PBL Transfers Media Assets to New Company

SYDNEY, October 19: Publishing and Broadcasting Limited is
transferring its media assets, including Nine Network, to a new company, PBL
Media, that it will co-own with CVC Asia Pacific.

The A$5.5 billion recapitalization of PBL will see PBL Media
owning ACP Magazines, Nine Network (including its interest in Sky News), a
50-percent interest in ninemsn and a 41-percent stake in carsales.com.au.

PBL will receive net cash proceeds of A$4.542 billion. To
fund the payment to PBL, PBL Media has underwritten financing from UBS for new
debt of A$3.75 billion. Additionally, CVC will invest A$982 million to acquire
convertible notes in PBL Media. Once Australia’s newly liberalized media laws
become effective, CVC’s convertible notes will convert to 50 percent of the
ordinary shares in PBL Media. Until that time, PBL will continue to control the
Nine Network.

John Alexander will act as executive chairman of PBL Media,
and will continue as CEO of PBL. Ian Law will be CEO of PBL Media, and Pat
O’Sullivan will be CFO. Completion is expected to occur in early 2007.

In announcing the transaction, the James Packer, the
executive chairman of PBL, noted, “Over the last 12 months we’ve strongly
indicated our desire to invest in new opportunities. The restructure will
provide the capital and flexibility necessary for the company to achieve its
ambition to expand its international gaming interests. A clear benefit of the
restructure will be the quarantining of the gaming and media businesses, with
the latter’s use of non-recourse debt protecting PBL shareholders from
additional capital risk incurred in the funding of any expansion through
acquisition. For PBL it releases cash at a time when there is a land-grab
underway for gaming and entertainment assets around the world.”