8651
Trinity Mirror PLC
29 July 2004


                                                                    29 July 2004

                                  Interim Results
                    for the 26 weeks ended 27 June 2004


Trinity Mirror plc announces the Group's interim results for the 26 weeks ended
27 June 2004.

Operational highlights

• "Stabilise Revitalise Grow" on track, delivering improved performance
  and enhanced shareholder value.

• Strong performance for the first half Group operating profit(1)(2) up 20.6% to 
  £120.2 million and earnings per share up 25.3% to 23.8(2) pence per share.

• Improving revenues(1) Total revenues up 5.6% with circulation revenues
  up 6.3% and advertising revenues up 5.1%.

• Continued improvement in operating margins(1)(2) Increased from 18.4%
  to 21.0%.

• Incremental net cost savings of £11.0 million This is in addition to
  savings of £5.0 million achieved in 2003. Target for net annualised savings in
  2005 increased by £5.0 million from £30.0 million to £35.0 million.

• Strong operating cash flow with net debt falling £81.6 million to
  £523.5 million.



Financial
highlights

                        Like-for-like(1)                    Statutory
                 (pre exceptional items(2) (3))      (post exceptional items)
                    2004     2003(4)           %     2004    2003(4)          %
                      £m          £m      Change       £m         £m     Change
Turnover           572.7       542.1        +5.6%   572.7      550.2     +4.1 %
Group operating    
profit             120.2        99.7       +20.6%   116.7      100.3    +16.4 %
Profit before      
tax                101.8        80.4       +26.6%   100.8       79.4    +27.0 %

Earnings per share  23.8p       19.0p      +25.3%    23.8p      18.9p     +25.9%
Dividend per share                                    5.9p       5.5p    +7.3 %

Net debt                                            523.5      649.2


(1)  Turnover and operating profit adjusted to exclude the results of Wheatley 
     Dyson & Son Limited which was disposed of in February 2003 and the Irish 
     regional newspaper titles in Belfast, Derry and Donegal which were disposed 
     of in January 2004. During the 26 weeks ended 27 June 2004 these businesses 
     achieved turnover of £nil (2003:  £8.1 million) and operating profit of 
     £nil (2003: £1.7 million).

(2) Excludes operating exceptional items of £3.5 million pre tax (2003: £1.1
    million).

(3) Excludes net exceptional items of £1.0 million pre tax (2003: £1.0 million).

(4) Accounting policies used in the preparation of the unaudited financial
    information for the 26 weeks ended 27 June 2004 are consistent with those 
    set out in the Group's financial statements for the 52 weeks ended 
    28 December 2003.  The 2003 interim results have been restated on this 
    basis.

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

"Today's figures demonstrate that the Group's drive to improve performance is
continuing to bear fruit. We are now a stronger Group both financially and
managerially, and we look positively to our future prospects."


Sly Bailey, Chief Executive of Trinity Mirror plc, commented:

"Our performance-based strategy Stabilise Revitalise Grow is delivering. This
phase of the Group's development has been about improving our performance and
today's results demonstrate our ability to meet objectives and show we are
creating a fundamentally stronger and better-performing Group."




Enquiries:


Trinity Mirror plc                                              020 7293 3000
Vijay Vaghela, Group Finance Director
Nick Fullagar, Director of Corporate Communications


Finsbury                                                        020 7251 3801
Rupert Younger
James Leviton



Interim Results for the 26 weeks ended 27 June 2004



Financial highlights

                                                       2004     2003    Change
                                                         £m       £m         %

Turnover
- statutory                                           572.7    550.2      +4.1%
- like-for-like (1)                                   572.7    542.1      +5.6%
Group operating profit pre exceptional items (2)
- statutory                                           120.2    101.4     +18.5%
- like-for-like (1)                                   120.2     99.7     +20.6%
Group operating profit post exceptional items
- statutory                                           116.7    100.3     +16.4%
- like-for-like (1)                                   116.7     98.6     +18.4%
Profit before tax pre exceptional items (3)           101.8     80.4     +26.6%
Profit before tax post exceptional items              100.8     79.4     +27.0%

Per share                                             Pence    Pence
Underlying earnings pre exceptional items              23.8p    19.0p    +25.3%
Basic earnings post exceptional items                  23.8p    18.9p    +25.9%
Dividend per share                                      5.9p     5.5p     +7.3%


(1) Turnover and operating profit adjusted to exclude the results of Wheatley 
    Dyson & Son Limited which was disposed of in February 2003 and the Irish 
    regional newspaper titles in Belfast, Derry and Donegal which were disposed 
    of in January 2004. During the 26 weeks ended 27 June 2004 these businesses 
    achieved turnover of £nil (2003: £8.1 million) and operating profit of 
    £nil (2003: £1.7 million).

(2) Excludes operating exceptional items of £3.5 million pre tax (2003: £1.1
    million).

(3) Excludes net exceptional items of £1.0 million pre tax (2003: £1.0 million).

(4) Accounting policies used in the preparation of the unaudited financial
    information for the 26 weeks ended 27 June 2004 are consistent with those 
    set out in the Group's financial statements for the 52 weeks ended 
    28 December 2003.  The 2003 interim results have been restated on this 
    basis. (See note 13(a) on page 20.)


Within the following Chief Executive's review and review of operations, all
figures are presented on a like-for-like(1) pre exceptional items(2)(3) basis
unless otherwise specified.



Chief Executive's review

The benefits of the 'Stabilise Revitalise Grow' strategy are already evident in
the Group's strong performance for the 26 weeks ended 27th July 2004, with
revenues(1) increasing by 5.6% from £542.1 million to £572.7 million, operating
profits(1)(2) increasing by 20.6% from £99.7 million to £120.2 million and
operating margin(1)(2) improving by 2.6% from 18.4% to 21.0%.

