Class Editori S.p.A. and subsidiaries Registered office, Via Marco Burigozzo 5, Milan. Interim Report on Operations 30th September, 2008

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2 Class Editori S.p.A. and subsidiaries Registered office, Via Marco Burigozzo 5, Milan Interim Report on Operations 30th September, 2008 The interim Report on Operations was drawn up on a consolidated basis, because the Company is obliged to draft consolidated accounts. COMMENTS REGARDING INCOME STATEMENT ITEMS The principal factors which characterized the financial trend and contributed to the earnings before interest and taxes (EBIT) during the first nine months of 2008, as shown in the accounting table, may be summarized as follows: The total revenues in the period, amounting to 95,000,000 euros, are up by 10,800,000 euros, a percentage increase of 12.8%, compared to the same period in the previous year. This improvement is primarily attributable to the consolidation of the company Honyvem spa, now known as MF Honyvem. At consolidation perimeter parity, the revenues are therefore substantially in line with the same period of 2007, reporting a decline of 0.3%. The period of economic crisis which has hit the international markets and has had a significant impact on Italy, even in the publishing sector, has caused very marked decreases in the advertising investments sector and in newsstand sales, which were felt in particular in the summer season, including September. The operating costs increased by 16.5%. 12.3% of the increase is due to the consolidation of Honyvem and the remainder is due to the increase in the costs of the publishing house. This increase is due to the higher production and distribution costs recorded in the first nine months of the financial year, the rising costs of raw materials, and the growing production of highquality content for printed products and television channels. (In 2008, the new TV channel Class Life began broadcasting 24 hours a day on the IpTv Alice Home TV and on the broadband portal Yalp.) The net financial liabilities grew from 560,000 euros in the first nine months of 2007 to Pag. 2

3 1,160,000 euros in the same period of 2008, due to both the greater exposure arising from the acquisition of the subsidiary Honyvem, and the increase in interest rates. The earnings before interest and taxes (EBIT) of the group are negative at -1,260,000 euros; the consolidated earnings before taxes, group s share, are negative at -1,440,000 euros, compared to positive earnings of 1,560,000 euros in the same period of the previous year. The earnings before taxes in the first nine months of 2008 of the subsidiary Honyvem S.p.A. amount to 1,450,000 euros. PRINCIPAL ECONOMIC AND FINANCIAL EVENTS IN 2008 In January, the publishing house acquired the entire share capital of Honyvem S.p.A. ( a Brescia-based company operating for 30 years in databases and business information sector. Honyvem is the only company operating in the business information sector, similarly to the market leader Cerved, to directly and originally hold 900,000 financial statements of joint-stock companies in digital and not optical format, including a database that is not only essential for merit ratings of credit, but also for all the marketing operations, sector by sector; as of March, Luna & Gentleman Matrimoni is in the newsstands, the new magazine of Class Editori created to pay tribute to the most beautiful and important day for the couple. Luna&Gentleman Matrimoni, which arose from the experience which Class Editori acquired with LUNA, the monthly magazine for women who love shopping, and Gentleman, the first monthly magazine for men who love life, quickly became the flagship magazine in its sector; The circulation figures for the period remain at satisfactory levels, considering the difficulties present in the market for printed publications: In the period, Class recorded (updated moving average) a circulation of around 76,500 copies (83,300 in the same period of 2007), Capital sold 87,800 copies (89,400 copies in 2007), while Milano Finanza sold 103,600 copies (111,000 in 2007). Pag. 3

4 Revenues for period can be broken down as follows: (millions) 30/09/ /09/2007 % Newsstand revenues 7,00 7,40 (5,4%) Subscription revenues 33,88 22,49 50,6% Advertising revenues 49,89 49,82 0,1% Other revenues 4,27 4,57 (6,6%) Total 95,04 84,28 12,8% The reduction in newsstand revenues is partly due to the circulation drop which has hit the entire printed publications market and has even affected the titles of this publishing house, albeit to a limited extent, and partly due to the fact that, in the first nine months of 2007, the sales of the so-called spin-off publications associated with the title Mf/Milano Finanza were recorded. These transactions were not repeated in 2008 given that it was noted that the market is saturated and does not leave any margins. Subscription revenues are growing, primarily due to the effect of the consolidation of the company Honyvem. Advertising revenues are substantially in line with the values of the previous year, despite the slight contraction in volumes which characterized the third quarter of The decline in the other revenues is attributed to asset events and capital gains not obtained in Pag. 4

5 BALANCE SHEET The balance sheet as at shows a consolidated debt of 35.9 million euro that is broken down as follows: (thousands) 30/09/ /09/ /12/2007 Net long/medium-term indebtedness (3.903) (4.840) (3.938) Net financial debt in the short term/net financial liquidity in the short term (32.005) (7.910) (8.821) Of which: Borrowings (34.192) (12.780) (14.513) Cash on hand and receivables Net financial position: Net indebtedness/net cash flows (35.908) (12.750) (12.759) Compared to 31 December 2007, an increase in the net debt of 23,100,000 euros was recorded as a result of extraordinary transactions consisting of the acquisition of 100% of the shares of the Brescia-based company Honyvem S.p.A. and the financing of 3,000,000 euros distributed to the subsidiary C.I.A. S.p.A. to support a major real-estate transaction from which the publishing house will benefit in terms of occupied space. The remaining part of the debt increase is due to the delay in government reimbursement totaling circa 5,000,000 euros, which was received in early October. The medium and long-term financial liabilities include financing arrangements with maturities up to 2015, and the financial liabilities include standby credit lines as well as a financing line of hot money used for only part of the entire credit line. The item short-term liquidity is represented by the current exposure to bank corporations. Pag. 5

