Compared to the third quarter 2008 results:

• Operating result improved by € 1.8 million.
• Revenues declined by € 13.4 million (8.4%) to € 145.8 million.
• Operating expenses declined by € 16.5 million.
• Advertising revenues experienced a relatively lower decline (16%) than they did in the first half of 2009 (19%). Market shares improved or are maintained.
• Normalised EBITA margin improved to 5.9% (08Q3: 4.0%)
• Cash position up € 21.3 million compared to the second quarter 2009.

TMG’s activities are subject to seasonal fluctuations under ‘normal economic circumstances’. During the second and fourth quarter of the year, advertising revenues are higher than during the remainder of the year. The single-copy sales of De Telegraaf and Keesing Media Group’s publications are significantly higher in the third quarter. The fourth quarter is an important quarter for advertising revenues.

Key results

The economic trends had a major impact on TMG’s advertising revenues which declined by 16% in the third quarter in comparison to the same period in 2008. The decline in advertising revenues in the first two quarters of 2009 amounted to 18% and 20% respectively. Revenues from the circulation market are less sensitive to economic trends and rose by more than 2%.

The structural cost reduction programme in the amount of € 40 to € 50 million annually to be implemented over the 2008 – 2010 period is ahead of schedule. Inadequately or non-performing activities have been disposed of, while the planned reduction of almost 500 fulltime jobs will already be achieved in 2009. Including the expansion in personnel caused by new activities, the outsourcing of activities and the reorganisation of transportation operations, the number of fulltime jobs in comparison to the 30 June 2008 baseline date fell from 3,678 to 2,902 on balance.

The decline in operating expenses exceeded the decline in revenues in the third quarter and resulted in an increase in the normalised EBITA margin from 4.0% in the third quarter of 2008 to 5.9% in the same quarter of 2009.

Financial

The consolidated statement of comprehensive income (see appendix) is reported on the basis of continued operations. The result from discontinued activities is presented separately for the third quarter 2009, as well as the third quarter 2008. This concerns the activities of the Swedish organisation that was divested in 2008, Carp’s print operations (terminated in December 2008), activities in the Ukraine (terminated in March 2009) and the so-called activities held for sale, including several magazine titles in the Netherlands and the narrowcasting activities of Media Librium.

Revenuesin the third quarter 2009 decreased by 8.4% to € 145.8 million as a result of significantly lower advertising revenue and the cancellation of an external distribution contract effective 1 January 2009. Income from circulation rose by € 1.8 million due to an increase in subscription rates and due to higher Privé single copy sales. Other revenues rose by € 0.8 million primarily due to the new gaming activities of the Keesing Media Group. Internet revenues rose by € 1.0 million (11.8%).

Due to a reduction in the use of paper, the cost of raw and auxiliary materials declined by € 0.8 million.

In the third quarter 2009, the number of FTEs declined by 138 to 2,902 as at the end of September 2009. The FTE reduction programme initiated in 2008 is ahead of schedule. Personnel costs decreased by € 9.5 million, including a reduction in the cost of hiring temporary personnel in the amount of € 1.9 million. The majority of employees received a 2.75% collective labour agreement (CAO) salary increase effective 1 July 2009.

Other operating expenses, depreciation and amortisationdeclined by € 6.1 million due to the outsourcing of non-core activities among which maintenance of the passenger car fleet and because certain real estate properties are held for sale as of the second quarter and are therefore no longer depreciated.

The result from associates includes the 6% TMG share in the net result of ProSiebenSat.1 Media AG for the third quarter 2009 in the amount of minus € 0.8 million.

The other financial income and expenses improved by € 7.9 million to plus € 1.7 million primarily due to an impairment concerning ProSiebenSat.1 in the amount of € 10 million recognised in September 2008.

The result from discontinued activities increased by € 3.1 million to minus € 0.7 million in the third quarter of 2009 due to the termination and sale of operations in Sweden and the Ukraine and the Carp print operations, and due to the result of the sale of participations. The sale of the titles of the Telegraaf Tijdschriften Groep (excluding VROUW, Privé and Autovisie) was completed during the first half of 2009. The sale of Media Librium was completed in the third quarter and some termination costs were still incurred for international activities.

Cash position

The cash position in the third quarter of 2009 improved by € 21.3 million in comparison to the second quarter due to a positive cash flow from business operations, improvements in working capital and a corporation tax refund in the amount of € 3.5 million. The cash flow from investment activities amounted to € 0.7 million due to the sale of fixed assets.

The cash flow from financing activities was minus € 5.1 million in the third quarter of 2009, primarily due to the regular FM licence payments made by the Sky Radio Group.

The first three quarters of 2009 compared to the same period in 2008

Revenues declined by € 51.8 million over the first nine months of 2009. In contrast to the € 43.2 million decline in advertising revenues and the € 11.5 million in reduced distribution revenues, circulation revenues rose by € 3.6 million. The cumulative internet revenues rose by € 2.1 million to € 27.6 million.

Operating expenses declined on balance by € 46.5 million primarily due to the implemented reorganisations, lower production costs for print products and the approximately € 6.7 million higher restructuring costs recognised in 2008.

The increase in the financial income and expenses by € 185.1 million to plus € 1.7 million is primarily due to the impairment concerning ProSiebenSat.1 in 2008. The carrying value of the interest in ProSiebenSat.1 Media AG amounts to approximately € 74 million at the end of September 2009.

The normalised EBITA margin over the first three quarters declined from 7.3% to 5.9%.

Prospects

TMG has strong, mostly leading positions, in various media markets and generally speaking the market shares increased in the third quarter of 2009.

The decline of advertising revenues in the third quarter was lower than in the first two quarters of 2009. As a result of the effectively deployed measures the operating result improved this quarter. It remains to be seen if and to what extent the lower decline in advertising revenue will continue to be the case in the all-important fourth quarter for the annual result.

The message previously communicated that it is impossible under the current circumstances to make a reliable prediction concerning the full year results 2009, remains in effect. As a result it is also impossible to make any projections concerning the pace at which margin targets announced earlier will be achieved.

It is, however, possible to identify a number of factors that affects the trend of the ultimate operating result over all of 2009 (in comparison to 2008):

• Circulation revenues are expected to exhibit a modest increase.
• The advertising revenues for print as well as radio activities are expected to be significantly lower on balance and the digital revenues significantly higher than the corresponding revenues in 2008.
• In terms of costs, in comparison to 2008, the restructuring measures taken, the outsourcing of a number of non-core activities and portfolio changes are expected to at least result in a cost reduction in line with the estimated reduction of € 31 million for 2009. This is offset by the effects of the 2008 and 2009 Collective Labour Agreement (CAO) salary increases.

In view of the persisting difficult market conditions, TMG will continue to work on further measurements to improve the result, via an increasing focus on revenue growth from digital activities and cost reductions. An example of the latter is the decision to terminate publication of the De Telegraaf Sunday edition, effective at the end of December 2009. The financial impact of this decision will be reflected in the results effective 2010. The provision for reorganisation will be accounted for in 2009.