* On a like-for-like, pre-exceptional items basis as defined in footnotes (1) 
and (2) on page 1

Delivery against announced objectives

The short-term objectives of the strategy, updated in February 2004, were as
follows:

• £30 million annualised net cost savings in 2005.
• A policy to increase dividends progressively.
• A commitment to reduce debt.
• Higher operating margins for Regionals division.
• Maintain market share for UK National titles.

Success in achieving these objectives is detailed below:

• Incremental net cost savings of £11.0 million have been achieved
  and the Group is on track to deliver at least £20.0 million this year.
  Accordingly, the target for savings in 2005 has been raised to £35.0 million 
  in 2005, an increase of £5.0 million.

• The interim dividend has been increased by 7.3%.

• Net debt has fallen by £81.6 million to £523.5 million.

• Operating margins* for the Group's Regionals division have risen by 4.2% 
  from 23.5% to 27.7%.

• Across the UK National titles good progress was made until May.  The rolling 
  six-monthly market share for the Daily Mirror was maintained at 20.3% for the 
  first five months. Following the publication of the fake photographs of abuse 
  of Iraqi prisoners this slipped to 20.1% in June.

• In a highly competitive marketing-driven environment the Sunday Mirror 
  maintained its market share at 15.7% whilst The People lost share,
  falling from 10.5% to 10.2%.

Regionals

The Regionals division has delivered strong performance for the period with
revenue* increasing by 5.5% and operating profits* growing by 24.4%. The strong
performance reflects the implementation of the 'Stabilise Revitalise Grow'
strategy with:

• Improved advertising performance from the national advertising
  sales operation through AMRA.

• Better yield management through sharing of best practice and
  improved packages for advertisers.

• Incremental revenues and reduced costs for digital media to
  achieve at least break even in 2004 with profit forecast in 2005.

• Circulation revenue improvements from the 'little and often'
  cover pricing policy initiated last year.

• Cost-saving initiatives coupled with tighter cost control in
  general.

Whilst the benefits of the strategy are already apparent, in particular the
improvement in operating margins* to 27.7%, there is still scope to improve
performance in the division and numerous initiatives are under way to stabilise
and revitalise the Group's titles and products.

* On a like-for-like, pre-exceptional items basis as defined in footnotes (1) 
and (2) on page 1


Nationals

The Nationals division delivered an improved performance for the period with
revenues increasing by 5.6% and operating profits* increasing by 7.6%. A strong
performance from the UK Nationals with operating profits* rising by 11.4% has
been partially offset by a 0.8% fall in operating profits* for the Scottish
Nationals.

The improved UK Nationals performance has been driven by a marginal improvement
in advertising revenues and significantly higher circulation revenues following
cover price increases on all three titles. There has been no discernible impact
on circulation volumes as a result of the cover price increases.

The returns on investment in new supplements such as 3am in the Daily Mirror on
Wednesdays, Homes and Holidays in the Sunday Mirror and the revamped People
magazine Take it Easy, have been encouraging. However, circulation volumes, for
the Daily Mirror, were disappointing in May and June following the publication
of the fake Iraq pictures.

Effective from 17th June 2004 the following management changes have been made:

• Ellis Watson appointed to the new role of Managing Director, National
  Newspapers. Editors of the UK National titles now report to him, having
  previously reported directly to the Chief Executive. The wider remit,
  encompassing all aspects of the Nationals business, will enable Ellis to 
  better co-ordinate and manage the commercial and editorial functions of the 
  business to drive performance.

• Richard Wallace appointed as the new Editor of the Daily Mirror. He was 
  previously Deputy Editor of the Sunday Mirror. Prior to that he was Head of
  News, US Editor and Showbusiness Editor of the Daily Mirror.

Circulation performance, whilst growing profits, remains the focus of attention
on the National titles. Management has set the key metric of maintaining volume
market share whilst recognising that absolute volumes in the market will
continue to decline.

The Daily Record continues to operate in a highly competitive marketplace. The
title is regaining ground against the competition and is improving its
circulation performance, with a year-on-year decline of 3.5% for the first half
compared to a decline of 5.7% in the second half of 2003. This follows the
appointment of a new Editor and the review of the publishing mix supported by
additional marketing.

Sports

The Sports division has delivered another strong set of results with revenues
increasing by 11.8% to £23.7 million and operating profits* increasing by 21.1%
to £8.6 million. The revenue performance of the titles has benefited from
publishing more or less every Sunday. Excluding the impact of these additional
Sundays, revenues would have increased by 8.9%. The division continues to
explore opportunities to improve performance through initiatives such as
provision of content to other Group titles, focus on increasing internet
revenues and revitalising our existing newspapers and book interests.

* On a like-for-like, pre-exceptional items basis as defined in footnotes (1) 
and (2) on page 1


Magazines and Exhibitions

The Magazines and Exhibitions division has delivered a robust performance. The
Group is now reaping the full benefits of a comprehensive programme of
restructuring of the division's business activities. The division has achieved
operating profit* growth of 46.9% to £4.7 million.

Arrow Interactive

A review of the business highlighted that it did not have the scale to compete
effectively for third party revenues in what has become a highly competitive
marketplace experiencing significant pressure on margins. In the light of this
conclusion the business has been significantly restructured to focus on
generating revenues internally for the Group's own titles.

Key projects

Management has focused on three key Group-wide projects - Manufacturing, Supply
Chain and Procurement - to drive performance by capitalising on the benefits of
scale.

Manufacturing

Following closure of the Huddersfield site the majority of the Group's newspaper
titles are printed (in-house) on 40 printing presses in 11 print sites across
the country. The operating costs of these sites, excluding costs directly
related to external printing, is approximately £124 million per annum. These
costs are to some extent dependent on volumes. Apart from the three Nationals
printing sites (located in Watford, Oldham and Glasgow) which operate under a
single management structure, print sites historically have been managed by local
management and predominantly served the needs of the local titles. This
structure contributed to a wide range in operating efficiencies with some
utilisation levels as low as 25%.

