Quarterly report third quarter 2007

Keyfigures

Overview

In the third quarter 2007 the NHST Media Group had a result before taxes of MNOK 5.9 against MNOK 5.7 last year (4 %). Turnover grew by 14 % to MNOK 226.2 (198.6). For seventeen of the last eighteen quarters NHST has improved results. At the same time relatively substantial development activity has been carried out in both market and product development. The largest percentage growth in turnover was in the new areas like Web TV, but only a few activities had less than 10 % growth in turnover.

After the first nine months of the year the result before taxes was up 23 per cent to MNOK 77.2 (62.6), and turnover was up 16 per cent to MNOK 729.5 (626.4). Most new initiatives continue to be in the Internet and Web TV areas. The biggest new initiative however is linked to the development of a new Friday magazine on lifestyle which will accompany Dagens Næringsliv. The magazine launches on 26 October with the name D2. Good circulation trends continue for the Group's newspapers and most have the highest circulation figures ever. Growth in Internet traffic for unique users and page impressions during the period was at 20-35% compared to last year. Good economic conditions continue in the territories and segments where NHST operates - even though there are some variations. In advertising the situations vacant category continues to have the greatest growth. In regard to Group management, Andreas Emblem has been appointed Director for business development and Ole Johan Sjaastad has been appointed as Project Director.

Other highlights

• Comprehensive product and market development in all companies
• Greatest growth in those that are internationally oriented and in Internet/Web TV
• Relatively many new recruitments of employees have been carried out or are under way
• High intensity of competition - particularly on the Internet
• Weakened USD / strong NOK is starting to have negative impact on results and this will increase from the end of the year when hedging contracts drop out

Publications and activities

Dagens Næringsliv (DN) improved its operating profit by 23 % to MNOK 11.6 during the quarter. Total income increased by 14% during the quarter to MNOK 132.1. Circulation revenues increased by about 10% and advertising revenues increased by 18%. Several major marketing activities have been carried out with good results both for circulation and advertising. Circulation was about 3,500 above last year's level for the corresponding period. These were the highest circulation figures ever for DN and the growth was rising. The latest reader survey from tns-gallup shows that the number of readers remains stable at about 300,000 daily on weekdays. For the year as a whole the DN operating profit was MNOK 74.0 against MNOK 65.1 last year. The accumulated growth in turnover was 13% to MNOK 417.4 (369.3). As mentioned above DN will launch a new Friday magazine oriented towards lifestyle from 26 October. This will involve increased costs over the coming quarters some of which have already accrued and been taken to expenses. The inflow of the advertisements to this magazine is good but with a short order horizon. DN's investment directed at the SME market will continue through the autumn with the Gaselle series and the conferences. Both elements have been well received in the market.

Other Norwegian/Nordic publications and activities

DN Nye Medier had operating profits for the quarter of MNOK 1.4 which is MNOK 1.0 weaker than last year. Turnover for DN Nye Medier increased during the quarter by 18 % to MNOK 9.1. Traffic growth – unique weekly users increased by 20 %.

On average DN.no has about 200,000 unique users a week. The most strongly increasing growth in Internet traffic is on the vertical Internet services such as dagensit.no and DNenergi.no. In addition many development projects have been carried out during the period and that, in conjunction with the increase in personnel costs, is the reason for the cost growth of 30% during the quarter. New product versions launched during the quarter were www.dn.no/finans and DN500 and with good customer response. For the year as a whole the operating profit was MNOK 0.7 against MNOK 2.4 last year. The growth in turnover was 16% to MNOK 31.7 (27.2).

TDN Nyhetsbyrå had operating profits of MNOK 1.0 against MNOK 0.7 for the quarter last year. The increase in turnover was 10% to MNOK 3.3 (3.0). For the year as a whole the operating profit was MNOK 2.7 against MNOK 2.0 last year. For the year as a whole growth in turnover was 13% to MNOK 9.8 (8.6). For the year development is good with a range of new customers at the same time as established customers have become bigger buyers of the service.

Europower had an operating profit of MNOK 0.1 for the quarter against MNOK -0.9 last year. Turnover increased during the quarter by 101% to MNOK 5.0 (2.5). For the year as a whole there wasoperating loss of MNOK 0.4 against a loss of MNOK 2.8 last year.

Global publications and activities

TradeWinds had an operating profit of MNOK 1.0 for the quarter against MNOK 0.2 last year. Turnover increased by 6% to [MNOK??] 17.3 (16.4). The turnover growth is coming particularly from the situations vacant and Internet areas. Circulation has grown to the highest ever and is 8,221 at the end of this quarter. The greatest growth is in the circulation from China, India and the USA. For the year as a whole the operating profit was MNOK 8.1 against MNOK 4.1 last year. The growth in turnover for the year as a whole was 19% to MNOK 64.1 (53.8).

Upstream had an operating profit of MNOK 2.0 for the quarter against MNOK 1.7 last year. Turnover increased by 9 % to MNOK 18.7 (17.2). The growth in turnover came particularly from advertisements such as situations vacant and the Internet. Circulation has grown to the highest ever, to 6727 and with the greatest growth from Egypt. For the year as a whole the operating profit was MNOK 8.3 against MNOK 2.5 last year. The growth in turnover for the year as a whole was 22% to MNOK 57.5 (47.1).

Intrafish Media had an operating deficit of MNOK -0.2 against MNOK -0.8 in the third quarter last year. Growth in turnover during the quarter was 4 % to MNOK 12.5 (12.0). The growth in turnover was greatest in situations vacant and the Internet. For the year as a whole the operating profit was MNOK 0.3 against MNOK -1.1 last year. The accumulated turnover growth was 5 % to MNOK 38.5 (36.7). The largest Intra-Fish Media subsidiary is the newspaper Fiskaren. A provisional ownership framework agreement has been negotiated concerning a possible merger between Fiskaren and Fiskeribladet. If this framework agreement leads to a final merger this is expected to occur during the first quarter 08.

Nautisk Forlag had an operating profit of MNOK 2.1 for the quarter against MNOK 1.9 last year. Turnover was up 15 % to MNOK 24.9 (21.6). The global sales organisation has been strengthened in Singapore and Shanghai. Various digital development projects are in progress. For the year as a whole the operating profit was MNOK 7.9 against MNOK 5.7 last year. The growth in turnover for the year as a whole was 24 % to MNOK 84.6 (68.1).

New business activities.

Here we have grouped the new activities in Web TV, search, database development, IT etc. The greatest activity is Smartcom, the Web TV company. New activities had an operating deficit of MNOK 5.4 for the quarter against a deficit of MNOK 2.7 last year. Turnover in the same area increased by 59 % to MNOK 5.6 (3.5) during the quarter. For the year as a whole the operating deficit [??] was MNOK 12.0 against a deficit [??] of MNOK 5.4 last year. The growth in turnover for the year as a whole was 120% to MNOK 25.4 (11.6).

Conclusion

Developments during the third quarter and so far this year are satisfactory with good profit improvements for established publications and with several new initiatives. NHST's strategy is to be best in business news in Norway and world leader in shipping, oil and seafood news as well as a leader in maritime cartographic services. Strengthened market positions and new initiatives provide expectations of further progress. Economic conditions are expected to be somewhat weaker during the quarters ahead compared to the previous quarters. NHST will maintain a high level of development activity both in digital and paper-based publications.

25 October 2007

Board of Directors, NHST Media Group AS