Quarterly report for Q4 2009

1) Q4 2008 includes restructuring costs of MNOK 15 in DN, whereas Q4 2009 includes restructuring in Intrafish, DN Nye Medier and Smartcom of MNOK 6

2) The annual profit/loss includes one-off costs of MNOK 6 related to moving head office

3) A net operating loss from Recharge of MNOK 23.2 is included in the annual result against MNOK 4.2 in 2008 .

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Group revenues in Q4 fell by 3 % to MNOK 266.5 compared to the same quarter in 2008. There was a pre-tax loss of MNOK 5.2 against a loss of MNOK 25.3 for the same quarter in 2008, an improvement of MNOK 20. Excluding restructuring costs the net improvement is MNOK 11. The operating costs for the final quarter of the year were MNOK 271.3 and adjusted for restructuring costs this is MNOK 29 or about 10 % lower than the same quarter in 2008. The profit improvement programme of MNOK 80 on an annual basis, reported previously, is now achieving its full effect.

In isolation, the final quarter of the year showed a mixed picture for the Group's business areas. Some of the companies experienced a turnaround in revenue growth towards the end of the quarter and the order inflow at the end of the year was better than in the corresponding period in 2008. At Dagens Næringsliv the trend from the end of the third quarter continued with an improvement in advertising revenues. Revenues at DN in Q4 are down only 1% compared to the same quarter in 2008, against a fall of 9% on an annual basis. For the other business areas the market conditions remained challenging and all businesses worked continuously to adjust their operations accordingly. In the business area Global Intrafish downsized its organisation in the last quarter. Associated restructuring costs of MNOK 3.5 have been expensed in the quarter. In addition, Recharge had a challenging fourth quarter. The Digital & Nordic business area has also reduced its costs base. Downsizing also took place at DN Nye Medier in October, resulting in restructuring charges in the quarter of MNOK 2.0, as well as similar smaller adjustments in the other companies.

Full-year revenues for 2009 fell by 6 %. The decline affected most companies in the group, with the exception of TDN, Newsdesk and Nautisk Forlag. Revenues ended at MNOK 1014.5 for the year, down MNOK 66.5 from 2008. The fall in revenues is a direct result of the demanding economic conditions that affected all of the Group's markets throughout 2009. There has been a decline in the advertising market both in Norway and internationally, whereas subscriptions and circulation sales are up 3 % and other revenues up 9 %. The operating result for the year shows a loss of MNOK 43.1. This includes both restructuring costs of MNOK 22 and one-off costs related to moving head office of MNOK 6. The net finance cost reflects the strong price fluctuations around the end of 2008/ start of 2009 that affected the result positively in Q4 2008. These were largely reversed in Q1 2009 and therefore contributed to a negative financial result for the year. The Group hedges the majority of its currency cash flows through the year.

In June NHST Media Group AS carried out a successful shares issue of MNOK 50 gross. This gives the Group a solid platform both with regards to shareholder equity and available cash at the start of 2010. Unrestricted cash at the start of the year was MNOK 98 (not including overdraft).

Viewing the year as a whole the result is strongly influenced by the financial crisis. The fallout of this came later to some of the businesses, but all have experienced weaker markets. As a direct result of this, during 2009 the Group has again implemented costs reductions and there was restructuring cost associated with downsizing throughout the year, totalling MNOK 22.

The Group went ahead with its investment in the market for renewable energy through the new global news publication Recharge. The newspaper (weekly) and the website (www.rechargenews.com) were launched in January 2009 and have achieved progress in the market, but the financial results have until now been weak. The investment weighed down the Group's operating result by MNOK 23.3 in 2009.

Despite weaker advertising markets the Group's publications have defended their position. Despite a very strong Q4 in 2008, in which the financial crisis heightened interest in economic news, the traffic figures on DN.no for 2009 were on par with 2008. The online traffic on the Group's other web publications also continue to grow. The strategy of moving online content behind password protection continues, most recently with www.FiskeribladetFiskaren.no in October.

The Board will not propose any dividend payments for 2009.

Results by business area

Since the beginning of this year NHST Media Group reports in accordance with four business areas organised according to main activities.

Dagens Næringsliv

Dagens Næringsliv is the leading Norwegian business newspaper.

