Final Results - Part 1

Trinity Mirror PLC
15 March 2001

                                                                 15 March 2001

PART 1

                              Trinity Mirror plc

                           Preliminary Results 2000


Trinity Mirror plc, the UK's largest newspaper publisher, announces the
Group's preliminary results for the 52 weeks ended 31 December 2000.


Financial highlights

                                   Statutory Statutory              Pro
                                                                  forma
                                        2000      1999             1999
                                          £m        £m       %       £m       %
                                                        change           change

Turnover (1)                        1,047.7     541.0    93.7%   995.4     5.3%
Group operating profit: (1)
  before digital media activities     230.5     119.0    93.7%   211.6     8.9%
    and exceptional items
  loss from digital media             (42.3)     (4.4)            (7.0)
activities
Profit before tax, digital media      196.4     119.7    64.1%   175.1    12.2%
  activities and exceptional items
Exceptional net profit/(loss)         161.2     (12.3)            12.7
before tax
Profit before tax                     315.3     103.0            180.8

Per share                              pence     pence            pence
Earnings:
  before digital media activities
and exceptional items                  48.4p     46.8p    3.4%    44.5p    8.8%
  underlying (pre exceptional          38.0p     45.1p (15.7)%    42.6p (10.8)%
items)
 basic (after exceptional items)       92.6p     40.0p  131.5%    48.8p   89.8%
Dividend                               17.6p     16.0p     10%


 1. adjusted to exclude Belfast Telegraph Newspapers and discontinued
    activities

Operational highlights

  * Strong growth in regional newspapers operating profit (like-for-like
    12.1%)

        - excellent growth in recruitment advertising (18.9%)

        - acquisition of Southnews strengthened the portfolio and improved
          geographic balance

        - Metro titles launched in Newcastle, Birmingham and Scotland and
          benefits of franchise agreement   with Associated Newspapers beginning
          to be realised

  * 7.1% operating profit growth for national newspapers

        - moved M magazine to Saturday edition of The Mirror

        - brand enhancement campaign for The Mirror

        - Scottish national titles achieved 9.8% operating profit growth for
          the year after having seen a fall in   first half

  * Refocusing digital strategy

        - more closely align ic regional sites (one brand, one technology)
          with regional newspaper    operations

        - icShowbiz and icSport content will enhance national newspaper sites

        - retain option to play leading role in subsequent market and
          technology development

        - costs of investment this year to be approximately £25 million net
          and £15 million on an annual   ongoing basis. Gross costs for 2000 to
          2002 to be reduced from   £150 million (announced March   2000) to
          approximately £90 million

  * Commenced disposal processes for non-core assets - magazines and
    exhibitions, the ISP, ic24, and interest in PA Sporting Life

  * Senior management changes underpin future development


Outlook for the year

The sharp rise in newsprint prices was an unhelpful start to the year.
However, advertising in the national titles has improved significantly and
recruitment advertising in the regional newspapers has remained strong since
the beginning of the year.

The new management team has recently undertaken a thorough review of the
Group's existing businesses to put in place strategic plans to best utilise
assets and thereby maximise growth. The results of this review will start to
be rolled out during 2001. Building on the progress made over the past few
months, the Group is in a strong position to tackle the challenges of its
market with renewed vigour and make significant progress. Much depends, as
ever, on how the UK economy performs but, given the current environment, the
Board remains confident of the outlook for the year.


Sir Victor Blank, Chairman of Trinity Mirror plc, commented:

'Newspapers have proved to be far more robust than many other communication
platforms. The first full year for Trinity Mirror has delivered a strong
performance, against a backdrop of considerable management change and action.
We start the year in good order and good heart. Our plans for the regional
newspapers are coming together very well; our national titles are performing
encouragingly; and our refocused digital media strategy is now settled. I have
confidence in the ability of our creative and committed teams throughout the
Group to drive growth and success.

The next twelve months will be exciting and active ones for us. The new
management team has been focusing on strategies to more effectively exploit
value from our assets and, over the coming months, these ideas will be further
developed.'

Enquiries:

Trinity Mirror plc                                         020 7293 3000
Philip Graf, Chief Executive
Margaret Ewing, Group Finance Director

Finsbury                                                   020 7251 3801
Rupert Younger
James Leviton

Trinity Mirror

Preliminary results for the 52 week period ended 31 December 2000

Introduction

To provide shareholders with a relevant and meaningful comparison with the
results for the 52 weeks to 31 December 2000 ('2000'), pro forma results for
the 53 weeks to 2 January 2000 ('1999'), the previous financial year, have
been prepared. The 1999 pro forma financial information assumes that the
merger of Trinity plc and Mirror Group PLC became effective on 28 December
1998, being the first day of the relevant financial period.