6 STAFF Average of the period 30/09/ /06/ /03/ /12/2007 Managers Journalists and FRTs Clerical staff Total The apparent total increase compared to 31 December 2007 is due to around 80 units in the inclusion in the consolidation scope of the company Bilanci Italiani srl and its subsidiary Honyvem spa, which occurred at the start of 2008, and the rest is due to the transformation of coordinated and continuing collaboration contracts, projects and internships, excluded from the previous count, in full-time employee labour contracts and apprenticeships, whereby the latter are included in the current report. The apprenticeship contracts on 30 September 2008 amount to 20 units, while the full-term contracts amount to 52 units. ACCOUNTING PRINCIPLES AND POLICIES The accounting principles adopted when drawing up the consolidated quarterly financial statements and figures are the same as those utilised when drafting the consolidated financial statements for the previous financial period. The present interim consolidated Report on Operations was drawn up using the valuation criterion of historic cost, with the exception of the financial instruments available for sale, which were valued at their fair value. Figures for the comparative period are also stated in accordance with IFRS. The interim Report on Operations of was drawn up in compliance of Art. 154-ter of Legislative Decree 195/2007, as well as the Issuer Regulation passed by the Consob (Commissione Nazionale per le Società e la Borsa, National Commission for Companies and the Stock Exchange) according to the provisions of Art. 82 of Consob Regulation no /1999 (and its successive modifications and additions) and Annex 3D of the same Regulation. Full details relating to both group consolidated balance sheet and the parent company, Class Editori S.p.A., were published as part of the annual report on and the 2008 quarterly report, to Pag. 6

7 which reference should be made. SCOPE OF CONSOLIDATION The consolidation scope includes the Parent Company, Class Editori S.p.A., and the companies in which it holds a controlling interest, i.e. the power to decide the financial and management policies of a business in order to obtain benefits from its activities. Subsidiaries are consolidated with effect from the date on which control is actually handed over to the Group and stop being consolidated as from the date on which control passes to a party not belonging to the Group. Subsidiaries are consolidated using the line-by-line consolidation method. Consolidated figures were calculated by using the balance sheets, profit and loss accounts and cash flows of the associated and subsidiary companies that were drawn up by the individual group companies as at the accounting reference date having been suitably reclassified and adjusted in order to reflect the application of uniform accounting principles implemented by the group. In drawing up the consolidated quarterly financial statement all intercompany balances and transactions have been eliminated, as have unrealised losses and gains on intercompany transactions. Subsidiary companies which are inactive or in liquidation are consolidated with the equity method or the cost method, in which case their influence on the results of the Group is not significant. Shareholdings in affiliated companies, i.e. those over which the Group exerts a notable influence, are valuated with the equity method, as defined in IAS 28. Profits and losses relevant to the Group are recognized on the consolidated balance sheet from the date on which the notable influence started and until the date on which said influence ended. Pag. 7

8 The consolidation scope of the publishing house on 30 September 2008 is reported below: Global integration method Percentage of Ownership - Milano Finanza Editori S.p.A. 87,827 % and subsidiaries: - Milano Finanza Servizi Editoriali S.r.l. 99,00 % - MF Editori S.r.l. 100,00 % - Lombard Editori S.r.l. 50,10 % - PMF News Editori S.p.A. (formerly Capitale Sud Editori 89,00 % S.p.A.) - Campus Editori S.r.l. 70,00 % - Milano Finanza Service S.r.l. 75,01 % - Edis S.r.l. 99,50 % - MF Conference S.r.l. 51,00 % - DP Analisi Finanziaria S.r.l. 94,73 % - EX.CO S.r.l. 100,00 % - Class Editori Service S.p.A. (previously MF Interactive TV S.p.A.) 100,00 % - (directly 80%) - (through E-Class 20%) - Classpi S.p.A. 51,00 % and subsidiaries: - Class Click S.p.A. 100,00 % - E-Class S.p.A. (formerly Tenfore Italia S.p.A.) 100,00 % - Global Finance Media Inc. 73,52 % - Class CNBC S.p.A. * 2,73 % - CFN/CNBC B.V. 68,43 % - Radio Classica S.r.l. 99,00 % - Fainex S.p.A. 99,89 % - MF Dow Jones S.r.l. α 50,00 % - Telesia S.p.A. α 50,00 % and subsidiaries: - Telesia Pubblicità S.r.l. (ex. Italnetwork S.r.l.) 100,00 % - Country Class Editori S.r.l. 100,00 % - New Satellite Radio S.r.l. 67,66 % - Fashion Work Business Club S.r.l. 100,00 % - Bilanci Italiani S.r.l. 100,00 % and subsidiaries: - Honyvem S.p.A. 100,00 % * Consolidated using the line-by-line method as it is 63.34% controlled by CFN CNBC Holding B.V..α Consolidated using the line-by-line method as Class Editori S.p.A. has operational control. Pag. 8

