Amsterdam, 6 August 2010 - In the first half of 2010, the Net Sales of Sanoma Magazines have increased 0.5% to €540.5 million. The operating profit excluding non-recurring items improved 36.5% to €64.2 million largely due to improved operational efficiency. Sanoma Magazines is part of media group Sanoma (listed on the NASDAQ OMX Helsinki, SAA1V).

* In 2010, the non-recurring items included in the second quarter a EUR 2.6 million gain on the sale of Humo. In 2009, the non-recurring items included in the second quarter EUR 1.3 million of Sanoma Magazines Belgium's restructuring expenses

SECOND QUARTER

Sanoma Magazines' net sales in April–June grew by 2%. Net sales increased in the Netherlands and were at the comparable quarter’s level in Finland and Belgium. Net sales grew also in Sanoma Magazines International due to a favourable currency translation effect. Adjusted for changes in the Division structure, sales grew by 4%.

The Division's advertising sales grew by 8% and represented 31% (2009: 30%) of the second quarter net sales. Advertising sales grew in Sanoma Magazines International and Belgium, and especially in the Netherlands. Finnish advertising sales were at the comparable quarter’s level. Sanoma Magazines’ online advertising sales grew significantly, in particular due to the good development in the Netherlands.

Sanoma Magazines' circulation sales decreased slightly and represented 57% (2009: 59%) of the Division's net sales. Subscription sales were at the comparable quarter’s level and single copy sales decreased slightly.

Sanoma Magazines Netherlands' net sales were up by 4%, with both online operations and print activities developing positively. Especially advertising sales developed strongly. Online advertising sales grew clearly, by 18%. Advertising sales represented 31% (2009: 28%) of Sanoma Magazines Netherlands' net sales. Its circulation revenues were flat, with both subscription and single copy sales being at the comparable quarter’s level. Sanoma Magazines Netherlands launched two online services in the second quarter.

Sanoma Magazines International's net sales grew by 2% due to a favourable currency translation effect. The economic downturn in the CEE countries continued to have a clear effect on sales in all of Sanoma Magazines International’s markets, especially in Hungary and Bulgaria. Russia, however, is showing signs of recovery. Advertising sales, representing 50% (2009: 50%) of Sanoma Magazines International's net sales, grew in Russia. Circulation sales decreased, with both single copy and subscription sales slightly declining. Sanoma Magazines International launched two new magazines and discontinued one. After the review period, Sanoma Magazines International divested its Slovak magazine operations. Slovak online operations will be managed from the Czech Republic by Sanoma Magazines Praha.

Net sales at Sanoma Magazines Belgium were at the comparable quarter’s level, with advertising sales developing favourably and circulation sales being slightly down. The main reason for the decline was the selling of 49% of Humo, one of Sanoma Magazines Belgium’s key titles, to De Vijver NV. As a part of the transaction Sanoma Magazines Belgium acquired 25% of Belgium’s largest TV production company, Woestijnvis, which is owned by De Vijver. The transaction is in line with Sanoma Magazines Belgium’s strategy to develop into a stronger multimedia player. This transaction affects Sanoma Magazines Belgium’s figures from May onwards. Sanoma Magazines Belgium’s advertising sales grew slightly and represented 28% (2009: 27%) of net sales.

Sanoma Magazines Finland's net sales were slightly below the comparable quarter’s level. Advertising sales were at the comparable quarter’s level and represented 15% (2009: 15%) of net sales. Sanoma Magazines Finland’s circulation sales decreased with both single copy and subscription sales declining due to timing differences in the publication schedule, which will even out during the coming months. Key titles continued to perform well.

Sanoma Magazines' operating profit excluding non-recurring items in April–June improved significantly, by 22%, due to growth in sales, lower paper costs and efficiency improvements. In 2009, the efficiency improvements started to have an impact in the second half of the year. The number of personnel has reduced clearly from the comparable period, and even from the year-end. Operating profit improved in Sanoma Magazines International and especially in Sanoma Magazines Netherlands. Operating profit declined in Sanoma Magazines Belgium and Sanoma Magazines Finland. The non-recurring items included in the operating profit totalled EUR 2.6 million (2009: EUR -1.3 million) and consisted of capital gain on the Humo transaction.

FIRST HALF 2010

In January-June, Sanoma Magazines’ net sales were at the comparable period’s level. Adjusted for changes in the Division structure, the growth was 2%. Operating profit excluding non-recurring items increased by 37%.

Sanoma Magazines continues to develop its magazine portfolio with a special focus on its key titles in each operating country. Sanoma Magazines is investing in strengthening its market positions, and wants to become stronger in digital media. The growth in digital operations will mainly be achieved by leveraging existing assets. E-reading devices also offer interesting opportunities for combining magazines with digital media.

In 2010, Sanoma Magazines' net sales are expected to grow slightly. It is estimated that operating profit excluding non-recurring items will improve somewhat.