Independent News & Media (INM Outdoor)

December 14, 2009

      Compass Advisers, LLP ("Compass") is pleased to announce the sale of the African outdoor advertising business of Independent News & Media plc ("INM PLC"), the international media and newspaper group, to Helios Investment Partners.  Valued at ZAR1.16 billion (€105 million) the sale represents a significant part of INM PLC's restructuring plan which was contingent on a disposal program that achieved a total of €150 million.

      Compass acted as the sole financial advisor to INM PLC on the sale of the African Outdoor advertising business as well as co-advisor to INM PLC's other divestitures.  INM PLC agreed to this disposal program with its creditors as part of a debt restructuring program, following the group's default on its bond and bank obligations in May 2009.

      INM Outdoor is the market leader in South Africa, with market-leading operations in 13 Sub-Saharan countries.  Compass conducted a full auction process for the sale transaction, with strategic and financial buyers making offers for the business.  The winning bid required debt financing in a difficult financial environment and had to fulfill stringent regulatory requirements in South Africa and internationally, including black empowerment requirements that provide for fair representation of black South African stakeholders.

      INM PLC said: "This disposal strategy, together with the successful completion of the Group's restructuring, allows the INM Group to retain its global diversity and strong multimedia mix, while providing a stable and secure financial platform, with a combined €350 million reduction in debt from which to leverage the Group's businesses as economic conditions recover.  We are pleased to have had Compass Advisers' expert guidance as we achieved these goals."