The aim of the manufacturing project is to:

• Improve the quality of products to better serve the needs of readers
  and advertisers.

• Improve operating efficiencies.

• Reduce printing costs.

• Significantly reduce, over time, the level of capital expenditure
  required for the Group's printing assets.

As a first step the Group has consolidated all its printing operations into a
Manufacturing Network which is headed by Rupert Middleton, Director of
Manufacturing, who joined the company in April.

* On a like-for-like, pre-exceptional items basis as defined in footnotes (1) 
and (2) on page 1


Specific progress to date has included:


• Single-press site in Huddersfield was closed in May 2004.

• The two-press site in Chester is to be downscaled in October 2004 and
  closed in January 2005.

• The new full-colour four-press site in Birmingham is due to begin operating 
  in the fourth quarter of 2004, resulting in the closure of the old three-press 
  site in Birmingham and a two-press site in Coventry.

• The press sites in Scotland, located at Cardonald and Blantyre, consisting of 
  four presses and a single press respectively, now operate under a single 
  management structure.

• The new full-colour press site at Teesside will be on stream in Autumn of 2004 
  when the old Teesside site closes.

These changes will contribute to a reduction in the number of print sites from
11 to 9 and a reduction in the number of press lines from 40 to 37. The benefits
of these initiatives will be as follows:

• A reduction in the future capital expenditure requirements for
  re-pressing the Huddersfield and Chester print sites.

• Improved products for Huddersfield, Chester and Teesside with better colour 
  availability and formats to improve reader appeal and drive advertising
  revenues.

• More flexibility for the Scottish National titles and the Regional
  titles in Scotland through a virtual print operation.

• Full-colour availability for the Group's Regional titles in the
  Midlands

• A capital investment of £7.5 million in the Midlands for inserting equipment. 
  This will enable the printing of the National titles, thereby reducing future 
  capital costs for the Nationals print sites and improving time to market.

The plan to establish a Group-wide printing network is progressing well and
benefits in terms of enhanced products, reduced unit costs, greater efficiencies
and increased contract print and publishing revenues are beginning to be
realised.

The Group will be in a position to finalise the short to medium-term capital
requirements for the Network by the end of 2004 and will provide an update with
the 2004 preliminary results announcement.

Supply Chain

Good progress has been made in reviewing the newspaper supply chain - for the
first time across the entire Group - with the specific aim of:

• Capturing the benefits of scale.

• Reducing costs.

• Improving circulation volumes.

• Driving revenue benefits.

The project will help drive better overall performance throughout the business
through shared learning, improved copy management and market analysis. An
integral part of the project involves the re-negotiation of supply chain
contracts with wholesale partners.

An update on the benefits arising from the review will be provided with our 2004
preliminary results announcement.

* On a like-for-like, pre-exceptional items basis as defined in footnotes (1) 
and (2) on page 1


Procurement

The review of procurement is also progressing well. A number of areas have been
reviewed including utilities, security and other property services. The benefits
of these are included in the revised cost saving targets.

Board Change

On 26 July 2004, Stephen Parker, Managing Director, Regional Newspapers,
resigned as Director of Trinity Mirror plc and will leave the company on 30 July
2004. We thank Stephen for his contribution and commitment to the company over
the past 20 years and wish him well for the future.

Next Steps

Within the framework of the 'Stabilise Revitalise Grow' strategy, management is
focused on building on the progress to date and extracting the benefits of
scale. The Group is committed to deliver net annualised cost savings of £35.0
million in 2005, an increase of £5 million on the previously reported target and
will maintain ongoing commitments to reduce debt, progressively increase
dividends, improve operating margins for the Regionals division and maintain
volume market share for the UK National titles.

The strategy has created a substantially more robust platform from which we can
look to future growth.



Sly Bailey, Chief Executive
29th July 2004


* On a like-for-like, pre-exceptional items basis as defined in footnotes (1) 
and (2) on page 1




Review of operations

Group revenue* increased by 5.6% from £542.1 million to £572.7 million and Group
operating profit* before exceptional items increased by 20.6% from £99.7 million
to £120.2 million. Group operating margins* have increased by 2.6% from 18.4% to
21.0%. On a statutory basis, Group revenues increased by 4.1% from £550.2
million to £572.7 million and Group operating profit before exceptional items
increased by 18.5% from £101.4 million to £120.2 million.

The results reflect the benefits of an improvement in advertising market
conditions, the benefits of initiatives driving revenue performance and
incremental net cost savings of £11.0 million. These improvements have been
partially offset by incremental FRS 17 pensions costs of £3.9 million.

Operating exceptional items of £3.5 million have been incurred during the 26
week period. These relate primarily to the costs associated with delivery of the
cost savings, including £0.8 million associated with closure of the Huddersfield
print plant and £0.7 million from the restructuring of Arrow Interactive offset
by profits of £0.8 million from the disposal of certain properties. It is
anticipated that a further £16.0 million of exceptional costs will be incurred
during the second half of the year. This will include £4.0 million of
accelerated depreciation for printing assets in Chester due to the closure of
the print site.

Earnings per share before exceptional items increased by 25.3% from 19.0 pence
per share to 23.8 pence per share, reflecting the increased operating profit and
reduced finance costs, partially reduced by a higher effective tax rate.

The interim dividend has been increased by 7.3% to 5.9 pence per share (2003:
5.5 pence per share). It will be paid on 1 November 2004 to shareholders on the
register at 3 October 2004.

