Interim Results

PROFIT BEFORE TAX GROWTH OF 13.5% TO €15.1M, GROUP DEBT CLEARED AND CASH POSITIVE

Dublin and London 28 August 2015: Independent News & Media PLC (INM ID, INM LN) today announced its results for the six months ended 30 June 2015.

KEY HIGHLIGHTS1

§ Strong performance and improving market conditions in H1 2015 have driven growth

We have taken advantage of good market conditions in H1 2015, driving year on year growth in total advertising revenue of 2.9%. This combined with reduced interest costs and continued prudent cost management, resulted in profit before tax growth of 13.5%.

§ Marginal revenue decline of 0.3% to €157.3m

Total advertising revenues up 2.9% with digital advertising revenue growth of 43.8% more than offsetting the marginal decline in publishing advertising revenue. While circulation revenue continued to decline in H1 2015, INM strongly outperformed the industry average.

§ APN shareholding divested, Group debt cleared

Proceeds of €119.3m were used to clear Group debt reducing the interest charge2 from €3.1m to €1.9m. INM is now in a net asset position with strong cash reserves of €35.4m.

§ Largest weekly audience connection on the island of Ireland

2.4m combined readers connect each week in print and online (JNRS 2015) with the Irish Independent, The Herald, the Sunday Independent and the Sunday World. In the Republic of Ireland, INM accounts for 50%3 of the quality daily market, almost 65%3 of the quality Sunday market, while the Belfast Telegraph continues to hold a strong No.1 position within the local daily newspaper market place in Northern Ireland and the Sunday Life has increased circulation market share, performing ahead of local competitors. INM is therefore well positioned to take advantage of the economic recovery on the island of Ireland.

§ Continued multi-platform growth in traffic and reader engagement enabling growth in digital advertising

Growth in traffic and engagement across the Group's websites and apps continued throughout H1. Total page impressions across the titles grew by 20.7% year on year to 625m in H1 2015, while the re-launched independent.ie app has seen traffic growth from 21m screenviews in June 2014 to 55m in June 2015. The average website unique visitors/month performance is up 18.8% year on year to 8.6m (reaching 10.1m in July 2015), continuing to increase INM's audience reach and engagement.

Commenting on the results, Robert Pitt, Group Chief Executive, said:

"The first half of 2015 has been very satisfactory for Independent News & Media both from an operational perspective where we have seen a continued strong performance across our titles and from a financial perspective where we have made significant progress in addressing legacy balance sheet issues. During the period we disposed of our stake in APN which enabled us to clear the Group's debt and now puts INM in a cash positive position which represents quite a change from the Group's recent history. We continue to have very strong market-leading print titles across all categories and independent.ie remains the clear go-to news portal for Irish consumers. These results have been achieved through the hard work and commitment of our employees, for which we are very grateful."

FINANCIAL HIGHLIGHTS1

§ Strong profit before tax2 result of €15.1m, up 13.5% on the prior year driven by continued advertising revenue growth and continued prudent management of the cost base.

§ Group debt cleared from €94.7m, with interest charge2 for 2015 reduced from €3.1m to €1.9m. No interest charge is expected going forward in light of the repayment of Group debt.

§ Total revenue of €157.3m, down 0.3% on the prior year.

§ Total advertising revenue up 2.9% on the prior year.

§ Digital advertising revenue growth of 43.8%, more than offsetting a marginal decline in publishing advertising revenue of 1.6%.

§ Circulation revenue declined by 4.0%, however INM strongly outperformed the industry average.

§ The Group continued its focus on cost management, with operating costs2 reduced by 0.7%. The integration of the Group's print and digital news operations is expected to deliver further efficiencies.

§ APN stake divested for €119.3m with proceeds used to clear Group debt. The results of the APN shareholding are reported as "Discontinued Operations" in both 2015 and 2014. The Education businesses results (disposed of in June 2014) are reported as "Discontinued Operations" in 2014 only.

§ The Group recorded a total net exceptional gain of €45.4m in H1, which included:

§ A €47.4m gain on sale of APN shareholding;

§ A €1.7m exceptional charge on the restructuring of the Group; and

§ A €0.3m tax charge relating to restructuring charges.

§ The net retirement benefit obligation has decreased from €100.5m at 31 December 2014 to €87.5m at 30 June 2015 with the decrease driven primarily by an increase in the discount rate applicable to the various schemes. The Group's funding commitment remains unaltered.

