Group’s operations. This is underscored by the international diversity of the Group’s publishing, online, radio and outdoor operations across Australia, Hong Kong, India, Indonesia, Ireland, New Zealand, South Africa and the United Kingdom. INM says it will not be recommending a final dividend for 2008 as it tries to maximise its cash flow.

INM's share price is 95% off its 2007 highs and has tumbled by 45% in the last week to stand at 19 cent.

INM said it expects to release its 2008 Full Year Results on 31st March 2009 and – like all other companies – is currently operating in very challenging economic and advertising conditions. It said over 33% of INM’s Group revenues are not dependent on advertising markets.

For the year ended 31st December 2008, total Group revenue is estimated to be in excess of €1.4 billion, or approximately 3% down on the prior year in constant currency terms.

INM said strong cost management across all divisions largely contained the sudden advertising contraction experienced from September 2008 onwards, and as a result, it is expected, it will produce a 2008 Operating Profit (Before Exceptionals) of at least €275m, which would yield a Diluted Earnings per Share (excluding exceptionals) of at least 12.0 cent per share, contrasted against a current share price of 19.0 cent.