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media prima 07 cover_X5.ai11Marchʼ08 175# BLACKYELLOWMAGENTACYAN

O2A44696MAR08 WL_G5-39

WE BELIEVE THAT ONLINEPLATFORM WOULD ONE DAY BETHE NEXT POWERFUL MEDIAPLATFORM, AND WE’REPOSITIONING OURSELVES TO BETHERE WHEN THAT HAPPENS.Abdul Rahman Bin AhmadGroup Managing Director / Chief Executive OfficerMedia Prima Berhad

“ ”

VISION

To be a leadingMalaysian networked

media investment group thatprovides unique solutions to

advertisers and distinctive contentto consumers across all media

platforms; delivered with passion,teamwork and creativity andlooking to positively impactgrowth and profitability for

the benefit of allstakeholders.

Asia’s BestCompanies 2007

Best CorporateGovernance 2007

Prime Minister’sCorporate Social

Responsibility Award for Media Reporting

2007

contents

Notice of Annual General Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Statement Accompanying Notice of Annual General Meeting . . . . . .7

Our Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

Corporate Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

Corporate Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

Organisational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

Board of Directors’ Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

Senior Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25

Statement on Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . .36

Additional Compliance Information . . . . . . . . . . . . . . . . . . . . . . . . . .46

Statement on Internal Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48

Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51

Audit Committee Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54

5-Year Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60

Share Price Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62

Viewership and Listenership Data . . . . . . . . . . . . . . . . . . . . . . . . . . . .63

Chairman’s Message . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66

Review of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74

Calendar of Significant Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . .104

Awards and Recognition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .113

Corporate Social Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . .120

Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .132

Directors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .134

Income Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139

Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .141

Statement of Changes in Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . .143

Cash Flow Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145

Summary of Significant Accounting Policies . . . . . . . . . . . . . . . . . . .147

Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . .164

Statement by Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .215

Statutory Declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .215

Report of the Auditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .216

Analysis of Shareholdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .217

List of Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .226

Group Directory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .230

Proxy form

notice of annual general meeting

4

AGENDA

1. To receive and adopt the Statutory Financial Statements for

the financial year ended 31 December 2007 and the

Reports of the Directors and Auditors thereon.

(RESOLUTION 1)

2. To re-elect the following Directors who will retire in

accordance with Articles 101 and 102 of the Company’s

Articles of Association and being eligible, have offered

themselves for re-election:

(i) Abdul Rahman Bin Ahmad

(RESOLUTION 2)

(ii) Dato’ Sri Ahmad Farid Bin Ridzuan

(RESOLUTION 3)

(iii) Tan Sri Lee Lam Thye

(RESOLUTION 4)

3. To re-elect the following Director who will retire in

accordance with Article 106 of the Company’s Articles of

Association and being eligible, has offered himself for re-

election:

(i) Dato’ Abdul Kadir Bin Mohd Deen

(RESOLUTION 5)

4. To approve a final dividend of 9.3 sen per ordinary share

less 26 per cent income tax for the financial year ended 31

December 2007.

(RESOLUTION 6)

5. To approve the Directors’ fees of RM272,000.00 for the

financial year ended 31 December 2007.

(RESOLUTION 7)

6. To re-appoint Messrs PricewaterhouseCoopers as Auditors

of the Company and to authorise the Directors to fix their

remuneration.

(RESOLUTION 8)

AS SPECIAL BUSINESS

To consider and if thought fit, to pass the following resolutions

with or without modifications:

ORDINARY RESOLUTIONS

7. Authority to Allot and Issue Shares

“THAT, pursuant to Section 132D of the Companies Act,

1965, the Directors be and are hereby authorised to issue

shares in the Company at any time until the conclusion of

the next Annual General Meeting and upon such terms and

conditions and for such purposes as the Directors may in

their absolute discretion, deem fit provided that the

aggregate number of shares to be issued does not exceed 10

per cent of the issued share capital of the Company for the

time being, subject always to the approval of all regulatory

bodies being obtained for such allotment and issues.”

(RESOLUTION 9)

NOTICE IS HEREBY GIVEN that the Seventh (7th) Annual General Meeting of MEDIA PRIMA BERHAD (“the Company”) will

be held at Glenmarie Ballroom, Holiday Inn Glenmarie Kuala Lumpur, 1 Jalan Usahawan U1/8, Seksyen U1, 40250 Shah

Alam, Selangor, Malaysia on Tuesday, 29 April 2008 at 10.00 a.m. for the following purposes:

5

8. Proposed Renewal of Share Buy-Back Authority

“THAT, subject always to the Companies Act, 1965, the

provisions of the Memorandum and Articles of Association

of the Company, the Listing Requirements (“Listing

Requirements”) of Bursa Malaysia Securities Berhad (“Bursa

Securities”) and the approvals of all relevant governmental

and/or regulatory authorities (if any), the Company be and

is hereby authorised, to the extent permitted by law, to

purchase such amount of ordinary shares of RM1.00 each

in the Company (“Shares”) as may be determined by the

Directors of the Company from time to time through Bursa

Securities upon such terms and conditions as the Directors

may deem fit and expedient in the interest of the Company

provided that:

(i) the aggregate number of Shares purchased pursuant

to this resolution does not exceed 10 per cent of the

total issued and paid-up share capital of the Company

subject to a restriction that the issued and paid-up

share capital of the Company does not fall below the

applicable minimum share capital requirement of the

Listing Requirements;

(ii) an amount not exceeding the Company’s retained

profit and/or the share premium account at the time of

the purchase(s) will be allocated by the Company for

the Proposed Share Buy-Back; and

(iii) upon completion of the purchase by the Company of

its own Shares, the Directors of the Company are

authorised to deal with the Shares so purchased in any

of the following manner:

(a) cancel the Shares so purchased;

(b) retain the Shares so purchased as treasury shares

and held by the Company; or

(c) retain part of the Shares so purchased as treasury

shares and cancel the remainder

AND THAT the authority conferred by this resolution will

commence upon the passing of this resolution until:-

(i) the conclusion of the next Annual General Meeting

(“AGM”) of the Company following the forthcoming

7th AGM, at which time it shall lapse, unless by an

ordinary resolution passed at that meeting the

authority is renewed, either unconditionally or subject

to conditions; or

(ii) the expiration of the period within which the next

AGM is required by law to be held, or

(iii) revoked or varied by ordinary resolution passed by the

shareholders of the Company at a general meeting,

whichever occurs first.

AND THAT authority be and is hereby given

unconditionally and generally to the Directors of the

Company to take all such steps as are necessary or

expedient (including without limitation, the opening and

maintaining of central depository account(s) under the

Securities Industry (Central Depositories) Act, 1991, and

the entering into of all other agreements, arrangements

and guarantee with any party or parties) to implement,

finalise and give full effect to the aforesaid purchase with

full powers to assent to any conditions, modifications,

revaluations, variations and/or amendments (if any) as may

be imposed by the relevant authorities and with the fullest

power to do all such acts and things thereafter (including

without limitation, the cancellation or retention as treasury

shares of all or any part of the repurchased Shares) in

accordance with the Companies Act, 1965, the provisions

of the Memorandum and Articles of Association of the

Company and the requirements and/or guidelines of Bursa

Securities and all other relevant governmental and/or

regulatory authorities.”

(RESOLUTION 10)

9. To transact any other business for which due notice shall

have been received.

notice of annual general meeting cont’d

6

NOTICE OF DIVIDEND ENTITLEMENT AND PAYMENT

NOTICE IS ALSO HEREBY GIVEN that a final dividend of 9.3

sen per ordinary share less 26 per cent income tax for the

year ended 31 December 2007, if approved by the

shareholders at the 7th Annual General Meeting, will be paid

on 18 July 2008 to Depositors whose names appear in the

Record of Depositors at the close of business on 30 June 2008.

A Depositor shall qualify for entitlement to the dividend only in

respect of:

a. shares transferred into the Depositor’s Securities Account

before 4.00 p.m. on 30 June 2008 in respect of transfers;

b. shares deposited into the Depositor’s Securities Account

before 12.30 p.m. on 26 June 2008 in respect of shares

exempted from mandatory deposit; and

c. shares bought on Bursa Securities on a cum entitlement

basis according to the Rules of Bursa Securities.

BY ORDER OF THE BOARD

ROSELINDA HASHIM (LS 0008976)

TAN SAY CHOON (MAICSA 7057849)

Company Secretaries

Petaling

Date: 3 April 2008

Notes:

1. A member of the Company entitled to attend and vote at the meeting isentitled to appoint one or more proxies (or in the case of a corporation,to appoint a representative) to attend and vote in his stead. A proxyneed not be a member of the Company.

2 The Proxy Form must be signed by the appointor or his attorney dulyauthorised in writing. In the case of a corporation, it shall be executedunder its Common Seal or signed by its attorney duly authorised inwriting or by an officer on behalf of the corporation.

3. The instrument appointing the proxy must be deposited at TheRegistrar, Symphony Share Registrars Services Sdn. Bhd., Level 26,Menara Multi Purpose, Capital Square, No. 8 Jalan Munshi Abdullah,50100 Kuala Lumpur, Malaysia not less than 48 hours before the timeappointed for holding the meeting or any adjournment thereof.

4. Explanatory Notes on Special Business:

a. Resolution 9

The proposed Resolution 9 if passed, will empower the Directors toissue shares of the Company up to a maximum of 10 per cent ofthe issued share capital of the Company for the time being forsuch purposes as the Directors consider would be in the interest ofthe Company. This authority, unless revoked or varied at a generalmeeting will expire at the conclusion of the next Annual GeneralMeeting of the C ompany. The rationale for this resolution is tosave cost and time for convening a general meeting.

b. Resolution 10

Please refer to the Statement to Shareholders dated 3 April 2008for further information.

7

statement accompanying notice of annual general meeting

Directors who are standing for re-election and re-appointment at the Seventh (7th) Annual General Meeting of Media

Prima Berhad are:

Directors retiring by rotation pursuant to Articles 101 and 102 of the Company’s Articles of Association:-

(i) Abdul Rahman Bin Ahmad

(RESOLUTION 2)

(ii) Dato’ Sri Ahmad Farid Bin Ridzuan

(RESOLUTION 3)

(iii) Tan Sri Lee Lam Thye

(RESOLUTION 4)

Director retiring by rotation pursuant to Article 106 of the Company’s Articles of Association:

(i) Dato’ Abdul Kadir Bin Mohd Deen

(RESOLUTION 5)

The details of the above Directors who are seeking re-election or re-appointment are set out in the “Board of Directors Profiles”

which appear from pages 16 to 24 of the Annual Report.

The details of Directors’ securities holdings in the Company are set out in the “Statement of Directors’ Interests” which appear on

page 217 of the Annual Report.

Media Prima Berhad (Media Prima), the leading integrated mediainvestment group in Malaysia, was listed on the Main Board of BursaMalaysia (the Malaysian Stock Exchange) on 22 October 2003.

The Group has a diversified interest in both the electronic (TV andradio) and print media apart from content development, eventmanagement and outdoor advertising.

Media Prima’s origins date back to 1983 when shareholders of TheNew Straits Times Press (Malaysia) Berhad (NSTP) launched TV3, thenation’s first private TV network, in June 1984. TV3 subsequentlywent public in April 1988 and was placed together with NSTP underthe holding of Malaysian Resources Corporation Berhad (MRCB).These media assets were unbundled and established under aseparate holding company, Media Prima, in September 2003.

The year 2004 welcomed the incorporation of 8TV into MediaPrima’s portfolio while the following year saw the acquisitions oftwo more TV networks, ntv7 and TV9, thus consolidating theGroup’s leadership in the broadcast industry and bringing the totalto four free-to-air TV networks in Malaysia.

Media Prima also has interests outside Malaysia and the 1997venture in TV3 Ghana, which has since emerged as Ghana’spreferred free-to-air TV network, has proven to be a strategicexpansion of its media assets. Besides the TV networks, it also has a43 per cent equity interest in NSTP, one of Malaysia’s largestpublishing groups that publishes leading newspaper titles such asthe New Straits Times, Berita Harian and Harian Metro.

The Group also owns two radio networks, Fly FM and Hot FM.Media Prima acquired Perintis Layar Sdn. Bhd., the holdingcompany of Max-Airplay Sdn. Bhd. (Max) on 29 April 2005. Maxhas been awarded the right to manage, operate and maintain aradio station by Malaysia Airports (Sepang) Sdn. Bhd. Having madea record of sorts by becoming the first radio station in the world tobe located in an airport when it began broadcasting in October2005, Fly FM is fast becoming a real hit among its target listenerswith its tagline, “It’s All About the Music”. As Malaysia’s fastestgrowing English radio station with a reach of 378,000 plus apotential market of 25 million passenger arrivals at Kuala LumpurInternational Airport (KLIA), Fly FM is now ranked No.2 Englishradio station for the under 30’s demographic.

On Fly FM, advertisements are fresh, less cluttered and targeted tothe right audience through lifestyle-driven personalities. Fly FMprovides an integrated marketing plan with other Media Primagroup’s channels to maximise clients’ reach and frequency, withoptions to focus on spot buy campaigns, venturing into a creativesales promo with the station plus other media such as SMS, websiteand on-ground daily promotions team by its “Fly FM Troopers”.

Synchrosound Studio Sdn. Bhd., the license owner of Hot FM wasacquired by Media Prima on 30 December 2005.

Hot FM is the fastest growing local Malay radio station, havingcaptured 2.9 million listeners within eight weeks of its launch on 1February 2006. Aimed at young urban Malay listeners with a tagline“Lebih Hangat Daripada Biasa” (Hotter than Usual), Hot FM is nowrated Malaysia’s overall No.2 radio network – an impressive trackrecord achieved within two months of its debut on the airwaves. Asthe second radio station within the Media Prima group andoperating within the group’s broadcasting heart, Sri Pentas, Hot FMis able to offer creative and integrated marketing solutions withother electronic and print media to maximise clients’ reach andfrequency. Cross-promotional activities include SMS, website andon-ground daily promotions team (Hot FM Zoomerz) can also beextended to other channels.

Media Prima has also extended its wing into the new media realmwith the launch of the online portal, gua.com.my on 11 September2007. The online portal which name translates into ‘I’ or ‘cave’ inEnglish, provides internet users with the latest scoop on happeningsin the entertainment world, both local and international, and hasachieved 1 million hits in its first month. Having gained entry into theMalaysia Book of Records for the country’s first online drama seriesKerana Karina which was produced in partnership with GrandBrilliance Sdn. Bhd., on its three-month anniversary, ‘Gua’ places itselfas one of the country’s leading online entertainment portal. The webdrama recorded a startling 520,000 views since it first went online on29 November 2007, surpassing the initial estimate of 10, 000 views.By year end, ‘Gua’ had received 12 million page views.

The group has also launched the country’s first third generation(3G) mobile television service under the new media project whichserves as a channel for users to view programmes from televisionnetworks, TV3, ntv7, 8TV and TV9 on their 3G-enabled mobiledevices at affordable rates.

Other cross media interests of Media Prima include content creation(Grand Brilliance Sdn. Bhd.), events management (Big Events Sdn.Bhd.) and outdoor advertising (Big Tree Outdoor Sdn. Bhd., UPDSdn. Bhd. and The Right Channel Sdn. Bhd.).

Media Prima’s media platform offer unparalleled and cost-efficientreach to advertisers, seeking to target different market segments.Collectively, Media Prima’s media assets currently reach close to 21million Malaysians daily, including 11.2 million television viewers,6.8 million newspaper readers and 4.3 million radio listeners.

TV3 continues to be the station of choice for all Malaysians, claiminga 33% share of viewers nationwide in 2007. TV9 which was onlylaunched in May 2006 recorded its maiden profit from operations forthe year, after breaking even only after 16 months of operation.

NSTP has also made significant inroads in the print media. TheNew Straits Times continues to improve after going fully compactin April 2005, enabling it to achieve an eight per cent increase insales in 2005. Berita Harian has emerged as the No. 1 BahasaMalaysia newspaper while Harian Metro is now the leading BahasaMalaysia tabloid.

our profile

8

9

AUDIT COMMITTEE MEMBERS

Dato’ Dr Mohd Shahari Bin Ahmad Jabar*

Dato’ Abdul Mutalib Bin Datuk SeriMohamed Razak*

Tan Sri Lee Lam Thye*

Abdul Rahman Bin Ahmad

Dato’ Seri Mohamed Jawhar*

COMPANY SECRETARIES

Roselinda Binti Hashim (LS0008976)Jessica Tan Say Choon (MAICSA7057849)

REGISTERED OFFICE

Media Prima BerhadSri PentasNo 3, Persiaran Bandar UtamaBandar Utama, 47800 PetalingSelangor Darul EhsanTel : 03 7726 6333Fax : 03 7728 0787

REGISTRAR

Symphony Share Registrars Sdn. Bhd.Level 26, Menara Multi PurposeCapital SquareNo 8, Jalan Munshi Abdullah50100 Kuala LumpurTel : 03 2721 2222Fax : 03 2721 2530 / 31

AUDITORS

PricewaterhouseCoopersLevel 10, 1 Sentral Jalan TraversKuala Lumpur SentralP. O. Box 1019250706 Kuala LumpurTel : 03 2173 1188Fax : 03 2173 1288

SOLICITORS

M/s Arifin & Partners Advocates & SolicitorsUnit A3-8, Block AMegan Phileo Promenade189, Jalan Tun Razak50400 Kuala LumpurTel : 03 2162 0499Fax : 03 2162 0490

M/s Zaid Ibrahim & CoAdvocates & SolicitorsLevel 19, Menara MileniumPusat Bandar Damansara50490 Kuala LumpurTel : 03 2087 9999Fax : 03 2094 4888

M/s TH Liew & PartnersAdvocates & SolicitorsSuite PH1, Penthouse LevelWisma UOA PantaiNo. 11, Jalan Pantai Jaya (Jalan 4/83A)59200 Kuala LumpurTel : 03 2241 9000Fax : 03 2241 9001

M/s Mazlan & AssociatesAdvocates & SolicitorsLevel 3A Wisma E & C2 Lorong Dungun KiriDamansara Heights50490 Kuala LumpurTel : 03 2715 8802Fax : 03 2715 8801

BANKER

Malayan Banking BerhadNo 2, Lorong Rahim Kajai 14Taman Tun Dr Ismail60000 Kuala LumpurTel : 03 7727 9459Fax : 03 7729 2770

MEDIA PRIMA BERHAD

Abdul Rahman Bin AhmadGroup Managing Director /Chief Executive Officer

Dato’ Sri Ahmad Farid Bin RidzuanGroup Chief Executive Officer, Television Networks

Dato’ Amrin Bin AwaluddinGroup Advisor

Datuk Hj Kamarulzaman Bin Hj ZainalGroup Director, News & Current Affairs,Television Networks

Amil Izham Bin HamzahGroup Chief Financial Officer

* Independent Non-Executive Director

BOARD OF DIRECTORS

Dato’ Abdul Mutalib BinDatuk Seri Mohamed Razak*

Abdul Rahman Bin AhmadGroup Managing Director /

Shahril Ridza Bin Ridzuan

Dato’ Dr Mohd Shahari Bin Ahmad Jabar*

Tan Sri Lee Lam Thye*

Dato’ Sri Ahmad Farid Bin Ridzuan

Datuk Hj Kamarulzaman Bin Hj Zainal

Dato’ Seri Mohamed Jawhar*

Dato’ Abdul Kadir Bin Mohd Deen*

corporate information

10

Badariah Binti JalilGroup General Manager, Corporate Affairs

Zuraidah Binti AtanGroup Chief Technology Officer

Iskandar Sham Bin Abd RasapGroup General Manager, Finance

Peter Chin Chee MinGroup Creative Director & General Manager, Creative ServicesTelevision Networks

Sere Mohammad Bin Mohd KasimGroup General Manager, CorporateGovernance & Risk Management

Roselinda Binti HashimCompany Secretary / Group General Manager, Legal & Secretarial

Laili Hanim Binti MahmoodGroup General Manager, Regulatory AffairsTelevision Networks

Eliza Binti Mohamed General Manager, Communications

Shareen Ooi Bee Hong Group General Manager, Client ServicesTelevision Networks

Tan Kwong MengGroup General Manager, EngineeringTelevision Networks

Tuan Hj Zulkifli Bin Hj Mohd SallehGroup General Manager,Business DevelopmentTelevision Networks

Abdul Rashid Bin Malik Khushi MuhammadGroup General Manager,Airtime Management GroupTelevision Networks

Mohamad Azri Bin AbdulGeneral Manager, Client Services Television Networks

Nor Arzlin Binti RedzwanGeneral Manager,Human Resources ManagementTelevision Networks

Cheah Cheng ImmGeneral Manager,Acquisition & Content ManagementTelevision Networks

Marzina Binti AhmadManager, ResearchTelevision Networks

Nyarose Binti Mohd JaafarManager, Management ServicesTelevision Networks

SISTEM TELEVISYEN MALAYSIA BERHAD

Dato’ Sri Ahmad Farid Bin RidzuanChief Executive Officer

Dato’ Anthony @ Firdauz BujangDirector of Operations

Farisha Binti PawantehGeneral ManagerBrand Management Group

Azhar Bin BorhanGeneral ManagerEntertainment, Sports & Recreational

Lennon Lim Yen LeongGeneral Manager, Production,Entertainment, Sports & Recreational

Shaharudin Bin Abd LatifGeneral ManagerNew & Current Affairs

Wee Your LeeGeneral Manager, News GatheringNew & Current Affairs

Nurul Aini Binti Abu BakarGeneral Manager, Mass Market Brand Management Group

Ahmad Kamaludin Bin Zaba’aiGeneral ManagerMagazine, Documentary & Family

Badariah Binti JalilGeneral Manager, CorporateCommunications

NATSEVEN TV SDN. BHD.

Dato’ Amrin Bin AwaluddinChief Executive Officer

Shariman Bin Zainal AbidinGeneral Manager,Airtime Management Group

Dr Ahmad Zaki Bin Mohd SallehGeneral Manager,Engineering & Information Technology

Mohsin Bin AbdullahEditor-in-Chief, News

Sofwan Bin MahmoodDeputy Editor-in-Chief, News

Kamarul Zamli Bin RamlyManager, Content Creation Group

Sarvant Kaur a/p Bulvant Singh Manager, Brand Communications & Publicity

Jeannie Leong Lee EuManager, Business Development &Marketing Communications

Alwi Yusni Bin YahyaManager, Human Resources &Management Services

Mohamad Anizan Bin SariffManager, Chief Executive Officer’s Office

corporate information cont’d

11

METROPOLITAN TV SDN. BHD.

Ahmad Izham Bin OmarChief Executive Officer

Lam Swee KimGeneral Manager Business Development, Marketing &Communications

Nur Airin Binti Zainul General ManagerBrand Management

Sunil Kumar Head, Technical Production & Special Projects

Mas Ayu Binti Ali Head, Content Creation Group

CH-9 MEDIA SDN. BHD.

Bukhari Bin Che MudaChief Operating Officer

Sa’adullah Bin Che NoorExecutive Editor, News

Farah Ezrin Binti Mohd RashidiGeneral Manager, Brand Management &Special Projects

Siti Aishah Binti Abu BakarManager, Business Development &Marketing Communications

Che Wan Alias Bin AbdullahManager, Educational Programmes

Nuraeshah Binti MalikManager, Magazine Programmes

GRAND BRILLIANCE SDN. BHD.

Ahmad Puad Bin OnahGeneral Manager

Tengku Iesta Bin Tengku AlauddinFinancial Controller

Ahmad Fadzil Bin Abdul ManapManager, Film Distribution & Media Sales

Jalena Binti RejabManager, Drama Production

Rosihan Zain Bin BaharudinManager, Film Production

SYNCHROSOUND STUDIO SDN. BHD. /MAX-AIRPLAY SDN. BHD.

Ahmad Izham Bin OmarHead, Radio Networks

Seelan Paul General Manager, Radio Networks

Zurina Binti OthmanManager, Brand & Promotions

Alfred Juan AnthonyNetwork Senior Sales Manager

Mohd Akhmal Bin AndakNetwork Engineering Manager

ALT MEDIA SDN. BHD.

Mohd Zulkifli Bin Abd JalilGeneral Manager, Lifestyle Portals/Headof Content Creation

Paul MossGeneral Manager, Network Media Portals

Roy Navonil SubrataGroup General Manager,Marketing & Strategy

BIG TREE OUTDOOR SDN. BHD.

Suridah Binti JalaluddinChief Executive Officer

Mohammad Azlan Bin AbdullahChief Operating Officer

TV3 NETWORKS LIMITED

Syed Zaidi Bin Syed Ahmad AkilChief Executive Officer

Suhaimi Bin Sheikh MuhamadChief Operating Officer

THE NEW STRAITS TIMES PRESS(MALAYSIA) BERHAD

Dato’ Syed Faisal Albar Bin A.R AlbarChief Executive Officer

Dato’ Hishamuddin Bin AunGroup Editor-In-Chief

Dato’ Syed Nadzri Bin Syed HarunGroup Editor, New Straits TimesDirector, English Publications

Dato’ Manja Bin IsmailGroup Editor, Berita HarianDirector, Malay Publications

Jezilee Bin Mohd RamliChief Financial Officer / Finance Director

Tun Ibrahim Bin Mohd JafriProduction Director

Mimi Megawati Binti Abdul WahidMarketing Director

Abdul Wahab Bin MohamadHuman Capital Director

Tasman Harith Bin IsmailHead, Circulation

Zafrul Shastri Bin HashimHead, Legal & Secretarial

Abd Rahman Bin HashimHead, Information Technology

Badrul Hisham Bin MahzanGeneral Manager, Advertising Sales

corporate structure

12

Grand Brilliance Sdn. Bhd.100%

Big EventsSdn. Bhd.100%

Event Management PrintTV Broadcasting

SistemTelevisyenMalaysia Berhad

100%

Metropolitan TV Sdn. Bhd.

100%

CH-9 Media Sdn. Bhd.100%

Natseven TV Sdn. Bhd.100%

TV3 Ghana100%

BIG EVENTS

The New Straits TimesPress (Malaysia)Berhad (NSTP)

43.29%

Content Creation

13

Outdoor New Media

Media Prima

Radio Networks

Max-Airplay Sdn. Bhd.

75%

Big Tree

Outdoor Sdn. Bhd.

100%

Alt Media Sdn. Bhd.(formerly known as Cineart

Enterprises Sdn. Bhd.)

100%

UPD Sdn. Bhd. 100%

The Right

Channel Sdn. Bhd.

100%

Synchrosound Studio Sdn. Bhd.

100%

TELEVISION NETWORKSGroup Chief

Executive OfficerDato’ Sri Ahmad

Farid Ridzuan

TV3Chief Executive Officer

Dato’ Sri Ahmad Farid Ridzuan

TV3Director of Operations

Dato’ Anthony @ Firdauz Bujang

Director, NCA,TELEVISION NETWORKSDatuk Hj Kamarulzaman

Bin Hj Zainal

ntv7Chief Executive OfficerDato’ Amrin Awaluddin

8TVChief Executive Officer

Ahmad Izham Omar

TV9Chief Operating Officer

Bukhari Che Muda

INTERNATIONAL

TV3 GHANAManaging Director Syed Ahmad Zaidi

Chief Operating OfficerSuhaimi Sheikh Mohamed

TBA

EVENTSCONTENT CREATION

GRAND BRILLIANCEGeneral ManagerAhmad Puad Onah

organisational structure

14

BOARD OF DIRECTORSDato’ Abdul Mutalib Bin Datuk Seri Mohamed Razak

CHAIRMAN

GMD’s OFFICEAdvisor, MPB

Dato’ Amrin Awaluddin

GROUP MD/CEOAbdul Rahman

Bin Ahmad

MPB CORP GOVERNANCE & RISK MANAGEMENTGroup General Manager

Sere Mohammad Mohd Kasim

OUTDOOR

BIG TREEChief Executive Officer

Suridah Jalaluddin Director of Operations

Muhammad Azlan Abdullah

NSTPChief Executive Officer

Dato’ Syed FaisalAlbar A.R Albar

PRINT

MPBFinance & Corporate

AffairsGroup Chief

Financial OfficerAmil Izham Hamzah

Corporate AffairsGroup General Manager

Badariah Jalil

MPBFinance

Group General Manager Iskandar Sham

Abd Rasap

Communications General Manager

Eliza Mohamed

MPB Legal & Secretarial

Group General ManagerRoselinda Hashim

Group Chief Technology Officer

Zuraidah Atan

Corporate Finance Manager

Fazlin Shaari

15

HoT FM / Fly FMGeneral Manager, Radio Networks

Seelan Paul

Head of Radio NetworksAhmad Izham Omar

RADIO NETWORKS

board of directors’ profile

16

Dato’ Abdul Mutalib Bin Datuk Seri Mohamed Razak, aged 65, aMalaysian, is the Chairman of Media Prima. An Independent Non-Executive Director, he joined the Board of Media Prima on 5December 2003 and was appointed Non-Executive Chairman ofMedia Prima on 14 March 2005. He is also a member of the AuditCommittee, Nomination Committee and RemunerationCommittee of Media Prima.

Dato’ Abdul Mutalib currently sits on the Board of Mardec Berhad,The New Straits Times Press (Malaysia) Berhad (NSTP) and SistemTelevisyen Malaysia Berhad (TV3), of which he is the Chairman. Heis also Chairman of Metropolitan TV Sdn. Bhd. (8TV), Natseven TVSdn. Bhd. (ntv7), Ch-9 Media Sdn. Bhd. (TV9), Max-Airplay Sdn.Bhd. (Fly FM), Synchrosound Studio Sdn. Bhd. (Hot FM), GrandBrilliance Sdn. Bhd., Big Tree Outdoor Sdn. Bhd. (BTO) andDirector of AmanahRaya Capital Group Sdn. Bhd.

Dato’ Abdul Mutalib was the Secretary/Legal Advisor to the UrbanDevelopment Authority from 1972 to 1975. He then went intoprivate practice under the name Messrs Mutalib, Sundra & Low,later renamed Mutalib, Wan & Co, of which he is currently theSenior Partner. In 1984, Dato’ Abdul Mutalib was appointedTrustee Director of Yayasan Pembangunan Ekonomi Islam Malaysia(YPEIM), a post he held until 1988. He was also the CompanySecretary of Yayasan Bumiputra Pulau Pinang Berhad from 1980 to1990 and Deputy Chairman of Setron (M) Berhad from 1987 to1990. He is one of the Presidents of the Tribunal for ConsumerClaims and sits on the Board of various private companies.

He obtained a Bachelor of Arts (Hons) degree in Political Sciencefrom the University of Singapore in 1967 and was called to the Bar

at The Honorable Society of Lincoln’s Inn, London, in 1970. Dato’ Mutalib was admitted as an Advocate & Solicitorfor the States of Malaya in May 1971.

Other than as disclosed, he does not have any familyrelationship with any Directors and/or major

shareholders of Media Prima. He has no personal interest in any business arrangements involvingMedia Prima. He has had no convictions for any

offences within the past ten years.

Dato’ Abdul Mutalib Bin Datuk Seri Mohamed Razak

17

Abdul Rahman Bin Ahmad, aged 39, a Malaysian, is the GroupManaging Director/Chief Executive Officer of Media Prima. Hewas appointed to the Board of Media Prima on 22 October 2001.

Before his appointment as the Group Managing Director/ChiefExecutive Officer of Media Prima on 1 September 2003, he wasthe Chief Executive Officer of Malaysian Resources CorporationBerhad (MRCB), a position he took up in August 2001. Hecurrently sits on the Board of MRCB, NSTP, TV3, ntv7, 8TV, TV9,Fly FM, Hot FM, BTO and Composite Technology ResearchMalaysia Sdn. Bhd. He is also Chairman of The Talent Unit Sdn.Bhd. (formerly known as Tiga Events Sdn. Bhd.) and AlternateRecords Sdn. Bhd. (formerly known as Ambang Klasik Sdn.Bhd.). He is also the Executive Director of TV3 and a member ofthe Audit Committee of Media Prima.

Abdul Rahman was an Assistant Manager at Arthur Andersen,London, from 1992 to 1996, after which he held the position ofSpecial Assistant to the Executive Chairman of Trenergy (M) Berhad/Turnaround Managers Inc (M) Sdn. Bhd. until 1999. He subsequently joined Pengurusan Danaharta Nasional Berhad as a Unit Head from 1999 to 2000 and went onto become an Executive Director of SSR Associates Sdn. Bhd.until August 2001.

He holds a Master of Arts from Cambridge University, England, and is a member of the Institute of Chartered Accountants, England & Wales.

Other than as disclosed, he does not have any family relationship with any Directors and/or major shareholdersof Media Prima. He has no personal interest in any business arrangements involving Media Prima. He has had no convictions for any offences within the past ten years.


board of directors’ profile cont’d

18

Dato’ Sri Ahmad Farid Bin Ridzuan, aged 47, a Malaysian, is theGroup Chief Executive Officer, Television Networks of MediaPrima. He was appointed to the Board of Media Prima on 30August 2006.

Before his appointment as the Group Chief Executive Officer,Television Networks of Media Prima on 1 January 2006, he wasthe Chief Executive Officer of TV3, a position he took up in April 2002. He currently sits on the Board of TV3, ntv7, 8TV,TV9, Hot FM, Fly FM, Grand Brilliance Sdn. Bhd. and Big EventsSdn. Bhd.

Dato’ Sri Farid was an Executive Director at Leo BurnettAdvertising from 1998 to 2002. He has fifteen years of line andstaff experience specialising in general management, strategicmarketing, regional and international business developmentand corporate communications.

He holds a MBA in International Business from US InternationalUniversity, San Diego, California; and BBA Marketing (Major) and

BBA Management (Minor) from Western Michigan University,Kalamazoo, Michigan, USA.

Other than as disclosed, he does not have any familyrelationship with any Directors and/or major

shareholders of Media Prima. He has no personalinterest in any business arrangements involvingMedia Prima. He has had no convictions for anyoffences within the past ten years.

Dato’ Sri Ahmad Farid Bin Ridzuan

19

Datuk Hj Kamarulzaman Bin Hj Zainal, aged 51, a Malaysian, isthe Group Director, News & Current Affairs, Television Networksof Media Prima. He was appointed to the Board of Media Primaon 30 August 2006.

Before his appointment as the Group Director, News & CurrentAffairs, Television Networks of Media Prima on 1 January 2006,he was the Director, News & Current Affairs division of TV3, aposition he took up in October 2003. He currently sits on theBoard of TV3, JAKS Resources Berhad and various privatecompanies.

Datuk Hj Kamarulzaman was the Executive Secretary, MalaysianStudents Union in United Kingdom and Eire from 1979 to 1981,after which he held the position of Press Secretary to theForeign Minister until 1998. Later he was appointed as the Press Secretary to the Deputy Prime Minister from 1999 to 2003.

He holds a Diploma in Mass Communications and Journalism from the London School of Journalism.

Other than as disclosed, he does not have anyfamily relationship with any Directors and/or major shareholders of Media Prima. He has no personalinterest in any business arrangements involvingMedia Prima. He has had no convictions for any offences within the past ten years.

