FNET Future

RNS Number:0030Z
Future Network PLC
16 February 2001




16 February 2001



                The Future Network plc Streamlines Operations



The Future Network plc (LSE : FNET), the international publisher of specialist
magazines, today announces measures which are designed to streamline the
company's portfolio, reduce operating costs, pay down debt and enhance
profitability.

The company will close or sell 20 loss-making magazines, out of a total
portfolio of 134 titles, and is reducing its Internet development costs. In
addition, the company announces that it has appointed Morgan Stanley Dean
Witter to review strategic alternatives for the next stage of the development
of its US-based magazine, Business 2.0.

The specific actions announced today include:


* Closure of six magazines in the US, including music magazine Revolution and
the US edition of T3.

* Closure of six smaller titles in the UK.

* Rationalisation of the French and German subsidiaries, with the closure of
eight loss making titles.

* Refocusing of Internet activity on the company's most successful web-sites,
with the closure of five smaller websites and a reduction of
approximately 75 staff in the US and the UK.

* Reduction in overhead costs in the UK, US, France and Germany.


The above actions will result in a reduction across the group of approximately
350 jobs out of a current workforce of approximately 2,000 employees.

Titles being closed in this process accounted for approximately 7% of group
revenues in 2000.  The closures will enable the Company to reduce its
investment spend in 2001 by approximately #5 million, to below #15 million,
which includes the losses already incurred on these titles in the first
quarter of 2001.  One-time restructuring costs, which are expected to be less
than #5m, are not included in the above figures.

Additionally, Morgan Stanley Dean Witter has been appointed to explore options
for the next stage of development of Business 2.0, including possible sale or
joint venture. Business 2.0 has enjoyed extraordinary success, rising to a
bi-weekly US circulation of 350,000 and the launch of international editions
in the UK, Germany, Italy and elsewhere.




Commenting on the changes, Greg Ingham, CEO of The Future Network Plc, said:

"Following a prolonged period of growth, Future has recently faced much
tougher market conditions. In response, we are refocusing our activities
around the high-passion specialist consumer audiences we have built the
business on.

"Future remains the world leader in computer games magazines and we are well
positioned to capitalise on the continued roll-out of Sony's PlayStation2 and
the worldwide launch of The Official Xbox Magazine beginning in the US later
this year."


Chris Anderson, Future's founder and chairman said:


"The company has spent the last 16 years building great media brands. On a
personal level, I'm deeply disappointed we are now having to cut back our
efforts and let people go. But tougher times require tough measures and this
is the absolutely the right decision for Future. Regarding Business 2.0, I'm
really proud of what we have built and I'm confident that whatever strategic
option we pursue, that magazine has a terrific future ahead of it.'


The Group's preliminary results for 2000 will be announced on March 19 2001.



                                    -ends-



For more information:



The Future Network plc                                         01225 442244

Greg Ingham, Chief Executive
Colin Morrison, Deputy Chief Executive
Ian Linkins, Finance Director

Hogarth Partnership                                            020 7357 9477
James Longfield

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