The Group continued to deliver strong operating cash flows which increased by
8.7% to £126.9 million (2003: £116.7 million). The strong cash flows, coupled
with the £44.7 million net disposal proceeds for the sale of the Regional
newspaper titles in Ireland, contributed to net debt falling by £81.6 million
from £605.1 million at 28 December 2003 to £523.5 million at 27 June 2004. Net
debt is expected to fall marginally over the remainder of the year with
continued strong cash flows being partially offset by estimated capital
expenditure of £30.0 million.

During the period the FRS 17 operating profit pension charge for current service
increased by £3.9 million to £15.8 million with cash contributions (excluding
past service enhancements) increasing by £3.8 million to £13.7 million. Net
pension scheme liabilities, after the provision of deferred taxation, fell by
£13.7 million to £234.4 million. This reflects, before the provision of deferred
taxation, an increase in assets of £2.4 million and a fall in liabilities of
£17.2 million. The reduction in liabilities reflects an increase in the real
rate of return applied to discount liabilities. This increased from 2.65% at 28
December 2003 to 2.80% at 27 June 2004.

* On a like-for-like, pre-exceptional items basis as defined in footnotes (1) 
and (2) on page 1


Regionals division

The Regionals division achieved growth in revenue* of 5.5% from £256.4 million
to £270.4 million and operating profit* of 24.4% from £60.3 million to £75.0
million. Operating margin* increased by 4.2% from 23.5% to 27.7%. The strong
operating profit* performance reflects the benefit of strong performance from
the Metros where profits* of £0.5 million have been achieved (2003: £0.2 million
loss) and a £2.4 million reduction in Digital Media losses* to £0.2 million
(2003: £2.6 million loss).

Advertising revenues* increased 6.0% to £211.0 million (2003: £199.1 million).
This reflects the benefits of an improvement in advertising conditions and a
partial recovery in the South, contributing to growth of 5.3% from £193.0
million to £203.3 million for our Regional newspapers titles (excluding Metros),
an increase in advertising revenue for the Metro titles of 16.3% from £4.9
million to £5.7 million and Digital Media advertising* achieving growth of 66.7%
from £1.2 million to £2.0 million.

The Regional newspaper titles (excluding Metros) achieved growth in advertising
revenues* of 5.4% in the second quarter, compared to growth of 5.2% in the first
quarter.

Growth* was achieved in all advertising categories with display growing by 5.1%,
recruitment growing by 6.9%, property growing by 6.3%, motors growing by 2.8%
and other classified categories growing by 2.7%. Titles in London and the South
East achieved growth of 3.9% with all categories, with the exception of
recruitment, achieving year-on-year growth. Recruitment revenues in the South
fell marginally by 1.5%.

Regional newspapers circulation revenue* increased by 3.9% from £38.1 million to
£39.6 million, with the benefits of the 'little and often' cover price policy
partially offset by volume declines. Circulation volumes* for the Regional
titles have continued to decline with volume declines of 3.7% for daily morning
titles, 5.6% for daily evening titles and 1.8% for the weekly titles.
Initiatives to improve circulation volume performance have commenced.

On the 15 January 2004, the Group disposed of its Irish regional newspapers for
a consideration of £46.1 million. No revenue or costs have been included in the
results for the period for these titles.

Nationals division

The Nationals division achieved growth in revenue of 5.6% from £244.3 million to
£257.9 million and operating profit* of 7.6% from £38.2 million to £41.1
million. Operating margin* improved from 15.6% to 15.9%. The operating profit*
performance for the division reflects a marginal improvement in the advertising
market, increased circulation revenues from cover price increases for four of
the five National titles and the benefit of incremental cost savings partially
offset by increases in the FRS17 operating pension charge and additional
investment in products and marketing.

Circulation revenue for the Group's five National titles (and related
businesses) increased by 6.7% from £128.8 million to £137.4 million. This
reflects the benefit of cover price increases partially offset by volume
declines.

* On a like-for-like, pre-exceptional items basis as defined in footnotes (1) 
and (2) on page 1


During the period the Daily Mirror circulation volume, excluding sampling,
declined by 5.3% year-on-year. The disappointing circulation performance during
the period reflects the impact of reduced volumes following the publication of
the fake Iraq prisoner abuse pictures in May.

The Sunday Mirror and The People circulation volume, excluding sampling,
declined year-on-year by 3.0% and 8.1% respectively during the period.

The rolling six-monthly market share performance (excluding sampling) to June
2004 and Dec 2003 for the 3 National titles is as follows:

                                       June 2004                  December 2003
Daily Mirror                               20.1%                          20.3%
Sunday Mirror                              15.7%                          15.6%
The People                                 10.2%                          10.5%


The rolling six-monthly market share for the Daily Mirror was held flat at 20.3%
from January to May and the drop-off in sales experienced in May and continuing
into June has contributed to the fall in market share to 20.1%.

The market share for the Sunday Mirror has remained stable at 15.7% during
January to June, representing an improvement of 0.1% from December 2003.

Whilst the market share of The People has fallen from 10.5% to 10.2% the average
year-on-year volume decline for the period has improved from 12.7% for the six
months to December 2003 to 8.1%.

The Daily Record and the Sunday Mail have both improved their year-on-year
circulation performance during the period. For the Daily Record, the average
year-on-year decline during the period was 3.5% compared to 5.7% for the six
months to December 2003. For the Sunday Mail, the average year-on-year decline
during the period was 4.0% compared to 4.3% for the six months to December 2003.
The improvement in the Sunday Mail circulation performance was achieved despite
a cover price increase.

Advertising

The Group's National titles achieved advertising revenue growth of 2.7% from
£96.4 million to £99.0 million during the period in a marketplace which saw
marginal improvement. However, the market remains volatile. The results also
include the benefit of improved advertising performance in June which saw growth
of 7.8%, helped by the European football championship.

