NEWSQUEST plc, England's largest regional and local newspaper publisher, today announced record operating profits of £81.4 million for the year ending 3 January 1999.

Reported operating profit increased by 29.1% with an underlying growth of 12.7% whilst pre exceptional profit before tax grew by 15.9% to £65.8

million. Advertising revenue increased by 6.7%. A final dividend of 4p, making 6p for the year, was declared. Net debt was reduced by £42.4 million to £135.1 million.

Jim Brown, Executive Chairman, said: "The slowdown in the economy at the end of 1998 was reflected in our trading, but the start of the year has gone well and the company is cautiously optimistic that we should see another good year. Recruitment advertising, an important

economic guide, has held up promisingly in the early part of 1999. The general strength of local economies remains important to regional newspaper businesses."

Newsquest has launched a series of new titles: these include successful launches of free newspapers into Harrow, Gravesend, Walton, Weybridge,

Cobham and Staines - an aggregate of almost million new copies in the London area. The company also made successful starts of new paid-for weekly papers in Sutton and Southend in 1999.

Most of Newsquest's paid-for titles saw year on year sales increases during 1998 and exciting and significant breakthroughs have been made on the internet - Newsquest sees exponential growth for its internet revenue and online audience.

Newsquest's portfolio includes such paid-for titles as the Warrington Guardian, Northern Echo, Lancashire Evening Telegraph and the Brighton Evening Argus and free weekly titles including Guardian Midweek, Berrows Worcester Journal (309 years old), the South London Guardian series and the Wirral Globe.

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