Datuk Hj Kamarulzaman Bin Hj Zainal


20

Shahril Ridza Bin Ridzuan aged 38, a Malaysian, is a Non-Independent Non-Executive Director of Media Prima. He wasappointed to the Board of Media Prima on 22 October 2001.

Shahril Ridza currently sits on the Board of MRCB, where he isalso the Group Managing Director, Pengurusan DanahartaNasional Berhad, NSTP, UDA Holdings Berhad and BTO. He isalso a member of the Remuneration Committee of Media Prima.

Shahril Ridza was a Legal Assistant at Zain & Co from 1994 to1996. He then took up the position of Special Assistant to theExecutive Chairman of Trenergy (M) Berhad/TurnaroundManagers Inc (M) Sdn. Bhd. from 1997 to 1998. He subsequentlyjoined Pengurusan Danaharta Nasional Berhad, where he serveduntil 1999, when he became an Executive Director at SSR Associates Sdn. Bhd. until August 2001.

He holds a Bachelor of Civil Law (1st Class) from Oxford University, England, a Master of Arts (1st Class)from Cambridge University, England, and was called to the Malaysian Bar and the Bar of England & Wales.

Other than as disclosed, he does not haveany family relationship with any Directorsand/or major shareholders of Media Prima. He has no personal interest in any businessarrangements involving Media Prima.He has had no convictions for any offences within the past ten years.

Shahril Ridza Bin Ridzuan

21

Tan Sri Lee Lam Thye, aged 62, a Malaysian, is an IndependentNon-Executive Director of Media Prima. He was appointed to theBoard of Media Prima on 18 August 2003, and is the Chairmanof the Nomination Committee as well as a member of the AuditCommittee and Remuneration Committee of Media Prima.

Before retiring from politics in 1990, Tan Sri Lee was the electedState Legislative Assemblyman for Bukit Nenas, Selangor, from1969 to 1974 and served as a Member of Parliament for KualaLumpur Bandar/Bukit Bintang from 1974 to 1990. He currentlyserves as the Chairman of the National Institute of OccupationalSafety & Health and the National Service Training Council. He isalso the Vice-Chairman of the Malaysia Crime PreventionFoundation and a Member of the Kuala Lumpur City HallAdvisory Board. He has previously served as a Member of theSpecial Royal Commission to enhance the operations andmanagement of the Royal Malaysian Police. In the privatesector, Tan Sri Lee serves as a Non-Executive Director to a fewcompanies, namely AMDB Berhad, MBM Resources Berhad, S PSetia Berhad and 8TV.

Tan Sri Lee completed his secondary education at Saint Michael’s Institution, Ipoh, Perak, and obtained his Senior Cambridge Certificate in 1965.

Other than as disclosed, he does not have any familyrelationship with any Directors and/or major shareholdersof Media Prima. He has no personal interest in anybusiness arrangements involving Media Prima. He has hadno convictions for any offences within the past ten years.

Tan Sri Lee Lam Thye


22

Dato’ Dr Mohd Shahari Bin Ahmad Jabar, aged 71, a Malaysian,is an Independent Non-Executive Director of Media Prima. Hewas appointed to the Board of Media Prima on 18 August 2003.He is also the Chairman of the Audit Committee of Media Prima.

Upon graduation in 1960, Dato’ Dr Mohd Shahari was inductedinto the Malaysian Civil Service and served in several capacitiesat national and international levels, until his retirement in 1991.He is currently Chairman of Peakline Sdn. Bhd. He currently sitson the Board of EON Bank Berhad, EON Capital Berhad, EONCAP Islamic Bank Berhad, MIMB Investment Bank Berhad, KLSentral Sdn. Bhd., MRCB, Radicare (M) Sdn. Bhd., Radibems(M) Sdn. Bhd., Realmild (M) Sdn. Bhd., Uni. Asia AssuranceBerhad, Uni. Asia General Insurance Berhad and Uni. Asia LifeAssurance Berhad.

He holds a Bachelor of Arts degree from the Universityof Malaya. He obtained his Master in Social Sciencefrom the International Institute of Social Studies, Hague,

Holland, in 1972 under a Dutch Government Fellowship.In 1978, he obtained a Ph D (Political Science) from theUniversity of Hawaii, USA, under a Fulbright-HaysFellowship.

Other than as disclosed, he does not have any familyrelationship with any Directors and/or major shareholdersof Media Prima. He has no personal interest in anybusiness arrangements involving Media Prima. He has had

no convictions for any offences within the past ten years.

Dato’ Dr Mohd Shahari Bin Ahmad Jabar

23

Dato’ Seri Mohamed Jawhar, aged 63, a Malaysian, is anIndependent Non-Executive Director of Media Prima. He wasappointed to the Board of Media Prima on 30 August 2006. Heis also a member of the Audit Committee and the NominationCommittee of Media Prima.

Dato’ Seri Mohamed Jawhar is currently the Chairman of NSTP.He also sits on the Board of Affin Islamic Bank Berhad.

Dato’ Seri Mohamed Jawhar served with government before hejoined the Institute of Strategic and International Studies (ISIS)Malaysia. He is currently the Chairman and Chief ExecutiveOfficer of ISIS Malaysia. He is also presently Chair, ASEANInstitutes of Strategic and International Studies (ASEAN-ISIS)and Co-Chair, Council for Security Cooperation in the AsiaPacific (CSCAP). His positions in government included Director-General, Department of National Unity-Under Secretary,Ministry of Home Affairs and Principal Assistant Secretary,National Security Council. He also served as Counsellor in theMalaysian Embassies in Indonesia and Thailand.

He holds a BA Hons, University of Malaya.

Other than as disclosed, he does not have any familyrelationship with any Directors and/or major shareholders ofMedia Prima. He has no personal interest in any businessarrangements involving Media Prima. He has had noconvictions for any offences within the past ten years.

Dato’ Seri Mohamed Jawhar


24

Dato’ Abdul Kadir Bin Mohd Deen, aged 64, a Malaysian, is anIndependent Non-Executive Director of Media Prima. He wasappointed to the Board of Media Prima on 29 May 2007. He isalso the Chairman of the Remuneration Committee and amember of the Nomination Committee of Media Prima.

Dato’ Abdul Kadir currently sits on the board of Halim MazminBerhad, TV3, ntv7 and presently is the Chairman of MITInsurance Brokers Sdn. Bhd., Eco Motive Sdn. Bhd. and BigEvents Sdn. Bhd.

He holds a B.A. (HONS) from University of Lancaster, UnitedKingdom.

Other than as disclosed, he does not have any familyrelationship with any Directors and/or major shareholdersof Media Prima. He has no personal interest in any business

arrangements involving Media Prima. He has had noconvictions for any offences within the past ten years.

Dato’ Abdul Kadir Bin Mohd Deen

25

senior management

This year, our senior management team describes how personal passionsare a reflection of what drives their professional performance.

My passion before joining the Group has always been watchingsports – football, rugby and even cricket. However, since then Ihave fallen in love with films.

I have always enjoyed watching movies regardless of genre – myfavourite films range from romantic comedies such as FourWeddings and A Funeral and Love Actually to the action flicks ofGladiator, Independence Day and to even dramas such as Crash andDead Poet’s Society.

Great movies allow us not only to escape from the mundane butalso inspire us, move us emotionally and enable us to dream

beyond the ordinary.

I have been fortunate to have been able to work closely with the equally passionate team at Grand Brilliance to furtherexplore and expand my passion into the area of film production.

Now I can appreciate the complexity and extensive effort required to produce high quality movies that have mass appeal.

Over the recent years I am proud to have been involved withmovies that Grand Brilliance has produced such as Cinta, LoVe and

the upcoming Sepi.

Managing a media group which has beenexpanding aggressively has been a real

challenge for me. Throughout this period,these movie projects have been a loyal

and silent outlet for me, keepingme company when at times I

felt incredibly alone or down. And for that, I am eternally

grateful.

Abdul Rahman Bin AhmadGroup Managing Director /Chief Executive Officer, Media Prima Berhad

senior management cont’d

26

The Manchester United football club is, without a doubt, the most popular football club in the worldand arguably one of the best known sporting brands. I liken TV3 to the club in the sense that bothhave a tremendously broad appeal with fans from all walks of life, who are drawn to the excitement,quality and passion which is the hallmark and characteristics of both brands.

TV3 continues to be a popular brand which our viewers hold close to their hearts and we continue to doso year in and year out by coming up with innovative and compelling programmes that go way beyondthe ordinary, while offering unparalleled customer service to our clients.

During the 1950s, Manchester United's manager Matt Busby successfully groomed theplayers through an effective structure and fashioned a great side which became knownas the “Busby Babes” due to their precocious talents at a young age; thus enablingManchester United to come to the fore. At TV3, we too believe in polishing andnurturing our talents to become the best. Throughout the years, we have undeniablyforged a team of young and competent professionals whose expertise has contributedto the resounding success of Media Prima.

As the most successful football club for over 20 years, Manchester United Club symbolisesdynamism and aggressiveness; consistently evolving while striving to emerge as. No.1.

2008 will continue to be a year of change for TV3 and Media Prima in general as weintroduce our New Media arm – our latest strategy to penetrate the online marketby incorporating the latest technology. Just like football, new strategies andtactics are pertinent to ensure a fresh flow of ideas and quality results.

To me, football is the epitome of life; a game where teams strive toscore the most number of goals and players work together in aspirit of teamwork. Our achievement as a team is one which isbeyond words and description.

Dato’ Sri Ahmad Farid Bin RidzuanGroup Chief Executive Officer~ Television Networks, Media Prima BerhadChief Executive Officer~ Sistem Televisyen Malaysia Berhad (TV3)

27

Each time I put myself in the shoes of the needy and less privileged, I am movedto make an effort to assist them in lessening their burdens or by contributingtowards their welfare.

I have always had a soft spot for charity work and often stress on the importanceof creating a loving and helpful community amongst the society. This isimportant as we live in a multi-racial community and tolerance as well as careamongst the people is a much-needed aspect for all of us to live together inpeace and harmony.

In this regard, I make it a point to always relate my passion to how I operate andhandle the News and Current Affairs (NCA) Department. The NCA team hasalways been in the forefront to break the news and educate as well as inform thepublic of various news, happenings, tragedies or natural disasters. We alwaysstrive to be the first to deliver the news and often make initiatives to visithotspot areas and subsequently think of ways and means to help and raise fundsto help those affected.

In my line of work, I always believe in taking a friendly and down-to-earthapproach.

I try as often as possible to practice this in my daily routines and in particular when assisting my staff in dealing with the various issues which may arise. This also translates to positive moral values among my staff whilst at the same time creating a more conducive environment for them to produce top-notch quality results.

In general, one stands to gain so many things by being charitable and making the world a better place to live in. Besides, generositydoes roll back in multiples of ‘many’!

Datuk Hj Kamarulzaman Bin Hj ZainalGroup Director, News & Current Affairs, Media Prima Berhad


28

Travel has a way of stretching the mind. The stretch is not from its ownimmediate rewards – the inevitable myriad of new sights, smells andsounds, but experiencing first hand how others do things differently.Travel allows me to know the civilisation, the culture and the habitantsof the places I journeyed. It allows me to know more about the societyand the world we live in – it makes me wiser and stronger.In Media Prima, we understand the pulse and the needs ofour customers – be it our clients, viewers, listeners, readersor stakeholders. We are relevant by knowing the trend beyond our shores and beyond our media platforms. Media Prima continues to learn, explore and grow. With what we garner - we educate, entertain and share with the rest to create a better society. Travel isalso fun and relaxing, especiallyin the company of my beloved family.

“The world is a book and those who do not travel read only one page.” – St. Augustine.

Dato’ Amrin AwaluddinAdvisor, Media Prima Berhad & CEO, ntv7

29

Why I read; a blurb…

“I read somewhere that, scientifically, reading is akin to giving your brain a thoroughworkout, resulting in the brain becoming more anatomically complex, with morefolds and fissures – a “six-pack” of a brain high on cognitive fitness, so to speak.

A “six-pack” brain, coupled with indirect experiential learning from reading,supposedly enhances neurons which accelerate one’s learning and capacity to learn.

But really, how many out there read to have more folds to their brains?

For me:

I read to be inspired, and my reading materials are usually strewn with rays of hope;

I read to improve myself, and more often than not, only reading can teach me how;

I read for fear of ignorance, and the knowledge gleaned from reading somehowshields me from this fear;

I read as it provides me with the luxury to experience, albeit indirectly, what it islike to be one I can never be in this lifetime;

I read so as to instill the reading habit and be a good role model to those around me;

I read because I just love the musty smell of books coupled with the aromaof freshly brewed Colombian black;

Most important of all, I read for the sheer enjoyment it brings, andthe enjoyment is but one of the stronger strands that help keeps my

sanity web intact.

And all the “whys” mentioned above greatly help me deal withthe various challenges in my daily working life.…”

Amil Izham HamzahGroup Chief Financial Officer, Media Prima Berhad


30

I admire Michael Jordan, the superstar of basketball. He is aphenomenal athlete with a unique combination of fundamentalsoundness, grace, speed, power, artistry, improvisational ability andan unquenchable competitive desire. Jordan single-handedlyredefined the game of basketball. His most memorable quote is whenhe said: “I’ve missed more than 9,000 shots in my career. I’ve lostalmost 300 games. 26 times I’ve been entrusted to take the game-winning shot and missed. I’ve failed over and over and over again inmy life...and that is why, I succeed!

Speed, chaos and flair – these are the reasons why I like basketball. Ineach of these elements, they depict what you can make out life tobe. I do not play the game as well but more of a keen audience. Inan odd way, watching basketball is a real form of relaxation andinspiration to me. The game is fast moving; it requires quick decision-making by the players at every second of the game. And, howeverbest the team plans for each offense, the terrain may change andthings may not come out as what they desire. As a consequence, the

tempo may end up chaotic; but amidst the commotion anddisarray, the players will “dig-deep” into their innermostinstinct. When this happens, improvisation and creativity willemerge and it will turn into a pure magical alchemy ofgrace and flamboyance. But when it fails, the speed of theturnover of the game is forgiving enough for the playersto keep trying. And it is simply a joy to watch. As I see it,the game resembles what life is. Every play is different;

every play calls for tenacity, determination, self-belief,quick-decision, patience, teamwork, humility andcreativity. If only we can embrace these traits dailyin our lives, then every day would be a great day,

wouldn’t it?

Dato’ Syed Faisal AlbarChief Executive Officer, The New Straits Times Press (Malaysia) Berhad

31

Golf is about you winning by being the best YOU can be, you compete with yourself,it is a mental game, against the environment and not directly against your fellowplayers. The same principle when applied to business teaches us to focus on the bestMedia Prima can be via growing the industry and removing barriers to our growth.

Golf pushes one to continuously improvement and for me the ultimate goal is togun for a scratch handicap within my own timeline. That needs passion,commitment and discipline. Similarly in the corporate world we are always shootingat our KPI targets, stretched targets and super-stretch targets. That needs passion,commitment and discipline!!

To be successful in golf one needs to have a macro picture as well as pay closeattention to the many details and aspects of the game. Doesn’t that sound familiarin the business world.

Equally important for me as an individual, golf helps to disciplineme to be more calm and compose while remaining passionate about our goals especially in the face of adversity and pressure.

Lastly golf is a humbling sport as it can bring us downto earth when we think we are already very good. But

still its fun and most importantly I enjoy the sportwith my friends, acquaintances, clients and my sons!

Dato’ Anthony @ Firdauz Bin BujangDirector of Operations, TV3

32


In my experience as a media practitioner throughout the years, I have met andcome across many successful people who range from all walks of life; from oddjob workers to professionals, lawyers, students, politicians and many more. Eachof them has a different story to tell albeit a common trait amongst them;diligence and determination.

Every accomplishment starts with the decision to undertake a steady andenergetic effort. During my leisure period, I make regular trips to the gym to train.This is because the discipline and training in the gym prepares me to better facethe pressures of work, both physically and mentally. It gives me the opportunityto retreat into my own thoughts and focus on what needs to be done without theusual interruptions and distractions during the day.

The mind is the very element that controls everything we do. Therefore, mind-body coordination is vital–working out in the gym does just that. It has helped meto not only achieve a healthy body but also a peaceful state of mind.

In this regard, I always make an effort to inculcate and instill healthyvalues within my team to further motivate them to perform beyond

expectations. At NSTP, we create a conducive environment toenable everyone to carry out their respective tasks to the fullest

of their abilities for, we believe that diligence and determi-nation coupled with a welcoming work atmosphere will

naturally produce good results.

Essentially, with a healthy body and a healthymind, the sky is the limit!

Dato’ Hishamuddin AunGroup Editor-in-Chief, The New Straits Times Press (Malaysia) Berhad

33

I love music. I love listening to music. I love playing music. I love producingmusic. I love talking about music.

Music has always been an inspiration for the way I approach life and business.

THINKING ON YOUR FEETI love the spontaneous creativity in performing music. I love the way skillfulmusicians would effortlessly improvise, creating an instant work of art on top of aset timing structure.

This inspires me in business and my approach to problem-solving. Music teachesme that there is always more than one solution to any situation. Music teachesme to be creative on my feet.

SYNERGESTIC TEAMWORKI also love the spirit of teamwork of a group of musicians that play together. I lovehow they interact with one another, allowing each musician to explore his or herinstrument creatively, yet everyone works together to make beautiful music.

I continuously adapt this lesson professionally, getting our teams to work in harmony, yet allowing individuals to show their creativity and maximise their potential in their own unique ways.

PAY ATTENTION TO THE SMALLEST DETAILSI love listening to the small details in musical arrangements. I love the inventive ways music arrangers would put together different musical instruments to create different moods. I pay attention to each instrument in the mixand appreciate the part each one of them plays to create a work of art as a whole.

This has taught me to understand that excellence comes from paying attention to the smallest details. To ensure any work produced is of the highest quality, every single part has to be carefully, expertly and lovingly paid attention to and more importantly, contribute synergistically to the end product.

DO WORK THAT MEAN SOMETHINGMost of all, I love the different feelings I get when I listen todifferent music. People say that music is the soundtrack of our lives. I truly and wholeheartedly believe in that statement. We remember different snatches of music when we rememberdifferent memories. Music would be able to make us laugh, make us cry, make us feel depressed or elated, sometimes both at the same time.

In other words, music makes us feel alive.

I take the same approach to creating our shows. Our shows have to make us laugh, make us cry, make us remember different memories and feelings, make us feel depressed or elated, and yes, sometimes both at the same time.

Our shows makes us feel alive.

I don’t think I can ever stop loving music, especially for what it has taught me and how it has guided me through life.

Thank you music. Play on.

Ahmad Izham OmarChief Executive Officer, 8TV


34

COMMUNITYThroughout my carrier in the media industry, I have been fortunateenough to have had many opportunities to go to interact with thecommunity at a personal level. The media industry has created veryspecial moments which have allowed us to get closer to the heart andsoul of many Malaysians and this has allowed me to further understandtheir needs. By being close to them and knowing the current issuesfaced by them, I have a better understanding of how we can use thevarious mediums of media, such as television, to play an even moreefficient role in contributing towards the community in an effort toshape the future and further accelerate the progress of the nation.

This is TV9’s top priority, especially for those in the rural and lessdeveloped areas, which have less access to modern technology andinfrastructure. Alhamdulillah, the digital divide within our communitieshas now been reduced tremendously. However, there still exists thosewho require our urgent attention and assistance such as those affectedby tragedies and natural disasters. In this regard, the media plays apertinent role in informing and educating society and subsequentlyshaping a caring nation by inculcating positive moral values.

It is my greatest hope that TV9 will continue to be close to the hearts of the people and our loyal viewers, in line with our tag line “dekat di hati”.

Bukhari Che MudaChief Operating Officer, TV9

35

Yoga is my official time out from the world

I enjoy the physical and mental challenge of pushing my body to its limityet my mind must achieve a total connection to that moment and theflow of the asana.

Yoga is not a competitive sport but a challenge to the individual to achievehigher levels of mind-body alignment. You don’t need any expensiveequipment. Your body is your tool and all you need is some quiet andwilling mind.

Yoga keeps me centered at work, allowing me to use breathing techniquesto overcome the most frenetic and stressful issues. The practice of yogamay appear to be effortless from the outside. On the inside, it requiresstrength, discipline and focus. Just like work.

Yoga teaches one not to rush to perfection but to gently reach your owngoals instinctively-to listen to your body and also your inner voice.

At work, I believe in collaboration with a team and listening to allpoints of view before reaching a conclusion. I learn from others.Yoga session ends with the simple word “namaste”. It is a conceptthat is not usually associated with the workplace, but one that wecan learn from. It means: “the divine in me bows to the divine in you”

Suridah JalaluddinChief Executive Officer, Big Tree Outdoor Sdn. Bhd.

statement on corporate governance

36

Media Prima Berhad (MPB) is committed towards achievingexcellence in corporate governance. The Board acknowledgesthat the prime responsibility for good corporate governance lieswith the Board. The Board is fully committed to ensuring thatthe highest standards of corporate governance are practisedthroughout MPB and its subsidiaries (the Group) as afundamental part of discharging its responsibilities to create,protect and enhance shareholder value and the performance ofthe Group.

The Malaysian Code on Corporate Governance (the Code) aims toset out principles and best practices on structures and processesthat companies may use in their operations towards achieving theoptimal governance framework. The Code was revised in 2007 tofurther strengthen Malaysia’s corporate governance framework,aligning it with globally accepted best practices. It contains keyamendments aimed at strengthening the roles and responsibilitiesof boards of directors and audit committees and ensuring theydischarge their duties effectively. The Board reaffirms its supportsto the Code and believes that good corporate governance isfundamental in achieving the Group’s objectives. In order toensure that the best interests of shareholders and otherstakeholders are effectively served, the Board will continue to playan active role in improving governance practices and monitors thedevelopment in corporate governance including the revised Code.

The commitment and efforts of the Board of Directors,Management and employees of MPB in sustaining highstandards of corporate governance and investor relations isproven by the following accolades received in 2007:

• Asiamoney Magazine Annual Corporate Governance Poll2007~ Best Overall for Corporate Governance (Malaysia)~ Best for Disclosure and Transparency (Malaysia)~ Best for Investor Relations (Malaysia)

• A joint study by Minority Shareholders Watchdog Group(MSWG) and the Nottingham University Business School(NUBS), Malaysia Campus~ Ranked 7th place out of 500 public listed companies in

2007 for the best Corporate Governance Company Award.MPB was ranked 30th in 2006.

• Malaysia’s Most Valuable Brand (MMVB) Award in 2007~ TV3 was ranked at 14th place.

• Finance Asia’s Best Companies Poll 2007~ Best Managed Mid Cap Company 2006

The Board of MPB is pleased to report to the shareholders, theGroup’s application of the Principles as set out in Part 1 of theCode and the extent to which the Group has complied with theBest Practices of the Code during the financial year ended 31December 2007.

1. THE BOARD OF DIRECTORS

The MPB Group is led and controlled by an effective Boardof Directors. All Board members carry an independentjudgement to bear on issues of strategy, performance,resources and standards of conduct. The Board knows andunderstands the Board’s philosophy, ethics, morals, mission,and vision and reflects this understanding on key issuesthroughout the year.

The Board delegates authority and vests accountability forthe Group’s day to day operations with a management teamheaded by the Group Managing Director (GMD) cum ChiefExecutive Officer (CEO). The Board however assumesresponsibility for the following in discharging its duty ofstewardship of the Group:-

• Reviewing and adopting a strategic plan for the Group;• Overseeing the conduct of the Group’s business to

evaluate whether the Group is being properly managed;• Succession planning, including appointing, training,

fixing the compensation of and where appropriate,replacing senior management;

• Identifying principal risks and ensuring implementationof appropriate systems to manage these risks;

• Developing and implementing an investor relationsprogramme and shareholder communications policyfor the Group; and

• Reviewing the adequacy and the integrity of theGroup’s internal control systems and managementinformation systems, including systems for compliancewith applicable laws, regulations, rules, directives andguidelines.

1.1 Board Composition and Balance

The Board is comprised of individuals who are highlyexperienced in their respective fields of endeavour andwhose knowledge, background and judgement isinvaluable in ensuring that the Group achieves thehighest standards of performance, accountability andethical behaviour as expected by MPB’s stakeholders.The Board has a balanced composition of Executive andNon-Executive Directors (including independentdirectors) such that no individual or group of individualscan dominate the Board's decision-making powers andprocesses. The Independent Non–Executive Directorsmake up 56% of the board membership.

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As at 31 December 2007, the Board has nine (9)members, of which three (3) are Executive Directorsand six (6) are Non-Executive Directors, including theChairman, Dato’ Abdul Mutalib Bin Datuk SeriMohamed Razak. The Board believes the size of theBoard is optimum given the scope and size of theGroup, and sufficient to provide for effective debateand decision making with a substantial degree ofindependence from management. A brief descriptionof the background of each director is set out on pages16 to 24 of this Annual Report.

The Independent Non-Executive Directors are ofcalibre, credibility and have the necessary skill andexperience to carry sufficient weight in Boarddecisions. Although all the directors have an equalresponsibility for the Group’s operations, the role ofthese Independent Non-Executive directors isparticularly important in ensuring that the strategiesproposed by the executive management are fullydiscussed and examined, and take account of the longterm interests, not only of the shareholders, but also ofemployees, customers, suppliers, and the manycommunities in which the Group conducts business.

There is clear division of roles and responsibilitiesbetween the Chairman of the Board and the Group’sChief Executive Officer (CEO) to ensure that there is abalance of power and authority and that no oneindividual has unfettered powers of decision. TheChairman of the Board is responsible for ensuring theBoard’s effectiveness and conduct whilst the Group’sCEO has overall responsibility over the business units,organisational effectiveness and implementation ofBoard’s policies, strategies and decisions. The Board,together with the CEO, has developed positiondescriptions for the Board and for the CEO, involvingdefinition of the limits to management’s responsibilities.The Board has also approved the corporate objectivesfor which the CEO is responsible to meet.

Dato’ Seri Mohamed Jawhar is the Senior IndependentNon-Executive Director, as prescribed in the Code, towhom concerns pertaining to the Group may beconveyed by shareholders and the public.

1.2 Board Meetings

Board meetings are scheduled in advance at thebeginning of the new financial year to enable directorsto plan ahead and fit the year’s meetings into theirown schedules.

The Board meets at least 4 times a year, once everyquarter, and has a formal schedule of mattersspecifically reserved to it for decision, such as theapproval of corporate plans and budgets, acquisitionsand disposals of assets that are material to the Group,major investments, changes to management andcontrol structure of the Group, including key policies,procedures and authority limits. Additional meetingsare held as and when required.

Key transactions submitted to and approved by theBoard in 2007 include:

• Business Plan– MPB’s proposed Budget and Business Plan for 2008

and a Three Year Strategic Corporate Plan ending 31December 2010, at a special meeting on 16November 2007.

• Acquisition / Investment– Acquisition of 150,000 ordinary shares of RM1.00

each in Big Tree Outdoor Sdn. Bhd. (30%) for apurchase consideration of RM43,393,500 on 12January 2007.

-– Acquisition of 20% stake in Merit Idea Sdn. Bhd. on17 May 2007.

-– Implementation plans for New Media and creationof a media content for Alt Media on 18 July 2007.

-– Acquisition of 5,000,000 ordinary shares of RM1.00each in The Right Channel Sdn. Bhd. and 2,128,000ordinary shares of RM1.00 each in UPD Sdn. Bhd. on16 February 2007.

• Disposal-– Disposal of UPD Property at Damansara Jaya on 23

November 2007.• Financial– Bank Guarantee medium term notes programme of

up to RM170.0 million (MTN programme) andCommercial paper programme of up to RM180.0million (CP programme) on 24 August 2007.

• Employee Relation– Setting up of special medical assistance fund for

(Chronic illnesses) for the employees of MPB on 17May 2007.

MPB BOARD OF DIRECTORS

Non-Independent Non-Executive (1) 11%

Independent Non-Executive (5) 56%

Executive (3) 33%

statement on corporate governance cont’d

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Board meetings are conducted in a manner that encourages open communication, meaningful participation, and timelyresolution of issues. Decisions are made on a consensus basis after due deliberation.

During the financial year ended 31 December 2007, 4 scheduled meetings and 5 special meetings were held as detailedbelow:

Attendance By DirectorsDate of Board Meeting Independent Non-Independent Total Numbers

28 February 2007 * 6 1 7/828 March 2007 ** 7 1 8/817 May 2007 * 6 1 7/818 May 2007 ** 6 1 7/818 July 2007 ** 7 1 8/924 August 2007 * 8 1 9/915 November 2007 * 8 1 9/916 November 2007 ** 7 1 8/930 November 2007 ** 6 1 7/9

* Scheduled Meeting ** Special Meeting

Details of the Board movement and attendance at meetings for financial year ended 31 December 2007 are set out below:

Directors Designation Appointment Attendance

Dato’ Abdul Mutalib Bin Datuk Chairman / Independent 5 December 2003 9/9Seri Mohamed Razak Non-Executive Director

Abdul Rahman Bin Ahmad Group Managing Director/ 22 October 2001 9/9Chief Executive Officer

Shahril Ridza Bin Ridzuan Non-Independent 22 October 2001 9/9Non-Executive Director

Dato’ Dr Mohd Shahari Independent 18 August 2003 9/9Bin Ahmad Jabar Non-Executive Director

Tan Sri Lee Lam Thye Independent 18 August 2003 8/9Non-Executive Director

Dato’ Seri Mohamed Jawhar Independent 30 August 2006 7/9Non-Executive Director

Dato’ Sri Ahmad Farid Bin Ridzuan Executive Director 30 August 2006 6/9

Datuk Hj Kamarulzaman Executive Director 30 August 2006 9/9Bin Hj Zainal

Dato’ Abdul Kadir Independent 29 May 2007 4/5Bin Mohd Deen* Non-Executive Director

* Dato’ Abdul Kadir Bin Mohd Deen was appointed as a Director w.e.f. 29 May 2007.

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1.3 Supply of Information

The Board and its Committees have full and unrestrictedaccess to all information necessary in the furtherance oftheir duties, which is not only quantitative but also otherinformation deemed suitable such as customersatisfaction, product and service quality, market shareand market reaction.

The Board is provided with the agenda for every Boardmeeting together with comprehensive managementreports, in advance for the Board’s examination. TheChairman of the Board takes primary responsibility fororganising information necessary for the Board to dealwith the agenda and for providing this information todirectors on a timely basis. All directors have the rightand duty to make further enquiries where they considernecessary. In most instances, Senior Management isinvited to be in attendance at Board meetings toprovide insight and to furnish clarification on issues thatmay be raised by the Board. Board papers are circulatedat least 5 working days in advance of the meeting toenable members to prepare. The Board papers arecomprehensive and encompass all aspects of thematters being considered, enabling the Board to look atboth the quantitative and qualitative factors so thatinformed decisions are made.

The Board recognises that the Chairman is entitled tothe strong and positive support of the CompanySecretary in ensuring the effective functioning of theBoard. All directors have access to the advice andservices of the Company Secretary and, whether as a fullboard or in their individual capacities, directors are alsoat liberty to take independent professional advice on anymatter connected with the discharge of theirresponsibilities as they may deem necessary andappropriate, at the Company’s expense.

1.4 Appointments to the Board

The Code endorses, as good practice, a formal procedurefor appointment to the Board, with a nominationcommittee making recommendations to the Board. TheNomination Committee of the Board of MPB, establishedon 19 August 2003, scrutinises the sourcing andnomination of suitable candidates for appointment as adirector in MPB and its subsidiary companies and to thecommittees of the Board, before making recommen-dations to the Board for approval. This Committee willensure the selection of Board members with the rightexperience, skill and expertise, thus strengthening thecomposition of the Board and contributing significantly tothe effectiveness of the Board.

The Board has conducted an assessment to evaluatethe effectiveness of Non-Executive Directors and theCEO in contributing to Board overall performance.Directors identified for this assessment were requiredto rate their peers’ performance and contribution tothe Board based on the criterion stipulated in theassessment template.

The Board has also reviewed its required mix of skillsand experience and other qualities, including corecompetencies, which Non-Executive Directors shouldbring to the Board. The Board also examines its size,with a view to determining the effective number ofboard members.

1.5 Re-election of Directors

In accordance with the Company’s Articles ofAssociation, newly-appointed directors are subject tore-election by shareholders at the first opportunityafter their appointment. The Articles also provide thatat least one third of the remaining directors are subjectto re-election by rotation at each Annual GeneralMeeting. Retiring directors may offer themselves for re-election by the shareholders.

1.6 Directors’ Training

Consistent with the recommendation of the Code, theBoard views directors’ training as an integral element ofthe process of appointing new directors. The NominationCommittee ensures that there is an orientation andeducation programme for new Board members.

All the directors have successfully completed theMandatory Accreditation Programmes andaccumulated the Continuing Educational Programme(CEP) requisite points pursuant to Bursa Malaysia’sListing Requirements. The Directors continue toundergo other relevant training programmes fromtime to time to enhance their skills and knowledge andto keep abreast with the relevant changes in laws,regulations and business environment in order todischarge their duties more effectively.

During the year, the Group has organised an in-houseBoard Strategic Review and Training programmetailored to the specific needs of the Group. The one dayprogramme covers a wide range of topics that are ofconcern to the Board such as information technology,telecommunication, new media as well as human capitaldevelopment. The programme was attended by all thedirectors in the Group including the subsidiary Boardand facilitated by consultants who were experts in theirown fields.


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Directors were also sent for overseas training organised by reputable institution. During the year the Group CEO TelevisionNetworks and the CEO of ntv7 had attended an executive programme on Effective Strategies for Media Companiesorganised by the Harvard Business School.

1.7 Board Committees

The Board delegates certain responsibilities to Board Committees, each with defined terms of reference and responsibilitiesand the Board receives reports of their proceedings and deliberations. Where committees have no authority to makedecisions on matters reserved for the Board, recommendations would be highlighted for the Board of Directors’ approval.The Chairmen of the various committees report the outcome of the committee meetings to the Board and relevantdecisions are incorporated in the minutes of the Board of Directors’ meetings.

The Board Committees in MPB are as follows;• Audit Committee• Nomination Committee• Remuneration Committee• Employee’s Share Option Scheme (ESOS) Committee

The composition, responsibilities and main activities of the respective Board Committees are described below:

AUDIT COMMITTEE (AC)

AC was established on 19 August 2003 and the members are:• Dato’ Dr Mohd Shahari Bin Ahmad Jabar (Chairman)• Tan Sri Lee Lam Thye • Dato’ Abdul Mutalib Bin Datuk Seri Mohamed Razak• Dato’ Seri Mohamed Jawhar• Abdul Rahman Bin Ahmad

Responsibilities Activities• To review issues on accounting policies and presentation • A full Audit Committee report detailing its

of external financial reporting; monitors the mechanism membership, its role and its activities duringof the internal audit function; and ensures the professional the year is set out on pages 54 to 59.relationship and objective is maintained with external auditors.

• The AC has full access to both internally and externally auditors who, in turn, have access at all times to the Chairman of the Committee.

