Class Editori Results for First Quarter of 2004: Revenues at EUR 21.5 million EBITDA at EUR 1.1 million Start-up of Digital-terrestrial Television

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Public disclosure pursuant to Consob Resolution n.11971 of 14 May 1999

Class Editori Results for First Quarter of 2004: Revenues at EUR 21.5 million

EBITDA at EUR 1.1 million

Start-up of Digital-terrestrial Television

Milan, 13 May 2004 - In a meeting earlier today, the Board of Directors of Class Editori S.p.A., chaired by Victor Uckmar, reviewed the Company's activity and consolidated results for the first quarter of 2004.

Consolidated Results

Revenues for the first quarter of 2004 amounted to EUR 21.5 million, decreasing by 11.8 percent from the EUR 24.5 million posted in 2003. The decline is mainly attributable to the ongoing difficulties in the advertising market, and specifically by the lower level of investments in advertising in the financial services industry, caused in part by the virtual absence of major market transactions such as IPOs, tender offers and delistings. The result, besides, has been affected by the reduction in the number of subscribers to MFSat

and MF Trading, a consequence of the negative trend of activity in the financial markets, and by the loss in value of the dollar in relation to (the monthly) Global Finance’s revenues.

Notwithstanding new costs related to the start-up phase of Class News (Digital Terrestrial TV) and to the Corporate TV activity, expenditures for the first quarter fell to EUR 20.4 million from EUR 22.1 million in 2003. The significant reduction (-7,38%) is in line with the strategy implemented in the past two years, and is the result of substantial cuts in direct costs, which fell by 14.53 percent from EUR 12.8 million to EUR 10.9 million.


The gross operating profit (EBITDA) came to EUR 1.1 million versus EUR 2.4 million for the same period in 2003. The company sustained a net operating loss of EUR 1 million versus a net operating profit of EUR 0.25 million in the first quarter of 2003. On a pre-tax basis, the Company posted a loss of EUR 1.2 million versus a pre-tax loss of EUR 0.762 million in 2003.

The consolidated net financial position at 31 March 2004 was a deficit of EUR 12.6 million, and compares with a net financial deficit of EUR 7.5 million as of 31 March 2003, in consequence of the decision to utilize medium-long term bank credit, more profitable than assignment of claim operations.

Principal operating highlights for the first quarter of 2004 Publishing

The monthly magazine, Class, maintained its market leadership, with average circulation of roughly 82,300 copies (source: ADS).

MF/ Milano Finanza achieved average circulation of around 112,800 copies (source: ADS), which was stable with respect to the levels recorded in recent months, notwithstanding the growing lack of interest by the public in the financial markets. In March, the magazine was packaged with "Parmalat, La Grande Truffa" (Parmalat, The Big Scam), the first complete book on the collapse of the Parma-based multinational. Newsstand sales of the magazine rose by 100 percent during the first week in which the package was sold. Altogether, more than 100,000 copies of the book were sold, with the English-language edition also drawing interest.


Together with the operations of Cfn/Cnbc (in partnership with NBC-Vivendi Universal, Dow Jones, General Electric e Mediaset), the global digital tv channel providing the most


valuable financial information in Italian, as of the start of 2004, was up and running on Mediaset's digital terrestrial television (DTT) multiplex Class News, the new all-news Italian channel. In terms of the Company's strategy, this activity represents the key sector for future growth, along with the launch of internal television stations - Corporate TV - for two banks (Banca Intesa and Banca Popolare di Vicenza). These initiatives have entailed incremental expenditures for staffing, content acquisition and third-party services, all of which are typical of a start-up, hold down by other savings. The development of the DTT activity and, in particular, the related incorporation of financial and banking services available to the public, are expected to yield their first significant returns in the next few months. This can be expected to change the contribution of the various business segments to the Company's overall revenues, determining possible future growth in the turnover of the Publishing House.


In early 2004, new efforts went into expanding Radio Classica/ Milano Finanza. With the March acquisition of frequencies in Bari (FM 105.0) and in Turin (FM 98.7), the station now broadcasts across the Milan-Turin-Genoa-Verona rectangle and the highest income area in the southern part of Italy, thereby offering advertisers an extremely appetizing audience of listeners in terms of the socio-demographic mix.

Despite the ongoing weakness and uncertainty of the markets, the current outlook for 2004 incorporates a recovery of productivity based on: continuous attention to costs; the search for new advertising products and formats; the first returns from the significant investments made by the Company in the television business.



(in EUR 000's) 3 Months Ending

31 March 2004 3 Months Ending 31 March 2003 Sales revenues 21,599 24,509 Operating expenses 20,477 22,109 Gross profit 1,122 2,400

Depreciation and amortization 2,168 2,149

Operating profit (1,046) 251

Extraordinary charges (income) 45 698

Net interest income 123 315

Pre-tax profit (1,214) (762)

Revenues are subdivided as follows:

(in EUR 000's) 3 Months Ending

31 March 2004 3 Months Ending 31 March 2003 Newsstand revenues 2,946 3,222 Subscriptions 7,629 8,997 Advertising 10,043 11,016 Other revenues 981 1,274 Total revenues 21,599 24,509

Other business covered by the Board meeting

In addition to examining the report of operating performance for the first quarter, the Board of Directors:

- re-elected Paolo Panerai as Vice Chairman and Managing Director, and Pierluigi Magnaschi and Vittorio Terrenghi as Vice Chairmen. Last Shareholders meeting yet confirmed as President Victor Uckmar.

- set up an internal controls committee pursuant to the Self-Discipline Code for Publicly Traded Companies;

- adopted an "organization, management and controls model" and "code of ethics" in compliance with the provisions set forth in Law Decree n. 231 of 8 June 2001.



Notes for editorial staff

Class Editori

Class Editori is Italy's top publisher of financial news, lifestyle magazines and publications focused on luxury goods. Founded in 1986 by Paolo Panerai, the company has developed over the years by capitalizing on new technologies to become a multimedia information provider. The company's activity currently embraces newspapers and periodicals (MF/Milano Finanza, Class, Gentleman, Luna...), press agencies (MF Dow Jones News, joint venture with Dow Jones & Co.), economic news for professionals (Class Professionale), and finance (Milano Finance Intelligence Unit) The company is also involved in new media, including digital television and interactive media (Cfn/Cnbc, in partnership with NBC-Vivendi Universal, Dow Jones, General Electric and MediasetTV Banking), the Internet (MF Trading,, and radio (Radio Classica/Milano FInanza), video information systems (Telesia Sistemi), and news via satellite (MF Sat).

The most recent initiatives have regarded; the development of a financial news unit (Milano Finanza Intelligence Unit); and the transmission of news to cellular telephones (Cfn/Cnbc Mobile).

The most recent initiatives have regarded: Class News, an all-news television channel included in the multiplex (group of channels) broadcast by Mediaset using digital-cable technology; the creation of a new Business-TV division that will work on designing and building corporate television channels, mainly in the banking-financial area. The first station in operation is WebIntesa TV, which was created for Banca Intesa.

The shares of Class Editori (Ticker: CLE) have been quoted on the Milan Stock Exchange since 30 November 1998. For additional information, please contact:

Gian Marco Giura

Manager of Communications and Investor Relations

Tel: +39-02-58219395

Fax: +39-02-58219460


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