The results for 2000 reflect 52 weeks' trading for all businesses. The pro
forma results for 1999 include 53 weeks for the former Trinity businesses and
52 weeks for the former Mirror Group. The statutory profit and loss account
for 1999 includes the former Trinity group's results for the 53 weeks and
those of the former Mirror Group from 6 September 1999 (the effective date of
the merger of the two groups) to 2 January 2000. The commentary within this
announcement in respect of the profit and loss account is based on comparison
with the pro forma financial information for 1999, which was the subject of a
separate review and report by the Group's auditors, Deloitte & Touche, dated
17th March 2000.

On 30 July 2000, Belfast Telegraph Newspapers was sold to Independent News &
Media plc for a net consideration (before tax) of £290.0 million, including
the repayment of a loan. The revenue and operating profit of Belfast Telegraph
Newspapers for the period to 30 July 2000, being £31.4 million (1999: £52.8
million) and £13.2 million (1999: £20.8 million) respectively, are included
within the reported results of the regional newspapers division.

The Group acquired the entire issued share capital of the regional newspaper
group, Southnews plc, for a consideration (including acquisition costs and
assumed debt) of £333.1 million on 28 November 2000. The results of Southnews
for the period 29 November to 31 December 2000 (£6.6 million revenue and £0.1
million operating profit) are included within the consolidated results of the
Group for 2000.

The revenue and operating losses of the closed Live TV operations have been
disclosed as discontinued operations within the consolidated and pro forma
profit and loss accounts for 2000 and 1999 respectively.

Financial summary

Revenue of the Group increased by 1.7% to £1,080.3 million (1999: £1,062.6
million).

Adjusted Group revenue(1) increased by 5.3% to £1,047.7 million, with
advertising revenue growing by 5.9% to £554.3 million. Revenue from the
Group's newspaper sales (circulation revenue) increased by 1.4% to £391.0
million as a result of cover price increases implemented during 1999 and 2000
off-setting circulation declines. Group 'other' revenues grew from £86.5
million to £102.4 million (18.4%).

Operating profit from continuing operations(1)(2) increased by 8.9% to £230.5
million. Excluding the net start up losses of the Metro titles of £4.0 million
(1999: £0.3 million) and one month's profit contribution of Southnews (£0.1
million), the growth in the adjusted operating profit was 10.6%. The adjusted
operating margin of continuing operations increased from 21.3% to 22.6%.(1)(2)
(3)

During 2000 the Group incurred net costs of £42.3 million (1999: £7.0 million)
in developing its digital media activities. Group operating profit for the
year, after digital media activities but before exceptional items, was £201.4
million (1999: £221.1 million).

Contribution from associates was a net £nil, reflecting the Group's share of
profits in The Press Association and Reed Aviation Limited offset by PA
Sporting Life (which continued to realise losses due primarily to promotional
expenditure). In 1999, the £3.0 million contribution from associates included
the Group's profit share from its Scottish Media Group investment until its
disposal in March 1999.

Net interest charge decreased by £8.7 million in 2000 to £47.3 million, as a
result of the cash inflow from operations(2) of £219.9 million and £290.0
million net proceeds from the disposal of Belfast Telegraph Newspapers offset
by the Southnews consideration and debt of £333.1 million. Group operating
profit before exceptional items covers the net interest cost 4.3 times.

Net exceptional profit, before tax, of £161.2 million was realised in 2000.
Gains (pre tax) of £164.5 million and £17.5 million were realised by the Group
on the disposals of Belfast Telegraph Newspapers and a subsidiary of the
Group's associate, The Press Association, respectively. An exceptional charge
of £13.3 million was made against Group operating profit in respect of the
costs of restructuring management and operations following the Trinity Mirror
merger in 1999 (£9.8 million) and the acquisition of Southnews (£3.5 million).
In addition, the Group has provided an exceptional £7.5 million of accelerated
depreciation against the book value of certain press facilities, as a result
of the press replacement programme.

Profit before tax(2) was £196.4 million (1999: £175.1 million), an increase of
12.2%. After the net investment in digital media activities, but before
exceptional items, profit before tax was £154.1 million (1999: £168.1
million).

Tax charge for 2000 of £47.0 million represents 14.9% of profit before tax of
£315.3 million, the extremely low rate being primarily due to the tax
effective disposal of Belfast Telegraph Newspapers. The effective tax rate for
the year, before exceptional items, is 28.6% (compared to the statutory rate
of 30%).

Earnings per share(2) were 48.4p, reflecting an increase of 8.8% from 44.5p in
1999. After the net investment in digital media activities, but before
exceptional items, earnings per share decreased by 10.8% to 38.0p (1999:
42.6p).

Dividend - subject to the approval of the shareholders at the Annual General
Meeting, the directors propose a final dividend of 12.3p per share to be paid
on 31 May 2001 to shareholders on the register at 4 May 2001. This will bring
the full year dividend to 17.6p per share, an increase of 10.0% on 1999, which
is covered 2.2 times by pre exceptional earnings and will be fully funded from
operating cash flow. The Group's future dividend strategy will take into
account the Group's operating results, the investment required for delivering
its corporate strategy, its financing requirements and its' policy to retain
the dividend at a level where it is covered more than twice by earnings.

