Transformation and Progress Reported by VNU

The 2001 organic revenue growth of the two major companies of this group, ACNielsen and Nielsen Media Research, are thought to be in line with VNU's previously announced expectations. For ACNielsen in particular, the improvement in results and operating margin is on schedule. The company's integration into the group is going well, with the Operation Leading Edge restructuring programme also deemed to be making good progress.

For the Business Information group, the deteriorating economic circumstances have caused a substantial decline in the advertising markets in the US and Europe. This is known to have negatively affected this group's results, particularly in European trade magazines. These overall effects have forced VNU to take additional measures to reduce 2001 cost levels by approximately Euro 35 million. Their trade show business has also weakened, due primarily to the September 11 attacks and the corresponding reduction in air traffic in the US.

VNU's results for its Directories group have largely developed according to expectations. The group is reported as continuing to post incremental revenue growth, although somewhat below last year's level. Operating results for the group are expected to at least equal the level of 2000.

Rob van den Bergh, chairman and CEO of VNU, commenting on the progress of the transformation of VNU, said '2001 is a crucial year in the transformation process of VNU. The acquisition of ACNielsen gives VNU global leadership in marketing and media information services and the sale of the Consumer Information and Educational Information groups was completed satisfactorily, especially given present economic conditions. The transformation will give our company more focus, more growth potential and more recession resilience providing VNU with a solid financial position and excellent long-term prospects.'

To further the transformation effort, VNU has reported that Rob van den Bergh will be relocating to the offices of VNU in New York City, mid 2002. The corporate functions will continue to operate from both Haarlem, The Netherlands, and New York.

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.