Acquisition

Future Network PLC
04 September 2003



4 September 2003



                             THE FUTURE NETWORK PLC

                  Acquisition of Guitar World magazines in USA



The Future Network plc ('Future'), the international magazine Group, today
announces that it has agreed to acquire the title and goodwill of the US
market-leading guitar magazine Guitar World and related titles (together 'GW
titles') from Harris Publications Inc.  The acquisition price is £10.0m
($16.25m) in cash, which will be funded by a combination of cash resources and
bank debt.  Both before and after the transaction, Future has positive net cash.



The principal title, Guitar World, was launched in 1980 as a monthly magazine
and is the market-leading title in its field, with current average monthly
circulation of 180,000 copies.  The other titles are Guitar World Acoustic and
Guitar World's Bass Guitar  (both published bi-monthly); Guitar World Buyer's
Guide and Guitar Legends (both published annually).



Guitar World accounted for 75% of total 2002 turnover for GW titles of $11.8m
(year ended 31 December) and of this total, 58% was derived from circulation and
42% from advertising.  For 2002, the estimated profit attributable to the GW
titles was $1.9m.  The business is being acquired free of financial debt;
estimated negative net assets of GW titles as at 31 December 2002 were $1.1m.
GW titles employ 14 staff who are transferring to Future as part of the
acquisition.



The GW titles will continue to be published from New York, where Future already
has an office, reporting to Future's US Managing Director, Jonathan
Simpson-Bint.



Future's US results for 2003 will include the publication of only three issues
of Guitar World which will therefore have a limited impact on the group's
financial performance this year.  Future anticipates that the acquisition will
enhance 2004 adjusted earnings per share.  Future expects to achieve a post-tax
return on investment in excess of its weighted average cost of capital on its
investment in the GW titles by 2005.



Commenting on the acquisition, Future Chief Executive Greg Ingham said:



 'Guitar World is the market-leading guitar title in the US.  Future is the
long-term market-leading guitar magazine publisher in the UK and when considered
together with the strength of our existing US business, this acquisition creates
an attractive expansion opportunity for us.  We have admired what Guitar World
has achieved over many years and we are now especially pleased that its
experienced editorial and sales staff are transferring to us.  At the same time,
this transaction represents a useful step in expanding our US portfolio.'





Enquiries:


The Future Network plc
Greg Ingham, Chief Executive             Tel: [phone]
John Bowman, Finance Director            Tel: [phone]


Hogarth Partnership
James Longfield/Georgina Briscoe         Tel: [phone]





About The Future Network plc



The Future Network plc was founded in the UK in 1985.  Today, it publishes over
90 specialist consumer magazines worldwide, is the world's leading publisher of
computer games magazines and is the fifth largest magazine publisher in the UK.



Having entered the UK guitar magazine market in 1994, Future now publishes Total
Guitar, Guitarist, Guitar Techniques and What Guitar  which together have clear
market leadership of the UK guitar magazine market.



Future employs around 1,000 people in offices in the UK, US, France and Italy.
Over 80 international editions of Future's magazines are also published in 28
other countries across the world. The company is listed on the London Stock
Exchange (symbol: FNET).



Future estimates that profits arising from GW titles will be taxed at an
effective rate of less than 20%, due to the fact that the majority of the
purchase price should be allowed as a deduction against US taxable profits over
a fixed period of 15 years.






                      This information is provided by RNS
            The company news service from the London Stock Exchange END

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