Future France Investigation

Future Network PLC 9 October 2000 PRESS INFORMATION 9 October 2000 FUTURE FRANCE SA IDENTIFIES ACCOUNTING IRREGULARITY The Board of The Future Network plc (LSE: FNET) announces that it has retained Deloitte & Touche, Accountants, to investigate an accounting irregularity identified by Future France SA, the Group's French subsidiary. The investigation is being conducted in an expedited form, but as yet it is not completed. The preliminary results of Deloitte & Touche's investigations indicate that newsstand sales revenues for Future France in each of the financial years ended 31 December 1998 and 31 December 1999, and during the financial period from 1 January 2000 to date, have been overstated. Whilst the investigation is ongoing and the precise overstatement has not yet been determined, the Directors current understanding is that the amount by which sales have been overstated is in the region of FF35 million (£3.2m calculated using the exchange rate in force as at close of business on Friday 6 October 2000). The Directors believe that the full amount of that overstatement will impact operating profit in the financial years ended 31 December 1998, 31 December 1999 and in the financial year to date, however the allocation of that amount between financial years is not yet fully ascertained. The investigations to date have also indicated that the current cash balances of Future France SA are unaffected, no cash outflows will result from this accounting error, and the accounting irregularities are confined to Future France. The historic financial performance and contribution of Future France SA in relation to the overall results of The Future Network plc, before making any adjustment for the overstated newsstand sales, is shown below. The allocation of the error between periods has not yet been ascertained. Future The Future Percentage France SA Network plc contribution Six months ended 30 June 2000 Revenue £11m £111m 10% Operating profit before amortisation (£0.1m) £2m (5%) of intangible assets Year ended 31 December 1999 Revenue £22m £174m 13% Operating profit before amortisation £2m £23m 9% of intangible assets Year ended 31 December 1998 Revenue £16m £80m 20% Operating profit before £2m £11m 18% amortisation of intangible assets Ends For further information, please contact: The Future Network plc Greg Ingham, Chief Executive 01225 442244 Ian Linkins, Finance Director 01225 442244 Hogarth Partnership James Longfield, 0207 357 9477

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Future (FUTR)
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