§ Following recent disposals, the Group is undertaking a review of its balance sheet to ensure it's optimally structured to support future growth.

OPERATIONAL HIGHLIGHTS

§ Strong publishing performance

§ 2.4m combined readers each week in print and online (JNRS 2015) connect with the Irish Independent, The Herald, the Sunday Independent and the Sunday World.

§ The Irish Independent continues to dominate the quality daily market with an ABC3 of 109,524 - increasing market share and maintaining its No.1 position in the daily quality market. It sells more copies per day than the Irish Times and Irish Examiner combined and accounts for 50% of the daily quality market in the Republic of Ireland.

§ The Sunday Independent, which recorded an ABC3 of 213,549, increased its market share (now at 64.9% of the Sunday quality market, up 1.3%) and remains by far the biggest selling quality Sunday newspaper, while also providing the largest regular audience on the island of Ireland across any advertising platform.

§ In Northern Ireland, the Belfast Telegraph recorded an ABC3 of 44,141 maintaining a strong No.1 position within the local daily newspaper market place, while the Sunday Life recorded an ABC3 of 40,602, performing ahead of local competitors.

§ Newspread, the Group's distribution business, had a strong performance in H1, continuing its successful record in retaining key contracts and diversifying its business.

§ During August, 15 editorial graduates commenced the INM Graduate Programme with practical training supported by the Press Association, London. This further enhances the INM Newsroom with the development of internal and fresh talent.

§ Substantial digital audience growth

§ independent.ie remains Ireland's No.1 online news publisher (comScore, Media Metrix Newspaper category report) and is positioned to deliver over 1 billion page impressions in 2015.

§ independent.ie app has grown its monthly screenview total by 162% in a year, and was accessed by 177,227 unique visitors in June 2015.

§ belfasttelegraph.co.uk, Northern Ireland's leading commercial news website further strengthened its position in the market by increasing its unique visitor base by 6% from 2.7m to nearly 2.9m.

§ Investment in digital

§ Investment in digital capabilities continued in H1 2015, with a continued emphasis on improving social and mobile engagement. The Group has built a significant data science capability, which is being used to understand readers' news consumption patterns and to shape the future publishing agenda. This investment has translated into significant advertising growth, driven by traffic increases and new advertising formats.

§ Investment in building transactional revenues which are not advertising related has commenced, with some successes in Independent Travel and reader survey services. Additional services are planned for launch in H2 2015.

SUBSEQUENT EVENTS

On 21 August 2015, the Group announced the planned closure of its printing operation in Belfast. The Group also confirmed that it remains committed to its Belfast publishing business which will continue as normal. The print closure, which will be implemented by no later than June 2016, is expected to entail a reduction of up to 89 employees, and reflects the industry wide trend of reducing print volumes as consumption of news via digital channels increases, together with the ending of a key contract with a UK publisher in Belfast. The Group believes that this will not have a material impact on its net asset position.

OUTLOOK

The second half has started well and we anticipate a full year performance in line with expectations.

________________

Notes

- ENDS -

For further information, contact:

INDEPENDENT NEWS & MEDIA PLC - CONDENSED INTERIM GROUP FINANCIAL STATEMENTS - CONDENSED GROUP INCOME STATEMENT (unaudited)

* See note 5 for further information. The notes to the condensed interim Group financial statements on pages 10 to 25 form an integral part of this financial information.

CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME (unaudited)

The notes to the condensed interim Group financial statements on pages 10 to 25 form an integral part of this financial information.

CONDENSED GROUP BALANCE SHEET (unaudited)

The notes to the condensed interim Group financial statements on pages 10 to 25 form an integral part of this financial information.

CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY (unaudited)

* Other at 30 June 2015 related to cash flow hedging reserve €0.5m, available-for-sale financial assets reserve (€0.9m) and share option reserve €0.2m (31 December 2014: €nil).

The notes to the condensed interim Group financial statements on pages 10 to 25 form an integral part of this financial information.

CONDENSED GROUP CASH FLOW STATEMENT (unaudited)

The notes to the condensed interim Group financial statements on pages 10 to 25 form an integral part of this financial information.

* €59.4m in 2015 includes a charge of €0.2m in relation to share-based payment arrangements.

** Repayment of borrowings is comprised of release of escrow cash €10.0m and repayment of debt from proceeds of disposal of APN shareholding €115.5m.