Net assets of the Group at 31 December 2000 were £1,503.2 million, reflecting
primarily the total carrying value of the Group's acquired publishing and
newspaper titles of £2,005.3 million, goodwill of £13.1 million, tangible
fixed assets of £404.3 million and net debt of £768.2 million. The carrying
values of the Group's acquired newspaper titles are subject to an annual
impairment review, in accordance with FRS 10 'Goodwill and Intangible Assets',
as the directors consider the titles to have indefinite economic lives. Any
impairment to value is charged to the profit and loss account. There was no
charge in 2000 or 1999.

The provisional fair value of the acquired net assets of Southnews, included
within the Group's consolidated balance sheet, is £293.0 million, including £
345.7 million in respect of the carrying value of the acquired newspaper
titles.

Cash flow generated by operations during 2000, excluding the digital media
investment, increased by £65.2 million to £262.2 million. The other principal
cash inflows are in respect of the net cash proceeds and loan repayment from
the disposal of Belfast Telegraph Newspapers and a dividend receipt of £8.7
million from The Press Association. The principal cash outflows during the
financial period, other than interest, taxation and dividends, related to the
acquisition of Southnews, the net investment in digital media and net capital
expenditure of £37.5 million.

As a consequence of these cash flow movements, the Group's debt at 31 December
2000 was £768.2 million (net of £57.7 million of cash and £24.5 million of
bank overdrafts) compared to £778.5 million at 2 January 2000.

Capital expenditure in 2000 was £37.5 million net (1999: pro forma £34.6
million) against a depreciation charge of £39.8 million (1999: pro forma £42.4
million), excluding exceptional depreciation of £7.5 million in respect of the
impairment of value of certain press plant. Planned capital expenditure for
2001 is approximately £65 million. This includes an amount in respect of the
commencement of the press replacement project. This project will incur a total
capital spend of approximately £100.0 million over the next three to four
years. All capital expenditure is expected to be financed out of operating
cash flow.

Funding and liquidity - at 31 December 2000 committed facilities of £986.4
million were available to the Group (of which £163.6 million were undrawn).
The committed facilities included £840.0 million of a £1,050.0 million
syndicated bank facility (of which £150.0 million was cancelled in January
2001), $91.4 million unsecured loan notes (representing the outstanding
obligations under a $160 million 8.16% fixed rate US$ private placement), £4.0
million of fixed rate bank loan, obligations under finance leases of £47.7
million and £35.0 million of acquisition loan notes. The Group procured an
additional £200.0 million 364-day facility with a one year term out option in
January 2001.

Benefits arising from the merger of £6.5 million have been recognised in the
Group operating profit for the year. On an annualised basis these ongoing
savings will realise £11.3 million. The Group remains on track to achieve a
minimum of £15 million annual cost savings by the end of 2002 as it continues
to implement purchasing efficiencies and realises the benefits of the press
replacement programme and the Group finance function restructuring.

(1) adjusted to exclude discontinued operations and Belfast Telegraph
Newspapers; (2) adjusted to exclude exceptional items and digital media
activities; (3) adjusted to exclude the Metro titles and Southnews.

These superscripts also apply to the commentary below.

Review of operations

Management

During 2000 the Group's management team has been reshaped, including the
appointments of Joe Sinyor as Chief Executive, Newspapers, Stephen Parker as
Managing Director, Regional Newspapers and Mark Haysom as Managing Director,
National Newspapers. This reorganisation has expanded the range of skills
within the team. It allows the Group to realise the full benefits of its
individual businesses, combined strength and underlying assets and to achieve
improved advertising revenues, greater printing flexibility, sharing of
promotional activity and an exchange of content and ideas.

Regional newspapers

The Group's regional newspaper operation is a strong profitable business based
on a robust and sustainable business model. In 2000, this business was very
active with the launch of the two Metro titles in Birmingham and Newcastle,
the sale of Belfast Telegraph Newspapers and the purchase of Southnews. In
addition, in January this year, the Group's franchise agreement with
Associated Newspapers was extended to include the publication of the Metro in
Scotland.

The regional newspaper operation, on a like-for-like basis,1)(3) delivered
excellent operating profit growth of 12.1% (to £105.5 million), 3.7% growth in
revenue (to £424.7 million) and an increase in operating margin from 23.0% to
24.8%.

Many of the regional newspaper operations achieved double-digit profit growth
in 2000 as a result of effective cost management and advertising revenue
growth of 5.2% to £308.8 million. This growth was primarily driven by
excellent recruitment advertising, which increased 18.9% to £87.6 million, and
strong growth in property advertising (increasing 6.4% to £31.4 million, with
significant improvement in the second half of the year, particularly in the
Midlands and South East). Most other advertising categories achieved
reasonable growth other than motor advertising (with a decline in revenue of
3.9% to £34.1 million), reflecting the difficulties within the motor industry.