The UK National titles achieved advertising revenue growth of 2.6% from £72.0
million to £73.9 million for the period, reflecting a 0.6% increase in the first
quarter and 4.7% increase in the second quarter. Strong core display advertising
growth of 9.4% has been offset by weaker performance in classified and
magazines. The weaker magazines performance reflects the impact of closing the M
magazine in the second half of 2003, partially offset by additional advertising
revenues for the newly launched 3am magazine.

* On a like-for-like, pre-exceptional items basis as defined in footnotes (1) 
and (2) on page 1


For the Scottish National titles, advertising revenue increased by 2.9% from
£24.4 million to £25.1 million, with strong year-on-year performances in
recruitment (up 26.4%), travel (up 10.5%) and national display (up 5.9%) offset
by weaker performances from local retail (down 2.8%), motors (down 6.7%) and
property (down 9.2%).

Sports division

The Sports division achieved strong performance during the period with operating
profit* increasing by 21.1% to £8.6 million (2003: £7.1 million). Advertising
and circulation revenue increased by 19.6% and 9.2% respectively. Circulation
revenues benefited from cover price increases and additional Sunday publishing.

The development of the division's website, racingpost.co.uk, has progressed
encouragingly with revenue increasing by 19.9%.

Magazines and Exhibitions

The Magazines and Exhibitions division delivered a robust performance with
operating profit* increasing by 46.9% from £3.2 million to £4.7 million.
Revenues increased by 4.9% for the period with particularly strong exhibitions
revenues, which grew by 7.0% during the period.

Arrow Interactive

During the period Arrow Interactive reported deteriorating performance with
operating losses* of £0.6 million, an increase in losses* of £0.4 million
compared to the same period in 2003.

The division has now been refocused on driving revenues for the Group. The
results of the division will not be separately reported from 2005.

Restructuring costs totalling £0.7 million, including £0.4 million for
severance, have been separately disclosed as exceptional items.

Outlook

The 'Stabilise Revitalise Grow' strategy continues to deliver improved
performance. For the remainder of the year comparatives, both in terms of
revenue and profit, are more challenging. Despite this, the Board is confident
that the business will continue to perform in line with expectations.

* On a like-for-like, pre-exceptional items basis as defined in footnotes (1) 
and (2) on page 1




Consolidated profit and loss account (unaudited)
for 26 week period to 27 June 2004



                                       26 weeks to 27 June 2004
                                     Before Exceptional        After    26 weeks to 29 52 weeks to
                                exceptional       items  exceptional           June    28 December
                                      items    (note 4)        items           2003           2003                      
                                                                         (restated)
                            notes        £m          £m           £m             £m             £m
-------------------------   -----    --------    --------    --------       --------       --------
Turnover                      2       572.7           -       572.7          550.2        1,095.1
------------------------    -----    --------    --------    --------       --------       --------
Group operating profit        3       120.2        (3.5)      116.7          100.3          100.5
------------------------    -----    --------    --------    --------       --------       --------
Share of results of                     0.7           -         0.7            0.6            1.2
associated undertakings     
------------------------    -----    --------    --------    --------       --------       --------
Total operating profit                120.9        (3.5)      117.4          100.9          101.7
------------------------    -----    --------    --------    --------       --------       --------
Profit on disposals of        4           -         2.5         2.5            0.1            0.1
subsidiary undertakings
Profit on disposal of         4           -           -           -              -              -
motorcycle show             
business
------------------------    -----    --------    --------    --------       --------       --------
Profit on ordinary                    120.9        (1.0)      119.9          101.0          101.8
activities before           
interest
------------------------    -----    --------    --------    --------       --------       --------
Net interest payable                  (17.5)          -       (17.5)         (19.9)         (38.3)
Other finance charge                   (1.6)          -        (1.6)          (1.7)          (2.9)
------------------------    -----    --------    --------    --------       --------       --------
Profit on ordinary                    101.8        (1.0)      100.8           79.4           60.6
activities before
taxation
Tax on profit on ordinary     5       (31.6)        1.0       (30.6)         (24.2)         (46.9)
activities                  
------------------------    -----    --------    --------    --------       --------       --------
Profit on ordinary                     70.2           -        70.2           55.2           13.7
activities after            
taxation
------------------------    -----    --------    --------    --------       --------       --------
Non-equity minority                    (0.1)          -        (0.1)          (0.1)          (0.3)
interest                    
------------------------    -----    --------    --------    --------       --------       --------
Profit for the financial               70.1           -        70.1           55.1           13.4
period                      
------------------------    -----    --------    --------    --------       --------       --------

Ordinary dividends on         6                               (17.4)         (16.1)         (53.7)
equity shares               
------------------------    -----    --------    --------    --------       --------       --------
Retained profit/(loss)                                         52.7           39.0          (40.3)
for the financial         
period
------------------------    -----    --------    --------    --------       --------       --------
Earnings per share            7
(pence)                     
------------------------    -----    --------    --------    --------       --------       --------
Underlying earnings per                                        23.8           19.0           41.1
share

Exceptional items                                                 -           (0.1)         (36.5)
------------------------    -----    --------    --------    --------       --------       --------
Earnings per share -                                           23.8           18.9            4.6
basic                       
------------------------    -----    --------    --------    --------       --------       --------
Earnings per share -                                           23.6           18.8            4.6
diluted                     
------------------------    -----    --------    --------    --------       --------       --------


Turnover and net operating expenses comparative figures for the 26 weeks to 29
June 2003 have been restated to reflect Arrow Interactive revenues net of
commissions payable (previously disclosed as operating expenses) to third
parties. This change in accounting policy has no impact on the Group operating
profit for 2003 and is consistent with the accounting policies set out in the
Group financial statements for the 52 weeks ended 28 December 2003. The effect
of this change in accounting policy was a reduction in turnover of £1.4 million
and a reduction in net operating expenses of £1.4 million in the 26 weeks to 29
June 2003.