NOTES TO THE INTERIM STATEMENT (unaudited)

1. Basis of Preparation of Financial Information under IFRS

Basis of Preparation and Going Concern

Independent News & Media PLC ("the Company") is a company domiciled in Ireland. These condensed interim Group financial statements as at and for the six months ended 30 June 2015 comprise the Company and its subsidiaries (together referred to as "the Group") and the Group's interest in associates and joint ventures.

This financial information has been prepared on the going concern basis, which assumes that the Group will continue to be able to meet its liabilities as they fall due for the foreseeable future.

The condensed interim Group financial statements for the six months ended 30 June 2015 and the comparative amounts have not been audited or reviewed by the auditors. The condensed interim Group financial statements are not the statutory financial statements of the Company. A copy of the statutory financial statements is required to be annexed to the Company's annual return to the Companies Registration Office in Ireland in respect of the year ended 31 December 2014. The auditor's report on those financial statements was unqualified. The financial statements for the year ended 31 December 2014 are available online at www.inmplc.com.

These condensed interim Group financial statements are presented in Euro, which is the functional currency of the Company and presentation currency of the Group.

The condensed interim Group financial statements were approved by the Directors on 26 August 2015.

The condensed interim Group financial statements for the six months ended 30 June 2015, which should be read in conjunction with the 2014 Annual Report, have been prepared in accordance with the Transparency (Directive 2004/109/EC) Regulations 2007, the related Transparency Rules of the Central Bank of Ireland and in accordance with International Accounting Standard 34, Interim Financial Reporting (IAS 34) as adopted by the European Union.

Accounting Policies

The accounting policies and methods of computation and presentation adopted in the preparation of the condensed interim Group financial statements are consistent with those applied in the Annual Report for the year ended 31 December 2014 and are described in those financial statements on pages 65 to 79, except for the impact of the standards described below.

The following new and amended standards and interpretations are effective for the Group for the first time for the financial year beginning 1 January 2015. None of these had a material impact on the Group:

· Annual Improvements to IFRSs 2011-2013 Cycle:

Comparative Information

In certain instances, the comparative information to the financial statements has been restated as follows:

(i) INM's entire shareholding in APN was disposed of in the six months to 30 June 2015. Consequently, as APN is a separate major line of business, it is treated as a discontinued operation in 2015 and the Income Statement comparatives for 2014 have been reclassified accordingly (note 11).

NOTES TO THE INTERIM STATEMENT (unaudited) (continued)

2. Risks and Uncertainties

The principal risks and uncertainties facing the Group were detailed in the Directors' Report and in note 32 of the 2014 Annual Report and these continue to be considered the principal risks and uncertainties for the remaining six months of the year most likely to influence the performance of the Group except for the debt service obligations which are no longer a risk as a result of the repayment in full of the Group's bank debt (refer to note 8).

The preparation of interim Group financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Actual results could differ materially from these estimates. The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 December 2014.

When measuring the fair value of an asset or a liability, the group uses market observable data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

· Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

· Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

· Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

If the inputs used to measure the fair value of an asset or liability might be categories in different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest input that is significant to the entire measurement.

The group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

Further information about the assumptions made in measuring fair values is included in note 12.

NOTES TO THE INTERIM STATEMENT (unaudited) (continued)

3. Segmental Reporting

Segment information is presented on the same basis as that used for internal reporting purposes. Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker ('CODM'). The CODM has been identified as the Board of Directors. The reportable segments based on the internal reporting information provided are listed in the table on the following page. The key performance measure that is reviewed for these segments is operating profit/ (loss) before exceptional items. Exceptional items are reviewed at a level higher than these operating segments and appear as a reconciling item from the key performance measure reviewed by the CODM to the IFRS result. Finance income and expense, share of results of associates and joint ventures (with the exception of significant associates which are separately considered) and taxation are reviewed and considered by the CODM at a Group level only.

The components of the Group, whose operating results are regularly reviewed by the CODM to make decisions about the allocation of resources, and in performance assessment, are contained in the table on the following page.

In 2015, the Group disposed of its entire shareholding in APN and accordingly this associate is included under discontinued operations in both 2015 and 2014. In 2014, the Group disposed of its Education businesses segment and accordingly this segment is included under discontinued operations in 2014.