The Group's titles remain amongst the highest 'actively purchased' within the
regional newspaper industry. The weekly paid for titles performed well with
circulation growth in a high proportion of titles. Across the industry,
circulation continued to be a challenge for daily regional titles, impacting a
number of the Group's daily titles, which saw an average 3.0% decrease in
circulation for the year.

A high priority area for the regional newspaper division, as it seeks to
exploit the local franchises and extend the brand of the various operations,
is new product development (such as reader holidays, audio text, leaflets,
conferences and new printed products) and other non-printing sources of
revenue. These revenues have grown by 8.9% during 2000 to £26.9 million.

The Southnews acquisition in November demonstrated the Group's desire to
strengthen its regional portfolio depth in areas in which it already has a
strong presence. The acquisition significantly improves the geographical
balance of the Group's regional business by providing a much stronger combined
business in the South of England. The newly merged operation of Southnews and
Trinity Newspapers Southern ('TNS') should now deliver in excess of 25% of the
Group's regional newspaper profits, providing critical mass in this important
market and the opportunity for synergistic benefits. Although still early
days, since acquisition Southnews has continued to perform strongly and the
integration with TNS is proceeding apace. Seven operating units have been
created to replace the previous 16 units within Southnews and the TNS
operation. These aligned operating units will enable more efficient use of
resources and allow the Group to strengthen the region's titles and brands.

The Group now seeks to improve revenue and profit performance from the
existing portfolio of regional businesses, so that by the end of 2004 their
performance will be 'best-in-class' amongst their regional newspaper peers.
The 'best-in-class' performance will be achieved by:


  * the division being managed more as a cohesive business rather than as
    strong, individual or regional business units;

  * the application of best practice and benchmarking across the businesses
    to minimise cost and drive revenue growth - in areas such as advertising
    yield management, process management, cost control and improved use of
    database management techniques;

  * the appropriate roll out of brand extension initiatives that have been
    tried and tested in certain of the regional businesses (including reader
    offers, other publications, regional business events, and the extension of
    the All4U Limited concept - see below); and

  * the closer alignment of regional clusters of newspapers and digital
    media operations. This includes sharing resources and ideas, new regional
    product development, cost synergies and ensuring that maximum advantage is
    gained from the growing number of electronic platforms ideally placed to
    extract value from the depth and breadth of the Group's regional content.

With 12 regional 'ic' sites being launched by the end of March, the
strengthening of the Fish4 site (an integral part of the Group's classified
advertising strategy, providing an extension of the range of local online
services which can be offered to the newspapers' advertisers), and an
investment in All4U Limited (a company managing classified advertising using
new and innovative internet controlled telephony to the mutual benefit of
readers of the press and advertisers), the regional newspaper operations are
well placed to benefit from the additional online revenue opportunities.

National newspapers

The Group's national newspaper operations are highly profitable businesses
that achieve operating margins believed to be some of the highest amongst
national newspaper publishers. Overall, the national newspaper operations,
including the Daily Record and Sunday Mail, grew revenue by 2.4%, to £532.4
million, and operating profit by 7.1% (increasing from £103.6 million to £
111.0 million). The operating margin increased from 19.9% to 20.8%.

The UK national titles, The Mirror, Sunday Mirror and Sunday People, achieved
growth in revenues (2.9% to £414.7 million) and operating profit (6.3% to £
84.2 million). Advertising revenue was 2.7% ahead at £156.4 million (1999: £
152.3 million), with The Mirror and Sunday Mirror achieving increases of 3.8%
and 3.0% respectively. This growth was primarily the result of strong
performances from classified and various categories of display advertising,
namely motors (the second half of the year saw significant brand promotional
activity by the car manufacturers), travel, entertainment, mobile phones and
computers. This growth offset the weakness in the retail sector throughout
most of the year, although good retail growth has been evident since November.

Circulation revenue of the UK national titles grew by 2.0%, with cover price
increases during the latter half of 1999 and early 2000 offsetting the decline
in circulation volumes. The Mirror's year on year decline in circulation
volume of 2.7% reflected the reduced marketing and promotional expenditure in
the latter part of the year.

During 2000 the Sunday Mirror and the Sunday People saw a decline in their
share of the tabloid market of 0.1% and 0.5% respectively. Despite declining
circulation, these Sunday titles are very profitable, cash generative
operations and the Group is focusing on how best to move them forward in a
difficult and competitive Sunday market.

The Scottish national newspaper operations delivered a strong operating profit
increase of 9.8% to £26.8 million, following a significant improvement in the
performance of the Scottish consumer magazine businesses and continued
diligent cost management. Revenues of the Scottish national newspaper
operations grew by 0.6% to £117.7 million, including an increase of 2.1% in
advertising revenues to £53.4 million. The national newspapers market in
Scotland remained extremely competitive, however, both the Daily Record and
Sunday Mail increased their share of the Scottish popular newspaper market
during the latter half of 2000 despite a year on year circulation decline of
5.3% and 5.0% respectively.