All turnover and results arose from continuing operations.


Consolidated statement of total recognised gains and losses (unaudited)
for 26 week period to 27 June 2004

----------------------------------------        -------       --------        -------
                                           26 weeks to    26 weeks to    52 weeks to
                                               27 June        29 June    28 December
                                                  2004           2003           2003  
                                                    £m             £m             £m
----------------------------------------        -------       --------        -------
Profit for the financial period                   70.1           55.1           13.4

Difference between actual and expected           (24.2)          12.0           55.1
return on pension schemes' assets

Experience losses arising on pension                 -              -          (18.0)
schemes' liabilities

Effects of changes in assumptions
underlying the present value of pension
schemes' liabilities

                                                  47.5          (82.6)        (154.7)

Deferred tax asset associated with                (7.0)          21.2           35.3
movement on pension schemes' deficits            
----------------------------------------         -------       --------        -------

Total recognised gains and losses in the          86.4            5.7          (68.9)
period                                           
----------------------------------------         -------       --------        -------



Consolidated balance sheet (unaudited)

at 27 June 2004
--------------------------------      -----  ---------     ---------   ---------
                                             27 June       29 June   28 December
                                                2004          2003        2003
                                      notes              (restated)          
                                                  £m            £m           £m
--------------------------------      -----  ---------     ---------   ---------

Fixed assets
Intangible assets                            1,585.6       1,724.6     1,622.4
Tangible assets                                392.1         391.0       401.0
Investments                                      7.3          10.2         9.9
--------------------------------      -----  ---------     ---------   ---------
                                             1,985.0       2,125.8     2,033.3
--------------------------------      -----  ---------     ---------   ---------

Current assets
Stocks                                           6.6           7.0         7.0
Debtors                                        172.5         157.6       160.8
Cash at bank and in hand                        33.7          39.2        34.3
--------------------------------      -----  ---------     ---------   ---------
                                               212.8         203.8       202.1
--------------------------------      -----  ---------     ---------   ---------

Creditors: amounts falling due
within one year
Bank loans, loan notes and                     (63.5)        (58.2)      (57.3)
overdrafts
Obligations under finance leases                (2.0)         (4.7)       (4.4)
Other creditors                               (236.6)       (227.2)     (249.5)
--------------------------------      -----  ---------     ---------   ---------
                                              (302.1)       (290.1)     (311.2)
--------------------------------      -----  ---------     ---------   ---------
Net current liabilities                        (89.3)        (86.3)     (109.1)
--------------------------------      -----  ---------     ---------   ---------

Total assets less current                    1,895.7       2,039.5     1,924.2
liabilities

Creditors: amounts falling due
after more than one year
Bank loans and loan notes                     (470.7)       (594.4)     (554.9)
Obligations under finance leases               (21.0)        (31.1)      (22.8)
--------------------------------      -----  ---------     ---------   ---------
                                              (491.7)       (625.5)     (577.7)
--------------------------------      -----  ---------     ---------   ---------

Provisions for liabilities and                 (68.9)        (65.2)      (68.8)
charges
Non-equity minority interest                    (3.7)         (3.7)       (3.7)
--------------------------------      -----  ---------     ---------   ---------
Net assets excluding pension                 1,331.4       1,345.1     1,274.0
schemes' assets and liabilities       
--------------------------------      -----  ---------     ---------   ---------

Pension schemes' assets                 8          -             -           -
Pension schemes' liabilities            8     (234.4)       (215.1)     (248.1)
  --------------------------------    -----  ---------     ---------   ---------
Net assets including pension                 1,097.0       1,130.0     1,025.9
schemes' assets and liabilities      
--------------------------------      -----  ---------     ---------   ---------

Equity capital and reserves
Called-up share capital                         29.5          29.2        29.4
Share premium account                        1,096.7       1,081.3     1,089.5
Revaluation reserve                              5.0           4.9         5.0
Profit and loss account                        (34.2)         14.6       (98.0)
--------------------------------      -----  ---------     ---------   ---------
Equity shareholders' funds             11    1,097.0       1,130.0     1,025.9
--------------------------------      -----  ---------     ---------   ---------


The Consolidated balance sheet at 29th June 2003 has been restated in accordance
with UITF 38 Accounting for ESOP Trusts. Shares held within Employee Share
Option Schemes are dealt with in the balance sheet as a deduction from
shareholders' funds. The effect of this change in accounting policy was a
reduction in fixed asset investments of £0.4 million and a reduction in
shareholders' funds of £0.4 million.







Consolidated cash flow statement (unaudited)
for 26 week period to 27 June              26 weeks to    26 weeks to      52 weeks to 
2004                                           27 June        29 June      28 December 
                                                  2004           2003             2003
                                    notes           £m             £m               £m
--------------------------------    -----      ---------      ---------        ---------
Net cash inflow from operating        9          126.9          116.7            246.2
activities                          
--------------------------------    -----      ---------      ---------        ---------

Dividends received from                            3.2              -              0.9
associated undertakings             
--------------------------------    -----      ---------      ---------        ---------
Cash inflow from associated                        3.2              -              0.9
undertakings                        
--------------------------------    -----      ---------      ---------        ---------

Returns on investments and
servicing of finance
Interest received                                  0.3            0.3              0.5
Interest paid                                    (17.8)         (20.0)           (41.2)
Interest element of finance lease                 (0.5)          (0.8)            (1.4)
rental payments
Dividends paid to minority                        (0.1)          (0.1)            (0.3)
shareholders                        
--------------------------------    -----      ---------      ---------        ---------
Net cash outflow from returns on                 (18.1)         (20.6)           (42.4)
investments and servicing of       
finance
--------------------------------    -----      ---------      ---------        ---------