NOTES TO THE INTERIM STATEMENT (unaudited) (continued)

3. Segmental Reporting (continued)

NOTES TO THE INTERIM STATEMENT (unaudited) (continued)

3. Segmental Reporting (continued)

For continuing operations, the taxation charge for the period comprises a charge of €0.8m (2014: €0.5m) in respect of Republic of Ireland taxation, a charge of €0.5m (2014: charge of €0.2m) in respect of Northern Ireland taxation and a charge of €0.6m (2014: nil) in respect of overseas taxation.

NOTES TO THE INTERIM STATEMENT (unaudited) (continued)

4. Net Finance Income/ (Expense)

5. Exceptional Items

Exceptional items are those items of income and expense that the Group considers are material and/ or of such a nature that their separate disclosure is relevant to a better understanding of the Group's financial performance.

NOTES TO THE INTERIM STATEMENT (unaudited) (continued)

5. Exceptional Items (continued)

(i) 2015

Relates to Restructuring charges arising in the Island of Ireland, somewhat offset by the utilisation of provisions.

2014

Relates to Restructuring charges arising in the Island of Ireland, somewhat offset by the release of provisions.

(ii) 2014

Relates to a €1.0m gain on the write-off of anti-dilution bank debt, which was provided for as part of the 2013 Restructuring.

(iii) 2014

Relates to net exceptional items in Independent Star Limited.

(iv) 2014

Relates to the loss on disposal of the Education businesses (see note 11)

(v) 2014

Relates to the non-cash exceptional accounting adjustment relating to the deemed partial disposal loss arising from INM's non-participation in APN's equity issue in 2014.

(vi) 2015

Relates to the gain on disposal of the Group's entire shareholding in APN (see note 11).

(vii) 2014

Relates to net exceptional items in APN.

NOTES TO THE INTERIM STATEMENT (unaudited) (continued)

6. Earnings Per Share

Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

For diluted earnings per share, the weighted average number of ordinary shares outstanding is adjusted to assume conversion of all potential dilutive options over ordinary shares once the adjustment does not increase earnings per share or reduce a loss per share.

Basic and diluted earnings per share before exceptional items are presented in order to give a better understanding of the Group's underlying financial performance.

NOTES TO THE INTERIM STATEMENT (unaudited) (continued)

7. Other Items

a. Retirement Benefits

The retirement benefit obligation as at 30 June 2015 in the Balance Sheet has decreased by €13.0m to €87.5m compared to €100.5m at 31 December 2014. This decrease in the retirement benefit obligation is primarily driven by an increase in the discount rate used in valuing the pension obligations. The discount rate used in the Republic of Ireland at 30 June 2015 was 2.6% versus the discount rate of 2.2% used at 31 December 2014.

b. Statement of Comprehensive Income

A positive currency translation adjustment of €1.3m (€1.6m relating to subsidiaries and (€0.3m) relating to associates) has been recognised in the Group Statement of Comprehensive Income for the half year to 30 June 2015 (2014: a gain of €0.5m relating to subsidiaries, a gain of €6.0m relating to associates and a €1.8m reclassification relating to a deemed partial disposal of APN). The positive currency translation adjustment of €1.6m has arisen due to the strengthening of the Sterling Pound and Australian Dollar exchange rates at 30 June 2015 compared to the rates at 31 December 2014 used in the translation of the Group's investments in subsidiaries with a functional currency different to that of the Parent Company. The negative currency translation adjustment of €0.3m comprises a positive adjustment of €3.5m due to the strengthening of the Australian Dollar exchange rate during the period compared to the rate at 31 December 2014 used in the translation of the Group's investments in associates with a functional currency different to that of the Parent Company and a negative adjustment of €3.8m which has arisen due to the reclassification of the APN related foreign currency translation reserve balance to the Income Statement on the disposal by the Group of its entire shareholding in APN. See note 11 for further details on the disposal of APN.

c. Dividends

The Directors are not proposing an interim dividend for 2015. There was no dividend paid or declared in respect of 2014.

d. Tax Effect on Items in Statement of Comprehensive Income

NOTES TO THE INTERIM STATEMENT (unaudited) (continued)

8. Borrowings

* In 2014, this amount comprises mainly €10.0m of escrow debt and €5.0m of bank repayments due in 2015.

** 2014 excludes restricted cash of €10.0m held in escrow in respect of warranties following the sale of the South Africa businesses (€10.0m as shown as restricted cash above).

