Primedia Limited ("Primedia") today announced results for the twelve months to 30 June 2003 ahead of expectations and well above those of 2002. The results reflect the execution of a strategy initiated three years ago, which has largely been achieved, and the board is confident that Primedia is entering a new era of sustainable growth.

Financial Highlights

• Group operating profit up 33,2% to R198,5 million
• Core South African PBIT up 30,2% to a record R214,9 million
• Core South African EPS 52,2 cents
• Total distribution to shareholders 26,0 cents per share
• Net short-term debt R17,2 million (2002: R115,1 million)

Strategic Highlights

• The disposal of Ster Century Europe (other than Slovakia whose disposal is currently underway);
• The disposal of loss-making UK-based one to one businesses;
• The restructuring of Ster Century Middle East; and
• The successful implementation of innovations.

Commenting on the Group's performance, William Kirsh, Primedia CEO, said:
"We are very pleased with this year's performance as it reflects the successful implementation of our strategy to reposition Primedia as a world-class South African media company with an appropriately balanced portfolio of businesses. This strategy has resulted in the group dramatically increasing its earnings per share for 2003 and has ensured an outstanding performance from our South African businesses which produced record operating profits of R214,9 million."

"Our improved operational performance and the successful sale of our loss making international businesses enabled the group to significantly reduce its gearing. This together with the group's strong cash generating ability will allow it to retain its attractive dividend policy, whilst at the same time pursuing growth through innovation and strategic acquisitions that will be value enhancing to shareholders."

"Looking forward we are excited about the group's growth prospects. All our businesses are market leaders and have the necessary critical mass which places them in a strong position to benefit from the anticipated continued upswing in trading conditions."