Taxation paid                                    (22.9)         (21.2)           (44.9)
--------------------------------    -----      ---------      ---------        ---------

Net cash inflow before investing                  89.1           74.9            159.8
activities                          
--------------------------------    -----      ---------      ---------        ---------

Capital expenditure and financial
investment
Purchase of tangible fixed                       (14.8)         (26.9)           (59.4)
assets
Sale of tangible fixed assets                      1.0            4.3              4.2
--------------------------------    -----      ---------      ---------        ---------
Net cash outflow from capital                    (13.8)         (22.6)           (55.2)
expenditure and financial           
investment
--------------------------------    -----      ---------      ---------        ---------

Net cash inflow before                            75.3           52.3            104.6
acquisitions and disposals          
--------------------------------    -----      ---------      ---------        ---------

Acquisitions and disposals
Acquisition of business                              -           (0.3)            (0.4)
Net cash balances disposed of                     (2.1)             -                -
with subsidiary undertaking
Sale of subsidiary undertakings                   44.7            0.1              0.1
Sale of motorcycle show                            0.2              -                -
business                            
--------------------------------    -----      ---------      ---------        ---------
Net cash inflow/(outflow) from                    42.8           (0.2)            (0.3)
acquisitions and disposals          
--------------------------------    -----      ---------      ---------        ---------

Dividends paid                                   (37.6)         (35.9)           (52.0)
 --------------------------------   -----      ---------      ---------        ---------
Net cash inflow before                            80.5           16.2             52.3
financing                           
--------------------------------    -----      ---------      ---------        ---------

Financing
Issue of shares                                    7.3            0.7              8.7
Purchase of own shares under                      (6.2)             -                -
LTIP
Repayment of unsecured loans                     (84.8)          (6.2)           (49.1)
Principal payments under finance                  (4.2)          (4.5)           (13.1)
leases                              
--------------------------------    -----      ---------      ---------        ---------
Net cash outflow from financing                  (87.9)         (10.0)           (53.5)
--------------------------------    -----      ---------      ---------        ---------

(Decrease)/increase in cash                       (7.4)           6.2             (1.2)
--------------------------------    -----      ---------      ---------        ---------

Reconciliation of net cash flow
to movement in net debt             
--------------------------------    -----      ---------      ---------        ---------
(Decrease)/increase in cash in                    (7.4)           6.2             (1.2)
the period
Cash outflow from movement in                     89.0           10.7             62.2
debt and lease financing            
--------------------------------    -----      ---------      ---------        ---------
Change in net debt resulting from                 81.6           16.9             61.0
cash flows                          
--------------------------------    -----      ---------      ---------        ---------
Movement in net debt in the                       81.6           16.9             61.0
period
Opening net debt                                (605.1)        (666.1)          (666.1)
--------------------------------    -----      ---------      ---------        ---------
Closing net debt                     10         (523.5)        (649.2)          (605.1)
--------------------------------    -----      ---------      ---------        ---------



Notes to the financial statements (unaudited)


1.             Basis of preparation

The accounting policies used in the preparation of the interim financial
statements for the 26 weeks to 27 June 2004 are as set out in the Group's
financial statements for the 52 weeks to 28 December 2003.


2.             Turnover

The analysis of the Group's turnover is as follows:

                                     26 weeks to    26 weeks to    52 weeks to
                                         27 June        29 June    28 December
                                            2004           2003           2003
                                                     (restated)             
                                              £m             £m             £m
By geographical destination:
----------------------------------       ---------      ---------      ---------
United Kingdom and Republic of             568.9          547.7        1,088.9
Ireland
Continental Europe                           3.8            2.4            6.1
Rest of the World                            0.0            0.1            0.1
----------------------------------       ---------      ---------      ---------
                                           572.7          550.2        1,095.1
 ----------------------------------      ---------      ---------      ---------
By type:
----------------------------------       ---------      ---------      ---------
Circulation                                194.8          185.9          376.0
Advertising                                324.2          313.4          620.6
Other                                       53.7           50.9           98.5
----------------------------------       ---------      ---------      ---------
                                           572.7          550.2        1,095.1
 ----------------------------------      ---------      ---------      ---------
By division:
----------------------------------       ---------      ---------      ---------
Regionals division*                        270.4          264.5          525.3
Nationals division                         257.9          244.3          492.2
Sports division                             23.7           21.2           43.4
Magazines and exhibitions                   19.4           18.5           30.5
Arrow Interactive                            1.3            1.7            3.7
----------------------------------       ---------      ---------      ---------
                                           572.7          550.2        1,095.1
----------------------------------       ---------      ---------      ---------

*Regionals division includes turnover relating to Wheatley Dyson & Son Limited
of £nil (26 weeks to 29 June 2003 £0.1 million; 52 weeks to 28 December 2003
£0.1 million) which was disposed of in February 2003 and the Irish regional
newspaper titles in Belfast, Derry and Donegal of £nil (26 weeks to 29 June 2003
£8.0 million; 52 weeks to 28 December 2003 £16.1 million) which were disposed of
in January 2004.

Turnover and net operating expenses for the 26 weeks to 29 June 2003 have been
restated to reflect Arrow Interactive revenues net of commissions payable
(previously disclosed as operating expenses) to third parties. This change in
accounting policy has no impact on the Group operating profit for 2003 and is
consistent with the accounting policies set out in the Group financial
statements for the 52 weeks ended 28 December 2003.

