Euromoney acquires leading Internet information provider

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Tuesday 26 January 1999

Euromoney Publications PLC today announced that it has taken a majority shareholding in Internet Securities, Inc. (ISI), a leading provider of emerging markets financial, economic and company information via the internet.

In its first significant internet-related acquisition, Euromoney has bought out ISI's original venture capital investors as well as injecting $11 million of new money into the company via a new issue of ISI preferred stock. The total consideration is $43 million in cash inclusive of new funding for an 80 per cent. shareholding. ISI's annualized revenues for the final quarter of 1998 were $9.7 million, against $5.6 million for the same quarter in 1997.

ISI's flagship service is ISI Emerging Markets (www.securities.com). This is an internet-delivered database of comprehensive local news, company and industry information, financial markets data and macroeconomic analysis from 27 Latin American, Central and East European and Asian emerging markets. The database draws on over 700 sources. The information is available in English and 15 other languages. The service is supplied exclusively to subscribers who include some of the world's largest financial institutions and corporations.

"Our strategy is to use the internet in the markets where Euromoney and Institutional Investor brand names are very strong" said Padraic Fallon, Chairman of Euromoney Publications PLC. "The acquisition of ISI and the partnership with Gary Mueller that results gives the Euromoney group the opportunity to exploit our content, brands, and knowledge of emerging markets".

ISI was founded in 1994 by Gary Mueller (32), the current President and CEO. At December 31, 1998, the company employed 198 people in 18 offices worldwide.

Gary Mueller, commented, "Our customers, partners, and employees will benefit enormously from Euromoney's 30 years of experience in financial publishing. From an operational standpoint, Internet Securities' global distribution complements Euromoney's global footprint nicely. Recognition and quality of the Euromoney brand name provides Internet Securities leverage in the competitive and consolidating world of financial information provision."

Euromoney Publications PLC was founded in May 1969 to publish the magazine Euromoney. The company has grown into the pre-eminent provider of information and services on the international capital markets, wholesale banking and emerging markets.

Euromoney has expanded vigorously, by organic growth and acquisition, moving into databases, training, electronic and book publishing, conferences and events; and into the law, energy, pharmaceutical, transport and travel sectors as well as international finance and capital markets.

At the end of August 1997, the company made its biggest acquisition to date when it paid US$142 million for Institutional Investor, Inc. Institutional Investor publishes Institutional Investor magazine, 22 newsletters, journals and runs specialist conferences and institutes.

Euromoney was first listed on the Luxembourg Stock Exchange in June 1986 and was listed on the London Stock Exchange in January 1990. It was launched in 1969 with a capital of £6,200 and now has a stock market capitalization of more than £300 million (US$500 million). In the financial year ended September 30 1998, Euromoney Publications PLC made record profits before tax of £32.1 million on revenues of £177 million.

Contacts:

Richard Ensor, managing director, Euromoney Publications PLC (171) 779 8844 rensor@euromoneyplc.com

David Levin, chief operating officer, Euromoney Publications PLC (171) 779 8289 dlevin@euromoneyplc.com

Gary Mueller chairman and chief executive officer, Internet Securities, Inc. (617) 204 3147 gary@securities.com