The market for the Group's national titles has been challenging during the
past year and will continue to be so. However, during the latter part of 2000,
the new management team started to lay the foundations for future growth -
through market share, driving revenue growth, developing the brands and
improving profitability.

The first stage of laying the foundations for growth is reflected in the
initiatives planned (and budgeted) for 2001. These include a co-ordinated
brand enhancement campaign for The Mirror based on a true understanding of the
market (rather than short term promotions that have had little sustainable
impact in the past).

Such recent initiatives include:

  * the move of the successful M magazine in February to the Saturday
    edition of The Mirror, backed by an aggressive marketing campaign,
    designed to create a package for consumers on the biggest sales day of the
    week;

  * a sampling campaign in Ireland, designed to build on the existing
    success of the title in that market;

  * a campaign in the Midlands to strengthen the brand; and

  * brand extension activities, such as the televised (peak time) annual
    Mirror Pride of Britain Awards, which illustrates the potential for The
    Mirror brand outside its core activities.

Sports newspapers

Over the year, the Group has continued to invest in its newspaper and other
publications (and online activities) catering extensively and exclusively for
the needs of sports bettors that take a keen interest in betting on British
sports, particularly horseracing. Against a background of significant growth
in the popularity of sports betting, the Group's sports newspapers operation
achieved exceptional advertising revenue growth of 43.4% (to £7.6 million).
This was a result of strong demand from bookmakers promoting Euro 2000 and
their on-line bookmaking operations, and a full year's benefit of Raceform
(acquired in October 1999). On a like-for-like basis the increase was 34.6%.
Circulation revenue increased by 21.2% to £23.4 million, due to a 1.6% year on
year increase in the circulation of the Racing Post (reversing a long-term
trend), cover price increases and the inclusion of Raceform revenues of £3.4
million (1999: £0.6 million) for a full year.

The significant increases in advertising and circulation revenues contributed
to a 57.7% growth in operating profit to £8.2 million, of which Raceform
accounted for £0.5 million (1999: £nil). Excluding Raceform, the sports
newspapers operation achieved a 13.2% and 48.1% growth in revenue and
operating profit respectively.

racingpost.co.uk had a good year with visitors to the site increasing from
around 11,000 visitors per month in October 1999 to over 350,000 visitors per
month in November 2000. Unique registered users rose from around 1,000 users
to over 90,000 by December. As a result the Group is beginning to realise
advertising revenues from the web-site. smartbet.co.uk, the Racing Post's
on-line betting site and Europe's first virtual betting ring, is soon to be
launched with five major bookmakers supplying smartbet with live odds feed
direct from their own betting engines.

In the Budget announced on 7 March, the Government indicated a change in its
approach to betting duty (currently a 6.75% tax levied on turnover) to a tax
on bookmakers' gross profits with effect from 1 January 2002. It is believed
that this significant shift away from the current betting duty to a more
reasonable tax on profits will result in a significant increase in betting
turnover and many bettors will return to onshore bookmakers.

'Go Racing', a consortium of BSkyB, Channel 4 and Arena Leisure, is expected
to secure, in the near term, the media rights to televise horseracing from all
UK racecourses. As a result, horseracing and betting on horseracing
(accounting for around 70% of all monies waged on sports in the UK) will
receive greater coverage on both terrestrial and digital TV. The Group's
sports publications and online sites are well positioned to benefit from this
anticipated revitalisation of the horseracing industry.

The ongoing interruption to UK and Irish racing and the postponement of the
Cheltenham Festival, as a result of the foot and mouth crisis, will inevitably
have a negative effect on the performance of the Racing Post and its sister
titles. The length and depth of the partial suspension are currently unknown
but the strength of the brands and their unique market position will ensure
that the titles are well placed to recover once racing resumes fully. The
growth in recent years of sports betting and Racing Post's pre-eminence in
this field will ensure that opportunities continue to be provided for both
readers and advertisers during the partial suspension.

Digital media

During 2000, the Group invested a net £42.3 million in developing an
integrated network of regional and national portals, including: the technology
platform (at a cost of £10.0 million), supporting ic24, the Group's ISP;
further investing in Fish4 (which provides considerable revenue growth
opportunities for the regional newspapers operation); and putting in place the
digital media organisational infrastructure. Revenue of £2.5 million for the
year was significantly below expectations due to the delay in launching the
sites on the technology platform, and the resulting significant shortfall in
available inventory on the Group's other regional and ic24 sites, thereby
restricting the Group's ability to place adverts.

Following the launch of icScotland in April, the roll out of the other ic
regional sites commenced in January 2001 with the launch of icBirmingham and
icCoventry. The ic branded sites provide the most comprehensive regional
online communities in the UK, feeding from existing content from the Group's
newspaper titles and generating innovative and original material. Each ic
branded portal focuses on local news, sports, arts, entertainment, community
news and local advertising. By the end of March 12 regional sites will have
been rolled out.