NOMINATION COMMITTEES (NC)

NC was established on 19 August 2003. The committee is exclusively composed of Independent Non-Executive Directors andthey are.• Tan Sri Lee Lam Thye (Chairman)• Dato’ Abdul Mutalib Bin Datuk Seri Mohamed Razak• Dato’ Seri Mohamed Jawhar• Dato’ Abdul Kadir Bin Mohd Deen

Responsibilities Activities• To assist the Board in assessing its overall effectiveness. • NC held one meeting on 17 May 2007.• To assist the Board in reviewing its required mix of skills The meeting was attended by all members (3/3)*

and experience and other qualities Non-Executive Directors * Dato’ Abdul Kadir Bin Mohd Deen was appointedshould bring to the Board. on 29 May 2007.

• To identify and recommend new nominees to the Board • The meeting was held to evaluate the effectivenessand committees of the Board of MPB and nominees to the of Non-Executive Directors and the CEO inboards of its subsidiaries. All decisions and appointments contributing to Board overall performance and toare made by the respective boards after considering recommend the appointment of new membersthe recommendation of the NC. to the MPB Board.

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REMUNERATION COMMITTEES (RC)

RC was established on 19 August 2003. The members of the RC are:-• Dato’ Dr Mohd Shahari Bin Ahmad Jabar (Chairman until 29 May 2007; resigned from Committee on 29 May 2007)• Dato’ Abdul Kadir Bin Mohd Deen* (Chairman w.e.f 29 May 2007) • Tan Sri Lee Lam Thye • Dato’ Abdul Mutalib Bin Datuk Seri Mohamed Razak• Shahril Ridza Bin Ridzuan*

* Dato’ Abdul Kadir Bin Mohd Deen and Shahril Ridza Bin Ridzuan were appointed to the Committee on 29 May 2007.

Responsibilities Activities• To review any major changes in employee benefit • RC held two (2) meetings during year, on

structures throughout the Company or Group, 28 February 2007 and 17 May 2007.and if fit recommend to the Board for adoption. • Both meetings were attended by all members (3/3).

• To review and recommend to the Board improvements • The meetings were held to consider and (if any) on designated executive managements’ recommend the Balanced Scorecard achievementremuneration policy and package and any other and ratings for Senior Management; to reviewissues relating to benefits of designated executive and recommend KPI bonus payment formanagement on an annual basis. financial year ended 2006; to analyse and suggest

• To establish a formal and transparent procedure for proposed KPI for all employees including thedeveloping policy on the total individual remuneration Balanced Scorecard for Senior Management forpackage of Executive Directors, Chief Executive Officer (CEO) financial year 2007; and to review and adviseand other designated executive management including, proposed renewal of contract and remunerationwhere appropriate, bonuses, incentives and share options. structure for Senior Management.

• To determine and recommend to the Board the frameworkor broad policy for the remuneration packages of the Group’s Chief Executive, the Chairman of the Companyand such other members of the executive management as it is designated to consider.

• To design the remuneration package for all executive directors, CEO and other designated executive management with the aim of attracting and retaining high-calibre designated executive management who will deliver success for share holders and high standards of service for customers, while having due regard to the business environment in which the Group operates. Once formulated, to recommend to the Board for approval.

• To review and recommend to the Board for adoption the framework for the Company’s annual incentive scheme. The framework for the annual incentive scheme may include:- ~ Merit Increment; ~ Merit Bonus; and ~ Incentives (based on sales and others).


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EMPLOYEE’S SHARE OPTION SCHEME (ESOS) COMMITTEE

ESOS Committee was established on 27 August 2004 and the members are: • Dato’ Dr Mohd Shahari Bin Ahmad Jabar (Chairman until 29 May 2007; resigned from Committee on 29 May 2007)• Dato’ Abdul Kadir Bin Mohd Deen* (Chairman w.e.f 29 May 2007) • Dato’ Abdul Mutalib Bin Datuk Seri Mohamed Razak• Abdul Rahman Bin Ahmad

Responsibilities Activities• To implement and administer the MPB Employees’ • ESOS Committee held one meeting on 28 February 2007.

Share Option Scheme in accordance with the • The meeting was attended by all members (3/3).by-laws approved by the shareholders of the Company. • The meeting was held to approve on the allocation and

• To determine participation eligibility, option offers and eligibility of MPB's Employees Share Option Scheme.share allocations and to attend to such other matters as may be required.

2 DIRECTORS’ REMUNERATION

2.1 Level and Make-up of Remuneration

The Group has established a formal and transparent procedure for developing policy on executive remuneration and forfixing the remuneration package of individual directors. The objective of the Group’s policy on directors’ remuneration isto attract and retain directors of the calibre needed to manage the Group successfully.

The remuneration for Executive Directors is structured so as to link rewards to corporate and individual performance. TheRemuneration Committee, comprising of wholly Non-Executive Directors recommends to the Board the framework of theExecutive Director’s remuneration and the remuneration package for each Executive Director. It is nevertheless, theultimate responsibility of the Board to approve the remuneration of these directors.

The determination of the remuneration packages of Non-Executive Directors (whether in addition to or in lieu of their feesas directors), is a matter for the Board as a whole subject to approval of shareholders at the Annual General Meeting(AGM). The level of remuneration reflects the experience, expertise and level of responsibilities undertaken by Non-Executive Directors. Individual directors do not participate in decisions regarding their own remuneration package.

The framework for the remuneration of the Executive and Non-Executive Directors is reviewed regularly against marketpractice. Salary reviews take into account market rates and the performance of the individual director and the Group.

2.2 Remuneration Package

The remuneration package of the Executive Directors is as follows:

(i) Basic Salary

Remuneration Committee recommends the basic salary (inclusive of statutory employer contributions to theEmployee Provident Fund) for the Executive Director, taking into account the performance of the individual, theinflation price index and information from independent sources on the rates of salary for similar positions in a selectedgroup of comparable companies.

(ii) Performance Bonus

The Group operates a performance based bonus scheme for all employees, including the Executive Directors. Thecriteria for the scheme is dependent on the achievement of key performance indicators (KPI) set for the Group’sbusiness activities as measured against targets, together with an assessment of each individual’s performance duringthe period. Bonuses payable to the Executive Directors are reviewed by the Remuneration Committee and approvedby the Board.

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(iii) Fixed Allowance

The Board has in 2004, approved for the payment of fixed allowances to Executive Directors. This is in lieu of thecontractual bonus that was in the original contract of the individual director but has since been collapsed.

(iv) Employees’ Share Option Scheme (ESOS)

Executive Directors are also eligible to participate in the employees’ share option scheme designed to incentiviseemployees of the Group.

(v) Benefits-in-kind

Executive Directors are entitled to other customary benefits such as private medical cover, leave passage, car anddriver.

The Non-Executive Directors are paid annual fees and attendance allowance for each Board meeting that they attend.The Chairman is entitled to leave passage, contributions to Employee Provident Fund, car and driver benefits.

Directors of MPB are also covered under a Directors and Officers Liability Insurance Policy against any liability incurredby them in discharging their duties while holding office as Directors of the Group. The directors contribute partiallytowards the payment of the insurance premium.

2.3 Directors’ Remuneration

The details on the aggregate remuneration of Directors for the financial year ended 31 December 2007, distinguishingbetween Executive and Non-Executive Directors with categorisation into appropriate components are as follows:

Remuneration (RM) Executive Directors Non-Executive Directors Total

Fees - MPB – 271,753 271,753- MPB Subsidiaries – 217,971 217,971

Salary 1,551,217 – 1,551,217EPF 474,416 46,340 520,756Bonus 886,665 99,773 986,438Allowance 731,500 252,514 984,014Benefits-in-kind 68,439 66,150 134,589Total (RM) 3,712,237 954,501 4,666,738

The remuneration paid to Directors during the year, analysed into bands of RM50,000, which complies with the disclosurerequirements under Bursa Malaysia Listing Requirements is as follows:

Remuneration Band Number of DirectorsExecutive Non-Executive

RM 50,001 – RM100,000 – 5RM600,001 – RM650,000 – 1RM700,001 – RM750,000 1 –RM1,300,001 – RM1,350,000 1 –RM1,600,001 – RM1,650,000 1 –Total 3 6

Note : Successive bands of RM50,000 are not shown entirely as they are not represented.


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3. SHAREHOLDERS

3.1 Investor Relations

The Group values dialogue with investors. The Board actively demonstrates and promotes the value of transparency,accountability and integrity in all its dealings with its investors to ensure their utmost satisfaction. The Corporate Finance Unit,under direct supervision of the Group’s CEO, is tasked with the responsibility to respond to all queries raised by the investorsand analysts. In line with good corporate governance practice, an annual programme to meet both local and internationalinvestment communities including the institutional fund managers and analysts is set at the beginning of the year.

The CEO and the Group Chief Financial Officer had attended presentations and meetings with foreign investors and fundmanagers held in Singapore, New York, Boston, London and Edinburgh in a series of road show to maintain good rapportand relationship with the investors during the year under review. Briefings with investors and analysts are also held aftereach quarter’s announcement of financial results to the Bursa Securities to explain the Group’s strategy, performance andmajor developments and to address other matters affecting shareholders’ interest. Besides, corporate announcements,events and developments are issued to the media via press releases and/or by holding press conferences after generalmeetings or corporate events. These provide shareholders, analysts and the investing public with an overview of theGroup’s performance and operations.

3.2 Annual General Meeting

The Annual General Meeting (AGM) remains the principal forum for dialogue with shareholders. At each AGM, the Boardpresents the progress and performance of the Group. Shareholders are encouraged to participate in the proceedings andask questions about the resolutions being proposed and the operations of the Group. The Chairman will provide sufficienttime for shareholders’ questions on matters pertaining to the Group’s performance and seek to explain to the shareholderstheir concern.

Each item of ordinary and special business included in the notice of the meeting will be accompanied by a full explanationof the effects of a proposed resolution. Separate resolutions are proposed for substantially separate issues at the meetingand the Chairman declares the outcome of each resolution after proposal and secondment are done by the shareholders.Immediately after the AGM, the Chairman and the CEO will address all the issues raised by the press and analysts througha press conference and analyst briefing in the course of providing all stakeholders with the latest updates on the Group.

3.3 Websites

The MPB website provides an excellent medium of communication and source of information to shareholders and thegeneral public. The website http://www.mediaprima.com.my ensures easy and convenient access to the Group’s latestfinancial results, press releases, annual reports and other corporate information. In addition, each subsidiary company hasits own website to highlight latest programmes and promotions.

MPB welcomes inquiries and feedbacks from shareholders and other stakeholders. Any queries or concerns regarding theGroup may be conveyed to the following persons:

Name Designation Related Matters Telephone Facsimile

Amil Izham Hamzah Group Chief Financial / Investor 603 77266508 603 77261502Financial Officer relations

Fazlin Abu Hassan Shaari Manager, Investor relations 603 77266508 603 77261502Corporate Finance

Roselinda Hashim Group General Shareholders’ enquiries 603 77261784 603 77280787Manager,Legal & Secretarial

Eliza Mohamed Group General Other queries 603 77252135 603 77273014Manager, CorporateCommunications

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4 ACCOUNTABILITY AND AUDIT

4.1 Financial Reporting

The Board aims to present a balanced andunderstandable assessment of the Group’s financialposition and prospects in presenting the annualfinancial statements and quarterly announcement toshareholders. This also applies to other price-sensitivepublic reports and reports to regulators.

On behalf of the Board, the Audit Committeescrutinises the financial and statutory complianceaspects of the audited financial statements andadherence to internal policies and procedures prior tofull deliberation at the Board level. The Board ensuresthe integrity of the Company’s financial reporting andfully recognises that accountability in financialdisclosure forms an integral part of good corporategovernance practices.

4.2 Internal Control

The Board acknowledges its responsibility for theGroup's system of internal controls and riskmanagement and for reviewing the effectiveness ofthese systems. Such systems are designed to managerather than eliminate the risk of failure to achievebusiness objectives. Any system can only provide areasonable but not absolute assurance against materialmisstatement, loss or fraud.

The Statement on Internal Control furnished on page48 of the Annual Report provides an overview on thestate of internal controls within the Group.

4.3 Relationship with the Auditors

The Board has established a formal, transparent andappropriate relationship with the Group’s auditors,both external and internal, through the AuditCommittee.

The Audit Committee meets regularly with the externaland internal auditors to discuss and review the auditplan, quarterly financial results, annual financialstatements and the audit f indings, and makesrecommendations for the Board’s approval. During theyear, the Board has also met with the external andinternal auditors without the presence of the executivedirectors and management.

A report by the Audit Committee and its Terms ofReference are provided on pages 54 to 59 of thisAnnual Report.

5 STATEMENT OF DIRECTOR’S RESPONSIBILITY INRELATION TO THE AUDITED FINANCIAL STATEMENTS

The Board is responsible for the preparation of the financialstatements of the Company and the Group. The Board hasensured that the financial statements have been preparedbased on accounting policies that have been consistentlyand properly applied, supported by reasonable andprudent judgements and estimates, and in adherence to allapplicable accounting standards.

It is also the Board’s responsibil ity to ensure thataccounting records are accurate, within margins ofreasonableness, which discloses the financial position of theCompany and the Group in a true and fair manner.

This Statement on Corporate Governance is made inaccordance with the resolution of the Board of Directorsdated 7 March 2008.

additional compliance information

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1. SHARE BUY-BACKS FOR THE FINANCIAL YEAR

There was no share buy-back exercise carried out by the

Company for the financial year ended 31 December 2007.

2. OPTIONS, WARRANTS OR CONVERTIBLE SECURITIES

The status on Options, Warrants and Convertible Securities

issued during the financial year are:-

(a) The Company launched the Media Prima’s Employees’

Share Options Scheme (MPB ESOS”) on 11 January

2005 and as at 31 December 2007, three (3) offers

have been made to employees whereas:-

(i) under the First Offer, a total of 22,837,800

ordinary shares of RM1.00 each were offered at an

Option Price of RM1.55 to eligible employees;

(ii) under the Second Offer, a total of 24,034,000


option price of RM1.46 to eligible employees;

(iii) under the Third Offer, a total of 5,000,000


option price of RM2.23 to eligible employees.

There was an issuance of:-

(i) 10,158,500 ordinary shares of RM1.00 each

pursuant to the exercise of the MPB ESOS at the

exercise price of RM1.55 per share;

(ii) 6,385,200 ordinary shares of RM1.00 each


exercise price of RM1.46 per share

(iii) 1,517,900 ordinary shares of RM1.00 each


exercise price of RM2.23 per share

(b) There was an issuance of 3,097,860 ordinary shares of

RM1.00 each through the conversion of 4,646,797

Irredeemable Convertible Unsecured Loan Stocks

(“ICULS”) of RM1.00 each on the basis of one new

ordinary share for every three ICULS exercised.

(c) There was an issuance of 18,599,995 ordinary shares

of RM1.00 each arising from the exercise of

18,599,995 Warrants of RM0.10 each at an exercise

price of RM1.10 per Warrant.

3. AMERICAN DEPOSITORY RECEIPT (“ADR”) OR GLOBAL

DEPOSITORY RECEIPT (“GDR”)

The Company has not sponsored any ADR or GDR

programme in the financial year ended 31 December 2007.

4. NON-AUDIT FEES

The amount of Non-Audit Fees paid/payable to external

auditors and their affiliated companies by the Company for

the financial year ended 31 December 2007 is set out on

page 166 of this Annual Report.

5. PROFIT GUARANTEE

There were no profit guarantee received by the Company

during the financial year ended 31 December 2007.

6. LIST OF PROPERTIES AND REVALUATION POLICY

The list of properties is set out on page 226 to 229 of this

Annual Report. There was no revaluation of properties of

the Company during the financial year.

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7. MATERIAL CONTRACTS

There has been no material contracts involving Directors

and Major Shareholders’ interests entered into since the

end of the previous financial year.

8. IMPOSITION OF SANCTIONS AND/OR PENALTIES

There were no significant sanctions and/or penalties

imposed on the Company and/or its subsidiary companies,

Directors or management arising from any significant

breach of rules/guidelines by the relevant regulatory bodies

during the financial year.

9. VARIATION IN RESULTS

There were no variations in results (differ by 10% or more)

from any profit estimate/forecast/projection/unaudited

results announced.

10. UTILISATION OF PROCEEDS

On 7 September 2007, the Company issued RM170.0

million nominal value Bank Guaranteed Medium Term

Notes (“BG MTN”) to investors who fall within the

categories of persons specified in Schedule 2, Schedule 3

and Schedule 5 of the Securities Commission Act, 1993 in

accordance with the Trust Deed governing the BG MTN

dated 23 August 2007.

The BG MTN was issued in two (2) tranches, details of

which are as follows:

Tenure Amount

Tranche (from issue date) (nominal value)

1 4 years RM70.0 million

2 5 years RM100.0 million

Proceeds from the issuance of RM170.0 million BG MTN

have been utilised for the following purposes:

(i) Redemption of MPB’s previous bonds as follows:

a. RM70.0 million outstanding Medium Term Notes

under a Commercial Papers/Medium Term Notes

Programme of up to RM100.0 million in nominal

value; and

b. RM85.0 million outstanding Exchangeable Bonds

under an Exchangeable Bonds Programme of up

to RM85.0 million in nominal value.

(ii) The remaining balance has been fully utilised to

finance MPB’s working capital requirements.

On 12 September 2007, the Company issued RM100.0

million nominal value six (6) months Commercial Papers

(“CP”) to investors who fall within the categories of persons

specified in Schedule 2, Schedule 3 and Schedule 5 of the

Securities Commission Act, in accordance with the Trust

Deed governing the CP dated 28 August 2007.

The tenure of the CP Programme is up to seven (7) years

from the first issue date.

Proceeds from the issuance of RM100.0 million CP have

been fully utilised for MPB’s working capital requirements.

11. RECURRENT RELATED PARTY TRANSACTIONS (“RRPTS”)

OF REVENUE NATURE

There were no RRPTs during the financial year ended 31

December 2007.

statement on internal control

48

RESPONSIBILITY

The Malaysian Code on Corporate Governance (revised inOctober 2007) prescribes as a principle of CorporateGovernance the Board of Directors should maintain a soundsystem of internal control to safeguard shareholders’ investmentand the company’s assets. The Board recognises the importanceof sound internal controls and risk management practices togood corporate governance. The related principal responsibilitiesof the Board in relation to internal controls as outlined in BestPractices Provision AA I in Part 2 of the Code include:-

• Identifying principal risks and ensuring the implementationof appropriate control systems to manage these risks;

• Reviewing the adequacy and the integrity of the company’sinternal control systems and management informationsystems, including systems for compliance with applicablelaws, regulations, rules, directives and guidelines.

The Board affirms its overall responsibility for the Group’ssystem of internal controls and risk management, and forreviewing the adequacy and integrity of the systems. It shouldhowever be noted that such systems are only designed tomanage rather than totally eliminate the risk of failure toachieve business objectives. Accordingly, these systems can onlyprovide reasonable but not absolute assurance against materiallosses, fraud, misstatements or breaches of laws or regulations.

The Group has in place a continuous, proactive and systematicprocess for identifying, evaluating and managing significantrisks pertinent to the achievement of the Group’s overallcorporate objectives.

CONTROL ENVIRONMENT

The Board is committed to maintaining a strong controlenvironment and structure for the proper conduct of theGroup’s business operations. The Group’s control environmentcomprises of the following components:

• Independence of the Audit Committee

The Audit Committee comprising a majority ofIndependent Non-Executive Directors who are highlyexperienced and whose knowledge, background andjudgement are invaluable to the Group have unimpededaccess to both the internal and external auditors. The AuditCommittee reviews the works of the internal and externalauditors, their findings and recommendations, to ensurethat it obtains the necessary level of assurance with respectto the adequacy of the internal controls.

The Audit Committee also reviews the effectiveness ofthe risk management process in their evaluation of thecontrol environment. Significant risk issues are referredto the Board for consideration.

• Organisational structure with defined roles andresponsibilities

The Board has established a properly definedorganisational structure with clear reporting lines andformalised roles and responsibilities. The Group’s Limitsof Authority assigns authority to appropriate levels ofstaff to exercise control over the Group’s commitment ofboth capital and operational expenditure. The Limits ofAuthority are approved by the Board and are regularlyreviewed and updated to reflect changing conditions.

• Human Resources Policy and Code of Ethics

The Group has in place a comprehensive HumanResources Policy and Code of Ethics approved by theBoard that set the tone of control consciousness andemployee conduct. The Code of Ethics iscommunicated to and acknowledged by all employeesand compliance with this Code is mandatory. There isalso in place supporting procedures for the reportingand resolution of actions contravening these policies.

Staff competency is enhanced through a rigorousrecruitment process and development programmes.Emphasis is placed on the quality and abilities ofemployees with continuing education, training anddevelopment being actively encouraged through awide variety of schemes and programmes, includingan Executive MBA programme in collaboration withUniversity of Cambridge Local Examinations Syndicateand University of Applied Sciences, Berne, Switzerland.Senior Management was also exposed to industry’sbest practices during a visit to the AustralianBroadcasting Corporation (ABC) in Sydney.

As part of the human capital development initiative,the Group has also embarked on a structured two yearBusiness Executive Programme designed to developtalent among the high achieving fresh graduates todeliver value to the organisation. The Group alsoparticipated in career fairs to recruit fresh talentsavailable in the market.

MPB has put in place a structured talent managementplan. The objective of the plan is to ensure that a well-stocked cadre of qualified individuals is well equippedand ready to assume key positions within theorganisation. The programme is built on thedevelopment of talent pools, not only for upwardmovement but for lateral movement.

49

An established performance management system,which is linked to and guided by Key PerformanceIndicators and accountability, is also in place and isreviewed on an annual basis.

• Supplier Code of Conduct

The Board expects all MPB’s suppliers to observe highethical business standards of honesty and integrity andto apply these values to all aspects of their businessand professional practices. A Supplier Code of Conductis established in which the Group’s minimumexpectations on the suppliers vis-à-vis legal complianceand ethical business practices are stipulated. The Codeapplies to all suppliers, vendors, contractors and anyother persons doing business with MPB and itssubsidiary companies.

• Fraud Prevention Manual and Whistle-blowing Policy

The Group has established a Fraud Prevention Manualconsisting of the Anti-fraud Policy and Whistle-blowingPolicy. The Anti-fraud Policy defines clearly whatconstitutes fraud and fraudulent activities. It alsoendeavours to limit the opportunity for fraud againstthe Group by increasing the prevention, detection andprosecution of fraudulent activities.

The Whistle-blowing Policy guides employees of theGroup in communicating instances of illegal or immoralconduct to the appropriate parties within the Group andat the same time protecting these employees againstvictimisation, discrimination or being disadvantaged inany way arising from such communications. It alsoprovides for proper investigation on all allegations orreports from within and outside the Group.

The manual builds into the Group’s culture,abhorrence for fraud, and that any conduct of thisnature will not be tolerated. It also promotes atransparent and open environment for fraud reportingwithin the Group.

• Documented Internal Policies and Procedures

Policies and procedures of business processes aredocumented and set out in a series of StandardOperating Manuals and implemented throughout theGroup. These policies and procedures are subject toregular reviews, updates and continuous improvementsto reflect the changing risks and operational needs.Critical policies and procedures revised or developedand enforced during the year include:-– Related Party Transaction (RPT);– Credit Control; and– Event Management -Karnival Jom Heboh

• Internal Audit Function

The Group’s internal audit function undertakes regularreviews of the Group’s operations and its system ofinternal controls. It provides continuous improvementto the controls and risk management procedures. Inthis respect, the internal audit function reviews theGroup's activities based on an approved audit planpresented to the Audit Committee. The audit plan isdeveloped based on the risk profiles of the businessentities of the Group’s in accordance with the riskpolicy as approved by the Board. Internal auditfindings are discussed at management level andactions are agreed in response to the internal auditrecommendations. The progress of implementation ofthe agreed actions is being monitored by InternalAudit through follow up reviews.

The internal audit function has a clear line of reportingto the Audit Committee and the Audit Committeedetermines the remit of the Internal Audit function.Thus, the internal audit function is independent of theactivities they audit and is performed with impartiality,proficiency and due professional care.

In line with the recommendations of the Institute ofInternal Auditors that an external quality assurancereview be conducted at least once every five years, theGroup’s internal audit function was subject to a reviewby Messrs KPMG Business Advisory in 2006. The reviewhas enhanced the effectiveness of the Group’s internalaudit function in providing both primary assuranceand value adding services as expected by itsstakeholders.

• Annual Assessment Of Internal Controls

In line with the Board’s request, an annual assessmentto evaluate the state of internal controls and riskmanagement at each operating unit was conductedduring the year. A General Audit Report (GAR) basedon a rating system approved by the Board was issuedto all the operating units within the Group at the endof the assessment. The rating system considers theachievement of key objectives by the operating units;financial performance of the operating units includingcost control measures; compliance with riskmanagement framework and internal controlprocedures; the effectiveness of managementsupervision; the quality of staffing and follow-upactions on issues raised by the external audit. Theassessment provides the Board with the necessaryassurance that sound control environment andstructure is in place.

statement on internal control cont’d

50

• ICT Strategy Blueprint

In line with the Group’s expansion plan to be anintegrated media powerhouse, MPB has initiated anICT Blueprint to address the group ICT requirementsfor the next 3 years. A global consulting firm withstrong credential and experience in ICT projects forbroadcasting industry was appointed to formulate theICT Blueprint. The programme involved significantchanges and will be implemented through a numberof key ICT development programmes.

The development strategy includes:• Aligning the ICT initiatives with the business

strategy to ensure proper exploitation oftechnology;

• Support the group human capital developmentprogramme to increase the ICT skills andcompetencies within the group;

• Develop key performance to measure theeffectiveness of ICT deliverables and contributions;and

• Address key concerns/risk and mitigation strategies.

A steering committee called ICT Strategy CommitteeBoard has been formed to oversee the developmentand implementation of the ICT Blueprint.

OTHER KEY ELEMENTS OF INTERNAL CONTROL

The other key elements of the Group’s internal control systemare described below:

• Setting up of various Management Committees includingthe Programme Committee and Tender Committee withclearly defined terms of reference to ensure transparencyand integrity of the procurement process.

• A detailed budgeting process where each business unitsubmits a business plan annually for approval by the Board.

• Monthly reporting of actual results and their review againstbudget, with major variances being followed up andmanagement actions taken, where necessary. The financialresults are reviewed by the Board with management on aquarterly basis, to enable them to gauge the Group’sachievement of its annual targets and review any keyfinancial and operational issues.

• Regular and comprehensive information provided tomanagement, covering financial performance and keyperformance indicators, such as advertising market share,television viewership, programme ratings and utilisation ofresources.

• Monitoring of performance including discussion of anysignificant issues at senior management meetings.

• Regular visits to operating units by members of the Boardand senior management.

The Board believes that the development of the system ofinternal controls is an ongoing process and has taken stepsthroughout the year to improve its internal control system andwill continue to do so. Based on the assessment of the internalcontrol system of the Group, no significant control failings orweaknesses that would result in material loss, contingency oruncertainty requiring disclosure in the Group’s annual reportwere noted.

ASSOCIATED COMPANY

The state of internal control of The New Straits Times Press(Malaysia) Berhad, an associated company of MPB listed on theBursa Malaysia Securities, has been disclosed in the Statementon Internal Control made by their Board of Directors and is thusexcluded from this Statement. However, the directors of MPBare appointed to this Board, attend board meetings and reviewthe key financial information of the Company. These directorsreport to the MPB Board in the event that the Company doesnot appropriately manage significant risks.

This statement is made on the recommendation of the AuditCommittee to the Board of Directors and as per the Board’sresolution dated 7 March 2008.

REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS

This statement on Internal Control has been reviewed by theexternal auditors for the inclusion in the annual report of MediaPrima Berhad for the year ended 31 December 2007. Theexternal auditors have reported to the board that nothing hascome to their attention that causes them to believe that thestatement is inconsistent with their understanding of theprocess adopted by the Board in reviewing the adequacy andintegrity of the system of the internal controls.

51

risk management

RISK MANAGEMENT

As the nation’s leading integrated media investment group withdiversified interests in television, radio, print media, movie-making, event management, outdoor advertising and its recentventure into new media, Media Prima is exposed to varioustypes of risks. The Board, acknowledges its responsibility for andcommitment to best practice in Corporate Governanceendeavours to instil risk management and control as part of theGroup’s business culture.

Achievement of the Group’s business objectives depends,among other things, on external economic factors, theunpredictability of market trends, ever evolving technology,unforeseen calamities and human factors. In recognition of thewide exposure to operational, financial and manpower risks, theGroup’s internal risk management and control systems thrive toidentify, to address and to mitigate risks involved effectively. TheGroup’s risk management methodology is based on anintegrated risk management model that considers risk at alllevels of the organisation, from the strategic to the day-to-dayoperations.

RISK MANAGEMENT FRAMEWORK

The Board has approved the Risk Management Framework forthe Group and the formation of the Group Risk ManagementCommittee (GRMC) on 12 December 2003. This frameworkprovides the platform to adopt a more holistic and integratedapproach to managing risk. The objectives of the framework areas follows: - • Establish a clear Risk Management Policy;• Allocate and optimise the use of resources in managing risk

effectively;• Inculcate an effective risk management culture throughout

the Group;• Safeguard financial and non-financial assets of the Group;• Comply with policies, procedures, guidelines, laws and

regulations; and

• Establish an integrated risk management process where:-

➢ Risk management operating structure is formalised andkey lines of responsibil ity for risk managementthroughout the Group are defined;

➢ Monitoring of major risk factors, which may havesignificant impact on individual businesses and theGroup, is centralised at Group Senior Managementlevel; and

➢ A transparent system of information andcommunication for risk management betweenoperations, Management and Board of Directors isachieved.

The GRMC is chaired by the Group Managing Director andincludes the Group Chief Financial Officer, Head of HumanResources and Administration, Group Chief Technology Officerand Head of Corporate Governance and Risk Management(CGRM) with representatives from each operating unitattending, as required. The GRMC meets quarterly to considerthe risks identified and the risk mitigation strategies and controlprocesses to be recommended. The GRMC reports to the AuditCommittee on the risk management status on a regular basis.The Audit Committee then reports to the Board significantchanges in the business and the external environment, whichaffect key risks. The Board monitors the implementation of therisk strategies and any changes to the risk profiles are highlightedto the Board for consideration. In this way, the Board will ensurethat the risk strategies are progressing according to theimplementation plan.

risk management cont’d

52

RISK MANAGEMENT OVERSIGHT STRUCTURE

Board of Director

TV Networks Radio Networks Other Subsidiary Companies Group Support Services

The Group has developed an enterprise wide risk map throughthe Control and Risk Self-Assessment method facilitated by theRisk Management Unit. The Risk Management team conducts riskassessments for every unit of the Group and assists staff inunderstanding the application of the process. The RiskManagement Framework and arrangements ensure a consistentsystem of risk management across the Group with clear executivesupport and each appointed divisional Risk Liaison Officer owningresponsibility for risk management activities in their specificdivision. With all the risk monitoring results reported andgathered, Risk Profile Review Reports are then prepared to bepresented to the GRMC members and the Board on a quarterlybasis for evaluation as well as to recommend for effective controlmeasures.

During the year, the Group continued to enhance and evaluatethe risk management framework for efficacy and coherence.The Group aims to ensure that its risk management activities arein line with the best practices laid down in the KLSE PN 9/2001.Risk assessment at departmental level has been carried out andwill continue to do so for every department and operatingcompany within the MPB Group.

The risk management process in place requires management tocomprehensively identify and assess all types of risks in terms oflikelihood and magnitude of impact as well as to identify andevaluate the adequacy of mechanisms in place to manage,mitigate, avoid or el iminate these risks. The processencompasses assessments and evaluations at business unitprocess level before being examined on a Group perspective.

Some of the risk management ongoing activities and/orinitiatives include:-

• Communication Session

In order to ensure a better understanding of the riskmanagement framework and control procedures, andsmooth implementation of new policies and procedures,the Risk Management team continuously holdspresentations to educate and to update the Group’s staffaccordingly. During the year under review, the RiskManagement team has presented the latest and revisedpolicies on Advances & Claims, Related Party Transactionsand Procurement to all units within the Group. All theinformation mentioned above is also available on theCGRM web portal.

• Corporate Governance and Risk Management Web Portal

The CGRM Department strives for improvement on speedand accessibility to better communications with all otherunits within the MPB. In April 2006, CGRM web portal waslaunched. Information such as Policies and Procedures,Limits of Authority Manual and other informationpertaining to control, risk and governance matters areprovided through the web portal. To be better informed ofthe happenings in CGRM and to be updated on the latestchanges to the policies and procedures, staff is advised tovisit the web portal frequently. It acts as an interactiveplatform by providing consulting service to promote and tosupport improvement and efficiency as well as to welcomefeedbacks on all relevant issues. This development hasentailed time and cost saving, efficacy and availability ofinformation to MPB community.

Implementation of the policy

Audit Committee

Group Risk Management Committee

Establish Risk Management

Strategic Level

Operational Level

Corporate Governnanve & RiskManagement Department

Internal Control

Risk Owners

Risk Management Unit

53

• Business Continuity Plan

The Board recognises that it is crucial to ensure businesscontinuity in case of significant disruption or disaster. ABusiness Continuity Plan (BCP) for the Group has beenestablished in 2005 and is being continuously reviewed toreflect changes in risk profiles and organisational structure.This Plan focuses on the sudden inability of the televisionnetworks to provide services to its stakeholders because ofthe loss of physical assets and broadcasting capability. Inthis respect, the Group has formulated a comprehensiveplan that covers all actions to be taken before, during andafter a disaster, with the following objectives:-

• Minimise disruption of services to all levels of clientsand stakeholders;

• Minimise financial loss;• Ensure a timely (and prioritised) resumption of

business operations in the event of disaster ordisruption;

• Provide particular emphasis on information servicesand computer operations, given the integral relationbetween Information and CommunicationsTechnology and all parts of the television stations’operations;

• Ensure a safe and secure working environment andprovide other assistance to help staff cope with thedisruption and their individual workloads; and

• Provide adequate communications internally andexternally in the event of disaster or disruption tooperations.

During the year, a site inspection of the workingenvironment at Sri Pentas was carried out by the BCP ChiefRecovery Officer and the Recovery Executive Committee(REC) to ensure effective measures were in place withregards to the office safety, security and health. REC hasalso looked into potential threats and hazard points at SriPentas during the inspection. Consequently, Head ofDepartments were made aware of the findings for theironward action.

• Occupational Health and Safety Policy

The Group has in place an Occupational Health and SafetyPolicy and, one of its subsidiaries, Sistem TelevisyenMalaysia Berhad (TV3) had in 2006 successfully obtainedthe Occupational Health and Safety Assessment Seriescertification (OHSAS 18001:1999) awarded by BVQI forestablishing, implementing and maintaining of safety,health and conducive workplace related to broadcastingactivities.

