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Sky Ind Directors Respond To INL Media Release

SKY Television’s Independent Directors respond to INL media release

The Independent Directors of SKY today responded to INL’s recent announcement that it would not be increasing its existing offer to purchase the approximately 34% of SKY that it does not already own. As a reason for not increasing the offer INL Executive Chairman, Mr Cowley said in the INL release that the offer price is fair and that it includes a healthy premium that the market had already factored into SKY’s share price.

On behalf of the Independent Committee, Mr Downey said

“We do not agree with the INL view that SKY’s current share price includes a healthy premium.”

“For example, we note that from the time that INL announced its intention to sell its NZ newspaper businesses to the date of INL’s proposed takeover announcement, the S&P/ASX 300 Media index had risen 23% while the SKY price had risen a comparable 26.4%. “

“During this time, SKY has also made a number of announcements regarding operating performance, including its 2003 profit result, and these announcements have undoubtedly impacted on the current share price” said Mr Downey.

The Independent Directors believe that SKY is one of New Zealand’s leading companies, with a unique market position and excellent growth potential.

Mr Downey said: “Based on preliminary advice and discussions with our financial advisers UBS New Zealand Ltd (“UBS”), the Committee is concerned with several aspects of the proposed offer and believe it may not be in the best interests of SKY shareholders.”

“We are yet to receive a formal notice of offer from INL and assuming this occurs, we will undertake a full assessment of the offer and communicate our findings to shareholders. An Independent Adviser will also be appointed to prepare a report for SKY shareholders on the merits of the proposed offer” said Mr Downey.

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