Consolidation amongst both the major international internet service providers
and portals, and significantly reduced forecasts of online advertising
expenditure, have led the Board to reconsider the most appropriate digital
media strategy for the Group and its ongoing level of investment. By building
on the significant skills, technology and infrastructure that has been
developed over the past 18 months, the Group's ongoing further investment in
digital media is to be refocused. The total cost in 2001 of the ongoing
investment will be approximately £25 million net and £15 million on an annual
ongoing basis.

The network of regional sites (on one technology platform and with one brand)
will be repositioned so that they are more closely aligned to the Group's
existing traditional regional media platform, with a stronger, more integrated
approach adopted between them - thereby taking better advantage of
cross-marketing and selling opportunities and other synergies. This will
further strengthen the Group's regional franchises so that they are well
positioned to provide local communities with the ability to access information
and news on a range of media platform - newsprint and internet being just two
of these platform. The technology platform will continue to be enhanced (and
managed nationally) to ensure that the Group can pursue the option to play a
leading role in subsequent market and technology developments such as
broadband and wireless media at both a local and national level.

In December 2000 the Group launched the national vertical site, ic showbiz, a
comprehensive showbusiness and entertainment website. A multi sports site,
icSport has also been developed. Much of the content from these sites is of
interest to a typical reader of the Group's national titles. Although the
penetration of the internet is relatively low amongst these readers, it is
rapidly growing. Much of the content from these sites will be used to support
and strengthen the national newspaper sites and provide further opportunities
for brand extension.

Other activity

The Group's other activities, including Voicemedia, a telephone service
operator, which retained its contract to provide a premium phone line service
to the daily morning TV show 'This Morning', increased revenues and operating
profit by 122.2% and 107.1% to £12.0 million and £2.9 million respectively.

Non core assets

Magazines and exhibitions

An internal review of the non-core and diverse magazines and exhibitions
portfolio concluded that its potential could not be fully exploited within the
Group. Consequently, the Group has commenced a disposal process for these
assets. The business achieved an increase of 4.1% in revenues to £35.3 million
in 2000, however, a continuing difficult consumer IT magazines market
contributed to a 10.5% decline in operating profit to £6.8 million.

PA Sporting Life

Both the Group and The Press Association, partners in the PA Sporting Life
joint venture, have decided to maximise shareholder value by seeking a
disposal of the venture. Given that the Group has other sports and new media
assets that overlap with the activities of PA Sporting Life, the directors
believe that PA Sporting Life would be best managed under alternative
ownership, better placed to focus on growing the business to its maximum
potential. In addition, The Press Association's strategy is to focus on its
core activity of business to business news information supply. Page
impressions of PA Sporting Life's sports and betting information site,
sportinglife.com, peaked at almost 28 million in August (influenced by
sporting events during that month) and have averaged 23 million per month over
the past six months. PA Sporting Life's joint venture operation with the Tote,
totalbet, realised gross betting stakes of £10.8 million in 2000, with 40% of
its registered customer base (32,360 customers at December) actively betting
on the site.

ISP ic24

Retention of the ISP, ic24, is no longer regarded as essential to the Group's
digital media activities and the Group is currently determining its future.
The key objective of operating the ISP have been met - by December 2000 the
ISP had delivered nearly 800,000 gross subscribers (compared to 224,000 in
January 2000), of which 244,000 had been active (on a 30-day active basis)
during the month of December (increasing from 98,000 in January 2000).

People

Change is never easy or comfortable but the Directors believe that the entire
team at Trinity Mirror understands the success that comes from improved focus
and clear direction, which inevitably leads to the need for change. The Board
is extremely appreciative of the great commitment, creativity and dedication
shown by its people.

Media ownership and regulation

The Government's White Paper on Communications, published last December,
recognised the need for change to the current restrictions on cross-media
ownership. It also envisaged a 'lighter touch' approach to the regulation of
newspaper mergers. Trinity Mirror strongly supports proposals for a relaxation
of the current restrictions on cross-media ownership, but has argued,
alongside the Newspaper Society and others, for the removal of the regime
specifically relating to newspaper mergers. We will continue to play an active
role in the ongoing consultative process with the Government prior to the
introduction of new legislation. The Directors share the Government's belief
that UK media businesses such as Trinity Mirror must be able to compete with
global media players. We are excited by the opportunities that may be created
by a new, more open environment.

Going forward

With a new team and new organisational structure, the Group is now
accelerating the pace of change to improve its operating performance from the
existing businesses by more aggressive management and to optimise the value
created by its assets. The Group's established network of newspapers, the
content they generate and the local and national relationships they represent,
with their complementary digital sites, are crucial assets in a multimedia
age.

