APN And PMP Gloss Printing Outsourcing Agreement

News Release
19 October 2010

APN And PMP Gloss Printing Outsourcing Agreement

APN today announces an agreement has been reached with PMP Limited
whereby PMP will become the exclusive provider of gloss printing
services to APN under a long term (10 year) contract in New Zealand.

The partnership with PMP comes after a thorough review of all possible
options for APN's heatset printing business, including attempts to
secure joint venture and going concern sale alternatives.

The decision follows the announcement in APN's 2009 full year results
that New Zealand long run heatset printing operations were no longer
core to the company's strategy and had been treated as a discontinued
business.

APN's Manukau plant will close at the end of November with about 150
staff affected. Consultation will start immediately and support for
staff in terms of outplacement and other counselling will be provided.

"Our staff have been very supportive in working with the company and we
thank them for their efforts," APN Publishing and Print CEO Martin
Simons said.

"We would have preferred an alternative that did not impact on the staff
in this way but APN's own requirements for specialised gloss printing
are not sufficient to justify continued investment by APN in the
business."

He said there would be limited opportunity for staff redeployment within
APN, although some staff will continue working for up to three months
decommissioning the plant.

PMP's core business is printing and distribution and the company has
invested in state of the art facilities. The arrangement with PMP
ensures APN's publishing products continue to have access to such
facilities.

Provision had also been made with PMP for APN's external customers to
ensure their printing needs are met. APN will be immediately
discussing the effects of the close-down with customers and various
suppliers.

Other areas of APN's printing operations at Ellerslie and regional sites
including Tauranga, which are predominately based on daily and community
newspaper production, have not been affected.

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