Primedia Limited
(Incorporated in the Republic of South Africa)
Registration number 1993/003355/06
Share code: PMA ISIN: ZAE000035119
Share code: PMN ISIN: ZAE000035127

TRADING UPDATE

In terms of paragraph 3.4(b) of the JSE Listings Requirements, issuers are required to publish a trading statement as soon as they are satisfied, with a reasonable degree of certainty that the financial results for the period to be reported on will differ by at least 20% from those of the previous corresponding period.

Further to the business update issued by the group on 25 November 2005, Primedia has continued to perform very well, with turnover increasing by 27% for the six months ended 31 December 2005, due to good organic and acquisitive growth.

The group"s headline earnings per share (HEPS) and earnings per share for the six months ended 31 December 2005 are expected to increase by 45% to 50% relative to the comparable period. HEPS excludes the non-cash, once off share-related charge in terms of IFRS 2 amounting to 49 cents (2004: nil) and relating to the significantly increased black economic empowerment (BEE) interest in Primedia by Mineworkers Investment Company (Proprietary) Limited, concluded in November 2005. This has resulted in the material enhancement of Primedia"s empowerment credentials. HEPS for the six months is also after an IFRS 2 charge relating to share options of 2 cents (2004:1 cent) and an unrealized foreign exchange loss of 3 cents (2004: 1 cent).

Primedia"s HEPS and earnings per share for the six months ended 31 December 2005 after the once-off BEE cost is expected to decline by between 62% to 67%. Primedia"s interim distribution to shareholders for the six months ended 31 December 2005 will be based on HEPS excluding the non-cash effects of the BEE transaction, share option costs and unrealised foreign exchange losses. The distribution cover will be in line with the 1,7 to 2 times cover adopted in the previous fiscal.

The financial information on which this trading statement is based has not been reviewed or reported on by the Company"s auditors.

The group"s interim results will be released on or about 27 February 2006
Johannesburg
13 February 2006
Sponsor:
Investec Bank Limited
Date: 13/02/2006 02:17:27 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department