Given circulation trends, the Group recognises the need to take positive
action. This has been, and will continue to be, a key area of focus for the
newspaper management team and it places increasing importance on marketing,
the creation of targeted editorial content, print quality and brand
development. To further improve quality, the press enhancement programme is
being undertaken to strengthen the colour opportunities throughout the Group
and enable it to offer its customers products at the forefront of technology.

Outlook for the year

The sharp rise in newsprint prices was an unhelpful start to the year.
However, advertising in the national titles has improved significantly and
recruitment advertising in the regional newspapers has remained strong since
the beginning of the year.

The new management team has recently undertaken a thorough review of the
Group's existing businesses to put in place strategic plans to best utilise
assets and thereby maximise growth. The results of this review will start to
be rolled out during 2001. Building on the progress made over the past few
months, the Group is in a strong position to tackle the challenges of its
market with renewed vigour and make significant progress. Much depends, as
ever, on how the UK economy performs but, given the current environment, the
Board remains confident of the outlook for the year.

Consolidated profit and loss account
for the 52 weeks ended 31 December 2000 (53 weeks ended 2 January 2000)

                         Before Exceptional Total      Before Exceptional Total
                    exceptional       items  2000 exceptional       Items  1999
                          items                         items
                             £m          £m    £m          £m          £m    £m
Turnover
Continuing              1072.5           -  1072.5      593.8           -  593.8
operations
Acquisitions               6.6           -     6.6          -           -     -
                        1079.1           -  1079.1      593.8           -  593.8

Discontinued               1.2           -     1.2        2.0           -    2.0
operations
                        1080.3           -  1080.3      595.8           -  595.8


Group operating
profit
Continuing               201.3        (18.0) 183.3      135.4        (8.3) 127.1
operations
Acquisitions               0.1         (3.5)  (3.4)         -           -     -
                         201.4        (21.5) 179.9      135.4        (8.3) 127.1

Discontinued                 -          0.7    0.7       (0.9)          -  (0.9)
operations
Group operating          201.4        (20.8) 180.6      134.5        (8.3) 126.2
profits
Share of results of          -           -     -         0.3            -    0.3
associated
undertakings

Total operating          201.4        (20.8) 180.6      134.8        (8.3) 126.5
profit

Share of
exceptional items
of associated                -         17.5   17.5          -         0.6    0.6
undertaking

   (continuing)
Profit/(loss) on                             164.5          -        (4.6) (4.6)
sale/termination of
operations                  

   (continuing /
1999: discontinued)          -        164.5

Profit on ordinary       201.4        161.2  362.6      134.8       (12.3) 122.5
activities before
interest
Net interest             (47.3)          -   (47.3)     (19.5)          - (19.5)
payable

Profit on ordinary       154.1        161.2  315.3      115.3       (12.3) 103.0
activities before
taxation
Tax on profit on         (44.0)       (3.0)  (47.0)     (31.0)        2.8 (28.2)
ordinary activities

Profit on ordinary       110.1       158.2   268.3       84.3        (9.5) 74.8
activities after
taxation
Ordinary dividends                           (51.2)                       (46.4)
on equity shares

Retained profit for                          217.1                         28.4
the financial year

Earnings per share
(pence)
Before digital                                48.4                         46.8
media activities
Digital media                                (10.4)                        (1.7)
activities

Underlying earnings                           38.0                         45.1
per share
Exceptional items                             54.6                         (5.1)

Earnings per share                            92.6                         40.0
- basic
Earnings per share                            92.0                         39.7
- diluted


Consolidated profit and loss accounts (1999 pro forma)
                              Statutory               Pro forma (unaudited)
                         Before                        Before
                    exceptional Exceptional Total exceptional Exceptional Total
                          items       items  2000       items       Items  1999
                            £m          £m    £m           £m         £m    £m
Turnover
Continuing             1,079.1           -  1,079.1    1,048.2        -  1,048.2
operations
Discontinued               1.2           -      1.2       14.4        -     14.4
operations
                       1,080.3           -  1,080.3    1,062.6        -  1,062.6


Group operating profit
Continuing               201.4       (21.5)   179.9      225.4       (9.5) 215.9
operations
Discontinued                 -         0.7      0.7       (4.3)       -    (4.3)
operations
Group operating          201.4       (20.8)   180.6      221.1       (9.5) 211.6
profit
Share of results of          -           -     -           3.0        -      3.0
associated undertakings

Total operating          201.4       (20.8)   180.6      224.1       (9.5) 214.6
profit
Share of                     -        17.5     17.5         -         2.2    2.2
exceptional items
of associated undertaking

   (continuing)
Profit on sale/              -       164.5    164.5         -        23.9   23.9
termination of operations
(continuing / 1999:
discontinued)

Profit on ordinary       201.4       161.2    362.6      224.1       16.6  240.7
activities before interest
Net interest             (47.3)          -    (47.3)     (56.0)      (3.9)(59.9)
payable

