Acquisition

FUTURE NEWTORK PLC 20 July 1999 THE FUTURE NETWORK PLC ACQUISITION OF GERMAN PUBLISHER The Future Network plc ('Future'), the video game, home computing and other specialist consumer magazines and Internet web sites publisher, today announces that it has acquired Weka Consumer Medien GmbH, a publisher of PC and video games magazines in Germany, from its parent company Weka Firmengruppe GmbH. This acquisition comes less than a month after the flotation of The Future Network and is in line with the strategy outlined at that time that Future would be seeking selective acquisitions that enhance its market position in its target markets. Weka Consumer Medien publishes four magazines - PC Player, PlayStation - das Fun Magazin, Power Play and Video Games - and has current monthly copy sales of approximately 300,000. As at 31st December 1998, Weka Consumer Medien had a turnover of DM 40 million (approx. £13.4 million) and a profit before interest and tax of DM 2.98 million (approx. £1 million). In addition to goodwill and the rights to the magazine titles, assets worth approximately DM 100,000 are being acquired. The terms of the acquisition are for a maximum consideration of DM 24 million (approx. £8 million) of which DM 20 million (approx. £6.7 million) will be payable upon completion and a maximum of DM 4 million (approx. £1.3 million) as deferred consideration. The exact amount of deferred consideration payable will be linked to the interim results of Weka and is expected to be paid by 15 December 1999. Commenting on the acquisition, Greg Ingham, Chief Executive of The Future Network said: 'We have moved fast since our flotation in pursuit of our strategy to strengthen our European market positions in our core video game and home computing magazine market. Germany is Europe's largest market for video game and home computing magazines and is therefore an important target in our European expansion plans. We are already the leading publisher of video game and home computing magazines in the UK, France and Italy and have a significant position in the US. The acquisition of Weka and our expected success with the Sega Dreamcast magazine, now gives us a good base from which to grow our position in Germany.' Future established its German business in Munich in April 1999 and was recently appointed by Sega to be the publisher in Germany of the Official Dreamcast magazine. This magazine is scheduled for launch in August 1999. The acquisition of Weka further strengthens Future's German operations and brings a portfolio of magazines that will complement Future's existing titles. The German video game and home computing magazine market is the largest in Europe, estimated to be worth over £1 billion in 1998 (source: Screen Digest). This acquisition significantly enhances Future's German operations and provides an excellent platform from which to further develop its business in this strategically important market. FOR FURTHER INFORMATION CONTACT: The Future Network plc: 01225 442244 Greg Ingham, Chief Executive Hogarth Partnership: 0171 357 9477 James Longfield/Chris Matthews Background on The Future Network The Future Network was founded in the UK in 1985. Since this time it has become a leading international publisher of video game, home computing and other specialist consumer magazines and Internet web sites. Future is the UK's 4th largest consumer magazine publisher and is the leading video game and home computing magazine publisher in the UK, France, Italy and the US. Headquartered in Bath, England, Future publishes over 100 titles and employs some 1,200 people in offices in Bath, London, San Francisco, New York, Paris, Milan and Munich. Future was floated on the London Stock Exchange on 25 June 1999 and has a current market capitalisation in excess of £620 million.

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Future (FUTR)
UK 100

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