Digital Expansion Enjoys Continued Success


MUNICH, June 18 /PRNewswire/ --

Dr. Jurgen Todenhofer, Vice-Chairman of the Executive Board of Directors
at Hubert Burda Media, Board Member for Publishing, Finance & Management, as
well as Dr. Paul-Bernhard Kallen, Executive Board of Directors, Board Member
for Technology & Treasury, delivered the following statement at the Annual
Media Day for the financial year 2007 on 18.06.2008 in Munich:

Hubert Burda Media can once again look back on a successful year. Despite
industry-wide stagnation of core business, the company saw an increase in its
total turnover: Operating performance increased by 2.9 % from 2.15 bn Euro to
2.21 bn Euro and consolidated sales (external sales) grew by 5.3% from 1.6 bn
Euro to 1.69 bn Euro. The company results from core business in 2007 reached
the highest level since the company was founded. The continued cost
discipline and the restructuring which was carried out contributed towards
this considerably. This strategy will therefore be continued. Due to
decreasing advertisements and sales revenue, it is essential that 2008 sees
continued cost discipline.

Hubert Burda Media is developing from a classic publishing and printing
house into a multimedia concern which interlinks its different areas of
business in a cross-platform way. The company was also able to grow
considerably in 2007 due to the continued consolidation strategy in the
declining printing market and in the saturated domestic magazine-publishing
houses, and above-average investments in the emerging markets of the internet
and foreign publishing houses. The digital area delivered the largest growth
contribution with an increase in sales of 19% to 274.5 bn Euro and
international sales of the publishing houses grew by 11.3% to 374 bn. Euro.

The magazines have again contributed the most to the company's turnover
and to the overall result.

The trend for magazines remains strong. They achieved 64.3% (2006: 65.1%)
in external sales, while the digital area reached 16.3% (2006: 14.4%),
dialogue marketing 9.8% (2006: 9.8%) and print 9.3% (2006: 10.4%).

In order to be able to respond to the changing market conditions, the
equity investment business of Burda Digital Ventures (BDV) was newly
structured. The majority of BDV investments have been looked after by Acton
Capital Partners, Munich. The new fund from Acton Capital Partners, Heureka
Growth, is also available to third party investors and concentrates on
technology-based and booming businesses which are already successful. Hubert
Burda Media will invest in this fund.

Christiane zu Salm, who has been on the board of directors at Hubert
Burda Media as Board Member for Cross Media since 1st April, has established
her area of responsibility and is creating an innovative platform for future
publishing-related digital business at Hubert Burda Media. The cross-media
strategy plans to stringently combine target groups according to fields of
interest, thereby creating vertical marketplaces (verticals) which will
combine and market the Burda brands together with partner brands. This will
therefore enable the company to reach a wide audience, which will create new
possible sources of income from online advertising and e-commerce. One of the
main focuses is also on the moving image market. Selected acquisitions and
investments in booming, publishing-related and strategic online business are
planned.

In 2008 and 2009 Hubert Burda Media will be focusing on the strategic key
aspects as well as further optimising the classic publishing business in the
areas of digital marketing, international magazines and direct marketing.
Digital media will complement the classic business areas. With a selected
cross-media strategy, strong networking and selected changes in structure,
the change in consumer behaviour towards digital media and other offerings
will be taken into account.

Downloadable graphic material: http://www.burda.de/bilanz/

Further Information:
    Hubert Burda Media
    Nikolaus von der Decken
    Company Spokesman
    Tel.:   +49(0)89-9250-2575
    Mobile: +49(0)172-7759-100
    presse@burda.com
    http://www.hubert-burda-media.de



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