BERTRANGE, Luxembourg, July 8, 2004 (PRIMEZONE) -- Metro International S.A. ("Metro"), the international newspaper group, today announced that it has acquired a 5% shareholding in Metro Seoul Holdings Inc., the Company that publishes Metro in South Korea's capital city. The operation has performed strongly since its launch and was set up as a franchise when Metro sold a licence to a group of South Korean businessmen to launch an edition in Seoul in May 2002.
Over 530,000 copies of the two Metro editions are now distributed in South Korea and attract 1.2 million daily readers, making Metro the fourth most read newspaper in the country and reaching 20 million people in the newspaper's distribution areas. South Korean newspapers generated advertising revenues of US$ 2.8 billion in 2003.
Pelle Tornberg, President and CEO, commented: "South Korea is one of Asia's largest newspaper advertising markets and Metro Seoul's sales almost doubled year on year in the first quarter of 2003. We are actively involved in the business through our representation on the Board and our investment in the operation follows the successful launch and development of Metro in another Asian market -- Hong Kong. Our decision to acquire an equity stake in the business reflects our desire to strengthen the franchising arrangement, as well as reflecting the strong progress that the franchisee has made and the considerable potential in the South Korean market."
The acquisition has been made at original investment cost in accordance with the terms of the licensing agreement. The structure of Metro International's income stream from Metro Seoul Holdings Inc. remains unchanged.
For further information, please visit www.metro.lu, email info@metro.lu or contact:
Pelle Tornberg, President & CEO tel: +44 (0) 20 7016 1300
Matthew Hooper, Investor & Press Relations tel: +44 (0) 20 7321 5010
Metro is the largest and fastest growing international newspaper in the world. 37 daily Metro editions are published in 54 major cities in 16 countries in 15 languages across Europe, North & South America and Asia. Metro has a unique global reach -- attracting a young, active, well-educated audience of more than 14 million daily readers and over 30 million weekly readers. Metro has an equal number of male and female readers and 70% are under the age of 45. Metro's advertising sales have grown at a compound annual rate of 47% since the launch of the first edition in 1995.
Metro International S.A. 'A' and 'B' shares are listed on the Stockholmsborsen 'O-List' under the symbols MTROA and MTROB.
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