• IT Security Master Plan

In view of the Group’s increasing use of IT as a businessenabler and the increasing risk associated with cyberthreats, the ICT Strategy Committee Board has approvedthe development of the Enterprise Security Architecture(ESA), an Information Security Management System inaccordance with ISO 27001. This 2 year project undertakenby a consultant aims to identify the maturity level ofInformation Security and the associated risks of being atthat level. An Information Security Audit Framework asubset of the ESA has also been established to measure theeffectiveness of the implementation of the ESA.

• New investments

Risk assessment are included in business proposals foracquisitions and investments in new business ventures inorder to ensure that decisions are made after assessing thesignificant risks associated with the proposed investments.

audit committee report

54

1. MEMBERS OF THE AUDIT COMMITTEE

DATO’ DR MOHD SHAHARI BIN AHMAD JABARChairman / Independent Non-Executive Director

DATO’ ABDUL MUTALIB BIN DATUK SERI MOHAMED RAZAKIndependent Non-Executive Director

TAN SRI LEE LAM THYEIndependent Non-Executive Director

DATO’ SERI MOHAMED JAWHARIndependent Non-Executive Director

ABDUL RAHMAN BIN AHMADGroup Managing Director / Chief Executive Officer

2. ATTENDANCE AT MEETINGS

The Audit Committee held a total of 5 meetings during the financial year 2007 and the details of attendance of the Committeemembers are as follows:

14th ACM 15th ACM 16th ACM 17th ACM 18th ACM28.02.07 28.03.07 14.05.07 17.08.07 14.11.07

Dato’ Dr Mohd Shahari Bin Ahmad Jabar


Tan Sri Lee Lam Thye

Dato’ Abdul Mutalib Bin Datuk Seri Mohamed Razak

Dato’ Seri Mohamed Jawhar NA NA NA(Appointed as Audit CommitteeMember on 29 May 2007.)

Attend : Absent with apologies : NA : Not Applicable

55

3 TERMS OF REFERENCE

The Audit Committee is guided by the following Terms ofReference in performing their duties and responsibilities:

3.1 Composition Of Members

1. The Committee must be appointed from amongstits Directors which fulf i ls the followingrequirements:• the Audit Committee must be composed of

not less than 3 members;• a majority of the members must be

independent directors*; and• at least one member of the Audit Committee:

~ must be a member of the MalaysianInstitute of Accountants (MIA); or

~ if he is not a member of the MIA, hemust have at least 3 years’ workingexperience and:• he must have passed the exami-

nation specified in Part I of the 1stSchedule of the Accountants Act1967; or

• he must be a member of one of theassociations of accountants speci-fied in Part II of the 1st Schedule ofthe Accountants Act 1967.

2. The Chairman shall be an Independent Non-Executive Director.

3. No alternate director is appointed as a member ofthe Audit Committee.

4. In the event of any vacancy in the AuditCommittee resulting in the non-compliance of theabove requirements, the Company must fill thevacancy within 3 months.

5. The Company Secretary shall act as Secretary tothe Committee.

3.2 Scope

1. The Audit Committee shall be granted theauthority to investigate any activity of theCompany and its subsidiaries and all employeesshall be directed to cooperate as requested bymembers of the Committee.

2. The Audit Committee shall be empowered to retainpersons having special competence as necessary toassist the Committee in fulfilling its responsibilities.

3. The Audit Committee shall provide assistance tothe Board in fulfilling its fiduciary responsibilitiesparticularly relating to business ethics, policies,financial management & control.

4. The Audit Committee shall maintain a direct lineof communication between Board, ExternalAuditors, Internal Auditors and Managementthrough regularly scheduled meetings.

5. The Audit Committee shall provide greateremphasis on the audit functions by increasing theobjectivity and independence of External andInternal Auditors and providing a forum fordiscussion that is independent of theManagement.

6. The Audit Committee may invite any person tothe meeting to assist the Committee in decision-making process and that the Committee maymeet exclusively as and when necessary.

7. Serious allegations that have financial implicationsagainst any employee of the company shall bereferred to the Audit Committee for investigationto be conducted.

3.3 Authority

The Audit Committee shall have the followingauthority as empowered by the Board of Directors:

1. Have authority to investigate any matter within itsterms of reference;

2. Have the resources which are required to performits duties;

3. Have full, free and unrestricted access to anyinformation, records, properties and personnel ofthe Company and any other companies within theGroup;

4. Have direct communication channels with theexternal auditors and person(s) carrying out theinternal audit function or activity (if any);

5. Be able to obtain independent professional orother advice; and

6. Be able to convene meetings with the externalauditors and internal auditors together with otherindependent members of the Board, excluding theattendance of the executive members of theCommittee, at least once a year or wheneverdeemed necessary.

audit committee report cont’d

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3.4 Meetings

1. The Committee shall meet at least 4 times in ayear to discuss any matters raised by the Auditorsin discharging their functions. The quorum for ameeting of the Audit Committee shall be three ofwhich the majority must be IndependentDirectors.

At least once a year, the whole Board shall meetwith the external auditors without the presence ofany executive Board member/Chief ExecutiveOfficer.

2. The Secretary is responsible for the co-ordinationof administrative details including calling themeetings, voting and keeping of minutes.

3. In addition to the Committee members, theGroup Chief Financial Officer and the GroupGeneral Manager, Corporate Governance and RiskManagement are invited for attendance at eachmeeting. The Head of companies/departmentsand their Management team will attend whenaudit reports on their companies/departments aretabled for discussion. The presence of ExternalAuditors will be requested when required.

4. The Chairman shall upon the request of theExternal Auditor, convene a meeting of thecommittee to consider any matter the ExternalAuditor believes should be brought to theattention of the directors or shareholders.

5. The auditors have the right to appear and beheard at any meeting of the Audit Committee andshall appear before the committee when requiredto do so by the Committee.

3.5 Duties and Responsibilities

The duties and responsibilities of the Audit Committeewith the following groups will be as follows:

3.5.1 Board

• To obtain satisfactory response from managementon reports issued by internal and external auditorsand report to the Board:-~ Significant findings identified and the impact

of the audit findings on the operations;~ Deliberations and decisions made at the

Committee’s level with focus given tosignificant issues and resolutions resolved bythe Committee, on regular basis; and

~ A summary of material concerns andweaknesses in the control environment notedduring the year and the correspondingmeasures taken to address the issues.

• To oversee the function of the Group RiskManagement Committee and report to the Boardsignificant changes in the business and theexternal environment, which affect key risks;

• Where review of audit reports of subsidiaries andany related corporation also falls under thejurisdiction of the Committee, all the abovementioned function shall also be performed by theCommittee in co-ordination with the Board ofDirectors of the subsidiaries and related corporation;

• To review arrangements established bymanagement for compliance with any regulatoryor other external reporting requirements, by-lawsand regulation related to the MPB Group’soperations; and

• To consider other areas as defined by the board.

3.5.2 External Auditors

• To consider the appointment of the external auditor,the audit fee and any questions of resignation ordismissal;

• To discuss with the external auditor before the auditcommences, the nature and scope of the audit, andensure co-ordination where more than one audit firmis involved;

• To review the assistance given by the employees of theCompany;

• To discuss with the external auditor, his audit reportand his evaluation of the system of the internalcontrols; and

• To review the quarterly and year-end financialstatements of the company, focusing particularly on: ~ Any changes in accounting policies and practices;~ Significant adjustments arising from the audit;~ The going concern assumption; and~ Compliance with accounting standards and other

legal requirements.

3.5.3 Internal Auditors

• To discuss problems and reservations arising from theinterim and final audits, and any matter the auditormay wish to discuss;

• To oversee the internal audit function by:~ Reviewing the adequacy of the scope, functions

and resources of the internal audit function, andthat it has the necessary authority to carry out itswork;

57

~ Reviewing the internal audit programme,processes, the results of the internal auditprogramme, processes or investigation undertakenand ensure that appropriate action is taken on therecommendations of the internal audit function;

~ Reviewing any appraisal or assessment of theperformance of members of the internal auditfunction;

~ Determining and recommending to the Board theremit of the internal audit function, including theremuneration of the General Manager, CorporateGovernance and Risk Management;

~ Approving any appointment or termination ofsenior staff members of the internal audit function;

~ Informing itself of resignations of internal auditstaff members and provide the resigning staffmember an opportunity to submit his reasons forresigning;

~ Ensuring on an on-going basis that Internal Audithas adequate and competent resources;

~ Monitoring closely any significant disagreementbetween Internal Audit and Managementirrespective whether they have been resolved; and

~ Ensuring that Internal Audit reports are not subjectto the clearance of the Management, save forpurposes of presentation to the Group RiskManagement Committee.

• To consider the major f indings of internalinvestigations and management’s response.

3.5.4 Related Party Transaction

• To consider any related party transactions that mayarise within the company or group including anytransaction, procedure or course of conduct that raisesquestions of management integrity.

4. ACTIVITIES OF THE AUDIT COMMITTEE

The Committee carried out the following activities duringthe year in the discharge of its duties and responsibilities asstipulated in its Terms of Reference:

4.1 Risks and Controls• Reviewed the progress of the risk management

function in its ongoing identif ication andmonitoring of key organisational risks, and thecontrols implemented by the respective operatingunits in managing those risks.

• Reviewed and deliberated on the Group corporaterisk profile.

• Evaluated the overall effectiveness of the system ofinternal controls through the review of the resultsof work performed by internal and externalauditors and discussions with Senior Management.

• Reviewed the results of the Annual Assessmentexercise.

• Reviewed the Internal Control Statement andAudit Committee Report prior to their inclusion inthe Company’s Annual Report.

4.2 Financial Results• Reviewed the Group’s quarterly results before

recommending to the Board for their approvaland release of the Group’s results to the BursaSecurities focusing on the following areas, whererelevant:~ Listing Requirements of the Bursa Securities;~ Provisions of the Companies Act, 1965; and~ Applicable approved accounting standards.

• Reviewed the audited financial statements of MPBand its subsidiaries with the Group Chief FinancialOfficer and the external auditors beforerecommending to the Board for their approval.

4.3 External Audit• Reviewed with the external auditors their audit

plan, strategy and scope of the statutory audits ofthe Group accounts for the financial year ended31 December 2007.

• Reviewed the results and issues arising from theiraudit of the year end financial statements andtheir resolution of such issues highlighted in theirreport to the Committee.

• Held a meeting with the external auditors in theabsence of Management to discuss issues arisingduring the final audit.

• Reviewed their performance and independencebefore recommending to the Board their re-appointment and remuneration.

4.4 Internal Audit• Reviewed the internal audit plan for the financial

year 2007 ensuring the principal risk areas wereadequately identified and covered in the plan.

• Reviewed the scope and coverage of the auditover the activities of the respective operating unitsof the Group and the basis of assessment and riskrating of the proposed areas of audit.

• Reviewed and deliberated on audit reports andfollow-up reports conducted by the internal audit.

• Reviewed the recommendations by internal auditand appraised the adequacy and effectiveness ofManagement response in resolving the auditissues reported.

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• Reviewed the corrective actions taken byManagement in addressing and resolving issues aswell as ensuring that all issues were adequatelyaddressed on a timely basis.

• Reviewed the adequacy of resources and thecompetencies of staff within the internal auditfunction to execute the plan, as well as the auditprogrammes used in the execution of the internalauditors’ work and the results of their work.

• Reviewed and determined the remuneration,increment and performance rating of the GeneralManager, Corporate Governance and RiskManagement.

• Reviewed and appraised the overall performanceof the Corporate Governance and RiskManagement Department against the KPIs set for2006 and approved the KPIs for the departmentfor financial year 2007.

4.5 Related Party Transactions• Reviewed related party transactions for

compliance with the Listing Requirements of theBursa Securities and the appropriateness of suchtransactions before recommending to the Boardfor its approval.

4.6 Employees’ Share Option Scheme• Reviewed and verified allocation of share options

during the year under the MPB Employees’ ShareOption Scheme (ESOS), to ensure compliancewith the allocation criteria determined by the MPBESOS Committee and in accordance with the by-laws of the MPB ESOS.

5. INTERNAL AUDIT FUNCTION

The MPB Group has an established in-house internal auditfunction carried out by the Corporate Governance and RiskManagement Department (CGRM). CGRM, headed by theGroup General Manager, Corporate Governance & RiskManagement reports to the Audit Committee and isresponsible in providing an independent and objectiveassurance that adequate, efficient and effective internalcontrol system is in place to anticipate potential riskexposures over key business processes. Through asystematic and disciplined approach, the internal auditfunction evaluates and improves the effectiveness of riskmanagement, control and governance processes within theGroup. The costs incurred for the Group’s internal auditfunction for 2007 was RM623,090.

During the year, the Internal Audit has completed andissued reports for 13 assignments. The audits coveredfunctions in the areas of engineering, finance, humanresources, assets management, operational review of newlyacquired subsidiary, treasury management, businessdevelopment and senior management claims. These werecarried out in accordance with the Annual Audit Plan or onad-hoc basis at the special request of either the AuditCommittee or Management. The resulting reports of theaudits undertaken were presented to the Audit Committeeand forwarded to the Management for attention andnecessary actions. In addition, the Internal Audit was inattendance in all major competitions based programmesorganised by the Group Television Networks such as JuaraLagu, One in A Million, GangStarz, Project Superstars,Akademi Al Quran to provide independent verification andconfirmation of the competitions results and/ or SMS votes.The Internal Audit also attended stock-takes and assetsdisposal exercise within the Group as an independentobserver to ensure due process has been observed.

To improve customer service and quality of audit work, thedepartment has undertaken the following initiatives:• Communication sessions with Management on internal

audit activities and planning of audits so that areas ofManagement concern are covered;

• Conducting control and risk awareness workshops; and• Implementation of online Client Satisfaction Survey.

In order to enhance their skill and knowledge and tocontinuously provide value added services to the Group,CGRM personnel had during the year participated in thefollowing training and/ or conferences:• National Conference on Internal Audit• Value for Money Internal Audit• Enterprise Risk Management• Risk Based Auditing• IT Audit and Control• Media Law

The Management is responsible for ensuring that correctiveactions on reported weaknesses as recommended are takenwithin the required timeframe. The Internal Auditcontinuously monitors the implementation of auditrecommendations through periodic follow-up reviews. TheInternal Audit also works closely with external auditors toresolve any control issues and assists in ensuring thatappropriate Management actions are taken. Managementis also responsible for ensuring that a written report onaction planned or completed is sent to the Chairman of theAudit Committee and the Group General Manager,Corporate Governance and Risk Management.

audit committee report cont’d

59

6. COMPLIANCE TO BURSA SECURITIES’ AMENDED LISTING REQUIREMENTS

In line with the revised Malaysian Code on Corporate Governance announced by the Securities Commission on 1st October2007, the Bursa Securities Malaysia Berhad (the Bursa) had made amendments to its Listing Requirements in relation toCorporate Governance. The Committee lauds this initiative as it will enhance the effectiveness and independence of auditcommittee and increase stakeholders’ confidence. The Group’s status of compliance as at 31 December 2007 on keyamendments is as follows:

Amended provisions Timeframe for compliance Status of Compliance

Paragraph (30), Appendix 9C – Statement By 31 January 2009 A statement on the Group’s internal on Internal Audit Function i.e whether audit function which is performedthe internal audit function is performed in-house is included in the Auditin-house or is outsourced and the costs Committee Report.incurred for the internal audit functionin respect of the financial year.

Para 15.10 – Composition of Audit By 31 January 2009 A new Non-Executive Director who meetsCommittee – all committee members to the qualifications prescribed by thebe Non-Executive Directors. Listing Requirements will be appointed

to the Audit Committee to replace Abdul Rahman Bin Ahmad, who is theonly Executive Director in the committee.

Para 15.13 – Functions of Audit Committee; Effective from 1 April 2008 In line with its Terms of Reference, thereview the adequacy of the scope, functions, Committee reviews the adequacy ofcompetency and resources of the internal the scope, functions, competency andaudit functions and that it has the necessary resources of the internal audit functions.authority to carry out this work.

Para 15.16 – Audit Committee Report to Effective immediately The summary of the internal auditinclude a summary of the activities of activities for the year is includedthe internal audit function or activity. in the Audit Committee Report.

Para 15.18 – Rights of the Audit Effective immediately The Audit Committee has the authorityCommittee – be able to convene meetings as empowered by the Board to convenewith the external auditors, the internal meetings with the external and internalauditors or both, excluding the attendance auditors, excluding the attendance ofof the other directors and employees the executive members of the committeewhenever deemed necessary. at least once a year or whenever deemed

necessary.

Para 15.23 – Removal or resignation of Effective immediately Not Applicable during the year.external auditors.

Para 15.28 (New Provision) – By 31 January 2009 The Internal Audit function of the GroupInternal Audit Function:- has been established since 2003 and its1. Must establish an internal audit independence and responsibility to

function which is independent of report direct to the Audit Committeethe activities it audits; and is enshrined in its Audit Charter.

2. Ensure its internal audit functionreports directly to the auditcommittee.

5-year financial highlights

60

GROUP

Year ended Year ended Year ended Year ended 16 months ended31 Dec 2007 31 Dec 2006 31 Dec 2005 31 Dec 2004 31 Dec 2003

RM’000 RM’000 RM’000 RM’000 RM’000

Revenue 691,339 534,689 399,689 328,405 371,156

Profi t Before Taxation 149,095 105,651 64,317 49,432 178,275

Net Profit After Taxation 117,440 82,994 54,794 33,856 167,879

Minority Interests – (2,712) 1,451 3,857 587

Share Capital 842,183 763,852 600,109 540,658 540,658

Shareholders’ Funds* 559,613 314,131 36,470 256,921 219,208

Earnings Per Share (sen) (Basic)** 14 11 9 7 47

Return On Shareholders’ Funds (%) 21 26 150 13 77

Net Assets Backing Per Share (RM) 0.66 0.41 0.06 0.48 0.41

Number Of Employees 1,813 1,614 1,512 1,110 1,070

* Shareholders’ Funds : Share Capital + Share Premium + Other Reserves + Accumulated Losses

** Earnings per Share (Basic) : Net Profit After Taxation and Minority Interests of RM117,440,000 (2006 : RM80,282,000) and the weighted average number ofordinary shares in issue of 817,212,000 (2006 : 709,261,000)

61

Group Revenue RM’ Million Group Profit Before Taxation RM’ Million

Net Profit After Taxation RM’ Million

Group Shareholders’ Funds RM’ Million

Group Employees No. of Employees

Year

03^ 04 05 06 07

371 328 400 535 691

03^ 04 05 06 07

178 49 64 106 149

03^ 04 05 06 07

168 34 55 83 117

03 04 05 06 07

1070 1110 1512 1614 1813

Year

Year

YearYear

03 04 05 06 07

219 257 36 314 560

^ 16 months ended 31 December 2003

share price chart

62

DATE

350

Volume Traded (’000)

Volume Traded Share Price

Share Price (RM)

0

50

311203 300604 311204 300605 311205 300606 311206 300607 311207

100

150

200

250

300

3.5

0

0.5

1.0

1.5

2.0

2.5

3.0

63

viewership & listenership data

AUDIENCE SHARE BY DEMOGRAPHIC (ALL TV)

% Viewership Share

TV3 ntv7 8TV TV9

% Viewership Share

TV3

2007

ntv7 8TV TV9

% Viewership Share

TV3 ntv7 8TV TV9

% Viewership Share

TV3 ntv7 8TV TV9

Audience Share For Total 6+ Audience Share For Malay 6+

Audience Share For Chinese 6+

Audience Share By Demographic (All TV) 2007

Total 6+

Audience Share For Urban 6+

2006

LISTENERSHIP – MEDIA PRIMA RADIO NETWORK

Survey #2 2007

Reach 000’sAll People 10+

HO

TFM

FLYF

M

Source: AGB Nielsen Media Research.

OTHERSMEDIA PRIMA

53%

47%

32.8

32.9

6.7

11.9

15.0

15.0

1.6

15.9

17.3

28.1

28.2

9.7

6.0

4.9

7.1

6.0 7.

5

1.6

6.5

8.9

5.3

5.2

8.1

3.0

44.9

43.3

7.5

2.6

7.6

4.2

2.4

10.7

3964

378

64

NEW MEDIA

65

Our 3G mobile television service allows users towatch their favorite TV programmes using their

mobile phones at normal video call rates. This serviceoffers total freedom for 3G phone users to decide

where and when to watch short video clips at their convenience.

PAY PER VIEW

chairman’s message

66

“We are dedicated to striking abalance between achieving our

business objectives and fulfilling ourrole as a caring corporate citizen.”

Dato’ Abdul Mutalib Bin Datuk Seri Mohamed RazakChairman, Media Prima Berhad

67

Dear Stakeholders,

Ever since the existing Board of Directors and Managementtook over the operations of the Group in 2002 and the listingon the Main Board of Bursa Malaysia back in 2003, Media PrimaBerhad (‘Media Prima’ or the ‘Group’) has achieved year onyear growth of more than 15% in terms of revenue and over20% in terms of bottom line. Meanwhile, our stock marketvalue has rocketed from less than RM1 billion in 2005 to nearlyRM2.3 billion as at 31 December 2007.

Market Capitalisation

But, as well as delivering excellent returns for our investors, weremain totally committed to creating value for our employees,our customers, our business associates and society as a whole.

Though a number of issues have combined during the year tomake the global economy unpredictable, Malaysia has largelyescaped the repercussions, and has gained from the rise in oiland commodity prices. After a soft beginning in the first half,the Malaysian economy gathered momentum in the last sixmonths of 2007, to achieve annual GDP growth of 6.3%.

Within our media industry, competition remained intensethroughout the year – especially for a Group like Media Primawhose revenue is predominantly advertising revenue based. Weare happy to note that advertising expenditure rose significantlyin 2007, boosted by the nation’s 50th independencecelebrations, Visit Malaysia Year, and the healthy GDP growth.

Against this background, on behalf of the Board of Directors ofMedia Prima, I am pleased to present the Annual Report andAudited Financial Statements of the Group and Company forthe financial year ended 31 December 2007.

ANOTHER EXCEPTIONAL RESULT

For the twelve months ended 31 December 2007, Media Primaposted exceptional financial results. For the first time, profitafter tax surpassed the RM100 million mark to hit RM117.4million, representing an increase of more than 41% on theRM83.0 million recorded in 2006.

Mar

ket

Cap

italis

atio

n bi

llion 2.50

2.00

1.50

1.00

0.50

0.00

2005 2006 2007

68

69

Profit before tax also increased by 41% to RM149.1 millioncompared to RM105.7 million for the previous year.

Our strong profit growth was the result of an excellentperformance by all of our subsidiary media assets coveringtelevision, radio and outdoor, coupled with improvedoperational results by our associate company, New Straits TimesPress (Malaysia) Bhd (NSTP).

At the same time, revenue grew by more than 29% from 2006to reach RM691.3 million on the back of higher advertisingspend, and the year also witnessed growing contributions fromTV9, our radio networks and our outdoor division. I am pleasedto highlight that revenue in 2007 has virtually tripled theamount recorded in 2002 of RM244.4 million, reflecting thesuccess of the Board’s strategy to aggressively expand revenuevia organic growth as well as acquisitions.

Given this tremendous performance, the Board is delighted torecommend a higher gross dividend of 9.3 sen per share to beapproved by the shareholders at the coming Annual GeneralMeeting. This represents a dividend payout ratio of 50% whichmeets the target set under the dividend policy announced bythe Board to shareholders two years ago.

This dividend is in addition to the special dividend of 9.0 senarising from the proceeds received recently from the disposal ofthe Wangsa Maju property to Zetro Services Sdn. Bhd., asubsidiary of Zetro Corporation Sdn. Bhd. In total, Media Primawill be paying more than RM114.1 million in dividends less26% tax to shareholders this year.

Group Profit Before Taxation RM’ Million

03^ 04 05 06 07

178 49 64 106 149

Year

^ 16 months ended 31 December 2003

Media Prima 07 corp:Layout 1 3/14/08 10:40 PM Page 69

chairman’s message cont’d

70

GROWING THE BUSINESS

During the year, Media Prima expanded the Group’s activitiesinto out of home advertising business via the completion of ouracquisition of three companies in the first quarter of 2007 – BigTree Outdoor Sdn. Bhd., the leading outdoor advertising outfitfor a total consideration of about RM159.1 million, UPD Sdn.Bhd. and The Right Channel Sdn. Bhd.

We have managed to swiftly consolidate the operations of thesecompanies under a single management team from Big Treewhich enabled us to strongly grow the revenue of the businessand reduce costs through economies of scale. The acquisitionhas proven to be immediately earnings accretive and we expectour outdoor business to contribute positively to the future valueof the Group.

Media Prima went on to consolidate its ownership of 8TV bybuying the remaining 20% stake in Metropolitan TV Sdn. Bhd.,the license owner and operator of 8TV. We can now fullybenefit from 8TV’s future profits and cashflows, which arelooking very promising given the excellent prospects offered byincreasing advertising revenue.

Rounding off the year, we launched our new online mediastrategy with revamped television networks web portals thatprovide free access to recently aired television programmes, aswell as establishing a new entertainment and lifestyle portal,gua.com.my.

Future offerings will include pay per download and subscriptionbased television content delivered through the web, leveragingon our huge library of television content which includeslifestyle, entertainment and documentaries.

To further improve earnings and enhance shareholder value, wehave also completed our ongoing capital management exerciseaimed at generating interest savings and lowering our cost offunds over the medium term.

This involved a two-pronged strategy. We consolidated thedebts at ntv7 into group level via a 5 year, RM70 million termloan refinancing facility with Affin Islamic Bank Berhad and weissued up to RM350.0 million nominal value bank guaranteedprivate debt securities via Aseambankers Malaysia Berhad.Consequently we expect the Group’s cost of debt to declinefrom an average of 6.5% to 5% going forward.

ENHANCING GOVERNANCE

The Group is committed to open and transparent businesspractices based on strong ethical values. As promised in ourprevious Annual Report, in 2007 we dedicated further efforts toimproving our stewardship and governance processes tosurpass expectations for the benefit of all our stakeholders. I ampleased to record that the progress we have made has beenrecognised by a series of awards.

71

In May, Media Prima was voted the best managed Malaysiancompany in the mid-cap category in a 2007 poll for Asia’s bestmanaged companies. The poll was conducted by Finance Asia,the leading, Hong Kong-based financial publishing company.Media Prima was also ranked fifth in the country for bestinvestor relations.

In November, Media Prima was ranked seventh out of 500 publiclisted companies in an annual survey by the Minority ShareholdersWatchdog Group. This was an impressive leap forward by theGroup, which had ranked 30th the previous year.

In January 2008, Asiamoney magazine’s 2007 CorporateGovernance Polls rated Media Prima as the Malaysian companybest for Overall Corporate Governance, best for Disclosure andTransparency, and best for Investor Relations.

These awards are especially meaningful given that, only fiveyears ago, the Group was heavily in debt and operationalperformance was weak. We are happy that the investingcommunity has acknowledged our achievement in terms ofnot just our financial performance but also governance andinvestor relations.

ACHIEVING RECOGNITION

In addition to the corporate governance awards noted above,Media Prima was deeply honoured to receive an array of otherawards and recognitions during the year, chief among whichwere the following.

TV3 was named one of Malaysia’s Most Valuable Brands by theAssociation of Accredited Advertising Agents Malaysia (4As).The valuation exercise was conducted by world-renownedInterbrand, and the award was presented to TV3 by the DeputyPrime Minister, Datuk Seri Najib Tun Razak.

Meanwhile, Media Prima Television Networks received threenominations at the Asian Television Awards 2007 in Singapore -one of the most prestigious events in the Asian broadcast industry.

Together, New Straits Times Sdn. Bhd. and TV3 bagged theSpecial Award for the media reporting category at the ‘PrimeMinister’s CSR Awards’ show for their efforts to highlightcorporate social responsibility issues.

chairman’s message cont’d

72

SERVING THE COMMUNITY

As a media owner that serves the community and the nation,we are acutely aware that we bear a unique social responsibility.We have the ability to influence the hearts and minds ofMalaysians, and we are committed to utilising our mediaplatforms to promote positive values and racial harmony.

We devote significant resources to supporting socially responsiblecauses. For instance, TV3’s Bersamamu and ntv7’s Nation CareCharity Show have been effective in promoting the need to helpthe less fortunate, while 8tv has been at the forefront offurthering education via alliances with local colleges in line withits positioning as a youth-oriented brand. Meanwhile, we makesure that our news coverage frequently highlights environmentalissues such as pollution and global warming.

At the Group level, we are participating in the PINTAR(Promoting Intelligence, Nurturing Talents, AdvocatingResponsibility) Project which is an initiative mooted by theFinance Ministry involving 25 government-linked companiesand 132 schools. This three year project, launched on 17December 2006, is aimed at helping to raise awareness of theimportance of education and improving the academic standardsof under-privileged children and under-performing schools.

More information about our CSR initiatives is given on pages120 to 131.

FOSTERING TALENT

As a media Group, we recognise the importance of continuallyinfusing and fostering talent. We operate a programme oftalent-pool development, complemented by a pro-activeinternship initiative, management training programmes andsuccession planning. We are also placing ever-increasingemphasis on the wellbeing of our management and staff. Inparticular, we have started to roll out a series of initiatives topromote a healthy lifestyle.

LOOKING FORWARDMalaysia’s GDP growth is forecast to remain healthy - theGovernment’s continued effort to attract foreign and privateinvestments, and the positive economic effects arising from the9th Malaysia Plan should boost consumer and clientconfidence. Therefore, although the global outlook is uncertain,we are cautiously optimistic that advertising spending inMalaysia will continue to grow – albeit that competition withinthe industry will intensify. Whatever the economic conditions,we will be resolute in pursuing our strategy of growing fasterthan the market.

Our main growth driver will remain the television networks butwe expect our radio networks and outdoor operations to playan increasingly important role as revenue and earningscontributors. We also see new media as a catalyst for us toexpand our revenue base into non advertising based revenue aswe find opportunities to exploit our library of more than 40,000hours of content.

73

In terms of regional expansion, we are interested in anyinvestment that will increase shareholder value. Meanwhile, wewill focus on operational collaborations with like-minded mediagroups within the region. At home, we will also persist with ourefforts to seek revenue from non-traditional advertisers, and toencourage a higher percentage of advertisers to chooseelectronic media as their primary vehicle for advertising. Thiswould bring Malaysia into line with the rest of the region,where the greater effectiveness of electronic advertising hasalready been recognised.

EXPRESSING APPRECIATION

At this coming Annual General Meeting, Dato’ Dr. MohdShahari Ahmad Jabar will retire from the Board, and I would liketo take this opportunity to thank him for the tremendouscontribution he made during his term of office, not just as aBoard director, but as Chairman of our Audit Committee.

Dato Dr. Mohd Shahari was highly instrumental in helping todrive the Board’s efforts to improve governance andmanagement especially during the challenging early days of thetransformation period and we shall miss his presence.

I am also delighted to welcome a new independent non-executive director, Dato’ Abdul Kadir Mohd Deen, who joinedthe Board on 29 May 2007. I am confident that his expertise asa former diplomat will contribute significantly to the ongoinggrowth and development of the Group.

At the end of a year of exceptional progress, I would like tooffer my profound gratitude to our customers, investors andbusiness partners for their unwavering support andcommitment. I also wish to express our deep appreciation forthe unstinting help and guidance we received from theGovernment, especially our regulators, the Ministry of Energy,Water & Communications and the Malaysian Communications& Multimedia Commission.

As well, I am pleased to express my appreciation of the wisdomand foresight displayed by my colleagues on the Board ofDirectors and by our entire management team. Finally, onbehalf of my colleagues on the Board, I extend heartfelt thanksto all our employees on whose dedication, hard work and sheerenthusiasm our ongoing success is built.

Dato’ Abdul Mutalib Bin Datuk Seri Mohamed RazakChairman, Media Prima Berhad

review of operations

74

“2007 was another outstanding year for the Group.

Moving forward, Media Prima willcontinue to execute strategies thatwill enhance the Group's earningsand maximise shareholders value,while continuing to invest in thebest innovative and compellingcontent as well as aggressivelypromoting its media brands.”

Abdul Rahman Bin Ahmad Group Managing Director/

Chief Executive Officer, Media Prima Berhad

75

2007 was another year of outstanding achievement.

As highlighted by the Chairman, our net profit hit RM117.4million, exceeding the RM100 million mark for the first time inthe history of the Group. This represents an increase of 41%from the RM83.0 million recorded in 2006. At the same time,profit before tax increased by 41% to RM149.1 million fromRM105.7 million recorded in 2006.

Media Prima’s media assets currently reach close to 21 millionMalaysians daily, including 11.2 million television viewers, 6.8million newspaper readers and 4.3 million radio listeners. Withsuch reach, our media assets offer unparalleled and cost efficientreach to advertisers seeking to target any consumer segment.

Our TV networks continued to grow and remained our maindriver of revenue and profit. Our radio business has already startedto strongly contribute to profits after only eighteen month inoperations. The performance of our print operations furtherimproved. Our outdoor operations have proven to be earningsaccretive immediately upon completion of acquisitions and ourexpansion into new media has shown considerable promise.

TV“Continuing our leadership position”

In 2007, our three networks, TV3, 8tv and ntv7 TV continued tobe profitable whilst TV9 achieved operational break even afteronly eighteen months of operation, exceeding its target of twoyears.

Revenue grew faster than the market despite soft advertisingdemand in the first half of the year, boosted by strongadvertising growth arising from the 50th Merdeka celebrationsand increased revenue from non traditional advertisers.

Despite the proliferation of new channels and amidst anintensely competitive television landscape, our collective shareof audience increased – our four stations now account for 53%of TV audience.

TV3 remained the nation’s most popular mass market channeland by far the station of choice for all Malaysians. It is ourdominant network, claiming a 33% share of viewers nationwidein 2007.

2007

% Viewership Share

TV3 ntv7 8TV TV9

Audience Share For Chinese 6+

2006

6.7

11.9

15.0

15.0

1.6

15.9

17.3

1.6

2007

2006

% Viewership Share

TV3 ntv7 8TV TV9

Audience Share For Urban 6+

28.1

28.2

9.7

6.0

4.9

7.1

6.0 7.

5

* Source: AGB Nielsen Media Research

% Viewership Share

TV3 ntv7 8TV TV9

2007

Audience Share For Total 6+

2006

32.8

32.9

6.5

8.9

5.3

5.2

8.1

3.0

% Viewership Share

TV3

2007

ntv7 8TV TV9

Audience Share For Malay 6+

2006

44.9

43.3

7.5

2.6

7.6

4.2

2.4

10.7

Media Prima 07 corp:Layout 1 3/14/08 10:40 PM Page 75

review of operations cont’d

76

As reported in the Chairman’s message, TV3 was named as one of Malaysia’s Most Valuable Brands. With continuous investment incontent and brand, the network maintained its leadership positioning provision of news and local content. We are proud to note thatTV3 has managed to continuously maintain its ratings by delivering all of Malaysian TV’s 20 most watched programmes in 2007.