9 Net equity method The following Class Editori S.p.A. associated companies have been consolidated using the equity method: - Italia Oggi Editori - Erinne s.r.l. and its subsidiaries 44,20 % - World Space Italia S.p.A. 35,00 % held by New Satellite Radio S.r.l., 67.66% controlled by Class Editori S.p.A. Compared to the consolidation at 31st December 2007 we highlight the following change: The Bilanci Italiani S.r.l. company, established on 27 th December 2007 and with the close of the first administrative fiscal year on 31 st December 2008, is consolidated for the first time with the net assets method. The same company, Bilanci Italiani, purchased in January % of the shares of Honyvem S.p.A., which therefore starting from the current fiscal period is part of the consolidation. Pag. 9

10 IMPORTANT EVENTS OF THE QUARTER IN PROGRESS AND FORECASTED MANAGEMENT TRENDS The dramatic increase in page views of the information Web sites of Class Editori should be noted. The crisis in the financial markets and the consequent need on behalf of savers for reliable real-time and high-quality information resulted in a strong increase in the traffic statistics of the publishing house s Web site, which reached 1.9 million page views on 14 October (Audiweb data), with almost 60,000 unique browsers and 98,000 visits, increases of more than 100% compared to the end of the month of September; Following the closure of the quarter, we note the transfer of the shareholding in the company New Satellite Radio S.r.l. to the parent company with a redemption option in the amount of 2,040,000 euros and the acquisition by the same company of a shareholding of 3.8% in the affiliate Italia Oggi Editori Erinne S.r.l. in the amount of 2,200,000 euros; The company Classpi Digital was formed from the merger of Class Click, the digital media licensee of Class Editori, and Telesia Pubblicità, Italy s leading concessionaire in the collection of outdoor TV advertising. It is the first licensee that is capable of offering simultaneous and integrated use of all available digital platforms to investors, both inside and outside the home, with five unique TV channels: Class CNBC, the leading global financial channel, with an audience which has more than doubled in the past two months, broadcast on the Sky satellite, on IpTv Alice Tv, and on Telecom Italia s Web site Class News, the leading all-news channel on terrestrial television, also broadcast on IpTv Alice and streamed on the Telecom Italia portal site; Class Life, the leading Italian lifestyle channel, broadcast 24 hours a day on IpTv Alice Tv and in different schedules and at the weekend on Class CNBC and Class News; Class Telesia, the leading outdoor television channel in Italy, broadcast on the Milan and Rome subway systems and on the screens of all major Italian airports. With the creation of Classpi Digital, the publishing house brings to market the most modern system of investment in visual communications: more than 2.5 million viewers per day, captured both when seated and when they are on the move, representing the most modern concept of target audience tracking throughout the day, thus increasing in a unique manner the frequency and efficacy of the advertising communications. The trend of the last quarter is certainly affected by the prevailing economic situation in the marketplace. The difficulties encountered in the advertising sector and the recent crisis in the banking sector, which includes major clients for the publishing house, are reflected in the Pag. 10

11 trend of the accounts. All possible actions to rationalize costs and minimize the negative effects of the economic crisis which is depressing the markets are currently being evaluated and implemented. For the Board of Directors Vice President and Managing Director Paolo Panerai Pag. 11

12 CLASS EDITORI S.p.A. and subsidiaries Quarterly report Consolidated financial results (euros x 000) PROFIT AND LOSS ACCOUNT 30/09/07 30/09/08 REVENUES Revenues from sales Other operating revenues Total revenues COSTS Operating expenses Gross operating profit - Ebitda Value adjustments Operating result Ebit (1.264) Net financial income (charges) (559) (1.163) Pre-tax profit 805 (2.427) Minority pre-tax loss (profit) Group pre-tax profit (1.443) Pag. 12

13 CLASS EDITORI S.p.A. and subsidiaries Quarterly report Consolidated financial results (euros x 000) PROFIT AND LOSS ACCOUNT 1/7-30/09/07 1/7-30/09/08 REVENUES Revenues from sales Other operating revenues Total revenues COSTS Operating expenses Gross operating profit - Ebitda Value adjustments Operating result Ebit 267 (1.793) Net financial income (charges) (501) (806) Pre-tax profit (234) (2.599) Minority pre-tax loss (profit) Group pre-tax profit 134 (1.762) Pag. 13

14 DECLARATION IN COMPLIANCE WITH ART. 154-BIS PARA. 2 OF LEGISLATIVE DECREE NO. 58 OF 24 FEBRUARY 1998 I, the undersigned, Emilio Adinolfi, in my capacity as the Director responsible for drawing up the company accounting documents of Class Editori S.p.A., hereby declare that the accounting information contained in this document is consistent with the data entered in the books of account. The Responsible Director Emilio Adinolfi Pag. 14