Profit on ordinary       154.1       161.2    315.3      168.1       12.7  180.8
activities before taxation
Tax on profit on         (44.0)       (3.0)   (47.0)     (44.8)       4.9 (39.9)
ordinary activities

Profit on ordinary       110.1       158.2    268.3      123.3       17.6  140.9
activities after taxation
Ordinary dividends                          (51.2)                       (46.2)
on equity shares

Retained profit for                        217.1                          94.7
the financial year

Earnings per share (pence)
Before digital                              48.4                          44.5
media activities
Digital media                              (10.4)                         (1.9)
activities

Underlying earnings                         38.0                          42.6
per share
Exceptional items                           54.6                           6.2

Earnings per share                          92.6                          48.8
- basic
Earnings per share                          92.0                          48.6
- diluted


Consolidated balance sheet
at 31 December 2000 (2 January 2000)
                                                                2000       1999
                                                                  £m         £m
Fixed assets
Intangible assets                                           2,018.4    1,768.1
Tangible assets                                               404.3      433.2
Investments                                                    16.0       11.3
                                                            2,438.7    2,212.6
Current assets
Stocks                                                          7.7       13.7
Debtors                                                       179.3      162.2
Cash at bank and in hand                                       57.7       50.2
                                                              244.7      226.1
Creditors: amounts falling due within one year
Bank loans, loan notes and overdrafts                        (259.4)    (123.6)
Obligations under finance leases                               (5.8)      (7.5)
Other creditors                                              (294.4)    (266.3)
                                                             (559.6)    (397.4)
Net current liabilities                                      (314.9)    (171.3)

Total assets less current liabilities                       2,123.8    2,041.3

Creditors: amounts falling due after more than one year
Bank loans and loan notes                                    (518.8)    (647.7)
Obligations under finance leases                              (41.9)     (49.9)
Other creditors                                                   -       (4.3)
                                                             (560.7)    (701.9)
Provisions for liabilities and charges                        (56.2)     (55.7)
Non-equity minority interest                                   (3.7)         -

Net assets                                                  1,503.2    1,283.7

Equity capital and reserves
Called up share capital                                         29.1      29.1
Share premium account                                        1,074.3   1,071.9
Revaluation reserve                                              5.0       5.0
Profit and loss account                                        394.8     177.7

Equity shareholders' funds                                   1,503.2   1,283.7


Consolidated cash flow statement
for the 52 weeks ended 31 December 2000 (53 weeks ended 2 January 2000)
                                                                   2000   1999
                                                                     £m     £m

Net cash inflow from operating activities                        219.9  192.6
Dividends received from associated undertakings                    8.7      -
Net cash outflow from returns on investments and servicing of    (40.7) (25.7)
finance
Taxation paid                                                    (41.6) (53.2)
Net cash outflow from capital expenditure and financial          (37.5) (34.6)
investment
Net cash outflow from acquisitions and disposals                (105.8)(418.3)
Equity dividends paid                                            (48.3) (27.6)

Net cash outflow before financing                                (45.3)(366.8)
Net cash inflow from financing                                    62.2  355.6

Increase/(decrease) in cash                                       16.9  (11.2)

Reconciliation of net cash flow to movement in net debt
                                                                 2000      1999
                                                                   £m        £m
Increase/(decrease) in cash in the period                       16.9     (11.2)
Cash outflow from movement in debt and lease financing         (59.8)   (350.0)

Change in net debt resulting from cash flows                   (42.9)   (361.2)
Debt acquired with Mirror Group                                    -    (341.5)
Debt acquired with Southnews                                   (40.1)        -
Debt disposed with Belfast Telegraph Newspapers                120.4         -
Finance leases acquired with Mirror Group                          -      (9.0)
Other movements on finance leases                                  -       0.9
New loan notes issued on acquisition of subsidiary             (27.1)     (2.0)

Movement in net debt in the period                              10.3    (712.8)
Net debt at 3 January 2000                                    (778.5)    (65.7)

Net debt at 31 December 2000                                  (768.2)   (778.5)



Analysis of net debt
                                  At       Acquisitions   Loan   Other    At 31
                                   3  Cash          and  Notes non-cash December
                             January
                                2000  flow   disposals* issued changes     2000
                                  £m    £m           £m     £m      £m       £m

Cash at bank and in hand       50.2   7.5            -      -       -     57.7
Bank overdrafts               (33.9)  9.4            -      -       -    (24.5)

Net cash balances              16.3  16.9            -      -       -     33.2

Debt due within one year      (89.7)    -        116.0      -  (261.2)  (234.9)
Debt due after one year      (647.7)(65.1)       (40.1) (27.1)  261.2   (518.8)
Finance leases                (57.4)  5.3          4.4      -       -    (47.7)

Bank loans, loan notes and   (794.8)(59.8)        80.3  (27.1)      -   (801.4)
finance leases

Net debt                     (778.5)(42.9)        80.3  (27.1)      -   (768.2)

* excluding cash and overdraft

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