TOP 20 PROGRAMS AMONG ALL VIEWERS IN 2007Total Viewers : 18,531,797

ChannelNo. Program Genre Channel V’ship TVR Share %

1 ANUGERAH BINTANG POPULAR B.H.. MUSICAL/ENTERTAINMENT TV3 4,382,225 25.3 67.72 ANUGERAH JUARA LAGU (L) MUSICAL/ENTERTAINMENT TV3 4,251,171 24.5 65.83 ANUGERAH SKRIN (LIVE) MUSICAL/ENTERTAINMENT TV3 4,171,462 22.5 55.84 ANUGERAH JUARA LAGU:GLAM WALK MUSICAL/ENTERTAINMENT TV3 3,835,337 22.1 60.35 KISAH KAISARA DRAMA/SERIES TV3 3,452,042 18.6 51.26 LESTARY DRAMA/SERIES TV3 3,232,433 18.2 49.27 SERAM DRAMA/SERIES TV3 3,102,965 17.2 46.78 MUZIK MUZIK S.A.POP ROCK (L) MUSICAL/ENTERTAINMENT TV3 3,100,125 16.7 44.29 AKSI DRAMA/SERIES TV3 2,990,291 16.6 45.310 GANGSTARZ FINAL(L) REALITY TV TV3 2,735,777 15.8 43.011 BULETIN UTAMA NEWS TV3 2,790,967 15.6 49.612 PUTERI COMEDIES/SITCOMS TV3 2,713,221 15.4 44.413 ANUGERAH JUARA LAGU (R) MUSICAL/ENTERTAINMENT TV3 2,673,088 15.4 42.614 DUNIA BARU DRAMA/SERIES TV3 2,766,468 15.4 42.515 FARA DRAMA/SERIES TV3 2,636,067 15.2 44.816 CNY BLOCKBUSTER MOVIES TV3 2,531,669 14.6 51.317 MISI XX-RAY DRAMA/SERIES TV3 2,512,284 14.5 40.218 999 (L) DOCUMENTARIES/MAGAZINES TV3 2,542,179 14.3 39.919 C'RAMA MOVIES TV3 2,410,245 13.7 43.720 DUNIA ANITA DRAMA/SERIES TV3 2,456,320 13.6 40.3

Source : AGB Nielsen Media Research

77

8TV also had another good year, achieving a higher level ofprofitability, and successfully cementing its leadership positionamong its target audience of urban youths and the Chinesecommunity.

ntv7 is now the third most watched network among urbandwellers aged 25 and above, and the second most popularnetwork amongst Chinese. Whilst ntv7 faces intense challengesas it continues to establish its position as a higher end brandtargeting mature urban audiences, we are confident ofimproving its operational results through the increasing appealof our content, the strong support of advertisers and continuedrationalization of operational costs.

TV9 performed exceptionally well and has successfullyestablished itself amongst its target audience of young semi-urban Malays and Malays who associate themselves withtraditional Malay values, an important sub-group of the largestand fastest-growing consumer segment in Malaysia. It iscurrently the second most watched channel in the countryamongst this target market.

Going forward, TV9 is committed to increasing its local contentand is also exploring the viability of producing animated shows.

In terms of consolidated television network operations, we arepleased that in April 2007, we signed a multi-year, multi-genrevolume renewal agreement with The Walt Disney Company'sinternational TV distribution arm Buena Vista InternationalTelevision-Asia Pacific to air a wide range of the world's latestand most popular television shows. This marks our 15-yearrelationship with BVITV which will continue to provide our free-to-air networks with first to air content.

In September we previewed our new and returningprogrammes for 2008. Over 3,000 media buyers, advertisers,corporate clients and celebrities attended our annual TelevisionNetworks Screenings event. Such screenings not only act as apowerful catalyst for television advertising but also helpadvertisers decide how to spend their budgets most effectively.

Media Prima continues to seek ways to maximise the efficiencyand cost-effectiveness of our network operations. Accordingly,we are currently integrating the operations of ntv7 into our headoffice premises at Sri Pentas. The first phase which involved thetransfer of ntv7 transmission operation into Sri Pentas wassuccessfully completed in January 2008. We expect themigration exercise to be fully completed by the end of 2008.


78

RADIO“Our radio networks continue to strengthen their position.”

In 2007, our radio networks successfully grew their business tocontribute strongly to group’s revenue and profits after lessthan two years in operations.

Since the launch of Fly FM in October 2005 and Hot FM inFebruary 2006, both networks have made significant gains inlistenership and increased their market share among Malay andEnglish audiences to become the fastest growing radio stationsin Malaysia, catering to almost 4.3 million listeners per week.

Listenership – Media Prima Radio Network

*Source: AGB Nielsen Media Research

Listenership for Hot FM rose by nearly one million or 33% tonearly four million listeners which affirmed its position as thenation’s number two radio station. The gap between Hot FMand the leading radio network in Malaysia also narrowedfurther from 3 million listeners in the last survey to 1.3 millionlisteners. The Breakfast, Morning and Afternoon shows on HotFM are now the number one shows across various keydemographics, indicating its growing strength.

Fly FM, meanwhile has the highest “Time Spent Listening”ahead of its competitors and a strong profile for students andwhite collar workers.

OUTDOOR“Malaysia’s largest out of home advertising player”

The contribution from our Outdoor Division grew strongly andexceeded our own targets set during the acquisition –confirming that we made the right strategic decision in movinginto outdoor advertising. We are now Malaysia’s biggest playerwith more than 30% market share.

Revenue grew considerably during the year, while profitsincreased, benefiting from the economies of scale achieved byour successful consolidation of the operations of the threecompanies we acquired, namely: Big Tree Outdoor Sdn. Bhd.,UPD Sdn. Bhd. and The Right Channel Sdn. Bhd.

During the year, Big Tree successfully revamped Rapid KL’sAmpang Light Rapid Transit (LRT) upon takeover and continuesto expand our business in all key areas of operations coveringroads, transit and retail.

PRINT“Harian Metro is now the nation’s no 1 newspaper not justfor Malay print, but for all newspapers.”

After a soft start to the year, print advertising picked upsignificantly on the back of the Merdeka celebrations. The printmedia sector also benefited from a drop in print prices resultingfrom the fall of the US dollar against the Ringgit.

At our associate company New Straits Times Press (Malaysia)Bhd, profits have been steadily improving as the Groupstrengthens its newspaper publishing operations as its corebusiness. For 2007, NSTP registered a net profit of RM33.8million as compared to RM24.6 million the previous year,mainly attributable to higher advertising revenue, which increased by more than 13%.

Reach 000’sAll People 10+

HO

TFM

FLYF

M

Survey #2 2007

3964

378

79

Total turnover reached RM558.9 million, representing anincrease of more than 7% as compared to RM520.1 millionrecorded in 2006.

Harian Metro performed particularly well, growing stronglyagain in terms of both advertising and circulation. Harian Metrois now the nation’s no. 1 newspaper in terms of circulation, notjust for Malay print, but for all newspapers.

In January 2008, NSTP entered into a conditional sale andpurchase agreement to dispose of its 100% stake in Malay MailSdn. Bhd. in order to focus the company’s resources on itsflagship English publication, the New Strait Times. The disposalis expected to be completed by the second quarter of 2008.

OTHER BUSINESSES

CONTENT CREATION“Grand Brilliance is by far the largest producer of content inMalaysia.”

2007 was an outstanding year for our content creation businessled by Grand Brilliance, combining critical acclaim with boxoffice hits. Grand Brilliance is by far the largest producer ofcontent in Malaysia and continued to produce popular TVdramas and feature films, as well as consolidating its position asa movie distributor of foreign films.

In line with its strategy of producing different genres, the fourmovies released by Grand Brilliance during the year ranged frommass appeal comedies to suspense thrillers. GBSB’s specialtyunit, Alternate Studio bagged the Best Film award at the 20thMalaysian Film Festival and the award for Best Screenplay atAnugerah Skrin for the movie Cinta (released in 2006).

In 2007, Grand Brilliance also distributed an impressive array oflocal and foreign movies, including such major theatre boxoffice hits as Mukhsin, Otai, and The Warlords.

Expanding its horizons, in February 2008 Grand Brilliancelaunched its first Indonesian movie production titled LoVe,which met with good response in Indonesia where it was firstreleased.

EVENTS“A work in progress”

We are currently in the process of turning around andtransforming our event management business. Havingundertaken a strategic retreat in early 2007 when we closeddown the operations of Tiga Events, we have re-established theevent business under Big Events, which is now graduallybuilding its business via a strategy of undertaking larger andhigher value events involving both local and international shows.


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NEW MEDIA“The initial response has been very encouraging.”

Today’s challenge for a media conglomerate like ours is toensure that our content is present in every facet of our viewers’lives. By providing our top rated shows on new platforms, wecan reach new audiences as well as enhance the entertainmentexperience for existing fans.

In 2007, the websites for all four of our TV channels wererevamped to offer innovative online services. ‘Catch-up TV’ letsviewers catch up for free on TV shows that they missed duringthe week and also explore new programmes. This effectivelyintroduces Malaysian viewers for the first time to the concept of“TV on Demand” allowing them the flexibility to enjoy ourcontent at their own chosen time.

New Media ResultsPositive early signs from the launced portals with numbersexpected to grow.

Average Monthly Average Monthly View of Page Views Unique Visitors Videos

Before After Before After Oct-DecLaunch Launch Launch Launch 2007

TV3 3,900,000 14,059,280 220,000 925,641 11,947,230

8TV 1,700,000 5,234,485 100,000 254,837 3,902,865

ntv7 308,337 738,191 15,137 98,042 835,237

TV9 100,337 728,058 5,902 36,416 153,244

Hot FM N/A 4,565,556 N/A 528,078 2500*

Fly FM N/A 413,077 N/A 71,134 500*

Gua N/A 4,886,100 N/A 484,495 1,066,052

Total 6,008,674 30,624,747 341,039 2,398,643 17,907,628

* online radio listeners

Meanwhile, our new lifestyle portal, gua.com.my, offers a blendof entertainment, lifestyle, love and relationships, video andcommunity, and is a forum where viewers can interact witheach other as well as with their favourite artists. We will soon beadding music, movies and an array of exclusive contentavailable nowhere else.

Gua is also now showcasing its own shows, including ananimation series and the country’s first made-for-web drama,Kerana Karina.

In addition ‘TV-on-demand’ has been extended to mobile usersto enable them to watch short video clips of television contenthighlights on their mobile phones, smart and PDA phonesanytime, anywhere at normal video call rates. This is our firstsmall step into expanding our activity into the mobile space.

The initial response to these initiatives has been veryencouraging. From these small beginnings we believe thatonline media can become a major value driver in the long term.

In the coming months we plan to launch Malaysia’s first ‘onlinepay video-on-demand’ service. Under this service which, for asmall monthly fee on a pay per view basis, our viewers will havethe chance to view online an exciting range of programmes,new and old, leveraging on our strong library of more than40,000 hours of content.

TV3 GHANA“Sustaining the leadership position as Ghana's number oneTV channel.”

Meanwhile, our sole international operation, TV3 Ghana,achieved better financial performance despite the softeconomic conditions in Ghana arising from a steep increase inpetrol prices.

TV3 Ghana continues to be the leading television network inGhana and we are confident that over time TV3 Ghana willdeliver improved financial results.

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PROSPECTS“Entering the next exciting phase of growth.”

We are firm believers in brand building and will continue toinvest in the brands of all our media assets. Our core task andstrategy has always been to make each of our brands thepreferred medium of choice among its target audience. Westart by ensuring that our content offering is compellingenough to appeal to consumers, then proceed with anaggressive communication plan that connects emotionally withthe segment we are targeting.

This way we hope to maintain top of mind recall for all ourmedia platforms among advertisers.

To remain competitive and sustain earnings growth, in 2008,we intend to further strengthen all our TV brands with a higherinvestment in compelling, high quality content that is relevantto their target markets. To reflect this commitment, we aresetting aside over RM220 million to invest on local and foreigncontent.

We hope going forward we can continue expanding ourrevenue base by attracting non traditional advertisers from notonly small and medium enterprises but also categories such asfinancial products, retail, consumer electronics, automotivesand property.

For our radio networks, we believe there is still room for growthin terms of both audience share and revenue.

We also anticipate that the operational performance of NSTPwill continue to improve, and we aim that outdoor operationswill contribute up to 15% of the Group’s revenue and earningsover the medium term.

We also intend to expand on the exciting early results shown byour new media initiatives to fully exploit the opportunitiesaccorded by the online and mobile platforms. We hope to beable not only to provide more opportunities for our consumersto view and consume more and more of our content wheneverand wherever they like but also start monetising these activitiesthrough advertising revenue and pay models.

Indeed, we expect that new media will be one of our keygrowth drivers in the coming years.

As our domestic operations mature, it is inevitable that wewould start looking towards overseas investments to continueto drive future growth. We are fully aware that any overseasventures involve significant risks and we shall tread carefully.Further, we are committed to ensuring that any suchinvestments will be undertaken after careful due diligence andwithin the appropriate investment framework to ensure thatthey will add shareholder value.

We are confident that, having delivered consistent growth inrecent years, Media Prima has an excellent track record and isnow well positioned to leverage on the strong foundation thatwe have laid in our quest to build a regional networked mediainvestment group that will evolve to be the pride of the nation.

Abdul Rahman Bin Ahmad, Group Managing Director / Chief Executive OfficerMedia Prima Berhad

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MALAYSIA’S FIRST, MALAYSIA’SCHANNEL OF CHOICE

• Incepted in June 1984, TV3, Media Prima’s flagship mass-market TV channel is Malaysia’s first free-to-air privatetelevision network that has maintained its leadership positionover its 23 years of operations.

• Currently headed by its Chief Executive Officer, Dato’ SeriAhmad Farid Ridzuan, TV3 delivers bold and best-of-breedprogramming to viewers of all market segments. As thenation’s leading free-to-air TV network, it has continued toreinforce its market leadership by continuously emphasizingon the improvement of quality of its programme as well asthe relevance to viewers.

• Reaching an impressive 33% in audience share that isequivalent to over 4.5 million households or 21 millionviewers, TV3 focused on its viewers and advertisers, deliveringbold and unique programming.

• The station’s influential brand is based on its efficientcorporate branding and programming strategy. Identifyingthe market by three key viewer segments – Mass Market,Women and Kids – programming strategies are shaped by in-depth research to fit every one of the segments. Creatingsuch segments has indeed spelled success for TV3 – it is theNo. 1 TV station that hold’s the nation’s Top 20 programmes.

• In 2007, TV3 introduced a new slot “Akasia” which was aphenomenal success, capturing an average 2 million viewer-ship per episode. “Akasia’s” Spa Q in particular was the mostviewed programme on the tv3.com.my portal, with 3 millionhits. Another new slot “Seram” saw the introduction of Susukwhich achieved 48% in audience share and was consistentlythe No.1 programme for total audience 6+ across all channels.

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• Gangstarz a talent-search show that was broadcast inMalaysia, Singapore and Indonesia, was the brainchild of TV3.It served as a platform to showcase talents beyondgeographical boundaries. The one-of-its-kind reality televisionshow’s expansion beyond Malaysian shores was a testament toits success as the no.1 regional talent-search TV programme.

• Over the years TV3 has built more interactivity into itsprogramming and blurred the lines between “on-air” and“on the ground” activit ies by bringing its viewers’experiences of the TV3 brand beyond the confines of theirliving room and the television set. The station also reinforcesits brand awareness through the immensely successfulKarnival Jom Heboh and Junior Sports Carnival aimed atpromoting healthy lifestyle among teenagers.

• After 5 years, Karnival Jom Heboh has achieved resoundingsuccess. In 2007, the station has been aggressive in reaching outto its viewers directly via the carnival and its MyTV3 activities.With over 5 million visitors in 8 states it is evident that KarnivalJom Heboh is the most successful ground event in Malaysia.

• In 2007, TV3 was named as one of Malaysia’s Most ValuableBrands and the valuation exercise was conducted by worldrenowned ‘Interbrand’. The award is a testimony of the hardwork and commitment that the management and employeeshave put in to transform TV3 into one of the most recognisedmedia brands in the country.

• TV3 finishes the 2007 season dominating the year’s top 20programmes. According to AGB Nielsen Media Research,2007’s top rated programmes include TV3’s prime newssegment, Buletin Utama, Anugerah Juara Lagu, AnugerahBintang Popular and Anugerah Skrin. Anugerah Juara Lagu inparticular claimed 66% in audience share, attainingapproximately 4.25 million viewers.

*source AGB Nielsen

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Redefining The Feel Good ChannelIt was another year of reckoning as ntv7 reaffirmed its positionas the TV channel of choice for the growing affluent urbanaudience across all age groups.

ntv7, leveraging on its strong brand appeal and equity,continued to make inroads with its compelling content,combining new and refreshing local and foreign programmes toexceed the expectations of its viewers.

During the year under review, Your Feel Good Channel maintainedits position as the second most watched channel for the urban 25+viewership segment with a 7.2% market share and a 15.8% sharein the Chinese 4+ category.

Satisfaction guaranteed – Satisfy Your Weekends on ntv7, MoreVariety! Entertainment, All Day Long, More Drama! MoreSatisfaction! – was a strategic move forward to strengthen itsappeal with a refreshing and impressive line-up of newprogrammes to complement the aspirations and lifestyles ofMalaysians.

The revamp included non-stop local and international Englishsyndicated programme from 8.30pm every Saturday, urbanMalay-skewed programmes together with TVB and Koreandramas on Mondays to Fridays.

New programmes included Deal or No Deal Malaysia, CornettoLove? Perhaps, Asam Garam, Nite of Soulful Stars, Star Idol, TheFirm and Actorlympics TV. ntv7 also introduced several businessand corporate programmes, including Biz Briefcase, Captainsand Outstanding Malaysians. The popular News slots were alsorescheduled with 7 Edition (English News) going on air at primetime (8pm), Edisi Semasa (1pm) Mandarin 7 at 5.30pm and9.30pm.

During the year in review, Falling In Love, a local family drama,was the most watched Chinese series with an average TVR of14.5% or about 694,000 viewers. Doraemon topped the Top 30kids programmes while Anugerah Industri Muzik 14 and Star LiveConcert were ranked second in the Top 30 Malay entertainmentand Chinese variety programmes respectively.

Malaysian sports enthusiasts had a rare treat with the extensivecoverage of the highly anticipated iRB Rugby World Cup inFrance, the largest sporting event after the Olympics and FIFAWorld Cup, with 24 matches, including 19 “live” matches.

85The MasterCard ntv7 Platinum Golf Masters, better known as theMillionaire Golfer, returned for the seventh consecutive year witha record participation of 780 golfers in six qualifying rounds andthe grand finals. The highlight of the grand finals, attended byPrime Minister YAB Dato’ Seri Abdullah Haji Ahmad Badawi, wasa charity drive with RM500,000 raised and donated to RumahKanak-Kanak Taman Bakti, Kepala Batas and Persatuan KebajikanKanak-Kanak Terencat Akal, Sebarang Perai Tengah.

For an added good cause and an extension of its corporatesocial responsibility to the rakyat, ntv7 initiated the Nation CareCharity Show with over RM1 million raised during the three-hour fund raising concert at Genting Highlands.

ntv7 also launched Finding Angels, Begins From A Caring Heart, abook in collaboration with Kanyin Publications and the Popularbookstore chain, in conjunction with the new season of theaward-winning Finding Angels which highlights the plight ofneedy individuals. As of 31st December, over 500 books – acollection of 12 most touching stories from all the seasons –were sold and the proceeds have gone to the Kasih HospiceCare Society.

UrbanLive, ntv7’s entertainment roadshow, also made asuccessful debut with a myriad of fun-filled activities, liveperformances, meet and greet sessions with ntv7 personalitiesand celebrities, and games at leading shopping malls in majorcities – Ipoh, Penang and Johor Bahru apart from Petaling Jayaand Kuala Lumpur. The weekend carnival was a resoundingsuccess in reaching out to ntv7’s viewers and to enhance thebrand visibility of the TV station.

Moving forward, ntv7 will be investing about RM40 million innew content in 2008 to reinforce its position in the marketplaceand making Your Feel Good Channel the preferred TV station.

8TV Continues To Mesmerise• 8TV continues to raise the bar when it comes to

revolutionary content to win the hearts and souls of boththe Urban Youth and Chinese markets. The compellingappeal of 8TV has grown from strength to strengthentering its fourth year of operation.

• During the year in review, 8TV reaffirmed its presence asthe station of choice by taking the lead in its target marketswith the best of Asian and American programmes includingthe best reality shows.

• 8TV’s proven and consistent record as an irreverent andprogressive station was reinforced, reaching out to itstarget audience with groundbreaking programmes and on-ground events.

• The top and popular programmes for the year in reviewincluded Destinasi Bajet, Gol & Gincu , Kami, GhostWhisperer, Ugly Betty, Criminal Minds, Step Forward, HoChak!, The Crime Scene and the top Asian dramas in theBest of The East and Asian Hour drama slots.

• 8TV’s debut effort with So You Think You Can Dance Malaysiaand Project Runway Malaysia was a roaring success with thegrand finals of the dance reality show capping an excellentrun as the No. 1 English reality TV programme with a 12.4%market share. One In A Million, the talent search reality show,was also a resounding success, prompting 8TV to continuewith a second season in late 2007.

• 8TV has been winning awards and recognition since itsbirth in 2004 and continues to do so in 2007, includingBest Reality Programme and Best Magazine/Documentaryfor What Women Want and The Crime Scene respectively atAnugerah Skrin 2007.

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• The popular Go Traveltravelogue also did 8TV

proud, winning Best Singapore Travel Story award at the Singapore

Tourism Awards 2006. The Top Kid was also a nominee for the Best Reality Programme category at

the Asian Television Awards 2007 held in Singapore.

• 2007 also saw an increasing number of on-ground activitiesleveraging on the growing appeal of hit reality shows OneIn A Million, Project Superstar, So You Think You Can Dance, IWanna Be A Model and The Ultimate Prom Nite.

• Collectively, 116 events, including concerts, roadshows andauditions, were held in major cities during the year underreview. The popular Summer Live Concert, the largest freelive concert series in Malaysia since its debut in 2005, washeld in Ipoh in August 2007 and attracted more than70,000 music fans.

• The Chinese Carnival, another major on-ground activity thatcaters to the Chinese audience and held in conjunction withthe Mid Autumn Celebration, also attracted a record turnout.

• The Ultimate Prom Nite was another successful event involvinga nationwide search in 18 college locations for candidates tobecome the Ultimate Prom King and Ultimate Prom Queen.The roadshow and audition rounds attracted more than93,000 students.

• The Wet and Wild Party at Sunway Lagoon was anothermajor initiative – a three-hour concert along with gamesand activities for the public to have fun and meet theirfavorite 8TV personalities and popular artistes.

• Reaching out to the Malaysian youths and promoting ahealthy lifestyle, 8TV and Hotlink undertook the Hotlink 8TVYouth Tour which covered seven universities/colleges andthree shopping malls. The roadshow attracted over 27,000youths who were spoilt for choice with a variety of games,including paintball and concerts featuring top local artistes.

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• TV9 commenced its f irst transmission throughoutPeninsular Malaysia on April 22, 2006, with an immediatepotential reach of 7 million viewers. Barely 8 months later ithad manage to capture 5%. In 2007, TV9’s station sharehas increase to 11% according to AC Nielsen MediaResearch, making it the fastest growing channel and the2nd most watched channel in the country

• Priding itself in providing purposeful entertainment, TV9produced Akademi al-Quran and Cari Menantu with anaverage of 500,000 viewers weekly and 1.4 million viewersduring its final episode

• TV9 is the only free to air television station that has aninterrupted kid’s block that features Nickelodeon cartoonsfor the first time dubbed in Bahasa daily from 2-6 pm. TV9is also a clear winner among kids aged 6-14 with acommanding 14% station share according to AC NielsenMedia Research.

• The debut of Malaysia’s very own animated series Upin &Ipin on TV9– a pair of 5 year old twins sharing theirexperiences of fasting for the very first time was indeed notin vain. The animated series went on to win the BestAnimated series award at the recent Kuala LumpurInternational Film Festival

• TV9 introduced Mari Mengaji, a step by step guide tolearning the basics of Quranic recitation, presented in acreative and conducive learning environment whichbecame a favourite among kids and adults.

• Apart from existing in-house documentaries such as Busana(an Islamic fesyen magazine), Tiada Sempadan and BumiDipijak, TV9 produced Al-Risaalah, a documentary thatanalyses the historical facts of the Prophets and chroniclesthe 15,000km journey of Prophet Ibrahim in spreading hisdakwah, which was shown daily throughout the month ofRamadan. TV9 were given exclusive rights to film themosque of Al-Aqsar in Palestine, a feat never been done byany terrestrial television in Malaysia.

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Malaysia’s 2nd Most Watched Channel

• Bong, the hit comedy series which stars radio deejayIkhwan of Hot FM became an instant hit with TV9’saudience. Averaging 1 million audiences weekly, they aresure to be in stitches with its upcoming 3rd season thatpromises more hilarious antics and laughter from Bong andthe children under his care.

• The success of TV9’s ground activation event,Perkampungan Hadhari has brought viewers even closer tothe station. 2007 kicked off with the Prime Minister ofMalaysia, Dato’ Seri Abdullah Ahmad Badawi officiating thefirst Perkampungan Hadhari in Kepala Batas, Pulau Pinang.TV9 then went on to other states such Terengganu,Pahang, Kedah and Kelantan which saw an average of500,000 patrons visiting each venue.

• As a station that cares, the recent floods in Johor,Terengganu and Kelantan saw once again TV9 offering aidto families and children badly affected by the floods. Whileextending its hands, TV9 did a simultaneous live coverageof Aidiladha celebrations being held in Kelantan and PulauPinang, a feat that made this young station on par withother terrestrial television networks with the ability tocommand such daunting task.

• The Aidiladha prayers held in Kelantan was graced by theSultan of Kelantan, His Royal Highness, Sultan Ismail Petraand His Royal Highness Tengku Muhammad Faris Petra,while the event in Pulau Pinang, saw 200 hundred cowsbeing sacrificed and donated to the Muslim community.

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NEWS AND CURRENT AFFAIRS TEAM

The Group’s News and Current Affairs team seeks to ensure thatits reporting meets the highest standards of accuracy andimpartiality essential to sustain public trust. Our most importantpublic service is to hold businesses and governmentsaccountable and such we owe it to all our stakeholders and tothe society to be exceptionally transparent. The Group’s Newsand Current Affairs department is backed by a strong 126editorial team member, headed by Datuk Hj Kamarulzaman BinHj Zainal as Director of News for the Media Prima Group.

TV3’s award winning news segment Buletin Utama remains theno. 1 and preferred prime time national news slot forMalaysians, with an average 2.7 million viewers or 49.7% inaudience share* (source: AGB Nielsen).

In 2007, TV3 bagged the Special Award for the media reportingcategory at the ‘Prime Minister’s CSR Awards’ for its efforts tohighlight corporate social responsibility issues. Buletin Utama isthe nation’s most influential voice for news broadcasting andprovides authoritative and impartial news and information. Inaddition, TV3’s News & Current Affairs Department journalistshave received accolades and awards from the Petronas –Malaysia Press Institute (MPI) Environmental Journalism Awardand Kinabalu Shell Press Awards 2007 amongst others.

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In 2007, ntv7 launched the move of its English news, 7 Editionto the 8 pm prime time slot. Targeted at the urban viewers aged25 and above, the move is set to provide alternative to thisgroup of discerning audience especially the workingprofessionals. The strategy is part of the Group’s better aim toreach different market segments more effectively during primetime slots.

Also in 2007 and in conjunction with its third anniversary, 8TVlaunched its news format with more in-depth analysis andtopical issues impacting the hearts of Malaysians from all walksof life. Featuring new anchors in its nightly news team, 8TVmoved its Mandarin News to a prime-time spot at 8pm nightly.

The first edition of Berita TV9 was broadcast on 1 January, 2007at prime time. The news content focuses primarily on the localdevelopments and daily issues faced by those in the rural areasand the east coast of peninsular Malaysia. At the same timeBerita TV9 aims to highlight the economic and politicaldevelopments around the globe. Its business segmentshowcases the secrets of success of young bumiputraentrepreneurs in the hope of inspiring the younger generation.

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GBSB’s vision is to be the LEADING and PROFITABLE producer anddistributor of VISUAL CONTENTS in Malaysia

• Grand Brilliance Sdn. Bhd. (GBSB), one of the largestproduction houses in Malaysia, was set up on 1 October1994. Wholly owned by Media Prima Berhad, GBSB wasestablished to produce and market local content comprisinghigh quality theatrical and TV movies, documentaries,magazine shows, children and infotainment programmes.

• GBSB’s strategy during 2007 continued to be deliveringexciting and sought after content via feature films andtelevision dramas. GBSB also continued in its efforts tobring in quality foreign films for local distribution and alsobecoming the media planner and distributor for selectedlocal films. Apart from the feature films and televisiondramas segments, GBSB also acted as the internationalsales arm for all Media Prima content.

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• GBSB rebrands its logo in January to make it more modern& dynamic

• Moving forward, GBSB intends to leverage on MediaPrima's strategy of being a holistic media platform by carefulexecution of its strategic plan including its focus to producehigh quality content and expanding its content distributionbusiness by selling into regional and international markets.This would be done via efforts to produce content suitablefor international markets and increasing the number offoreign films to be distributed locally.

• GBSB also would leverage on Media Prima’s strength as amedia group to promote movie releases and offer its servicesas media planner and distributor to other local producers.

• GBSB plans to participate as an active buyer in major filmmarkets and seller of home video rights of its content inrelevant international markets while simultaneouslyestablishing contact and confidence against establishedlocal distributors.

• Year 2007 was a most meaningful year as many GBSBproductions were successful in garnering various awards. InFebruary, Mukhsin, which was released to both critical andcommercial acclaim, won two prizes at the Berlin FilmFestival including The Grand Prize of The International Juryfor Generation K-Plus. Mukhsin was also accorded the BestAsean Film Award at the 9th Cinemanila Film Festival inAugust. That same month, GBSB won 10 awards at the20th Malaysian Film Festival, including the Best Pictureaward for Cinta. Cinta also won Best Screenplay, BestEditing and Best Actor in a Supporting Role. Meanwhile,Waris Jari Hantu won Best Film Director, Best Actor, BestOriginal Story, Best Original Music Score and Best Actress ina Supporting Role. At the Anugerah Oskar 6 held on 10November 2007, GBSB won awards in twelve differentcategories. And to wrap up the list of awards for that year,GBSB also received the award for Best Film for Cinta andBest Drama Series for Susuk at the Anugerah Skrin 2007.

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Since Media Prima‘s acquisition of Big Tree Outdoor Sdn. Bhd. in March 2007, the year has been about consolidation. Media Prima (MPB) had also acquired 100% of UPD Sdn. Bhd. and 100% of The RightChannel (TRC) and appointed Big Tree the Managers of therespective companies.

Now, Big Tree not only has the largest expressway coverageunder its Big Drive division – 76% of the total peninsularMalaysia expressways at entry and exit points to KL and majortown centres – with the addition of UPD, TRC and Gotcha sites,Big Tree can now also deliver 818 sites in key cities throughoutthe peninsula (excluding Kelantan where outdoor has beenprivatised to a concessionaire).

Big Tree’s total transit solution is another one of the main keybenefits of the consolidation exercise. With all of Rapid KLconcessions (formerly PUTRA & STAR lines) and the addition of KLCAT and ERL together with KL Sentral under the Big Ride division,Big Tree is uniquely poised to address the affluent and influentialurban commuters, traveling domestically and internationally. TheKelana Jaya & Ampang Lines combined represents 69% of totalrail commuters. With the addition of ERL’s ridership of 4.4million premium travelers per year to KL Sentral’s 2.46 millioncommuters monthly, Big Tree can deliver the highly mobile aswell as the upwardly mobile audience.

The Big Buy division also improved their competitive advantagethrough this consolidation. With TRC’s Plaza Alam Sentral in themix, this enables clients to reach a youthful target audience asthe Plaza is a hub for the university students in the Shah Alamvicinity.

These rapid changes mean that Big Tree can deliver a One-StopSolution in outdoor. The integration of Big Drive, Big Ride andBig Buy formats in one strategy will enable clients to reach thehighest mobile audience in Malaysia. It will also see Big Tree’smarket share grow from 27% in 2006 to a projected potentialof 30-35% in 2007.

In light of the new inventory from UPD and TRC, strategieswere put in place to improve their profitability:

– Integrating new products with existing products to form acohesive sales kit.

– Aggressive site rectification work to bring them up to Big Treestandards.

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– Launching new products to reinvigorate concessions amongthe advertisers.

We executed the above strategies on the Ampang Line and helda launch event in June 2007 at the PWTC station todemonstrate the improvement advertisers could expect with BigTree at the helm.

Besides working towards integrating the new inventory fromUPD and TRC, Big Tree also focused on developing new siteswithin our existing concessions.

The Big Drive division launched 3 new ambient productsbesides the usual additional freestanding billboards:

– KLCC wallscape– Bangsar station externals– Additional Kelana Jaya pillars– 18 sites of 10 x 40s– 2 sites of Overhead Panels

While there was no new format launched within Big Ride’sconcessions, steps taken to maximise revenue through creativeselling. For the first time on Rapid KL trains, The Big Ride teamsuccessfully sold window stickers on its own. Previously, it wasonly sold together with train sponsorship. This made trainadvertising more accessible to advertisers, especially the smallerplayers.

The Big Buy division added ambient advertising at The Curve totheir inventory. This mall which has an estimated 1.4 millionshoppers a month consisting of mainly adults aged 25-45 yearsold with young families, earning mid to upper incomes.

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CATCH-UP TV

• Media Prima Berhad’s online media portal is the first-to-its-kindvideo-on-demand offerings in the country which comprises localand selected foreign syndicated programmes on TV3, ntv7, 8TV,TV9, Fly FM & Hot FM 24-hours-a-day via a dekstop or notebookPC with broadband or high-speed Internet connectivity.

“WE WANT TO BE THE ONLINE TV DESTINATION OFCHOICE FOR MALAYSIANS AND WE HAVE SET A TARGET TOBE AMONG THE TOP FIVE LOCAL WEBSITES WITHIN THENEXT TWO YEARS" – MEDIA PRIMA NETWORK MEDIAPORTALS GENERAL MANAGER PAUL MOSS

• Viewers can enjoy web exclusives, including live or online events,behind the scenes, audition clips, bloopers, recaps, video promos,contests, free downloads, messenger boards, blogs and wikis.

• The catch-up TV series is a unique and compelling platform tosuit today’s demanding lifestyle by offering Malaysians to watchselected programmes on the website within 6 hours after theprogramme has been broadcasted on TV.

LIFESTYLE PORTALS

Life. Entertainment. Downloads. Malaysian Style!

• Launched on 11 September 2007, GUA managed to achieve 1million hits in its first month. By year end, the portal hadreceived 12 million page views. To date, GUA has 59,000registered members.

• GUA aims to be the biggest entertainment and lifestyle portalwith the best Malaysian content and is poised to make wavesby changing the direction of the current media consumption.

• Unlike other online brands, GUA’s contents are updatedregularly on a daily basis, providing users refreshing, up-to-the-minute news and information.

