Agreement On Pension Restructuring

AGREEMENT ON PENSION RESTRUCTURING

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

Dublin/London 10 September 2013. In its recentinterim results announcement, Independent News & Media PLC ('INM' and/or the 'Group' and/or the 'Company') announced that the Trustees of INM's main Republic of Ireland defined benefit pension schemes had submitted Section 50 applications to the Irish Pensions Board, which included proposals to substantially reduce members accrued benefits. The Trustees of the schemes have today advised INM that the Pensions Board has approved the applications and the reduction in benefits becomes effective on 9 September 2013.

This restructuring of the pension schemes completes the Pension Restructuring as outlined in the circular to shareholders dated 24 May 2013 and is a further significant step in the Group's balance sheet restructuring. Based on the estimated deficit on the Group's defined benefit pension schemes at 30 June 2013, the now approved proposals would achieve a reduction in the Group's pension deficit of approximately €110 million.

The approval by the Irish Pensions Board of the Pension Restructuring satisfies one of the key conditions outstanding in respect of the Final Stage Restructuring agreed with the Company's lenders and to be implemented by 31 December 2013. In particular it clears the way for the preferred option for the Company, a capital raise of a net €40 million to enable a further material debt reduction.

Details of the Final Stage Restructuring are as set out in the circular to shareholders dated 24 May 2013, including the debt equitisation as an alternate to the capital raise. Defined terms used in this announcement have the same meaning as per that circular.

ENDS