9. Intangible Assets/ Investment in Associates and Joint ventures/ Property, Plant & Equipment

Intangible Assets

The carrying amount of the Group's intangible assets increased by €2.1m, from €45.0m at 31 December 2014 to €47.1m at 30 June 2015. This increase is driven primarily by favourable foreign exchange rate movements in the period and software additions, offset in part by software amortisation.

Impairment Reviews

The Group's indefinite life intangible assets (including goodwill) are tested annually for impairment at 31 December or whenever there is an indication of impairment. There were no impairments recognised at 30 June 2015. When testing for impairment, the recoverable amounts for the Group's cash-generating units (CGUs) are measured at their value in use by discounting future expected cash flows. These calculations use cash flow projections based on management approved projections, which reflect management's current experience and future expectations of the markets in which the CGU operates. The detailed methodology (updated for changes in any of the key assumptions to reflect past experience and also consistent with external sources of information) as used by the Group for impairment testing is as outlined in the 2014 annual report.

The Balance Sheet reports the carrying value of newspaper mastheads at their acquired cost. Where these assets have been acquired through a business combination, cost will be the fair value recognised in acquisition accounting. The value of internally generated newspaper mastheads or post-acquisition revaluations are not permitted to be recognised in the Balance Sheet in accordance with IFRS and as a result no value for certain of the Group's internally generated newspaper mastheads (for example the three main Irish titles, the Irish Independent, the Herald and the Sunday Independent) is reflected in the Balance Sheet.

The Directors are of the view that the Group has many other intangible assets which have substantial value that is not reflected on the Group's Balance Sheet. This is because these intangible assets are carried in the Group's Balance Sheet at a nil value or at a value which is much less than their recoverable amount. The Directors are of the view that if these intangible assets were allowed to be carried on the Group's Balance Sheet at full value then the Group's intangible assets would be greater than currently reported.

NOTES TO THE INTERIM STATEMENT (unaudited) (continued)

9. Intangible Assets/ Investment in Associates and Joint ventures/ Property, Plant & Equipment (continued)

Investments in Associates and Joint Ventures

The carrying amount of investments in associates and joint ventures decreased by €68.4m, from €69.8m as at 31 December 2014 to €1.4m as at 30 June 2015 mainly reflecting the disposal of INM's entire shareholding in APN during the first six months of 2015. The APN investment was carried at €68.7m as at 31 December 2014. See note 11 for further information in relation to the disposal of the APN shareholding.

Property, Plant & Equipment

The carrying amount of the Group's property, plant & equipment decreased by €1.7m, from €53.8m at 31 December 2014 to €52.1m at 30 June 2015. This decrease is driven primarily by depreciation charges, somewhat offset by additions and favourable foreign exchange movements.

Provisions

The carrying amount of provisions decreased by €3.1m, from €18.2m at 31 December 2014 to €15.1m at 30 June 2015. This decrease is primarily driven by payments on a number of onerous property leases and restructuring projects.

10. Related Party Information

During the first six months of the current financial year there have been no material related party transactions that have taken place requiring disclosure and there have been no changes in the related party transactions described in the last Annual Report that could have a material effect on the financial position or performance of the enterprise.

NOTES TO THE INTERIM STATEMENT (unaudited) (continued)

11. Discontinued Operations

(a) APN

In the six months to 30 June 2015, the Group disposed of its entire shareholding in APN. As APN was a separate major line of business, the APN results are presented as a discontinued operation. The comparative Group Income Statement and OCI have been restated to show the discontinued operation separately from continuing operations.

Effects of the disposal of the Group's shareholding in APN:

* Cash costs of disposal €2.8m, accrued costs of disposal €0.1m.

** No tax charge arose on the disposal as the base cost of the APN shares (A$0.88) equalled the sale price of the shares (A$0.88).

(b) Education businesses

In June 2014, the Group's Education businesses were sold. Accordingly, the Education businesses results are presented as a discontinued operation.

Effects of the disposal of the Education businesses on the Group:

*No tax charge arose on the disposal.

NOTES TO THE INTERIM STATEMENT (unaudited) (continued)

11. Discontinued Operations (continued)

(c) Results of discontinued operations

Of the profit from discontinued operations of €47.9m (2014: loss of €15.3m), €47.9m (2014: loss of €15.3m) is attributable to the owners of the Company. Of the profit from continuing operations of €11.5m (2014: profit of €13.2m), €11.7m (2014: profit of €13.4m) is attributable to the owners of the Company.