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• With GUA, information-hungry Malaysians will be kept abreastwith the latest news on gossip and entertainment, food, travel,fashion, health and beauty, love and relationship, music andvideo downloads. The portal is packed with exclusive, uniqueand compelling contents that everyone, whether young or old,is bound to find something of interest within the website.

• Produced the country’s first online drama – Kerana Karina, a 20-episode, four-minute drama verif ied by MultimediaDevelopment Corporation (MDEC) and endorsed by TheMalaysia Book of Records. Kerana Karina went live on GUA onOctober 29, 2007. Kerana Karina was viewed 834,000 times onGUA and another 70,000 hits over YouTube from October 29,2007 to December 31, 2007.

• GUA strives to stay ahead of the pack by continuously offeringgreat content and keeping up with the evolving technologicaltrends. With the availability of GUA’s 3G mobile platform, morepeople can now enjoy video contents and catch up with newepisodes of various video offerings anytime, anywhere!

3G MOBILE TV SERVICE

• In 2007, Media Prima also launched the country’s first thirdgeneration (3G) mobile television service that allows users towatch videos with their mobile phones, including smart andPDA phones, round-the-clock at normal video call rates.

• With this new service, users are able to watch selected highlightsof their favorite TV programmes of TV3, ntv7, 8TV and TV9 ontheir 3G mobile phones. The new video service also includes theradio portal service, which allows users to access a real-time viewof the Hot FM radio studio with the disc jockey in action andinterviews with artistes and celebrities.

• The 3G video call service is another innovative offering on theback of the successful online television service that hadrecorded almost four million video views in the last one month.Our 3G mobile television service allows users to watch theirfavorite TV programmes using their mobile phones at normalvideo call rates. This service offers total freedom for 3G phoneusers to decide where and when to watch short video clips attheir convenience.

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• Media Prima Radio Networks have had a huge impact onthe radio market in Malaysia by providing multiple choicesand avenues for listeners and agencies.

“OUR LISTENERS ARE OUR ASSETS. THEREFORE, OURPRIMARY OBJECTIVE IS TO ENSURE THEIR LOYALTY TOTHE NETWORK AND ATTRACT MORE LISTENERS ANDCLIENTS." – MPB RADIO NETWORKS GENERALMANAGER, SEELAN PAUL.

• This platform provides our network a huge radio marketratio in the country. Our approach by creating competitivecompetition events, which is blended with quality productshave been successful in the market. The approach has givenour listeners and advertisers multiple options to choosewhich platform suits their requirement and satisfaction.

• We have achieved the status of being the top in theindustry. The latest survey statistics recorded almost 400,000 total listeners; this constitutes 80% urban listener fromhousehold income group of RM4000.00. The result alsostates that Fly FM continues to record an increase in TimeSpent Listening, far ahead of its closest competitor. Theindustry is competitive with high potential of growth inrevenue and status. Our task now is to ensure that wemaintain the status or improve it.

• Fly FM maintains the No. 2 English radio station in Malaysiaposition in the under 30 demographics. Fly FM alsoreinforces its brand awareness through various groundevents such as the 2nd Flyniversary, which has successfullypulled 10, 000 attendees to the concert and Campur ChartGoes Live – a monthly basis held gig at Laundry Bar.

• Incepted in February 2006, Hot FM has maintained its #2position in the mass market with a listenership of 32%.Reaching 4 million listeners all over Malaysia, Hot FM hasbecome the #1 station with its AM Krew with listeners 16-24 years old and 18-24 years old according to AGB NielsenMedia research. Hot FM has also been ranked #1 for itsAfternoon Show with listeners aged 15-24 years old.

• Hot FM’s AM Krew segment, hosted by the most Popular TVHost (Anugerah Bintang Popular Berita Harian), FaraFauzana, and her partner Faizal Ismail, is today the mostpreferred morning show. The live coverage by 8TV also playsa significant role in the growth of the daily programme.

• 2007 has shown a big impact on the market, as the annualevent, Big Jam has been considered as one of the mostsuccessful events of the year. A total of an 18,000 crowdflooded Dataran Shah Alam. A series of Mini Jam concertswere then held in Alor Setar, Johor Bahru, Temerloh andPort Dickson, pulled up to 90,000 people. Nite Jam inPenang served as the 2007 Mini Jam closing, gatheredmore than 10,000 people to the concert.

• The station has also reinforced its brand awareness throughvarious ground events such as the hugely successful BigJam, Mini Jam, Nite Jam and Yeah Yeah Tour.

• The Hot FM On-Ground Team, Viva Zoomerz also plays asignificant role for the station whereby activitiesorganised by the team have managed tocreate strong brand awareness among the public.

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The New Straits Times (then known as The Straits Times) was firstpublished seven score and nineteen years ago. The paper cantrace its roots to a weekly journal first printed on July 15, 1845.

The first issue of the weekly did not resemble the newspaperthat we are now accustomed to. The Straits Times then was aneight folio-sized edition. The entire front page clearly denotedthat it was a Journal of Commerce and therefore had nothingbut advertisements on its pages.

Over the course of 161 years, the New Straits Times underwentmany changes to both content and size – from being a folio-sized paper to broadsheet and then junior broadsheet.

It was not until 1 September 2004 however that the New StraitsTimes broke with a 159-year-old tradition to publish a compactversion of the newspaper in the Klang Valley. With the ravereviews the new compact size got from its readers, the NewStraits Times soon went compact nationwide a month later (on1 October 2004).

In modern Malaysia, the New Straits Times has stood as anauthoritative voice that has lent itself to responsible reportingand championed the cause of nationbuilding in all fields. So wellhas this commitment been received by the public, that the paperhas often been described as The Newspaper of the Nation.

Today, the New Straits Times continues to be an influential forceamong key government and corporate leaders, theintelligentsia, young professionals and students (the leadershipof tomorrow). Its rich editorial content – coupled with thepaper’s conviction to remain a voice for stable, progressivenationbuilding – has garnered a growing following.

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When the shouts of Merdeka resounded throughout towns andvillages in 1957 (the year of Independence), the people ofMalaya saw the establishment of an important Malaysiannewspaper – the Berita Harian. It was a newspaper of thepeople, by the people, for the people.

This vernacular daily has served the needs of Malaysians since thenationalistic era that culminated in freedom for Malaya to theprogressive nation it is today. And it will continue into the futureto promote the dream of a people striving for industrializednationhood status and the fulfillment of Vision 2020.

Through the years, Berita Harian has moulded itself from a paperreflecting the thoughts and aspirations of a traditional agrarian-based society to a vibrant, exciting newspaper for the thinkingperson in the information age, an era where knowledge hasbecome the prime resource for economic growth.

Harian Metro, Malaysia's first Malay daily afternoon tabloid inKlang Valley and morning tabloid in other regions, wasestablished in 1993.

The change in the demographics of urbanites resulted in agrowing audience of young people who were looking forentertainment, shopping news, lifestyle features and current news.Harian Metro met those needs in exciting editorial presentations.

Harian Metro's meteoric rise has steadily gained momentumover the pasts few years. For 2007, Harian Metro maintained forthe second year running as the No. 1 daily Bahasa Melayunewspaper as declared by the Audit Bureau of Circulations.

Not content to rest on its laurels, the newspaper underwent alayout revamp to remain fresh and relevant for its readers. Newvibrant pullouts were introduced such as “Rap” and “Variasi”, andthis complemented the main paper further.

The new look has since been well received by its readers,consolidating further the tabloid’s position as the leadingBahasa Melayu paper.

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NEW MEDIA

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Websites for all four of our TV channels have beenrevamped to let viewers catch up on episodes of their

favourite TV shows that they missed during the week forfree. It also enables them to explore new programmes and,

in future, to download videos on-demand.

CATCH-UP TV

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12 January 2007

Media Prima to assume completeownership of Big Tree

Media Prima announced a proposedacquisition of the remaining 30percent stake of Malaysia’s leadingoutdoor advertising outfit Big TreeOutdoor Sdn. Bhd. (Big Tree) fromAustralia EYE Corp Asia Limited(EYE), for RM43.39 million followingthe 70 per cent purchase of interestfrom Big Tree in November 2006.

23 January 2007

Media Prima to divest TV3'sWangsa Maju property proceeds tobe distributed as dividends

TV3 entered into a Sale and PurchaseAgreement by divesting its subsidiary,Akademi TV3 which was sold toZetro Services Sdn. Bhd., a subsidiaryof Zetro Aerospace Corporation Sdn.Bhd. at a total purchase considerationof RM60 million. The nett proceedsfrom the divestment were intendedfor a distribution of dividends whichshall be additional to any annualdividends paid under the dividendpolicy announced by the Group lastyear for its shareholders.

8 February 2007

8TV launched Prime TimeMandarin News

Minister of Energy, Water & Com-munications, Y.B. Dato’ Sri Dr. LimKeng Yaik launched 8TV’s newlyrefurbished news studio at Sri Pentas.

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28 February 2007

Media Prima registered anotherrecord profit year, surprisingmarket estimates

Media Prima’s revenue for the yearending 31 December 2006 rose toRM533.3 million from RM399.7million recorded in 2005, representinga 33% increase. The substantialgrowth was an upshot of higheradvertising revenue obtained throughits television and radio networks. Theincrease in revenue together withstrong cost control measures adoptedresulted in the Group recording ahigher pre tax profit of RM101.7million, representing a 58% increaseto the prior year’s profit before tax ofRM64.3 million.

28 Mac 2007

Full ownership of Big Tree Outdoorfor Media Prima

Media Prima’s shareholders approvedthe proposed acquisition of Big TreeOutdoor Sdn. Bhd., paving the wayfor the Group to become the largestoutdoor advertising solution provider.

17 April 2007

Media Prima to be the first to airthe latest tv shows

Media Prima signed a multi-year,multi-genre volume agreement withThe Walt Disney Company's interna-tional TV distribution arm Buena VistaInternational Television-Asia Pacific(BVITV-AP) to air a wide range of theworld's latest and most populartelevision shows here, thus markingits 15-year relationship with BVITV.

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31 May 2007

Media Prima received regionalrecognition as Malaysia's BestManaged Mid Cap Company

Media Prima was voted as the bestmanaged Malaysian company in themid-cap category in a 2007 poll forAsia’s best managed companies byFinance Asia, the leading financialpublishing company based in HongKong. Media Prima was also rankedfifth in the country for best investorrelations.

7 June 2007

Media Prima’s radio stations flyingto hotter level

Listenership for Media Prima radiostation Hot FM rose significantly bynearly 1 million or 33 percent tonearly 4 million listeners and affirmedits position as the nation’s No. 2radio station. Fly FM, meanwhile,gained a 60 per cent increase inlistenership, thus establishing itself asthe No. 2 English radio station inMalaysia with a record of 702,000 inlistenership. (Source: Nielsen Media Survey)

11 June 2007

Media Prima bought out minorityinterest control of 8TV

Media Prima signed a sale and pur-chase agreement for the remaining 20per cent share of Merit Idea Sdn. Bhd.(MISB), an investment companywhich previously, held 99.5 per centin Metropolitan TV Sdn. Bhd. (MTV),the license owner and operator of 8TV.

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26 July 2007

Asia Pacific EntrepreneurshipAwards (APEA) 2007

TV3 received the EntrepreneurshipAward at the inaugural Asia PacificEntrepreneurship Awards (APEA)2007.

31 July 2007

Media Prima rides Merdeka wave

Media Prima unveiled programmelineup for its TV stations – TV3, 8TV,ntv7 and TV9 – in conjunction withMalaysia’s 50th Merdeka Anniversarycelebration.

6 August 2007

2007 Global Brand Forum inSingapore

Media Prima’s Group Chief ExecutiveOfficer Television Networks, Dato’ SriAhmad Farid Bin Ridzuan, on behalfof Media Prima, attended the 2007Global Brand Forum in Singapore.


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4 September 2007

Media Prima to issue a private debtsecurities issuance programme ofup to RM350.0 million arranged byAseambankers

Media Prima and AseambankersMalaysia Berhad jointly announcedthe proposed issuance by MPB of upto RM350.0 million in nominal valueprivate debt securities issuanceprogramme.

5 September 2007

Media Prima TV Networks to WooAdex and Viewers with amazingand compelling content

Media Prima previewed its new andreturning programmes for 2008 at itsannual Television Networks Screeningsevent which was attended by over3,000 media buyers, advertisers,corporate clients and celebrities.

7 August 2007

Media Prima Group CEO TelevisionNetworks on Al-Jazeera

Media Prima’s Group Chief ExecutiveOfficer Television Networks, Dato’ Sri Ahmad Farid Bin Ridzuan wasinterviewed by Riz Khan on Al-Jazeera.

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19 September 2007

Media Prima signed RM70 millionterm loan refinancing facility withAffin Islamic Bank

Media Prima signed a 5 year, RM70million term loan refinancing facilitywith Affin Islamic Bank Berhad(AFFINISLAMIC) at Menara AFFIN,thus further cementing its closerelationship with Affin Bank Group(AFFINBANK).

1 October 2007

Media Prima’s drive to reduceaccidents

Media Prima worked hand in handwith the police force by launching aroad safety campaign to convey roadsafety messages through its TV andradio stations, as well as through thedistribution of campaign stickers tomotorists. The campaign was officiatedby the Inspector-General of Police,Tan Sri Musa Hassan.

1 November 2007

Kancil Awards Speaker Series 2007– Ahmad Izham Omar on being‘fearless’

Ahmad Izham Omar, the CEO of 8TVpresented the topic “Fearless” basedon his experience working in themusic, television and radio industry atthe 2007 Kancil Awards Speaker Series.

This year’s format culminated in anawards night after a month ofactivities which was organised by theAssociation of Accredited AdvertisingAgenties Malaysia (4As), the KancilAwards is Malaysia’s largest and mostprestigious advertising industryawards show held annually.


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13 November 2007

Media Prima TV Networks dominatedratings during Raya season

Media Prima’s TV Networks – TV3, ntv7, 8TVand TV9, recorded a highly impressive 52 percent share of viewers during 2007’s Hari Rayaperiod (from 12 October to 20 October2007), compared to over a hundred channelsavailable on satellite and free-to-air (FTA) TV.TV3 garnered an impressive 36.1 per centamong all available television channels, and awhopping 52 per cent among FTA channels.95 of the top 100 TV shows viewed duringthe Raya period were from TV3.

15 November 2007

TV3 won Special CSR AwardCategory for media reporting

New Straits Times Press Bhd (NSTP)and TV3 bagged The Special Awardfor media reporting category at the‘Prime Minister’s CSR Awards’ showfor efforts in highlighting CSR issuesand bringing it to the forefront.

16 November 2007

TV3 – Malaysia's channel of choice(Malaysia’s Most Valuable Brand)

TV3 was named as one of Malaysia’sMost Valuable Brands (MMVB) by theAssociation of Accredited AdvertisingAgents Malaysia (4As). The valuationexercise was conducted by worldrenowned Interbrand. The award waspresented to TV3 by the Deputy PrimeMinister, Datuk Seri Najib Tun Razak.

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21 November 2007

Media Prima ranked 7th BestCorporate Governance Company

Media Prima was ranked 7th out of500 public listed companies by anannual survey by Minority Share-holders Watchdog Group. The rankingreflected a continuous growth for theGroup as compared to its 30th placinglast year.

26 November 2007

Media Prima TV Networksprogrammes nominated for AsianTelevision Awards

Media Prima Television Networksreceived three nominations at one ofthe most prestigious events in theAsian broadcast industry, the AsianTelevision Awards 2007 in Singapore.

9 December 2007

Media Prima participated inMastercard ntv7 Platinum GolfMaster 2007 Charity GolfChampionship

ntv 7 in partnership with Mastercardheld its 7th MasterCard ntv7 PlatinumGolf Masters Charity Grand Finals atSaujana Golf Club in Subang Jaya.The event which was attended byPrime Minister Datuk Seri AbdullahAhmad Badawi, raised a total ofRM500,000. TV3 donated the highestamount – RM300,000 through itsBersamamu TV3 fund.

11 December 2007

Media Prima launched 3G MobileTV services

Media Prima launched Malaysia’s first3G mobile TV service which allowsaudiences to watch programmehighlights on their mobile devices atnormal video call rates.

December 2007

Grand Brilliance’s Cinta was named asBest Film and Best Screenplay at the20th Malaysian Film Festival and therecent Anugerah Skrin respectively.

December 2007

Media Prima won AsiaMoney’s pollfor best corporate governancecompany in Malaysia

Media Prima emerged as theMalaysian company with the bestoverall corporate governance as wellas the top company for disclosureand transparency, and investorrelations in Asiamoney’s magazineannual Corporate Governance Poll.


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awards and recognition

No. Award Category Recipient

1 Ministry of Health Media Best Health Reporting New Straits Times Press (M) BerhadAwards Night 2007 Best Newspaper Reporting

Health Journalism Award Berita Harian

2 NIOSH Best Newspaper in Highlighting New Straits Times Press (M) BerhadOccupational Safety & Health

3 Hacker Halted Best Media Award New Straits Times Press (M) BerhadMalaysia Awards 2007

4 The Brandlaureate Top Newspaper Brand New Straits Times Press (M) BerhadAwards 2006-2007 in Malaysia

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5 FINAS 26th Bahasa Malaysia Berita HarianAppreciation Dinner – 1. Challenge TrophyTrofi Tan Sri 2. Winner: Akmal Abdullah, Assistant Editor (Entertainment) Article:Samad Idris 2007 “Hiburan Berbudaya Warisan Seni Negara” – 31 August 2006.

3. 1st runner-up: Noorisham MN a.k.a. Datuk Shaari Mohd Nor Article:“Kegawatan Tangani Tapisan Filem”– 9 June 2006

English New Straits Times Press (M) Berhad1. Challenge Trophy2. Winner: Suraya Al-Attas, Entertainment Editor – Article: “It’s Not Just A

Matter of Money” – 13 May 20063. 1st runner-up – Faridul Anwar Farinordin – Article: “Now Everyone Can

Make Movies” – 13 August 2006 4. 2nd runner-up – Chandra Dewi – Article: “To Make An Impact In

Animation” – 9 February 2006

6 Kinabalu Shell Best News Photography Award New Straits Times Press (M) BerhadPress Awards 2007 Best Sports Photography Award Edmund Samunting

Best Environmental New Straits Times Press (M) BerhadPhotograph Award Datu Ruslan Sulai

Business and Economics New Straits Times Press (M) BerhadReporting Award Julia Chan

Journalism Award in Berita HarianBahasa Malaysia Hasan Omar

Best News Reporting Award Berita HarianMohd Azrone Sarabatin

Electronic Media TV3 – News & Current Affairs DepartmentJournalism Award Elphege Godomon

7 Berlin Film Festival Grand Prize of The International Grand Brilliance Sdn BhdJury for Generation K-PlusHonourable Mention Mukhsinfor the Youth Jury

8 20th Malaysian Best Film Cinta Grand Brilliance Sdn BhdFilm Festival Best Director Shuhaimi Baba, Waris Jari Hantu

Best Actor Rushdi Ramli, Waris Jari hantuBest Supporting Actor Datuk Rahim Razali, CintaBest Supporting Actress Azean Irdawaty, Waris Jari HantuBest Screenplay Mira Mustaffa & ARA, CintaBest Original Script Shuhaimi Baba, Waris Jari HantuBest Editing Akashdeep Singh, CintaBest Child Actor Mohd Syafie Naswip, Mukhsin

9 9th Cinemanila Best Asean Film Grand Brilliance Sdn BhdFilm Festival Mukhsin

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10 Anugerah Skrin ke-9 Best Screenplay Grand Brilliance Sdn Bhd – Cinta

Best Film Award Grand Brilliance Sdn Bhd – Cinta

Best Drama Series Grand Brilliance Sdn Bhd – Susuk

Best News Report TV3 – News & Current Affairs Department –Buletin Utama – Babi Cemar by Karam Singh Waliantv7 (nominated) Edisi7 – 48 Jam di Dili Timor Leste

Best Comedy (Drama) TV9 – Bong

Best Reality Programme 8TV – What Women Want (Episode 7)ntv7 (nominated) – Finding Angels

Best Entertainment Programme TV3 – Senario, Adiel Abd Ghafarntv7 (nominated) – Shout Out! It’s Saturday Nite, “Chinese New Year”

Best Documentary / Magazine 8TV – Crime Scene SS2 (Episode 1)ntv7 (nominated) – Captains

Best Musical Programme TV3 – Anugerah Juara Lagu, Tg. Sahilawati Tg. Jehorintv7 (nominated) – AIM 15

Best Telemovie ntv7 (nominated – Cinta Tahun Baru, Festival Movies

Best Talkshow ntv7 (nominated) – Thursday Nite Live, “Il Divo in Malaysia”

11 Anugerah Oscar 6, 2007 Best Production Manager Grand Brilliance Sdn Bhd, Mohd Izuan Mohd Mokhtar

Best Key Grip Film Grand Brilliance Sdn Bhd, Amiruddin Karim – Cinta

Best Music Scoring Grand Brilliance Sdn Bhd, Syed Ahmad Faizal – Cinta,

Oscar 6 Special Award Grand Brilliance Sdn Bhd(the most active productioncompany in producingfilms & dramas)

Jury Award (best film storyline) Grand Brilliance Sdn BhdCinta

Best Director & Film Grand Brilliance Sdn BhdShuhaimi Baba, Waris Jari Hantu

12 Media Awards Night – Best Consumer Media New Straits Times Press (M) Berhad8 December 2007 Organisation Award Winner

Best Consumer New Straits Times Press (M) BerhadNewspaper Award Consolation

13 Prime Minister’s Best Print Media Organisation New Straits Times Press (M) BerhadCSR Awards

Special Award for TV3Media Reporting

14 Perak Tourism Most Informative Media Award New Straits Times Press (M) Berhad Appreciation Travel TimesAwards 2007

15 Petronas-Malaysia Environmental Journalism Award TV3 – News & Current Affairs DepartmentPress Institute (MPI) Karam Singh WaliaMedia Awards

16 Penang Media Awards 3 (three) categories TV3 – News & Current Affairs DepartmentShahril Kadir

17 Ministry of Agriculture Best Television News Award TV3 – News & Current Affairs Departmentand Agro-Based Industry Hazran MohamedMedia Night

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Sistem Television MalaysiaBerhad (TV3) was awardedthe ‘ResponsibleEntrepreneurship Award’ atthe inaugural Asia PacificEntrepreneurship Awards(APEA) Awards which markedits commitment towardscorporate social responsibility.

TV3 and Media Prima’s printmedia subsidiary New StraitsTimes Press Bhd (NSTP) baggedthe ‘Special Award for MediaReporting’ and ‘Best Print MediaOrganisation’ respectively at the‘Prime Minister’s CorporateSocial Responsibility Award’ on14th November 2007.

Media Prima received regionalrecognition as Malaysia’s ‘BestManaged Mid-Cap Company’ andwas also voted fifth for bestinvestor relations in ‘FinanceAsia’sBest Companies’ 2007 poll.

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Media Prima was ranked 7thfor ‘Best in CorporateGovernance Compliance andBest Practices’ in the‘Corporate GovernanceSurvey’ poll conducted bythe Minority ShareholderWatchdog Group (MSWG).

Media Prima and TV3 wereeach rewarded with a‘Certificate of Participation’ atthe ACCA MESRA Award, anaward show aimed atrecognising organisations’initiatives in environmentaland social reporting.

TV3 was named as one of thetop 30 brands in the ‘MalaysianMost Valuable Brands’ (MMVB),organised by The Association ofAccredited AdvertisingAgencies (4As). The valuationexercise was conducted byworld renowned Interbrand.

Media Prima clinched top spot for Malaysia in the annual Corporate Governance Pollcarried out by Asiamoney magazine for the ‘Best Overall Corporate Governance’,‘Best Disclosure and Transparency, and ‘Best Investor Relations’ categories.

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NEW MEDIA

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Our new lifestyle portal, Gua (www.gua.com.my), is a blend ofentertainment, lifestyle, love and relationships, video and

community, where viewers can interact among each other aswell as with their favourite artistes. Soon, we will be addingmusic, movies and an array of exclusive content that will be

available nowhere else.

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INTRODUCTION

What does being a good corporate citizen mean? It means thatwe work hard to deliver attractive returns and exceptional valueto our shareholders. At the same time, it means that every day,in every one of our operations, we strive to do our part to makethe world a better place. As a media company, we seek todeliver information, entertainment and communications of thehighest quality to millions of people.

Corporate social responsibility is not an afterthought at ourcompany. It is central to what we do. That is because we cannotbe a great company unless we are a good company. In order toreach our potential, we need to earn the respect of ourshareholders, customers, partners and employees.

We have learned that the best way to do that is to fostercreativity, innovation and diversity throughout all of ourenterprises, while at the same time aligning our business practiceswith our highest values. It’s simply good business to do so.

Present in the following chapter is our report on the company'scorporate social responsibility activities. We know, however,there is always more to be done. You should consider thisreport, and our CSR work to date, as our first steps on a journey.We welcome your feedback. Please know that we will continueto review our policies and practices to ensure that Media Primaremains a leader not only in creative excellence, but also incorporate social responsibility.

Relevant Metrics: Present and FutureOne significant challenge in drafting this report was identifyingrelevant metrics. As a public listed company, we know how todevelop financial metrics and goals. Measuring our social andenvironmental impact is far more difficult. We plan to continueto develop appropriate metrics for measuring our CSR work asour company moves forward. We intend to report on ourcorporate citizenship efforts annually.

Stakeholder EngagementBeing a responsible leader means being a good listener. AtMedia Prima, our leaders listen to both the people inside andoutside the company who have a stake in our future. Of course,we listen to our investors first and foremost. But we also engagein discussions with customers, employees, policy makers,elected officials, opinion leaders and non-profit organizations.

These groups, who are often called stakeholders, helped usdevelop this report. Their advice will guide us as we continue toimprove our practices.

SERVING AUDIENCES

It is through our programmes that we have the greatest impact.Our approach is to act responsibly and fulfil our public serviceduties, as well as listen and react to our audiences.

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For us, corporate social responsibility is most directly achievedthrough the impact our programmes have on enriching thequality of society as a whole. Programmes can touch people’slives in a way no other media can. Television, radio and ourinternet presence have the ability to communicate to millionsthe issues and arguments surrounding responsible behaviourand encourage people to take action, as well as exposeunethical activities. We also provide people with the tools toparticipate, learn and become active citizens.

It is our duty to make programmes people can trust, that are ofthe highest quality, are impartial, fair and accurate. To maintainthis, we have in place editorial values, producer guidelines andother policies. But we do not always get it right. Our continuedefforts to improve dialogue with audiences help us learn. Theyalso enable us to develop better, more engaging and efficientways of fulfilling our public service duties.

In this report we have, for the first time, brought togetherexamples of what we do, to illustrate the impacts of our output.

Socially Responsible ProgrammingWe are particularly proud of the company’s long history indeveloping programming that focuses on social, political andenvironmental challenges affecting Malaysian society today.Below are a few examples of what we produced across thecompany in 2007.

In 2007, we are pleased to report that we received a specialaward from the Prime Minister CSR Award in the area of MediaReporting for our TV3’s news and current affairs as well as its360 Magazine programme. In our various programmes, wealways seek to highlight key issues that impact our communitytoday. Our news and current affairs programmes have put thespotlight on various cases of rights infringement, such as housebuyers who have been cheated by their developers; whilst our360 Magazine have covered the issues such as the plight ofstreet people, use of child labour and “Mat Rempits” or illegalracers in Malaysia. In doing this we are constantly seeking tounderstand and put into perspective these issues that impactour community today to bring about greater understandingamongst our viewers and readers.

On TV3, “Bersamamu”, a reality programme which representsthe plight of some members of the society in meeting thechallenges of having to survive and succeed ordeals such aspoverty and sickness, has entered its 11th season this year. Intandem with the Government’s efforts to inculcate IslamHadhari, TV3 together with TV9 also held the “PerkampunganHadhari” with the Terengganu and Kelantan state governments.

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ntv7 initiated the Nation Care Charity Show with over RM1million raised during the three hour fund raising concert atGenting Highlands. ntv7 also launched the book Finding Angels,Begins From A Caring Heart, in collaboration with KanyinPublications and the Popular bookstore chain, in conjunctionwith the new season of the award-winning programme FindingAngels which highlights the plight of needy individuals. Theproceeds of the sale of the books have gone to the KasihHospice Care Society.

Our radio network, Hot FM in partnership with Breeze helped toraise money by selling limited edition footballs to buildplaygrounds for orphanages.

The New Straits Times has been supporting the SchoolSponsorship Programme (SSP) to help English proficiencyamong school children since 2006. Through the SSP, individualsand companies are invited to sponsor copies of the paper at asubsidised rate to schools of their choice. Under thisprogramme, corporate bodies and the general public wereinvited to subscribe copies of the newspaper to be distributedfor free to school students, especially those in rural areas, in aneffort to improve their English proficiency.

Berita Harian through its educational supplements, Didik, MindaPelajar, and Skor aimed at helping primary and secondaryschool students sitting for the UPSR, PMR and SPM exams.

Awarding HumanitarianismAfter its successful launch in 2004, NSTP and TV3 continue itscollaboration with PricewaterhouseCoopers via the NSTP-PWCMalaysian Humanitarian Award to recognise Malaysians whohave performed acts of outstanding community service andgone beyond their normal call of duty to perform deeds of ahumanitarian nature.

Supporting New TalentWe aim not only to celebrate the creativity of Malaysia, but alsoto take a lead in discovering, developing, commissioning andshowcasing new talent.

Our programmes such as Mentor and Anugerah Juara Lagu offeryoung musicians a guide to breaking into the music industryand the chance to reach a national audience. We have beenrunning the Anugerah Juara Lagu since 1986 and the award hashelped to uncover some of the brightest talents in Malaysianmusic today such as Jaclyn Victor, Faizal Tahir, Estranged,amongst others.

Apart from music, we also have the Anugerah Skrin 2007, which isa showcase award for producers in both film and television. Theobjective of the award is to promote and raise standards ofproduction in drama, film and editing within the country.

We also actively promote sports amongst our audiences and in2007; we developed Soccer Kids Road to Euro a reality based TVprogramme to discover football talents below 12 years of age.

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The programme is intended to provide opportunities to futurefootballers in Malaysia to showcase and develop the talents. Topromote the programme, auditions were held in 9 locationsthroughout the country to identify 24 of the best footballingtalents under 12 to attend a football training camp held atUniversiti Putra Malaysia, Serdang.

EMPLOYEES AND WORKPLACE SAFETY

Media Prima is committed to complying with workplace healthand safety laws and regulations. We understand that thiscommitment requires the vigilance of each and every companyemployee. All our divisions and subsidiaries implement ourhealth and safety policy as part of their business activities.

A major emphasis in our safety programme is driver educationand safety and a variety of approaches are used to improvesafety and reduce the frequency and severity of accidents; andas our journalists frequently travel to gather information andreport stories. We as a company go above and beyond anyrequirements to protect those travelling.

Health and Safety PoliciesMedia Prima is committed to complying with environmental,workplace health and safety laws and regulations. We understandthat this commitment requires the vigilance of each and everycompany employee, and most divisions include an outline of thehealth and safety policies. Below are some highlights:

Sistem Televisyen Malaysia Berhad (STMB) Occupational Safety and Health PolicyDated: 18 May 2006

• The Management of STMB has fundamental responsibilityand commitment towards the establishment, implemen-tation and maintenance of a safe, healthy and conduciveworkplace related to broadcasting activities for all itsemployees, contractors, tenants and the public.

• Our objective is to ensure an ACCIDENT AND ILLNESSFREE ENVIRONMENT.

• The Management of STMB shall ensure that all legalrequirements are complied and that all hazards areidentified and risks assessed. Risk management activities willbe an on going process and shall be reviewed accordinglyfor continual improvement.

• Adequate resources shall be provided and managedthrough a recognised auditable OSH Management System.

• In order to achieve these objectives the Management ofSTMB expects the participation and cooperation of allemployees, contractors, tenants and the public at all times.This will ensure consultation is applied in all OSH decisionmaking process.

Safety and Health Management ProgrammeWe have an occupational safety and health (OSH) managementprogramme in place that defines the mechanism for theidentification of hazards and assessment of the risks that mayhappen at workplace and developing of Risk Action Plan. Ourprogramme is tailored after the requirements of internationalsafety and health management programmes such asOHSAS18001.

We have in place an OHSAS Steering Committee and Subcommittees (OSTC & OSUBC) identifies the OSH hazards andrisks which the facility controls and over which it may beexpected to have an influence, and determine which of thoserisks are considered significant.

This committee is responsible for ensuring the overall safety ofall staff at Media Prima.

For us at Media Prima, we review our safety and health risksregularly and for 2007, have identified the following issues:

• Fire• Slip, trips & falls• Fall from height• Electrical• Ergonomics• Chemicals• Vehicle• Noise

As such we have set out our safety programme to mitigateagainst these risks, and have achieved success in limiting theserisks as compared to 2006.

Facility SafetyWe have developed our own broadcast production safetyprogramme to ensure that all our staff and contractors workingfor us are able to operate safely in their daily activities. Duringbroadcasting, producers have a responsibility to ensure thesafety of all, and as part of this programme, On-location SafetyCoordinators are appointed to ensure that all risk controlmeasures are implemented. We conduct safety briefings to ourproduction crews on potentially hazardous set conditions.

We also ensure that all construction or installation works areconducted in accordance to the statutory requirements andusing only qualified staff. All personal protective equipment arealso provided to all staff.


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Emergency Response PlanFrequently, during our production programmes, we have liveaudiences in our studios or on location. The exposure of thepublic to risks and incidences is a high priority for us and we doour utmost to ensure their safety at all times.

Our safety policies mandate that adequate arrangements mustbe made for the health and safety and welfare of audiences andmembers of the public whether in a studio or on a location.

Our staffs are trained on the appropriate emergency responseprocedures involving appropriate steps to undertake in theevent of emergency situations and to mitigate against potentialaccidents, incidences or perceived health and safety risks.

We have an occupational safety and health (OSH) procedure toidentify and respond to potential accidents and emergencysituations, and for preventing and mitigating the OSH risks thatmay be associated with them. Emergency methods are reviewedby the OHSAS Steering Committee (OSTC) and OHSAS SubCommittee (OSUBC) on an annual basis and after theoccurrence of accidents or emergency situations. To manage ouremergency and potential accidents, we have emergencyresponse teams. Our teams conduct regular training annually.

