Increased investment in Teletext Holdings Limited

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Friday 7 February 1997

DMGT, through its subsidiary Harmsworth Media, has agreed to acquire a further 30% stake in Teletext Holdings Limited ("Teletext"), increasing its total interest to 75%. DMGT will acquire the shares from Philips Electronics UK Limited ("Philips"), for a cash consideration of £25 million. Put and call option arrangements for the remaining 15% of Philips' shareholdings have been agreed, for an additional consideration up to £15 million. Philips will continue to provide technical advice and support to Teletext under an ongoing agreement.

Teletext, based in London, holds the Public Teletext Licence on ITV and Channel Four. The company made a profit before tax of £13.8 million on a turnover of £34.8 million in the year ended 31 December, 1995 and had net assets of £1.3 million.

Sir David English, Chairman of Teletext and a Director of DMGT said - "Teletext is the world's leading text service operator with a weekly audience of 18.3 million. We are proud of its achievements to date but both we and Philips recognise that the electronic media world is going to enter a period of rapid change and great development. Teletext will be better able to sieze opportunities in this challenging future by having a strong media group such as DMGT as its controlling shareholder.

"Philips' contribution to the development of Teletext has been invaluable and we are delighted that they have agreed to continue to provide their technical know-how to the company and to remain a significant shareholder."

Inquiries: For further information, contact Nick Hart, PR Executive, on 0171 927 8406.