Acquisition of 60% of Catchpole Communications

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Friday 20 October 2006

Associated Newspapers, the national newspaper division of DMGT, announces that it has acquired 60% of Catchpole Communications FZ LLC for a consideration of US $7.2 million (£3.9 million). Associated has the option to increase its investment in Catchpole over the next three years.

Catchpole is a Dubai Media Free Zone company that provides sales, circulation and management services to the U.A.E daily newspaper 7DAYS.

7DAYS is an English language free newspaper, similar to Associated’s Metro. It was launched in December 2004 and is already profitable. In its first year to 31 December 2005, it recorded revenues of US $5.1 million (£2.7 million).

Speaking after the transaction, Steve Auckland, Managing Director of Metro commented: “the Middle East has seen a dramatic growth in publishing and the forecast is for this to continue. Dubai is at the centre of this economic boom. We are very excited by the opportunity to work with the management team at Catchpole, to identify new market opportunities and to help build their existing businesses.”

Enquiries:
Peter Williams, Finance Director, DMGT, 020 7938 6631
Steve Auckland, Managing Director, Associated Metro, 020 7651 5345
Andrew Honnor, Tulchan Communications, 020 7353 4200