Revenues during the quarter fell by 1 % to MNOK 149.0 compared to MNOK 150.0 in the same quarter in 2008. On an annual basis the fall was 9 %. The operating profit for the quarter totalled MNOK 19.4 against MNOK 0.7 in 2008 (in 2008 MNOK 15 in restructuring was expensed during the quarter). On an annual basis revenues ended up at MNOK 540.5 against MNOK 594.2 in 2008. The operating result was MNOK 27.3 which is down 40 % from last year. Gross restructuring of MNOK 16 was expensed during 2009. The magazine D2 continues to develop positively with increased sales on Fridays and advertising growth.

Digital & Nordic

The Digital & Nordic business area covers digital news and information services in the Nordic region and comprises the companies DN Nye Medier, Smartcom, Newsdesk, Europower and TDN.

Revenues fell by 6 % to MNOK 33.3 against MNOK 35.6 in the same quarter in 2008. The operating loss was MNOK 4.6 against a loss of MNOK 8.1 in the same quarter in 2008. In total for the year revenues increased by 5 % to MNOK 122.7, while the operating result showed a loss of MNOK 16.5 against a loss of MNOK 23.9 in 2008.

In the fourth quarter, all the companies, with the exception of Newsdesk, experienced a fall in revenues compared to the same period in 2008. The market continues to be challenging within this business area. DN Nye Medier implemented employee reductions during Q4 to adapt to the market situation and the other companies have also taken steps to reduce their cost base. The restructuring cost during the quarter was MNOK 2.5.

Newsdesk's revenues increased 81 % during the quarter to MNOK 8.7 and on an annual basis the company has grown significantly both in income and profitability.

The growth in Newsdesk, good results from TDN and continued high traffic figures on DN.no are the most positive elements within the business area during 2009. A somewhat better advertising market for DN.no during 2010 will mean a great deal for the largest unit in Digital & Nordic and contribute to an improved result in 2010.

Global

The Global business area include leading international news and information products within four industry segments: TradeWinds (shipping), Upstream (oil and gas), IntraFish (seafood) and - launched this year – Recharge (renewable energy).

Revenues fell by 8 % during the quarter to MNOK 63.9 against MNOK 69.2 in the same quarter in 2008. The operating result was a loss of MNOK 12.6 against a loss of MNOK 13.5 in the same period in 2008. For the year as a whole income fell by 8 % to MNOK 255.9 compared to 2008, while the operating result ended with a loss of MNOK 29.2 against a loss of MNOK 7.2 for the whole of 2008.

During Q4 advertising income continued to fall for Upstream and Intrafish compared to the same quarter in 2008, whereas Tradewinds managed to turn the falling trend and achieved the same revenues in the last three months of the year as in the corresponding period in 2008. Recharge continues to show improved income quarter by quarter. The operating result for Q4 is also affected by MNOK 3.5 in restructuring costs in Intrafish which downsized significantly during December.

Circulation fell somewhat during 2009 for the paper publications, but the development is not consistent across different geographic markets. The order reserves for advertisements at the start of 2010 are substantially better than at the same time in 2008 and the global publications are noting increased activity in certain geographic markets.

Nautical Charts

The Nautical Charts business area is the company Nautisk Forlag, which maintains the Group's traditions as a nautical chart supplier in Norway and internationally.

Revenues fell by 4 % to MNOK 21.9 in the quarter against MNOK 22.8 in the same quarter in 2008. The operating result was a profit of MNOK 0.4 against a loss of MNOK 5.2 in 2008. For the year, revenues are slightly up by 1% and revenues totalled MNOK 100.8, while the operating result increased by MNOK 3.7 and ended with a profit of MNOK 3.2 against a loss of MNOK 0.5 for the whole of 2008.

The weaker revenues during the quarter were a result of continued falling demand caused by the weak economic situation in shipping.

Prospects

2009 was marked by the financial crisis that materialised in autumn 2008 and impacted all of the Group's markets, primarily through a substantial fall in advertisements. The effects became visible in the Group's businesses at different times, but there were clear signs of improvement in the advertising market from Q4 2009, that have continued so far in 2010. This may prove to be a reversal of the market trend in 2009. However, the picture is not all clear and consistent and the Group is prepared for continued uncertain macroeconomic conditions in the coming quarters as well, with varying effects on its businesses. The strong market positions, both in Norway and internationally, are expected to be maintained and constitute an important foundation for future growth in revenues and profitability.