Quarterly report second quarter 2008

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NHST Media Group further strengthened its market position in the quarter, in a market showing signs of weakening. Turnover grew by 9% to MNOK 290.7 compared with the same quarter last year. The growth in turnover is both the result of continuing organic growth and the effect of last year’s acquisition and merger at IntraFish Media. The group’ s profit before tax fell from MNOK 55.8 in the second quarter 2007 to MNOK 38.1 for the second quarter 2008.

The fall in profits is mainly due to advertisement revenues showing a less positive trend than earlier, due to the weaker macroeconomic climate in most markets. Profits are also affected by costs related to development, integration and introduction activities and increased print and distribution costs. The companies have established programmes in order to improve productivity and profitability

For the first half year 2008 NHST Media Group’s turnover grew by 10% to MNOK 555.5 compared with the same period last year. Profit before tax was MNOK 36.5 as against a profit of MNOK 71.3 in 2007.

In June and August, respectively, the group announced further growth initiatives in line with its defined strategy. The planned launch of a global renewable energy news publication, and the acquisition of the Swedish PR distribution company Newsdesk AB will be important additions to the group’s portfolio.

1) Second quarter 2007 financial items net and pre-tax profit are restated from MNOK -1.4 and MNOK 53.9 respectively, as reported 24th August 2007, in order to adjust for last year’s change in interim reporting of minority interests. The figures are comparable.

Publication by publication

Dagens Næringsliv increased its turnover during the quarter to MNOK 161.2 as against MNOK 149.6 last year, an 8% increase. The operating profit for the quarter amounted to MNOK 35.1 as against MNOK 42.1 last year. The fall in operating profit is due increased costs especially related to print, distribution and personnel. The circulation growth experienced in previous quarters continued. The advertisement revenues, however, flattened out somewhat. The development for D2 is satisfactory both as regards advertisements and circulation revenues.

On an accumulated basis, revenues grew by 8% to MNOK 308.6, with a decline in operating profits from MNOK 62.4 last year to MNOK 45.9.

DN Nye Medier’s turnover grew by 18% to MNOK 12.7, partly due to continuous focus on developing new services. Operating profit improved in the quarter to MNOK 1.2 as against MNOK 1.1 the year before. Dn.no increased its market share in the period. For the first half year revenues grew by 14% to MNOK 25.9, with operating profits of MNOK 2.4 as against MNOK 2.1 last year.

TradeWinds’ turnover for the quarter remained stable at MNOK 27.2 compared with MNOK 27.5 last year, whilst operating profits saw a decline to MNOK 5.3 as against MNOK 5.5. The good circulation trend continued. TradeWinds.no seems to develop very positively following the redesign in June 2008. The turnover and the profit are affected by a weaker USD. For the first half year revenues fell by 1% to MNOK 46.2, with operating profits of MNOK 6.3 as against MNOK 7.1 last year.

Upstream increased its turnover to MNOK 23.5, as against MNOK 22.3 last year, a 5% increase. Operating profits fell to MNOK 4.8 as against MNOK 5.4. Upstream now has more than 7,100 subscribers. The focus on online activities seems to pay off, with a very positive development traffic- as well as revenue-wise. For the first half year revenues grew by 8% to MNOK 42.1, with operating profits declining to MNOK 5.5 as against MNOK 6.3 last year. Upstream’s revenue and profits have also been negatively affected by the weakened USD.

Intrafish Media’s turnover was MNOK 24.7, an increase of 86% over the same quarter last year, mainly driven by the acquisition of London-based Heighway Publications and the merger between Fiskaren and Fiskeribladet. Intrafish Media is now the global leader in seafood news. The newspaper Fiskeribladet Fiskaren was launched in May 2008.

Following the merger the focus has been on operating control and integration of activities, while improving efficiency and realising synergies will be the main focus in the coming months. The company had an operating loss of MNOK 1.7 in the quarter as against an operating profit of MNOK 1.4 last year. For the first half year revenues grew by 99% to MNOK 51.8, with an operating loss of MNOK 4.8 as against an operating profit of MNOK 0.5 last year. The fall is mainly due to integration costs and increased activities.

Nautisk Forlag’s turnover dropped 8% to MNOK 27.7 in the quarter. Operating profits fell to MNOK 2.9 for the quarter as against MNOK 3.5 last year. For the first half year revenues fell by 10% to MNOK 53.7, with operating profits of MNOK 4.2 as against MNOK 5.8 last year. The reduced turnover is mainly due to fewer maps being launched by British Admiralty.

TDN’s turnover grew by 12% to MNOK 3.6, with operating profits for the quarter of MNOK 1.1 as against MNOK 1.0 last year. For the first half year revenues grew by 9% to MNOK 7.0, with operating profits of MNOK 2.1 as against MNOK 1.7 last year.

Europower increased its turnover by 11% to MNOK 4.9 as against MNOK 4.5 last year. The company posted an operating loss of MNOK 1.2 as against a loss of MNOK 0.1 last year. For the first half year revenues grew by 44% to MNOK 11.3, with an operating loss of MNOK 1.9 as against MNOK 0.5 last year. The magazine Energi made considerable progress. For the other activities there will be cost reductions.

Smartcom’s turnover was reduced by 6% as against last year to MNOK 6.4, with an operating profit of MNOK 0.7 as against MNOK 2.9 last year. For the first half year revenues grew by 2% to MNOK 11.2, with operating profits of MNOK 0.3 as against MNOK 2.7 last year. The reduction in profits is due to a tougher market, as well as increased competition, and measures will be taken in order to increase profitability.

Other activities. Here many new activities are gathered under Smartcom International, Web TV, Search, database development, IT, etc. Turnover increased by 5% during the quarter, to MNOK 18.0. The operating loss was MNOK 9.7 in the quarter as against MNOK 6.5 in 2007. For the first half year revenues grew by 4% to MNOK 35.2, with an operating loss of MNOK 21.2 as against MNOK 15.1 last year.

Important events

Recharge

On June 23rd 2008 NHST Media Group announced that it will be launching a global renewable energy news publication – consisting of a weekly newspaper and a continuously updated website providing up-to-date global business news coverage of the world’s rapidly expanding renewable energy industries.

NHST is already a significant player in the global business to business news publishing market, with global number one positions for its news publications in the oil and gas sector (Upstream), the shipping sector (TradeWinds) and the seafood sector (Intrafish). The renewable energy news publication will seek synergies with existing publications.

The online news site will be launched second half 2008 and the weekly newspaper will be published first half 2009. For further information, please refer to press release, www.nhst.no

Newsdesk AB

On August 7th 2008 NHST announced its acquisition of a majority stake in the Swedish company Newsdesk AB. The company has developed an innovative model for the distribution of business PR content and represents an important addition to NHST’s online portfolio. Having established a leading position in the Swedish market, Newsdesk is now set for further international expansion.

Newsdesk posted revenues of MSEK 9.4 in 2007 and solid growth is expected. For further information, please refer to press release, www.nhst.no

In conclusion

NHST aims to be leading on business news in Norway and to be world leading on news to the shipping, oil/gas, renewable energy, and seafood sectors, and to further develop a leading chart business. The Group will continue to develop its business accordingly. NHST Media Group is prepared for a tougher climate related to increased macro-economic uncertainty. At the same time, NHSTs competitive position has been strengthened.

Oslo, 19 August, 2008

The Board of Directors of NHST Media Group