North Media

M&A Activity • Oct 23, 2013

23 October 2013

Company announcement no 09-13

Today North Media A/S signed a contract with Berlingske Media A/S for the
acquisition of eight local newspapers based in Copenhagen and Frederiksberg,
the total circulation of which is 286,000 newspapers a week.

With this acquisition, North Media A/S, which publishes for example
Søndagsavisen and several other newspapers, becomes the single largest
publishing house in Copenhagen and Frederiksberg, with more than half a million
newspapers on a weekly basis. Following the acquisition, North Media A/S will
be publishing 1.6 million newspapers per week nationally.

“Those eight newspapers are well-established companies that fit perfectly into
North Media's strategy to strengthen and improve its market position in the
fields of door-to-door distributed free newspapers and distribution”, says Lars
Nymann Andersen, CEO.

”With this acquisition, we take an active step in consolidating the market
after many years of fighting among newspaper companies in addition to
considerably strengthening our position. We will be benefitting from economies
of scale while ensuring the basis of all of our newspaper activities”, says
Lars Nymann Andersen, Group CEO.

The acquisition comprises Frederiksberg Bladet, Vesterbro Bladet, Valby Bladet,
Vanløse Bladet, City Avisen and Nørrebro/Nordvest as well as a 70% stake in the
company publishing the local newspapers of Amagerbladet and Østerbro Avis of
which 60% is acquired from Berlingske Media A/S and 10% from the existing
minority. The many Copenhagen and Frederiksberg readers of those newspapers
will not notice the change since the newspapers will be published by the same
people as before.

The acquisition price of those eight newspapers totals DKK 69.5 million to be
paid in cash. The payment will be effected by way of a share deal as well as a
transfer of assets. The acquisition is expected to complete on 1 November 2013.

In connection with the acquisition, North Media A/S has entered into a put /
call option for the remaining 30% stake in the company that publishes
Amagerbladet and Østerbro Avis. The options can be exercised in tranches after
the presentation of the annual accounts for 2015 and 2018. The purchase price
will depend on future earnings, but is expected to be DKK 10-20 million.

The acquisition is expected to increase the Group's earnings by approx. DKK 75
million annually. Similarly, after implementation Group EBITDA is expected to
go up by approx. DKK 20 million a year and Group EBIT to go up by approx. DKK
10 million a year. The acquisition is not expected to affect the consolidated
results for 2013.

Please contact Lars Nymann Andersen, CEO, at +45 39 57 70 00, for further
information.

Yours faithfully
North Media A/S

Lars Nymann Andersen
Chief Executive Officer

Visit us at http://www.northmedia.dk

This document is an unofficial translation of the Danish original. In the event
of any inconsistencies the Danish version shall apply.