3.             Group operating profit

The analysis of the Group's operating profit (before exceptional items) is as
follows:

----------------------------------       ---------      ---------      ---------
                                     26 weeks to    26 weeks to    52 weeks to
                                         27 June        29 June    28 December
                                            2004           2003           2003
By division:
                                              £m             £m             £m
 ----------------------------------      ---------      ---------      ---------
Regionals division*                         75.0           62.0          123.9
Nationals division                          41.1           38.2           85.8
Sports division                              8.6            7.1           14.2
Magazines and exhibitions                    4.7            3.2            4.8
Arrow Interactive                           (0.6)          (0.2)          (0.3)
Central costs                               (8.6)          (8.9)         (15.9)
----------------------------------       ---------      ---------      ---------
                                           120.2          101.4          212.5
----------------------------------       ---------      ---------      ---------


* Regionals division includes profit relating to Wheatley Dyson & Son Limited of
£nil (26 weeks to 29 June 2003 £nil ; 52 weeks to 28 December 2003 £nil) which
was disposed of in February 2003 and profits relating to the Irish regional
newspaper titles in Belfast, Derry and Donegal of £nil (26 weeks to 29 June 2003
£1.7 million; 52 weeks to 28 December 2003 £3.1 million), which were disposed of
in January 2004


Notes to the financial statements (unaudited)
continued

4.                Exceptional items
 ----------------------------------      ---------       --------      ---------
                                     26 weeks to    26 weeks to    52 weeks to
                                         27 June        29 June    28 December
                                            2004           2003           2003
                                              £m             £m             £m
 ----------------------------------      ---------       --------      ---------
Operating exceptional items
Impairment of carrying value of                -              -          100.0
publishing rights and titles (a)
Write-off carrying value of                    -              -            1.6
goodwill (b)
Restructuring costs (c)                      4.3            2.2           14.6
Maxwell related recoveries (d)                 -              -           (3.1)
Profit on disposal of land and              (0.8)          (1.1)          (1.1)
buildings (e)                            
----------------------------------       ---------       --------      ---------
Group exceptional items charged              3.5            1.1          112.0
against Group operating profit           
----------------------------------       ---------       --------      ---------
Profit on sale of subsidiary                (2.5)          (0.1)          (0.1)
undertakings (f)                         
----------------------------------       ---------       --------      ---------
Profit on sale of motorcycle show              -              -              -
business (f)                             
----------------------------------       ---------       --------      ---------
Net exceptional items before                 1.0            1.0          111.9
taxation                                 
----------------------------------       ---------       --------      ---------


a) The annual impairment review of the carrying value of the Group's publishing 
   rights and titles, undertaken in accordance with FRS 10, indicated that an 
   impairment charge was required in 2003. The impairment charge reduced the 
   carrying value of the Regional titles in the South by £100.0 million, to the
   net present value of future cashflows to be derived from these assets,
   discounted at 8.0%.

b) In 2003, following a review of a number of motorcycle shows during the year, 
   in advance of their subsequent disposal in January 2004, goodwill of £1.6
   million was written off.

c) Restructuring costs relate to ongoing cost reduction plans and include
   costs of £0.7 million incurred in restructuring Arrow Interactive.

d) In 2003, the Group recovered £3.1 million from the liquidators of
   Maxwell related companies for claims outstanding since 1992.

e) In 2003 the Group disposed of surplus land and buildings realising a profit 
   on disposal of £1.1 million. In the 26 week period to 27 June 2004 the group 
   disposed of surplus land and buildings realising a profit of £0.8 million.

f) In January 2004, the Group disposed of its Irish subsidiaries for a 
   consideration of £46.1 million, realising a profit of £2.5 million and its 
   Motorcycle Show business for a consideration of £0.2 million, realising a 
   profit of £nil. In February 2003, the Group disposed of Wheatley Dyson & Son 
   Limited for a consideration of £0.1 million, realising a profit of 
   £0.1 million.


5.             Tax on profit on ordinary activities
-----------------------------------      ---------      ---------      ---------
                                     26 weeks to    26 weeks to    52 weeks to
                                         27 June        29 June    28 December
                                            2004           2003           2003
                                              £m             £m             £m
-----------------------------------      ---------      ---------      ---------
Profit before tax on ordinary              101.8           80.4          172.5
activities before exceptional            
items
----------------------------------       ---------      ---------      ---------
Corporation Tax
Corporation tax charge for the              31.6           26.9           52.1
period
Prior period adjustment                        -              -           (1.2)
----------------------------------       ---------      ---------      ---------
Total current tax charge                    31.6           26.9           50.9
----------------------------------       ---------      ---------      ---------
Deferred Tax
Deferred tax (credit)/charge for               -           (2.0)           3.8
the period
Prior period adjustment                        -              -           (2.6)
----------------------------------       ---------      ---------      ---------
Total deferred tax                             -           (2.0)           1.2
----------------------------------       ---------      ---------      ---------
Tax on profit on ordinary                   31.6           24.9           52.1
activities before exceptional            
items
----------------------------------       ---------      ---------      ---------

Exceptional:
UK corporation tax on exceptional           (1.0)          (0.7)          (5.2)
items                                    
----------------------------------       ---------      ---------      ---------
Tax on profit on ordinary                   30.6           24.2           46.9
activities                               
----------------------------------       ---------      ---------      ---------


The deferred tax (credit)/charge for the period is after a FRS 17 credit of £1.1
million (2003: £1.1 million).


Notes to the financial statements (unaudited)

continued


5.             Tax on profit on ordinary activities

                continued


Reconciliation of current tax charge

The current tax rate for the period is more than the statutory rate of 30%
(2003: statutory rate 30%) for the reasons set out in the following
reconciliation:

----------------------------------      ---------      ---------      ---------
                                     26 weeks to    26 weeks to    52 weeks to
                                         27 June        29 June    28 December
                                            2004           2003           2003
                                               %              %              %
----------------------------------      ---------      ---------      ---------
Standard rate of corporation tax            30.0           30.0           30.0
Permanent items                              1.0            1.0            2.3
Depreciation in excess of/(below)            0.8            1.1           (2.5)
capital allowances for the period
Deferred tax on short-term and              (0.8)           1.4            0.4
other timing differences