Safety and Health TrainingIn terms of environmental, health and safety training, weidentify, plan, monitor and record our training needs forpersonnel whose work may create significant occupationalsafety and health (OSH) risks. We have procedures in place totrain employees at each relevant function and level so that theyare aware of our OSH policy, significant OSH risks, their rolesand responsibilities in achieving conformance with the policyand procedures, and with the requirements of the OSHmanagement system. We maintain our OSH training recordsand our training co-ordinator is responsible for the monitoringand reviewing of these records. Our new, part-time(contractual) and transferred employees, as well as permanenton-site contractors, are also included in the OSH trainingprogramme. Our OSH training programme includes:

• OSH & OHSAS 18001:1999 Awareness• OHSAS System Awareness• Safety in broadcasting• Advance Electrical Safety• Scaffolding Erection Competency• Defensive Driving• Office Safety• Emergency Response Management• Fire Safety & Basic Fire Fighting• Occupational First Aid & CPR

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• Refresher Basic Occupational First Aid• Safety & Health Committee Management• Accident investigation• Risk Assessment for Producers• Event Management Safety• Building evacuation drill• Safety in Construction Workplace (SICW-CIDB)• Incident Command System

Accidents and IncidencesWe experienced a variety of dangerous occurrences during ourdaily work activities. These relate primarily to slips and falls andergonomics, while other dangerous occurrences were roadrelated. In the course of our work, we frequently have tointeract with the public and sometimes these experiences canbe unfortunate.

In 2007, we had 3 non-fatal road related incidences, where ouraccident investigation team revealed that the source of theseincidences were due to inexperienced drivers. This has resultedin our training department identifying all relevant personnel tobe sent for defensive driving courses.

Our Supply ChainWe recognise our responsibility to ensure suppliers meetenvironmental and social standards and to encourageresponsible practices. We require our direct suppliers, as well astheir subcontractors, to observe compliance to regulatoryrequirements including worker insurance and ensure a safeworking environment.

COMMUNITIES

As a public service organisation, we are uniquely placed topartner other bodies and harness the power of the whole nationin pursuit of shared social goals. We focus our efforts in thefollowing:

Fundraising SupportWe have used broadcast appeals to help raise money since2005. Our efforts include:

i) Tabung “Bersamamu”Charity works by TV3 is almost synonymous for ‘Bersamamu’,a charity-based programme which was launched by thepatron, YBhg Dato’ Sri Rosmah binti Mansor, the wife of theDeputy Prime Minister on Thursday, 19 May 2005. First airedon 30 May 2005, the programme is now moving into itstenth season. The programme recently won the Special Jury’sAward for its humanitarian efforts in assisting thosehampered by physical, mental and financial disability,capping its success. To date, the programme has generatedover RM4,313,813.44 from public donations with AmanahRaya Berhad as trustee of the fund.


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“Bersamamu”, a reality programme, depicts how somemembers of the society meet the daily challenges ofsurviving and succeeding from despairing circumstancessuch as poverty, sickness, single motherhood and so on.

The purpose of the programme is not only to highlight thehardship and plight of the unfortunate members of oursociety, but also to motivate individuals and corporatebodies to come forward to contribute to help to those thatare in need, as highlighted in this programme.

ii) Tabung Gempa Bumi Yogjakarta (TGBY)TV3 started to collect funds for TGBY in June 2006 andclosed the account in June 2007. A total of RM637,925.48was successfully collected for the fund. Disbursements weremade to Yayasan Belia Malaysia (YBM), Mercy Malaysia andTabung Bencana Negara under the Foreign MinistryDepartment.

iii) Tabung Bantuan Asia Barat (TBAB)In a joint effort to assist and provide aid to victims of the warin Lebanon and Palestine, TV3, via its Tabung Bantuan AsiaBarat or TBAB successfully raised a total amount of RM1.62million. Disbursements were made to non-governmentalorganizations (NGO) such as Mercy Malaysia and AmanMalaysia, as well as the Ministry of Defense.

iv) Tabung Bantuan Banjir TV3 (TBB TV3)In an effort to aid victims of the floods in Johor and othereffected areas, TV3 had launched the Tabung Bantuan BanjirTV (TBB TV3) on 21 December 2006 as a move to collectfunds for those affected by the natural disaster.

RM2.36 million was successfully collected with RM0.2million disbursed to Kumpulan Wang Amanah Bencana(KWAB) and RM1.84 million directly to all locations affectedby flood which include three states – Negeri Sembilan,Melaka and Johor.

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v) Tabung Dapur Untuk Darfur TV3 (TDD TV3)Tabung Dapur Untuk Darfur TV3 was set up by TV3 incollaboration with Dewan Pemuda Masjid Malaysia andlaunched by YAB Dato’ Sri Mohd Najib Tun Abdul Razak,Deputy Prime Minister, Malaysia with the intention ofaddressing difficulties faced by victims of hunger inDarfur, Sudan.

SUPPORTING EDUCATION

8TV Scholarship FundEstablished in early 2006 in collaboration with SEGi, theobjective of our annual 8TV Scholarship Fund is to provideeducation opportunities to deserving students in thecommunity. Successful students will receive scholarships tocover their tuition fees for the undergraduate degree, diplomaand foundation level courses in various disciplines.

The 2007 8TV Scholarship Fund valued at RM800,000 was setup to benefit high calibre scholars within the core targetaudience of 8TV, comprising youths and young adults.

The 8TV Scholarship Fund covers tuition fees for undergraduatedegree, diploma or foundation level programmes for successfulapplicants in courses dealing with Finance & Accounting,Business & Commerce, Law, Science & Engineering and HumanResources.

The scholars have all been offered places at SEGI campuseslocated in Subang Jaya, Kuala Lumpur, Kota Damansara,Petaling Jaya, Penang, Sarawak and SEGi College of Technologyat Kuala Lumpur.

Media Prima Adopt-A-School (Projek PINTAR)Media Prima Berhad is participating in PINTAR (PromotingIntelligence, Nurturing Talents, Advocating Responsibility)Project which is an initiative mooted by the Finance Ministryinvolving 25 government-linked companies and 132 schools.

This three year project, launched on 17 December 2006 bySecond Finance Minister, Tan Sri Nor Mohamed Yakcop, isaimed at helping to raise awareness of the importance ofeducation and improving the academic standards of under-privileged children and under-performing schools. It is ademonstration of the government linked companies (GLCs)contributions to society as outlined in the Silver Book (one ofthe 10 GLC Transformation initiatives launched by the PutrajayaCommittee on GLC High Performance or PCG).

Monitored by Khazanah Nasional Berhad, appointed assecretariat by the Federal Government, this project works toachieve sustainable results within the time frame given. We areparticipating in the pilot project by adopting two schools,namely, SMK Jelutong and SMK Hutchings. We are also workinghand-in-hand with NGOs and other interested corporatepartners to strategise and map out intensive and extensiveactivities and programmes for the school community.


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These would include executive workshops, group dynamics,motivational talks, academic programmes, career discussions,family seminars, creative teaching workshops, and otheractivities as and when they are collectively agreed upon by theschool community.

So far our team has been able to evaluate the condition of theschools as well as find out more on areas which requiredimprovement and assistance. The following five (5) core areaswere identified:

• Academic Issues• Community Based Place• Sense of More Than Just a School• Sense of Pride• Creating a Creative Environment

On 10 March 2007, Media Prima Berhad held a soft launch ofthe Executive Workshop themed “Our School Our Life”. A totalof 120 participants comprising representatives from the schools’communities took part in the workshop which was earlierlaunched by the District Education Officer. The soft launch wasalso attended by representatives from Media Prima and thePrincipals of both schools.

Some of the activities and events that were identified based onthe aforementioned five core areas including motivational talksfor PMR and SPM students, examination workshops, academicexcellence awards, family day, study visits to Sri Pentas andstudent leadership camps.

Media Prima is taking a holistic and comprehensive approach inthis project so as to sustain the results attained by the twoadopted schools. In our effort to produce more efficient andsignificant results throughout our involvement in Projek PINTAR,Media Prima also inviting other corporate partners to come onboard in facilitating our initiatives by exploring possibilities of asmart partnership whereby MPB would provide a platform andopportunity for them to come on board the Projek PINTARinitiative and do their bit to fulfil their respective CorporateSocial Responsibilities (CSR).

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As part of Media Prima’s efforts to further publicise ourinvolvement in Projek PINTAR, the adopted schools, SMKJelutong and SMK Hutchings, participated in Jom HebohPenang which took place on 7 and 8 July 2007. Besidesorganising tours to the booths at Jom Heboh, the principalswere interviewed ‘live’ on Malaysia Hari Ini (MHI). The Groupbelieves that such a move would instil pride and a sense ofbelonging among students and teachers alike and hence furthermotivate them to achieve better results.

Employee VolunteerismAs a media organisation, it is important that we enable ourstaff to connect with audiences, particularly with under-servedand sometimes isolated groups through volunteeringprogrammes. We strongly believe that we need to provideopportunities for our employees to get involved in our localcommunities with as it offers valuable personal experiencethat the workplace alone cannot.

Through volunteerism, Media Prima’s employees have beenable to share their knowledge and talent in a practical waywhile gaining invaluable audience insights in the process. Ouremployees have not only become a valued resource inimproving the quality of life in the communities in which weinteract in but also in gaining fresh creative concepts and ideas,making them invaluable to us, as a business.

It is our hope that employees will participate in Projek PINTARto help raise awareness of the importance of education andimproving the academic standards of both our adopted schools.Moving forward, we hope to organise more volunteerismprogrammes with the schools and employees are encouraged totake part in future programmes.

Supporting Charitable OrganisationsApart from our fundraising work, we also maintain severalcharitable funds in support of a variety of organisations in needin Malaysia. Tabung TV3 was set up in 2002. This fund wasinitially created for the purpose of various ordeals such aschronic illness and poverty. As of 31 October 2007, the totalcollection for this fund is RM2,007,761.66. TV3 has disbursedapproximately RM1,913,976.17 to those in need such asorphanages homes and charitable houses.

Given the enormous support received from the public in Ghana,TV3 Network Limited have adopted charity causes such as thedonation drive for an orphanage at Teshie, a suburb in Accra.

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THE ENVIRONMENT

Whilst we are committed to doing our business in a sustainablemanner and to improving our environmental performancecontinually, our environmental programmes at Media Prima arestill in its infancy stage. We recognise that the business of makingprogrammes consumes large amounts of energy, for lighting,heating, air conditioning and transport – all generatinggreenhouse gases. It produces solid waste that can be recycled,including paper and videos.

In 2007, our total electricity usage was RM8.0 M for all ouroperations and our total water use was RM2.0 M. Electricityconsumed in our offices, workshops and various waste facilitiescontributes to global warming because electricity is generatedby power stations burning coal, oil or gas.

Carbon dioxide is the most significant greenhouse gas and resultsfrom the generation of electricity, generation of steam andcombustion of fuels. The other primary greenhouse gases includemethane, nitrous oxide, hydrofluorocarbons, perfluorocarbonsand sulfur hexaflouride. Inventory methods and factors utilised forconversion to carbon dioxide equivalents are based on the WorldBusiness Council for Sustainable Development (WBCSD) / WorldResources Institute (WRI) Greenhouse Gas Protocol Initiative, 2004and the Intergovernmental Panel on Climate Change (1996).

Based on our total electricity use for our headquarters, theestimated carbon emission from our activities was 107 kg ofCO2-e. This figure is only an initial estimate of our total carbonemissions from our activities and we recognise that we have notyet accounted for the carbon emissions arising from ourtransportation and travelling activities.

We are still in the process of developing sound environmentalprogrammes that will address the issues impacting the Malaysianenvironment today such as global warming, resources use –paper, power, water and waste reduction; and we hope to be ina position to report in greater detail on the environmentalimpacts of our activities in future.

However, on a positive note, we as a broadcasting organisationhave long recognised that the environment is an area wherecontinued focus needs to be provided to inform and educateour audiences. We support environmental causes by:

• driving environment campaign across radio, TV, print andweb properties which includes producing and broadcastingpublic service announcements on television

• choosing to include environmental-themed programmeson its channels

• giving editorial coverage on environmental issues

financial statements

Directors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .134

Income Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139

Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .141

Statement of Changes in Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143

Cash Flow Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145

Summary of Significant Accounting policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . .147

Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .164

Statement by Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .215

Statutory Declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .215

Report of the Auditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .216

Analysis of Shareholdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .217

List of Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .226

Group Directory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .230

The Directors have pleasure in submitting their report with the audited financial statements of the Group and of the Company forthe financial year ended 31 December 2007.

PRINCIPAL ACTIVITIES

The principal activities of the Company are investment holding and the provision of procurement services for its subsidiaries.

The principal activities of the Group consist of investment holding, commercial television and radio broadcasting, general mediaadvertising, sale of programme rights, sale of videos, cable and laser rights and the provision of production, event management andother industry related services. The Group commenced its activities in the provision of advertising space and related production worksupon the completion of acquisition of the subsidiaries in the current financial year as disclosed in Note 39 to the financial statements.

There have been no significant changes in the nature of these activities during the financial year.

FINANCIAL RESULTSGroup Company

RM’000 RM’000

Profit after taxation 117,440 93,080Minority interests – –

Net profit for the financial year 117,440 93,080

DIVIDENDS

The dividends paid or declared since 31 December 2006 were as follows:RM’000

In respect of the financial year ended 31 December 2006, a final dividend of 3.5 sengross per ordinary share, less income tax of 27%, paid on 15 August 2007:

- as shown in the Directors’ report of that year, dividends on 763,852,370 ordinary shares 19,517- dividends on additional 62,153,286 ordinary shares issued subsequent to 31 December 2007

up to the date of book closure on 31 July 2007 due to conversion of debt and equity instruments 1,588

21,105

The Directors had on 28 February 2008 recommended the payment of a final dividend of 9.3 sen gross per ordinary share, lessincome tax at 26%, amounting to RM57,964,151 which, subject to the approval of the shareholders at the forthcoming AnnualGeneral Meeting of the Company, will be paid on 18 July 2008 to shareholders registered on the Company’s Register of Membersat the close of business on 30 June 2008.

directors’ report

134

RESERVES AND PROVISIONS

All material transfers to or from reserves and provisions during the financial year are shown in the financial statements.

ISSUE OF SHARES

During the financial year, 78,330,884 new ordinary shares of RM1.00 each were issued by the Company comprising:

a 3,097,860 ordinary shares of RM1.00 each through the conversion of 4,646,797 Irredeemable Convertible Unsecured LoanStocks (“ICULS”) of RM1.00 each on the basis of two new ordinary shares for every three ICULS exercised. The premium arisingfrom the ICULS conversion of RM1,549,387 has been credited to the Share Premium account.

b 18,599,995 ordinary shares of RM1.00 each arising from the exercise of 18,599,995 Warrants of RM0.10 each at an exerciseprice of RM1.10 per Warrant. The premium arising from the exercise of Warrants of RM3,704,099, including the transfer ofproceeds from issuance of Warrants of RM1,860,000 from warrants reserve, has been credited to the Share Premium account.

c 18,061,600 ordinary shares of RM1.00 each pursuant to the exercise of the Employees’ share option Scheme (“ESOS”) at anexercise price of RM1.46, RM1.55 and RM2.23 per share. The premium arising from the exercise of ESOS of RM10,391,384 hasbeen credited to the Share Premium account.

d 38,571,429 ordinary shares of RM1.00 each pursuant to the acquisition of Big Tree Outdoor Sdn. Bhd. (“BTO”). The premiumarising from the issuance of ordinary shares of RM55,928,571 has been credited to the Share Premium account.

The new ordinary shares issued during the financial year ranked pari passu in all respects with the existing ordinary shares of theCompany.

EMPLOYEES’ SHARE OPTION SCHEME (“ESOS”)

The Company’s ESOS was approved by the shareholders on 7 January 2005 and became effective on 11 January 2005 for a periodof five (5) years, expiring on 10 January 2010.

Details of the ESOS are set out in Note 10 to the financial statements.

The Company has been granted an exemption by the Companies Commission of Malaysia via a letter dated 3 March 2008 fromhaving to disclose in this Report the name of the persons to whom options have been granted during the year and details of theirholdings pursuant to Section 169 (11) of the Companies Act, 1965 except for information on employees who were granted optionsrepresenting 600,000 ordinary shares and above.

There were no persons who were granted options representing 600,000 ordinary shares and above during the financial year.

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DIRECTORS

The Directors who have held office during the period since the date of the last report are:

Dato’ Abdul Mutalib bin Datuk Seri Mohamed RazakTan Sri Lee Lam ThyeDato’ Dr Mohd Shahari Ahmad JabarAbdul Rahman AhmadShahril Ridza RidzuanDato’ Seri Mohamed JawharDato’ Sri Ahmad Farid RidzuanDatuk Kamarulzaman Hj ZainalDato’ Abdul Kadir Mohd Deen (Appointed on 29 May 2007)

In accordance with Article 106 of the Company’s Articles of Association, Dato’ Abdul Kadir Mohd Deen, who was appointed duringthe financial year, retires at the forthcoming Annual General Meeting and, being eligible, offers himself for election.

In accordance with Articles 101 and 102 of the Company’s Articles of Association, Tan Sri Lee Lam Thye, Abdul Rahman Ahmad andDato’ Sri Ahmad Farid Ridzuan retire by rotation at the forthcoming Annual General Meeting and, being eligible, offer themselvesfor re-election.

DIRECTORS’ BENEFITS

During and at the end of the financial year, no arrangements subsisted to which the Company is a party, being arrangements withthe object or objects of enabling Directors of the Company to acquire benefits by means of the acquisition of shares in, ordebentures of, the Company or any other body corporate, other than the Company’s ESOS (see Note 6 to the financial statements).

Since the end of the previous financial year, no Director has received or become entitled to receive a benefit (other than Directors’remuneration and benefits-in-kind disclosed in Note 6 to the financial statements) by reason of a contract made by the Company ora related corporation with the Director or with a firm of which the Director is a member, or with a company in which the Directorhas a substantial financial interest.

DIRECTORS’ INTERESTS IN SHARES

According to the Register of Directors’ shareholdings, particulars of interests of Directors who held office as at the end of thefinancial year in shares and options over ordinary shares in the Company are as follows:

Number of ordinary shares of RM1.00 eachAs at As at

1.1.2007 Additions Disposals 31.12.2007‘000 ‘000 ‘000 ‘000

Abdul Rahman Ahmad – 1,500 (900) 600Dato’ Sri Ahmad Farid Ridzuan 600 200 (610) 190Datuk Kamarulzaman Hj Zainal 100 700 (600) 200

directors’ report (cont’d)

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DIRECTORS’ INTERESTS IN SHARES (cont’d)Number of options over ordinary shares of RM1.00 each

As at As at1.1.2007 Granted Exercised 31.12.2007

’000 ’000 ’000 ’000

Abdul Rahman Ahmad 1,500 – (1,500) –Dato’ Sri Ahmad Farid Ridzuan 550 – (200) 350Datuk Kamarulzaman Hj Zainal 700 – (700) –

According to the Register of Directors’ shareholdings, none of the other Directors in office at the end of the financial year held anyinterest in shares and options over ordinary shares in the Company and its related corporations during the financial year.

STATUTORY INFORMATION ON THE FINANCIAL STATEMENTS

Before the income statements and balance sheets of the Group and of the Company were made out, the Directors took reasonable steps:

a to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of allowance fordoubtful debts and satisfied themselves that all known bad debts had been written off and that adequate allowance had beenmade for doubtful debts; and

b to ensure that any current assets, other than debts, which were unlikely to realise in the ordinary course of business their valuesas shown in the accounting records of the Group and of the Company had been written down to an amount which they mightbe expected so to realise.

At the date of this report, the Directors are not aware of any circumstances:

a which would render the amounts written off for bad debts or the amount of the allowance for doubtful debts in the financialstatements of the Group and of the Company inadequate to any substantial extent; or

b which would render the values attributed to current assets in the financial statements of the Group and of the Companymisleading; or

c which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of theCompany misleading or inappropriate.

No contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve months afterthe end of the financial year which, in the opinion of the Directors, will or may affect the ability of the Group or of the Company tomeet their obligations when they fall due.

At the date of this report, there does not exist:

a any charge on the assets of the Group or of the Company which has arisen since the end of the financial year which securesthe liability of any other person; or

b any contingent liability of the Group or of the Company which has arisen since the end of the financial year.

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STATUTORY INFORMATION ON THE FINANCIAL STATEMENTS (cont’d)

At the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in this report or the financialstatements which would render any amount stated in the financial statements misleading.

In the opinion of the Directors:

a the results of the Group's and of the Company’s operations during the financial year were not substantially affected by anyitem, transaction or event of a material and unusual nature; and

b there has not arisen in the interval between the end of the financial year and the date of this report any item, transaction orevent of a material and unusual nature likely to affect substantially the results of the operations of the Group or of theCompany for the financial year in which this report is made.

AUDITORS

The auditors, PricewaterhouseCoopers, have expressed their willingness to continue in office.

Signed on behalf of the Board of Directors in accordance with their resolution dated 7 March 2008.

DATO’ ABDUL MUTALIB BIN DATUK SERI MOHAMED RAZAKCHAIRMAN

ABDUL RAHMAN AHMADGROUP MANAGING DIRECTOR

directors’ report (cont’d)

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Group CompanyNote 2007 2006 2007 2006

RM’000 RM’000 RM’000 RM’000

Revenue 2 691,339 534,689 163,507 26,821Other operating income 39,264 23,043 – –Finance income 3 1,195 678 – –Programmes, film rights and album production costs- Amortisation (179,650) (152,727) – –- Write off (44) (520) – –Prepaid programme and film rights written off – (2,680) – –Costs of production (43,163) (13,626) – –Employee benefits costs 4 (160,638) (124,419) (10,601) (4,898)Advertising and promotion expenses (22,577) (19,180) (1,099) (229)Transmission expenses (18,449) (16,204) – –Repairs and maintenance (12,774) (12,653) (16) (17)Utilities (13,020) (11,667) (38) (35)Professional and consultancy fees (7,609) (4,265) (1,116) (784)Rental of premises (9,449) (9,472) – –Rental of transmission stations (12,107) (13,756) – –Depreciation of property, plant and equipment (37,639) (27,016) (7) (4)Loss on measurement of asset held-for-sale at fair value less cost to sell 32 – (1,941) – –

Depreciation of investment properties (274) (1,567) – –Amortisation of prepaid lease rentals (827) (225) – –Writeback of / (impairment losses) on assets 4,278 (2,165) – –Doubtful debts for trade and other receivables- Allowances (4,707) (3,342) – –- Write back 447 15,049 – –Amortisation of intangibles ( 6,823) – – –Other operating expenses (47,513) (36,171) (3,642) (2,106)

Profit from operations 5 159,260 119,863 146,988 18,748Finance cost 3 (24,209) (24,847) (15,972) (12,833)Share of results of an associate 14,044 10,635 – –

Profit before taxation 149,095 105,651 131,016 5,915Taxation 7 (31,655) (22,657) (37,936) (1,992)

Net profit for the financial year 117,440 82,994 93,080 3,923

income statementsfor the financial year ended 31 december 2007

139


RM’000 RM’000 RM’000 RM’000

Attributable to:Equity holders of the Company 117,440 80,282Minority interests – 2,712

Net profit for the financial year 117,440 82,994

Earnings per share attributable to ordinary equity holders of the Company

- basic (sen) 8 14.37 11.32

- diluted (sen) 8 14.09 10.75

The accounting policies on pages 147 to 163 and the notes on pages 164 to 214 form an integral part of these financial statements.

income statements (cont’d)

for the financial year ended 31 december 2007

140


RM’000 RM’000 RM’000 RM’000

CAPITAL AND RESERVES ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY

Share capital 10 842,183 763,852 842,183 763,852Share premium 11 183,250 111,677 183,250 111,677Other reserves 12 30,132 28,165 1,791 2,385(Accumulated losses)/retained profits 14 (495,952) (589,563) 116,932 44,957

559,613 314,131 1,144,156 922,871MINORITY INTERESTS 1,922 (632) – –

TOTAL EQUITY 561,535 313,499 1,144,156 922,871

NON-CURRENT LIABILITIES

Irredeemable convertible unsecured loan stocks 15 9,275 13,921 9,275 13,921Bank guaranteed medium term notes 16 162,351 – 162,351 –Redeemable unsecured loan stocks 18 – 31,022 – –Medium term notes 19 – 70,000 – 70,000Unsecured redeemable exchangeable bonds 20 – 83,762 – 83,762Interest bearing bank borrowings:- Term loans 21 56,865 70,000 56,000 –Hire-purchase and lease creditors 22 8,972 9,134 – –Trade and other payables 23 – 18,732 – 8,507Deferred tax liabilities 24 16,828 704 – –

254,291 297,275 227,626 176,190

815,826 610,774 1,371,782 1,099,061

NON-CURRENT ASSETS

Property, plant and equipment 25 203,666 174,809 57 24Investment properties 26 15,049 10,361 – –Prepaid lease rentals 27 9,206 3,610 – –Subsidiaries 28 – – 614,280 430,481Associates 29 332,482 325,303 399,651 399,651Investments 30 3,604 2,692 – –Prepaid transmission station rentals 2,731 3,015 – –Intangible assets 31 206,135 38,736 – –Deferred tax assets 24 7,692 2,938 – –

780,565 561,464 1,013,988 830,156

balance sheetsas at 31 december 2007

141


RM’000 RM’000 RM’000 RM’000

CURRENT ASSETS

Assets held-for-sale 32 58,660 58,660 – –Inventories 33 439 1,304 – –Trade and other receivables 34 254,436 183,595 5,023 3,025Amounts due from subsidiaries 35 – – 471,587 263,594Deposits, cash and bank balances 36 128,358 130,265 34,805 80,823Tax recoverable 2,532 – 1,925 –

444,425 373,824 513,340 347,442

CURRENT LIABILITIES

Trade and other payables 23 271,355 223,459 41,546 29,927Amount due to an associate 37 7,242 1,243 – –Redeemable unsecured loan stocks 18 – 31,022 – –Commercial papers 16 100,000 – 100,000 –Interest bearing bank borrowings:- Term loans 21 16,510 48,823 14,000 48,490- Bank overdrafts 21 705 783 – –Current tax liabilities 13,352 19,184 – 120

409,164 324,514 155,546 78,537

NET CURRENT ASSETS 35,261 49,310 357,794 268,905

815,826 610,774 1,371,782 1,099,061

Sen Sen

NET ASSETS PER SHARE 0.66 0.41

* Net assets per share is calculated by dividing the net assets of the Group by the number of ordinary shares in issue at the balance sheet date.


balance sheets (cont’d)

as at 31 december 2007

142

Attributable to equity holders of the CompanyShare Share Other Accumulated Minority Total

Group Note capital premium reserves losses Total interests equityRM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

2007

At 1 January 2007 763,852 111,677 28,165 (589,563) 314,131 (632) 313,499Currency translation differences/incomeand expense recognised directly in equity – – 1,857 – 1,857 (170) 1,687

Net profit for the financial year – – – 117,440 117,440 – 117,440Total recognised income and expensefor the financial year – – 1,857 117,440 119,297 (170) 119,127

Acquisition of additional interestsin subsidiaries – – – (2,724) (2,724) 2,724 –

Options granted to employees of the Group 10 – – 1,266 – 1,266 – 1,266

Issuance of shares arising from: 10,11- Conversion of ICULS 3,098 1,549 – – 4,647 – 4,647- Exercise of Warrants 18,600 3,704 (1,860) – 20,444 – 20,444- Exercise of ESOS 18,062 10,391 – – 28,453 – 28,453- Acquisition of subsidiaries 38,571 55,929 – – 94,500 – 94,500 Reversal of deferred tax liabilities recognised directly in equity – – 704 – 704 – 704

Final dividend paid for the financialyear ended 31 December 2006 9 – – – (21,105) (21,105) – (21,105)

At 31 December 2007 842,183 183,250 30,132 (495,952) 559,613 1,922 561,535

2006

At 1 January 2006 600,109 57,127 38,428 (659,194) 36,470 (3,229) 33,241Currency translation differences/incomeand expense recognised directly in equity – – (1,249) – (1,249) (115) (1,364)Net profit for the financial year – – – 80,282 80,282 2,712 82,994Total recognised income and expensefor the financial year – – (1,249) 80,282 79,033 2,597 81,630

Issuance of shares arising from: 10,11- Conversion of ICULS 52,424 26,212 – – 78,636 – 78,636- Exercise of Warrants 90,144 18,029 (9,014) – 99,159 – 99,159- Exercise of ESOS 21,175 10,309 – – 31,484 – 31,484Final dividend paid for the financialyear ended 31 December 2005 9 – – – (10,651) (10,651) – (10,651)

At 31 December 2006 763,852 111,677 28,165 (589,563) 314,131 (632) 313,499


statements of changes in equityfor the financial year ended 31 december 2007

143

Non-distributable DistributableShare Share Other Retained Total

Company Note capital premium reserves earnings equityRM'000 RM'000 RM'000 RM'000 RM'000

2007

At 1 January 2007 763,852 111,677 2,385 44,957 922,871Net profit for the financial year – – – 93,080 93,080Options granted to employees of the Group 10 – – 1,266 – 1,266

Issuance of shares arising from: 10,11- Conversion of ICULS 3,098 1,549 – – 4,647- Exercise of Warrants 18,600 3,704 (1,860) – 20,444- Exercise of ESOS 18,062 10,391 – – 28,453- Acquisition of subsidiaries 38,571 55,929 – – 94,500Final dividend paid for the financial yearended 31 December 2006 9 – – – (21,105) (21,105)

At 31 December 2007 842,183 183,250 1,791 116,932 1,144,156

2006

At 1 January 2006 600,109 57,127 11,399 51,685 720,320Net profit for the financial year – – – 3,923 3,923Issuance of shares arising from: 10,11- Conversion of ICULS 52,424 26,212 – – 78,636- Exercise of Warrants 90,144 18,029 (9,014) – 99,159- Exercise of ESOS 21,175 10,309 – – 31,484Final dividend paid for the financial yearended 31 December 2005 9 – – – (10,651) (10,651)

At 31 December 2006 763,852 111,677 2,385 44,957 922,871


statements of changes in equity (cont’d)


144


RM’000 RM’000 RM’000 RM’000

CASH FLOWS FROM OPERATING ACTIVITIES

Cash flows generated from operations 40 158,185 89,791 (86,884) (16,741)Income tax paid (41,866) (25,134) (428) (124)

Net cash flow from operating activities 116,319 64,657 (87,312) (16,865)

CASH FLOWS FROM INVESTING ACTIVITIES

Payment to scheme creditors of subsidiaries (16,898) (10,714) (16,898) (10,714)Acquisition of subsidiaries, net of cash acquired:- Big tree Outdoor Sdn Bhd (“BTO”) 39 (a) (46,683) – (64,620) –- UPD Sdn Bhd (“UPD”) 39 (b) (1,440) – (576) –- The Right Channel Sdn Bhd (“TRC”) 39 (c) 269 – (138) –Part payment of purchase consideration of subsidiaries (25,100) (35,000) (25,100) (35,000)Property, plant and equipment- Additions (32,625) (28,039) (40) (21)- Proceeds from disposals 959 461 – –Prepaid lease rentals- Additions (6,995) – – –Interest received 2,338 2,048 1,377 1,370Dividends received 6,916 3,482 4,326 3,385

Net cash flow from investing activities (119,259) (67,762) (101,669) (40,980)

cash flow statementsfor the financial year ended 31 december 2007

145


RM’000 RM’000 RM’000 RM’000

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of :- Term loans (120,742) (19,697) (48,490) –- Commercial papers – (30,000) – (30,000)- Medium term notes (70,000) – (70,000) –- Unsecured redeemable exchangeable bond (85,000) – (85,000) –- Redeemable unsecured loan stocks (62,044) (26,590) – –- Hire-purchase and lease creditors (2,711) (1,137) – –- Bank borrowings – (3,000) – –

Drawdown of bank borrowings 332,351 51,490 332,351 48,490

Proceeds from issuance of ordinary shares arising from:- Exercise of Warrants 20,444 99,159 20,444 99,159- Exercise of ESOS 28,453 31,484 28,453 31,484Restricted bank balances 6,932 (4,041) 7,000 (4,091)Interest paid (21,349) (24,317) (13,690) (12,833)Dividend paid to shareholders of the Company (21,105) (10,651) (21,105) (10,651)

Net cash flow from financing activities 5,229 62,700 149,963 121,558

NET INCREASE /(DECREASE) IN CASH AND CASH EQUIVALENTS DURING THE FINANCIAL YEAR 2,289 59,595 (39,018) 63,713

FOREIGN EXCHANGE DIFFERENCES ON OPENING 2,814 (106) – –BALANCES

CASH AND CASH EQUIVALENTS AT BEGINNING OFTHE FINANCIAL YEAR 121,509 62,020 73,823 10,110

CASH AND CASH EQUIVALENTS AT END OFTHE FINANCIAL YEAR 38 126,612 121,509 34,805 73,823


cash flow statements (cont’d)


146

Unless otherwise stated, the following accounting policies have been applied consistently in dealing with items that are consideredmaterial in relation to the financial statements.

A BASIS OF PREPARATION

The financial statements of the Group and of the Company have been prepared in accordance with Financial ReportingStandards (“FRS”), the Malaysian Accounting Standards Board (“MASB”) Approved Accounting Standards in Malaysia forEntities Other than Private Entities and the provisions of the Companies Act, 1965.

The financial statements have been prepared under the historical cost convention, except as disclosed in this summary ofsignificant accounting policies.

The preparation of financial statements in conformity with FRS requires the use of certain critical accounting estimates andassumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at thedate of the financial statements and the reported amounts of revenues and expenses during the reported financial year. It alsorequires Directors to exercise their judgement in the process of applying the Group’s and the Company’s accounting policies.Although these estimates and judgements are based on the Directors’ best knowledge of current events and actions, actualresults may differ.

The areas involving a higher degree of judgements or complexity, or areas where assumptions and estimates are significant tothe financial statements, are disclosed in Note AD.

(a) Standards, amendments to published standards and interpretations that are effective

The new accounting standards effective for the Group’s and for the Company’s financial period beginning on or after 1 January 2007 are as follows:

• FRS 6 “Exploration for and Evaluation of Mineral Resources”• FRS 117 “Leases”• FRS 124 “Related Party Disclosures”• Amendment to FRS 1192004 Employee Benefits - Actuarial Gains and Losses, Group Plans and Disclosures

All changes in accounting policies have been made in accordance with the transition provisions in the respective standardsand amendments to published standards.

FRS 6 is not relevent to the Group’s and the Company’s operations as the Group and the Company do not carry outexploration for and evaluation of mineral resources business. The amendment of FRS1192004 is not relevant to the Groupand the Company as the Group and the Company do not have any defined benefit plan.

A summary of the adoption of FRS 117 on the financial statements of the Group and of the Company is set out in Note 43to the financial statements.

The adoption of FRS 124 has no significant impact on the financial statements of the Group and of the Company, otherthan the identification of related parties and some related party disclosures. The related party disclosures are set out inNote 42 to the financial statements.

summary of significant accounting policiesfor the financial year ended 31 december 2007

147

A BASIS OF PREPARATION (cont’d)

(b) Standards, amendments to published standards and interpretations to existing standards that are not yet effective andhave not been early adopted

The new standards, amendments to published standards and interpretations that are mandatory for the Group and for theCompany financial periods beginning on or after 1 January 2008 or later periods, but which the Group and the Companyhas not early adopted, are as follows:

• FRS 112 “Income Taxes” (effective for accounting periods beginning on or after 1 July 2007). This revised standardremoves the requirements that prohibit recognition of deferred tax on unutilised reinvestment allowances or otherallowances in excess of capital allowances. The Group and the Company will apply this standard from financialperiods beginning on 1 January 2008.

