ISSIE KIRSH
This year has been most significant in the life of Primedia.

The development and consolidation of the Mineworkers’ Investment Company (MIC) relationship has been of central importance. As such, I am delighted to welcome Paul Nkuna, the Deputy Chief Executive of MIC and hitherto Primedia’s Deputy Chairman, who has taken over as Chairman to lead the business through its next phase of development. Paul has also been appointed Chairman of the Remuneration Commitee and the Black Economic Empowerment Commitee. This decision strongly supports Primedia’s ongoing empowerment and transformation initiatives and I believe that Paul’s vision and approach will be of enormous value to the group.

I wish him every success in his new role.

Along with empowerment, non-executive representation on the Board has been significantly strengthened. The Board now has approximately 50% black representation, with seven non-executive and six executive directors, making for a more suitable balance around the boardroom table.

The Board is also very pleased to have MIC as a joint controlling shareholder. MIC has a good reputation for being an active shareholder, taking direct and meaningful holdings in its investments, exerting influence through board representation and developing empowerment and employment equity in the companies where it is invested.

We strongly support MIC as it has a clear mandate to maximise returns for the benefits of a wide and mobilised group of shareholders.

I am pleased that the Board and Active Value have been able to resolve their differences and find consensus on the best way forward for the group in the best interests of all stakeholders. In his regard, Mark Barnes and Julian Treger have been appointed directors of the group, with Brian Myerson as alternate to Julian Treger. Mackie Brodie, Allan Watson and Mark Lamberti have chosen to retire from the Board for their own personal and business reasons. The Board wishes to thank all three directors for their invaluable contribution over the years.

In closing, it has been a privilege for me to serve as Chairman to Primedia and as one of the founding shareholders, I look forward to a close and fruitful association with the group into the future.

Issie Kirsh
Retiring Chairman
Chairman

PAUL NKUNA
I am honoured to take up the Chairmanship of Primedia from Issie Kirsh. Our deep respect and thanks are due to him for his contribution to the Primedia group and the media industry as a whole.

Issie Kirsh was a pioneer in radio broad-casting in South Africa and co-founder of Primedia. Issie began Swazi Radio in 1970 and in 1980 established Radio 702. In 1994, Radio 702 was bought by Primedia shortly after Primedia’s listing. It was one of Primedia’s first acquisitions and laid the foundation for its positioning as one of the leading media groups in the country. Issie has added immense value to the group as Chairman and I look forward to our continued collaboration in tackling the exciting challenges that lie ahead.

The strengthening of MIC’s role and responsibility within the group has re-affirmed Primedia’s status as a serious empowerment player. MIC’s empowerment model of acquiring significant stakes in companies allows MIC to be most effective in encouraging ransformation and the transfer of skills. To date, his model has been successful in the diversity of its beneficiaries, and also in its contribution to strategic issues and social values. In the case of Primedia, we believe that while media asse s are scarce, heir wide reach can impact on many ordinary people. However, MIC’s decision to invest in Primedia goes beyond transformation and has a sound commercial basis. MIC sees significant opportunities for growth in the sector and views Primedia as an important long-term investment in its portfolio.

Turning to industry issues, it is our belief that the broadcasting regulator in South Africa must take greater steps to change the curren limitations to media ownership, to create an environment that is more conducive to all participants. This will allow the media industry to advance consolidation, which is critical for its long term commercial viability. It is also imperative that the transformation of the industry is undertaken within the context of an even playing field.

I am looking forward to leading Primedia into the future, ensuring that it becomes world class in its approach to business and a model South African company, both in terms of its success and its commitment to its employees and clients.

Paul Nkuna
Incoming Chairman