(d) Cash flows (used in)/ generated from discontinued operations

* €116.5m represents net cash disposal proceeds on the sale of the Group's shareholding in APN.

NOTES TO THE INTERIM STATEMENT (unaudited) (continued)

12. Fair Value

Fair values of financial assets and financial liabilities

The fair values of quoted available-for-sale financial assets and derivative financial instruments are measured using market values. Unquoted available-for-sale financial assets and derivatives are measured using valuation techniques. The carrying amount of non interest bearing financial assets and financial liabilities and cash and cash equivalents approximates their fair values. The Group has not disclosed the fair value of certain financial instruments such as other payables, short-term receivables and short term payables because their carrying amounts are a reasonable approximation of fair value.

Of the available-for-sale financial assets of €2.1m (2014: €2.3m), €1.0m (2014: €1.2m) are measured at Level 1 of the fair value hierarchy and €1.1m (2014: €1.1m) are measured at Level 3 of the fair value hierarchy.

The derivative financial instruments - cashflow hedges of €0.5m (2014: nil) are measured at Level 2 of the fair value hierarchy.

Additional disclosures in relation to fair value have not been made on the grounds of materiality.

NOTES TO THE INTERIM STATEMENT (unaudited) (continued)

13. Share-based payment arrangement

At 30 June 2015, the Group had the following share-based payment arrangements.

Share option programme (equity-settled)

In June 2014, the Remuneration Committee proposed the introduction of a new share option scheme and this was approved by the shareholders at the AGM on 6 June 2014. This scheme entitles certain employees to purchase shares in the Company.

On 1 January 2015 a grant under the scheme, with two separate and independent sets of vesting conditions, was made to certain employees. Holders of vested options are entitled to purchase shares at the nominal value of the share at the grant date.

All options are to be settled by physical delivery of shares. The terms and conditions of the share options granted during the six months ended 30 June 2015 are set out in the below tables as follows:

The fair value of services received in return for share options granted is based on the fair value of the share options granted, measured using the Black-Scholes model.

NOTES TO THE INTERIM STATEMENT (unaudited) (continued)

13. Share-based payment arrangement (continued)

Measurement of grant date fair values

The following inputs were used in the measure of the fair value at grant date of the share-based payment arrangement.

Expected volatility is estimated taking into account historic average share price volatility.

14. Subsequent Events

On 21 August 2015, the Group announced the planned closure of its printing operation in Belfast. The Group also confirmed that it remains committed to its Belfast publishing business which will continue as normal. The print closure, which will be implemented by no later than June 2016, is expected to entail a reduction of up to 89 employees, and reflects the industry wide trend of reducing print volumes as consumption of news via digital channels increases, together with the ending of a key contract with a UK publisher in Belfast. The Group believes that this will not have a material impact on its net asset position.

STATEMENT OF DIRECTORS' RESPONSIBILITY FOR THE SIX MONTHS ENDED 30 JUNE 2015

The Directors are responsible for preparing this interim management report and the condensed interim financial information in accordance with the Transparency (Directive 2004/109/EC) Regulations 2007 (as amended), the Transparency Rules of the Central Bank of Ireland and with IAS 34, Interim Financial Reporting as adopted by the European Union.

The Directors as listed on pages 13 to 17 of our 2014 Annual Report (being the persons responsible within INM for making this statement) confirm that to the best of their knowledge:

(1) the condensed interim Group financial statements, comprising the condensed Group Income Statement, the condensed Group Statement of Comprehensive Income, the condensed Group Balance Sheet, the condensed Group Statement of Changes in Equity, the condensed Group Cash Flow Statement and the related notes, have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as adopted by the European Union.

(2) the Interim Management Report and the condensed interim Group financial statements include a fair review of:

(a) the important events that have occurred during the first six months of the financial year, and their impact on the condensed interim Group financial statements;

(b) the principal risks and uncertainties for the remaining six months of the financial year;

(c) related party transactions that have taken place in the first six months of the current financial year that have materially affected the financial position or the performance of the Group during that period; and

(d) any changes in the related party transactions described in the last Annual Report, that could have a material effect on the financial position or performance of the Group in the first six months of the current financial year.

On behalf of the Board

Leslie Buckley

Group Chairman