• Other revised standards (effective for accounting periods beginning on or after 1 July 2007) that have no significantchanges compared to the original standards:

- FRS 107 “Cash Flow Statements”- FRS 118 ”Revenue”- FRS 137 “Provisions, Contingent liabilities and Contingent Assets”

The Group and the Company will apply these standards from financial periods beginning on 1 January 2008.

• Amendment to FRS 121 “The Effects of Changes in Foreign Exchange Rates – Net Investment in a Foreign Operations”(effective for accounting periods beginning on or after 1 July 2007). This amendment requires exchange differenceson monetary items that form part of the net investment in a foreign operation to be recognised in equity instead of inprofit or loss regardless of the currency in which these items are denominated in. The Group and the Company willapply this amendment from financial periods beginning on 1 January 2008.

• FRS 134 “Interim Financial Reporting” (effective for accounting periods beginning on or after 1 July 2007). The Groupwill apply this standard from financial periods beginning on 1 January 2008.

• FRS 139 “Financial Instruments : Recognition and Measurement” (effective date yet to be determined by MalaysianAccounting Standards Board). This new standard establishes principles for recognising and measuring financial assets,financial liabilities and some contracts to buy and sell non-financial items. Hedge accounting is permitted only understrict circumstances. The Group and the Company will apply this standard when it becomes effective.

• IC Interpretation 1 “Changes in Existing Decommissioning, Restoration and Similar Liabilities” (effective foraccounting periods beginning on or after 1 July 2007). This interpretation deals with changes in the estimated timingor amount of the outflow of resources required to settle the obligation, or a change in the discount rate. The Groupand the Company will apply this IC Interpretation from financial periods beginning on 1 January 2008.

• IC Interpretation 8 “Scope of FRS 2” (effective for accounting periods beginning on or after 1 July 2007). Thisinterpretation clarifies that FRS 2 “Share-based Payment” applies even in the absence of specifically identifiable goods andservices. The Group and the Company will apply this amendment from financial periods beginning on 1 January 2008.

With the exception of FRS 139, the above standards, amendments to published standards and interpretations to existingstandards are not anticipated to have any significant impact on the financial position of the Group and the Company in theyear of initial application. As allowed under the transitional provision of FRS 139, the Group and the Company are exemptedfrom having to disclose the possible impact of the application of this standard on the financial statements of the Group and theCompany in the year of initial application.

summary of significant accounting policies (cont’d)


148

A BASIS OF PREPARATION (cont’d)

(c) Standards amendments to published standards and interpretations that are not yet effective and not relevant for theGroup and for the Company

• FRS 111 “Construction contracts” (effective for accounting periods beginning on or after 1 July 2007) have nosignificant changes compared to the original standard. FRS 111 is not relevant to the Group’s and to the Company’soperations as the Group and the Company does not carry out construction business.

• FRS 120 “Accounting for Government Grants and Disclosure of Government Assistance” (effective for accountingperiods beginning on or after 1 July 2007). This revised standard allows the alternative treatment of recording non-monetary government grant at nominal amount on initial recognition. FRS 120 is not relevant to the Group’s and tothe Company’s operations as the Group and the Company does not have government grants or assistance.

• IC Interpretation 2 “Members’ Shares in Co-operative Entities and Similar Instruments” (effective for accountingperiods beginning on or after 1 July 2007). This interpretation deals with liability or equity classification of financialinstruments which give the holder the right to request redemption, but subject to limits on whether it will beredeemed. IC 2 is not relevant to the Group’s and to the Company’s operations as the Group and the Company donot have co-operative entities and related instruments.

• IC Interpretation 5 “Rights to Interests arising from Decommission, Restoration and Environmental RehabilitationFunds” (effective for accounting periods beginning on or after 1 July 2007). This interpretation deals with accountingby a contributor for its interests arising from decommissioning funds. IC 5 is not relevant to the Group’s and theCompany’s operations as the Group and the Company does not have rehabilitation funds.

• IC Interpretation 6 “Liabilities arising from Participating in a Specific Market – Waste Electrical and ElectronicEquipment” (effective for accounting periods beginning on or after 1 July 2007). This interpretation providesguidance on the recognition, in the financial statements of the producers, of liabilities for waste management underthe European Union Directive in respect of sales of historical household equipment. IC 6 is not relevant to the Group’sand to the Company’s operations as the Group and the Company is not involved in waste management operations.

• IC Interpretation 7 “Applying the Restatement Approach under FRS 129 Financial Reporting in HyperinflationaryEconomies” (effective for accounting periods beginning on or after 1 July 2007). This interpretation provides guidanceon how to apply the requirements of FRS 129 in a reporting period in which an entity identifies the existence ofhyperinflation in the economy of its functional currency, when that economy was not hyperinflationary in the priorperiod. IC 7 is not relevant to the Group and to the Company as the Group and the Company do not operate in ahyperinflationary economy.

149

B BASIS OF CONSOLIDATION

Subsidiaries are those corporations, partnerships or other entities (including special purpose entities) in which the Group haspower to exercise control over the financial and operating policies so as to obtain benefits from their activities, generallyaccompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rightsthat are currently exercisable or convertible are considered when assessing whether the Group controls another entity.

Subsidiaries are consolidated using the purchase method of accounting except for certain business combinations which wereaccounted for using the merger method as follows:

• Internal group reorganisations, as defined in FRS 1222004 “Business Combinations”, consolidated on/after 1 April 2002 butwith agreements dated before 1 January 2006 where:

- the ultimate shareholders remain the same, and the rights of each such shareholder, relative to the others, areunchanged; and

- the minorities’ share of net assets of the Group is not altered by the transfer

• Business combinations involving entities or businesses under common control with agreements dated on or after 1 January 2006.

The Group has taken advantage of the exemption provided by FRS1222004 and FRS 3 “Business Combinations” to apply thesestandards prospectively. Accordingly, business combinations entered into prior to the respective dates have not been restatedto comply with these standards.

Under the purchase method of accounting, subsidiaries are fully consolidated from the date on which control is transferred tothe Group and are de-consolidated from the date that control ceases. The cost of an acquisition is measured as the fair value ofthe assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directlyattributable to the acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed in a businesscombination are measured initially at their fair values at the acquisition date, irrespective of the extent of any minority interest.The excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets acquired at the date ofacquisition is reflected as goodwill. See accounting policy Note E on goodwill. If the cost of acquisition is less than the fair valueof the net assets of the subsidiary acquired, the difference is recognised directly in the income statement.

Minority interests represent that portion of the profit or loss and net assets of a subsidiary attributable to equity interest thatare not owned, directly or indirectly through subsidiaries, by the parent. It is measured at the minorities’ share of the fair valueof the subsidiaries’ identifiable assets and liabilities at the acquisition date and the minorities’ share of changes in thesubsidiaries’ equity since that date.

Where more than one exchange transaction is involved, any adjustment to the fair values of the subsidiary’s identifiable assets,liabilities and contingent liabilities relating to previously held interests of the Group is accounted for as a revaluation.

Under the merger method of accounting, the results of the subsidiaries are presented as if the merger had been effectedthroughout the current and previous financial years. The assets and liabilities combined are accounted for based on the carryingamounts from the perspective of the common control shareholder at the date of transfer. On consolidation, the cost of themerger is cancelled with the value of the shares received. Any resulting credit difference is classified as equity and regarded as anon-distributable reserve. Any resulting debit difference is adjusted against any suitable reserve. Any share premium, capitalredemption reserve and any other reserves which are attributable to share capital of the merged enterprises, to the extent thatthey have not been capitalised by a debit difference, are reclassified and presented as movement in other capital reserves.



150

B BASIS OF CONSOLIDATION (cont’d)

Intragroup transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealisedlosses are also eliminated but are considered as an impairment indicator of the asset transferred. Accounting policies ofsubsidiaries have been changed to ensure consistency with the policies adopted by the Group, where necessary.

The gain or loss on disposal of a subsidiary is the difference between net disposal proceeds and the Group's share of its netassets as of the date of disposal, including the cumulative amount of any exchange differences that relate to the subsidiary, andis recognised in the consolidated income statement.

C TRANSACTIONS WITH MINORITY INTERESTS

The Group applies a policy of treating transactions with minority interests as transactions with equity owners of the Group. Forpurchases from minority interests, the difference between any consideration paid and the relevant share of the carrying valueof net assets of the subsidiary acquired is deducted from equity. Gains or losses on disposals to minority interests are alsorecorded in equity. For disposals to minority interests, differences between any proceeds received and the relevant share ofminority interests are also recorded in equity.

D ASSOCIATES

Associates are those corporations, partnerships or other entities in which the Group exercises significant influence, but which itdoes not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Significant influenceis the power to participate in the financial and operating policy decisions of the associates but not the power to exercisecontrol over those policies.

Investments in associates are accounted for using the equity method of accounting and are initially recognised at cost. TheGroup’s investment in associates includes goodwill identified on acquisition, net of any accumulated impairment losses. Seeaccounting policy Note E on goodwill.

The Group’s share of its associates’ post-acquisition profits or losses is recognised in the consolidated income statement, and itsshare of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements areadjusted against the carrying amount of the investment. When the Group’s share of losses in an associate equals or exceeds itsinterest in the associate, including any other unsecured receivables, the Group’s interest is reduced to nil and recognition offurther losses is discontinued except to the extent that the Group has incurred legal or constructive obligations or madepayments on behalf of the associate.

Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest inthe associates; unrealised losses are also eliminated unless the transaction provides evidence of impairment of the assettransferred. Where necessary, in applying the equity method, adjustments are made to the financial statements of associates toensure consistency of accounting policies with those of the Group.

Dilution gains and losses in associates are recognised in the income statement.

For incremental interest in an associate, the date of acquisition is the purchase date at each stage and goodwill is calculated ateach purchase date based on the fair value of assets and liabilities identified. There is no “step up to fair value” of net assetspreviously acquired and the share of profits and equity movements for the previously acquired stake is recorded directlythrough equity.

151

E GOODWILL

Goodwill represents the excess of the cost of acquisition of subsidiaries or associates over the fair value of the Group’s share ofthe identifiable net assets at the date of acquisition.

Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwillare not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or groups of cash-generating units that are expected to benefit from the synergies of the businesscombination in which the goodwill arose. See accounting policy Note L on impairment of assets.

F INVESTMENTS

Investments in subsidiaries and associates are stated at cost less accumulated impairment losses. Where an indication ofimpairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount.See accounting policy Note L on impairment of assets.

Investments in other non-current investments are stated at cost and an allowance for diminution in value is made where, in theopinion of the Directors, there is a decline other than temporary in the value of such investments. Where there has been such adecline, such a decline is recognised as an expense in the financial year in which the decline is identified.

On disposal of an investment, the difference between the net disposal proceeds and its carrying amount is charged/credited tothe income statement.

G PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Costincludes expenditure that is directly attributable to the acquisition of the assets.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it isprobable that future economic benefits associated with the item will flow to the Group and the cost of the item can bemeasured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged tothe income statement during the financial period in which they are incurred.

The Directors have applied the transitional provisions of International Accounting Standard (“IAS”) 16 “Property, Plant andEquipment”, which has been adopted by MASB, which allow properties previously revalued to continue to be stated at theirvaluation amounts less accumulated depreciation and impairment losses. Accordingly, certain leasehold land and buildings ofthe Group are stated at valuation amounts carried out in 1996, which have not been updated.

Freehold land is not depreciated as it has an infinite life. Depreciation on assets under construction commences when the assetsare ready for their intended use.

Depreciation on the other property, plant and equipment is calculated so as to write off the cost or valuation of the assets on astraight line basis over the expected useful lives of the assets, summarised as follows:

Buildings 20 – 50 years Office renovations 3 – 5 yearsPlant and machinery 4 – 5 years Motor vehicles 5 yearsBroadcasting and transmission equipment 10 years Leasehold improvements 3 – 15 yearsProduction equipment 5 – 10 years Structures 5 – 10 yearsOffice equipment, furniture and fittings 3 – 10 years



152

G PROPERTY, PLANT AND EQUIPMENT (cont’d)

Residual values and useful lives of assets are reviewed, and adjusted if appropriate, at each balance sheet date.

At each balance sheet date, the Group assesses whether there is any indication of impairment. If such indications exist, ananalysis is performed to assess whether the carrying amount of the asset is fully recoverable. A write down is made if thecarrying amount exceeds the recoverable amount. See accounting policy Note L on impairment of assets.

Gains and losses on disposals are determined by comparing proceeds with carrying amounts and are included in profit/(loss)from operations. On disposal of revalued assets, amounts in the revaluation reserve relating to those assets are transferred toretained earnings.

H PREPAID LEASE RENTALS

The Directors have applied the transitional provisions of FRS 117 "Leases" for the lease of land previously recognised asproperty, plant and equipment.

Where the Group and the Company had previously classified a lease of land as finance lease and had recognised the amount ofthe prepaid lease rental as property within property, plant and equipment, the Group and the Company will treat the lease asan operating lease with the unamortised carrying amount being classified as prepaid lease rental.

Where the Group and the Company had previously revalued the leasehold land, the Group and the Company will retain theunamortised revalued amount as the surrogate carrying amount of lease rentals, which is amortised over the lease term.

Leasehold land is amortised over the remaining period of the respective leases ranging from 50 and 90 years.

I INVESTMENT PROPERTIES

Investment properties comprise principally land and buildings held for long term rental yields or for capital appreciation orboth, and are not occupied by the Group. Investment properties are stated at cost less accumulated depreciation andaccumulated impairment losses.

Freehold land is not depreciated as it has an infinite life.

Depreciation on the other investment properties is calculated so as to write off the cost of the assets on a straight line basisover the expected useful lives of the assets concerned, as summarised below:

Buildings 20 – 50 years

On disposal of an investment property, or when it is permanently withdrawn from use and no future economic benefits areexpected from its disposal, it shall be derecognised. The difference between the net disposal proceeds and the carrying amountis recognised in the income statement in the period of the retirement or disposal.

J INTANGIBLE ASSETS - PROGRAMMES AND FILM RIGHTS

(a) Programmes and film rights

Programmes and film rights are stated at cost less accumulated amortisation and accumulated impairment losses, if any.

The programmes and film rights are recognised after they are contracted for, after receipt of materials and after approvalsare obtained from the censorship authority. Cost comprises contracted cost and direct expenditure. Amortisation iscalculated so as to write off the relevant portion of the cost of programmes and film rights which fairly represents itsrelevant attached rights, to match against recognised revenue from these programmes and film rights.

153

J INTANGIBLE ASSETS - PROGRAMMES AND FILM RIGHTS (cont’d)

(a) Programmes and film rights (cont’d)

The amortisation rates are:

Purchases with full rights/limited rights (2 runs or more) %

FeaturesUpon first transmission 60Upon second transmission 40

SeriesUpon first transmission 100

Purchases with limited rights (1 run) and in-house programmesUpon first transmission 100

Where an indication of impairment exists, the carrying amount of the asset is assessed and written down immediately toits recoverable amount. See accounting policy Note L on impairment of assets.

(b) Acquired concession rights and outdoor advertising rights.

Acquired concession rights and outdoor advertising rights arose from the acquisition of subsidiaries during the financial year.

Acquired concession rights and outdoor advertising rights that have a finite useful life are carried at cost less accumulatedamortisation. Amortisation is calculated using the straightline method to allocate the cost of concession rights over theirrespective concession lives. Where an indication of impairment exists, the carrying amount of the asset is assessed andwritten down immediately to its recoverable amount. See accounting policy Note L on impairment of assets.

Acquired concession rights and outdoor advertising rights that have an indefinite useful life are assessed for any indicationof impairment on an annual basis. A write-down is made if the carrying amount exceeds the recoverable amount. Seeaccounting policy Note L on impairment of assets.

K PREPAID EXPENDITURE

Prepaid expenditure is in respect of prepaid lease rentals for transmission stations, which are charged to the income statementon a straight line basis over the respective period of the leases, ranging between 31 and 36 years.

L IMPAIRMENT OF ASSETS

Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that aresubject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carryingamount may not be recoverable. An impairment loss is recognised for the amount by which the carrying amount of the assetexceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or its value in use.For the purposes of assessing impairment, assets are grouped at the lowest levels for which there is separately identifiable cashflows (cash generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possiblereversal of the impairment at each reporting date.

The impairment loss is charged to the income statement unless it reverses a previous revaluation, in which case it is charged tothe revaluation surplus. Impairment losses on goodwill are not reversed. In respect of other assets, any subsequent increase inrecoverable amount is recognised in the income statement unless it reverses an impairment loss on a revalued asset, in whichcase it is taken to revaluation surplus.



154

M NON-CURRENT ASSETS HELD FOR SALE

Non-current assets such as properties are classified as assets held for sale and are stated at the lower of carrying amount and fair valueless costs to sell if their carrying amount is recovered principally through a sale transaction rather than through continuing use.

N TRADE RECEIVABLES

Trade receivables are carried at invoice amount less an allowance for doubtful debts. The allowance is established when there isobjective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables.

O INVENTORIES

Inventories are stated at the lower of cost and net realisable value. Cost is determined on a weighted average basis.

(i) Consumable spares

Consumable spares comprise spare parts for broadcasting and transmission equipment and are expensed off upon utilisation.

(ii) Albums

Albums comprise mainly costs of production and related production overheads.

(iii) Other inventories

Other inventories comprise mainly cost of work-in-progress incurred for events to be held in future years. The costcomprises direct labour, other direct costs and related production overheads.

P CASH AND CASH EQUIVALENTS

For the purpose of the cash flow statements, cash and cash equivalents comprise cash on hand, bank balances, demanddeposits and short term, highly liquid investments with original maturities of three months or less and less bank overdrafts.Bank overdrafts are included within borrowings, classified under current liabilities on the balance sheet.

Q LEASES

(i) Finance leases

Leases of property, plant and equipment where the Group assumes substantially all the benefits and risks of ownership areclassified as finance leases.

Finance leases are capitalised at the inception of the lease at the lower of the fair value of the leased asset and the presentvalue of the minimum lease payments. Each lease payment is allocated between the liability and finance charges so as toachieve a constant periodic rate of interest on the balance outstanding. The corresponding rental obligations, net of financecharges, are included in payables. The interest element of the finance lease is charged to the income statement over thelease period, so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

Property, plant and equipment acquired under finance leases are depreciated over the estimated useful life of the asset, inaccordance with the annual rates stated in Note G above. Where there is no reasonable certainty that the ownership willbe transferred to the Group, the asset is depreciated over the shorter of the lease term and its estimated useful life.

(ii) Operating leases

Leases of assets where a significant portion of the risks and rewards of ownership are retained by the lessor are classified asoperating leases. Payments made under operating leases are charged to the income statement on a straight line basis overthe period of the lease.

155

R INCOME TAXES

Current tax expense is determined according to the tax laws of each jurisdiction in which the Group operates and include alltaxes based upon the taxable profits, including withholding taxes payable by a foreign subsidiary or associate on distributionsof retained earnings to companies in the Group.

Deferred tax is recognised in full, using the liability method, on temporary differences arising between the amounts attributedto assets and liabilities for tax purposes and their carrying amounts in the financial statements. However, deferred tax is notaccounted for if it arises from the initial recognition of an asset or liability in a transaction other than a business combinationthat, at the time of the transaction, affects neither accounting nor taxable profit or loss.

Deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which thedeductible temporary differences or unused tax losses can be utilised.

Deferred tax is recognised on temporary differences arising on investments in subsidiaries and associates except where thetiming of reversal of the temporary differences can be controlled and it is probable that the temporary differences will notreverse in the foreseeable future.

Deferred tax is determined using tax rates (and tax laws) that have been enacted or substantially enacted by the balance sheetdate and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

S EMPLOYEE BENEFITS

(i) Short-term employee benefits

The Group recognises a liability and an expense for bonuses based on a formula that takes into consideration the profitattributable to equity holders of the Company after certain adjustments. The Group recognises a provision where there is acontractual obligation or where there is a past practice that has created a constructive obligation.

Wages, salaries, sick leave, bonuses and non-monetary employee benefits are accrued in the financial year in which theassociated services are rendered by employees of the Group.

(ii) Post-employment benefits - Defined contribution plans

A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity (afund) and will have no legal or constructive obligations to pay further contributions if the fund does not hold sufficientassets to pay all employees benefits relating to the employee service in the current and prior periods.

The Group’s contributions to defined contribution plans, including the national defined contribution plan, the Employees’Provident Fund (“EPF”), are charged to the income statement in the financial year to which they relate. Once thecontributions have been paid, the Group has no further payment obligations. Prepaid contributions are recognised as anasset to the extent that a cash refund or a reduction in the future payments is available.



156

S EMPLOYEE BENEFITS (cont’d)

(iii) Termination benefits

Termination benefits are payable whenever an employee’s employment is terminated before the normal retirement date orwhenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises terminationbenefits when it is demonstrably committed to either terminate the employment of current employees according to adetailed formal plan without the possibility of withdrawal or to provide termination benefits as a result of an offer made toencourage voluntary redundancy. Benefits which are due more than 12 months after the balance sheet date arediscounted to present value.

(iv) Share-based compensation

The Group operates an equity-settled, share-based compensation plan for its employees.

Employee services received in exchange for the grant of the share options are recognised as an expense in the incomestatement over the vesting periods of the grant, with a corresponding increase in equity.

The total amount to be expensed over the vesting period is determined by reference to the fair value of the share optionsgranted, excluding the impact of any non-market vesting conditions (for example, profitability and sales growth targets).Non-market vesting conditions are included in the assumptions about the number of options that are expected to vest. Ateach balance sheet date, the Group revises its estimates of the number of share options that are expected to vest. Itrecognises the impact of the revision of original estimates, if any, in the income statement, with a correspondingadjustment to equity.

The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) andshare premium when the options are exercised.

The Group has taken advantage of the transitional provisions of FRS 2 “Share-based Payment” in respect of equityinstruments granted after 31 December 2004 and not vested as at 1 January 2006, and not recognised any expense inrespect of these instruments.

T PROVISIONS

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, when it isprobable that an outflow of resources will be required to settle the obligation, and when a reliable estimate of the amount canbe made. Where the Group expects a provision to be reimbursed, the reimbursement is recognised as a separate asset but onlywhen the reimbursement is virtually certain. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined byconsidering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to anyone item included in the same class of obligations may be small.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. Theincrease in the provision due to passage of time is recognised as interest expense.

157

U CONTINGENT LIABILITIES

The Group does not recognise a contingent liability but discloses its existence in the financial statements. A contingent liabilityis a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence ofone or more uncertain future events beyond the control of the Group or a present obligation that is not recognised because itis not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in theextremely rare circumstance where there is a liability that cannot be recognised because it cannot be measured reliably.

V SHARE CAPITAL

Ordinary shares are classified as equity.

Incremental external costs directly attributable to the issuance of new shares or options are shown in equity as a deduction, netof tax, from the proceeds.

Dividends on ordinary shares are recognised as a liability in the period in which they are declared.

W DEBT INSTRUMENTS

The debt instruments issued by the Group and the Company are as follows:

(i) Irredeemable convertible unsecured loan stocks (“ICULS”)(ii) Bank guaranteed medium term notes/Commercial papers (“BGMTN/CP”)(iii) Warrants(iv) Redeemable unsecured loan stocks (“RULS”)(v) Commercial papers/Medium term notes (“CP/MTN”)(vi) Unsecured redeemable exchangeable bonds (“UREB”)

The carrying value of debt instruments issued by the Group and the Company is the nominal value of the debt instruments lessthe unamortised discount or plus the unamortised premium on issuance, if any. The discount or premium on issuance isamortised or accreted to the income statement on an effective yield basis over the duration of the debt instruments. Couponpayments arising from the debt instruments are charged to the income statement on an accrual basis.

The Group has taken advantage of the exemption provided by FRS 132 “Financial Instruments: Disclosure and Presentation”not to reclassify compound financial instruments issued by the Company prior to 1 January 2003 into liabilities and equitycomponents. Accordingly, the ICULS issued by the Company continued to be classified as liabilities.

X WARRANTS RESERVE

Proceeds from the issuance of warrants, net of issue costs, are credited to warrants reserve which is non-distributable. Warrantsreserve are transferred to the share premium account upon the exercise of warrants and warrants reserve in relation to theunexercised warrants at the expiry of the warrants period are transferred to retained earnings.



158

Y BORROWINGS

Borrowings are initially recognised based on the proceeds received, net of transaction costs incurred. In subsequent periods,borrowings are stated at amortised cost using the effective yield method; any difference between proceeds (net of transactioncosts) and the redemption value is recognised in the income statement over the period of the borrowings.

Interest, dividends, losses and gains relating to a financial instrument, or a component part, classified as a liability is reportedwithin finance cost in the income statement.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability forat least 12 months after the balance sheet date.

Z INCOME RECOGNITION

Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinarycourse of the Group’s activities. Revenue is shown net of discounts, commissions, rebates and taxes and after eliminating saleswithin the Group.

The Group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefitswill flow to the entity and specific criteria have been met for each of the Group’s activities. The amount of revenue is notconsidered to be reliably measurable until all contingencies relating to the sale have been resolved. The Group bases its estimateson historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

Revenue of the Company from the provision of procurement services to subsidiaries is recognised on an accrual basis.

Interest income of the Company is recognised on an accrual basis based on the prevailing interest rates for deposits at financialinstitutions and fixed rates for advances to subsidiaries. Interest income of the Group is recognised on an accrual basis based onthe prevailing interest rates.

Revenue of the subsidiaries is recognised upon the delivery of products and customer acceptance or performance of services, orupon telecast of advertisements, net of discounts, sales commissions and sales rebates, if any. Revenue from display rentalincome, advertisement production works and events are recognised in accordance with the terms of the sales contract which isprincipally over the period of the contract, on an accrual basis. Accordingly, all amounts received in advance are disclosed inthe financial statements as deferred income.

Dividend income is recognised when the right to receive payment is established.

AA FOREIGN CURRENCIES

(a) Functional and presentation currency

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primaryeconomic environment in which the entity operates (the “functional currency”). The financial statements are presented inRinggit Malaysia, which is the Company’s functional and presentation currency.

159

AA FOREIGN CURRENCIES (cont’d)

(b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the datesof the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from thetranslation of monetary assets and liabilities denominated in foreign currencies at year-end exchange rates are recognisedin the income statement.

(c) Group companies

The results and financial position of all the group entities (none of which has the currency of a hyperinflationary economy) thathave a functional currency different from the presentation currency are translated into the presentation currency as follows:

• assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet;

• income and expenses for each income statement are translated at average exchange rates (unless this average is not areasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which caseincome and expenses are translated at the rate on the dates of the transactions); and

• all resulting exchange differences are recognised as a separate component of equity.

On consolidation, exchange differences arising from the translation of the net investment in foreign operations are takento equity. When a foreign operation is partially disposed of or sold, exchange differences that were recorded in equity arerecognised in the income statement as part of the gain or loss on disposal.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of theforeign entity and are translated at the closing rate.

AB SEGMENT REPORTING

Segment reporting is presented for enhanced assessment of the Group’s risks and returns. A business segment is a group ofassets and operations engaged in providing products or services that are subject to risks and returns that are different fromthose of other business segments. A geographical segment is engaged in providing products or services within a particulareconomic environment that are subject to risks and returns that are different from those components operating in othereconomic environments.

Segment revenue, expenses, assets and liabilities are those amounts resulting from the operating activities of a segment thatare directly attributable to the segment and the relevant portion that can be allocated on a reasonable basis to the segment.Segment revenue, expenses, assets and liabilities are determined before intragroup balances, and intragroup transactions areeliminated as part of the consolidation process, except to the extent that such intragroup balances and transactions arebetween group enterprises within a single segment. Inter-segment pricing is based on similar terms as those available to otherexternal parties.



160

AC FINANCIAL INSTRUMENTS

(i) Description

A financial instrument is any contract that gives rise to both, a financial asset of one enterprise and a financial liability orequity instrument of another enterprise.

A financial asset is any asset that is cash, a contractual right to receive cash or another financial asset from anotherenterprise, a contractual right to exchange financial instruments with another enterprise under conditions that arepotentially favourable, or an equity instrument of another enterprise.

A financial liability is any liability that is a contractual obligation to deliver cash or another financial asset to anotherenterprise, or to exchange financial instruments with another enterprise under conditions that are potentially unfavourable.

(ii) Financial instruments recognised on the balance sheet

The particular recognition method adopted for financial instruments recognised on the balance sheets is disclosed in theindividual accounting policy note associated with each item.

(iii) Fair value estimation for disclosure purposes

The fair value of publicly traded securities is based on quoted market prices at the balance sheet date.

In assessing the fair values of financial instruments, the Group uses a variety of methods and makes assumptions that arebased on market conditions existing at each balance sheet date. Quoted market prices or dealer quotes for the specific orsimilar instruments are used for long term debt. Other techniques, such as discounted value of future cash flows are usedto determine fair values for the remaining financial instruments. In particular, the fair value of financial liabilities isestimated by discounting the future contractual cash flows at the current market interest rate available to the Group forsimilar financial instruments.

The carrying values of financial assets and financial liabilities with a maturity period of less than one year are assumed toapproximate their fair values.

AD CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Estimates and judgements are continually evaluated and are based on historical experience and other factors, includingexpectations of future events that are believed to be reasonable under the current circumstances.

(a) Critical accounting estimates and assumptions

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition,rarely equal the related actual results. To enhance the information content of the estimates, certain key variables that areanticipated to have a material impact to the Group’s results and financial position are tested for sensitivity to changes inthe underlying parameters. The estimates and assumptions that have a significant risk of causing a material adjustment tothe carrying amounts of assets and liabilities within the next financial year are outlined below:

161

AD CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (cont’d)

(a) Critical accounting estimates and assumptions (cont’d)

(i) Deferred tax asset

Deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available againstwhich the temporary differences can be utilised. This involves judgements regarding the future financial performanceof the particular entity in which the deferred tax asset has been recognised.

(ii) Estimation of income taxes

Income taxes are estimated based on the rules governed under the Income Tax Act, 1967. Significant judgement isrequired in determining the capital allowances and deductibility of certain expenses during the estimation of theprovision for income taxes. There are many transactions and calculations for which the ultimate tax determination isuncertain during the ordinary course of business.

Where the final tax outcome of these matters is different from the amounts that were initially recognised, suchdifferences will impact the income tax and deferred tax provisions in the period in which such determination is made.

(iii) Assessment of impairment of goodwill

The Group tests goodwill for impairment annually in accordance with its accounting policy as stated in Note E, andwhenever events or changes in circumstances indicate that the goodwill may be impaired.

For the purposes of assessing impairment, goodwill is allocated to cash-generating units or groups of cash generatingunits that are expected to benefit from the synergies of the business combination in which the goodwill arose.

Significant judgement is required in the estimation of the present value of future cash flows generated by the cashgenerating units or groups of cash-generating units, as this involves uncertainties and is significantly affected byassumptions used and judgement made regarding estimates of future cash flows and discount rates. Changes inassumptions could significantly affect the results of the Group’s tests for impairment of goodwill.

(iv) Assessment of impairment of investments

Certain judgements in terms of assessing future uncertain parameters such as future economic growth, future growthin advertising expenditure, future inflationary figures, appropriate discount rates etc, are required in order to projectthe future cash flows of the businesses of investee companies. These judgements are based on the historical trackrecord and expectations of future events that are believed to be reasonable under the current circumstances.



162

AD CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (cont’d)

(a) Critical accounting estimates and assumptions (cont’d)

(v) Assessment of impairment of property, plant and equipment

The Group assesses impairment of assets whenever the events or changes in circumstances indicate that the carryingamount of an asset may not be recoverable.

Recoverable amount is measured at the higher of the fair value less cost to sell for that asset and its value-in-use. Thevalue-in-use is the net present value of the projected future cash flow derived from that asset discounted at anappropriate discount rate. Projected future cash flows are estimates made based on historical, sector and industrytrends, general market and economic conditions, changes in technology and other available information.

(vi) Contingent liabilities

The Group has several material pending legal cases which are disclosed in Note 45 to the financial statements. TheDirectors, based on legal advice, have taken certain positions as to whether there will be any future liabilities arisingfrom these legal proceedings. Each case is unique and therefore, the eventual outcome cannot be ascertained withvirtual certainty.

(vii)Share-based payment

Equity settled share-based payment (share options) is measured at fair values at the date they are granted. Theassumptions used in the valuation to determine these fair values are explained in Note 10 to these financial statements.

(b) Critical judgements in applying the Group’s accounting policies

There are no critical judgements made in applying the Group’s accounting policies.

163

1 GENERAL INFORMATION

The principal activities of the Company are investment holding and the provision of procurement services for its subsidiaries.

The principal activities of the Group consist of investment holding, commercial television and radio broadcasting, generalmedia advertising, sale of programme rights, sale of videos, cable and laser rights and the provision of production, eventmanagement and other industry related services. The Group commenced its activities in the provision of advertising space andrelated production works upon the completion of acquisition of the subsidiaries in the current financial year as disclosed inNote 39 to the financial statements.

The Company is a public limited liability company, incorporated and domiciled in Malaysia and listed on the Main Board of theBursa Malaysia Securities Berhad (“Bursa Malaysia”).

The address of the registered office and principal place of business of the Company is as follows:

Sri PentasNo. 3, Persiaran Bandar UtamaBandar Utama47800 PetalingSelangor Darul Ehsan

2 REVENUEGroup Company

2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000

Advertising income 678,966 517,846 – –Sale of programmes, videos, cable and laser rights, and media revenue 6,989 9,657 – –

Fees from provision of production services, sponsorship and event management services 4,241 5,816 – –

Fees from provision of procurement services – – 10,685 13,770Interest income (Note 3) 1,143 1,370 6,327 6,321Gross dividends from subsidiaries – – 137,091 2,028Gross dividends from an associate – – 9,404 4,702

691,339 534,689 163,507 26,821

notes to the financial statementsfor the financial year ended 31 december 2007

164

3 FINANCE INCOME AND COSTGroup Company

2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000

Finance income:Interest income classified in- Revenue (Note 2) (1,143) (1,370) (6,327) (6,321)- Other interest income (1,195) (678) – –

(2,338) (2,048) (6,327) (6,321)

Finance cost:Interest expenses on:- Irredeemable convertible unsecured loan stocks 209 910 209 910- Redeemable unsecured loan stocks 1,840 3,509 – –- Medium term notes 3,319 4,838 3,319 4,838- Bank guaranteed medium term notes 2,308 – 2,308 –- Commercial papers 1,201 858 1,201 858- Term loans 7,929 7,802 3,478 829- Unsecured redeemable exchangeable bonds 4,935 5,398 4,935 5,398- Scheme creditors of subsidiaries (Note 23) 720 1,186 – –- Bank guarantee fee 522 – 522 –- Hire purchase interest 1,086 – – –- Overdraff 140 346 – –

24,209 24,847 15,972 12,833

Net finance cost 21,871 22,799 9,645 6,512

4 EMPLOYEE BENEFITS COSTSGroup Company

2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000

Wages, salaries and bonus 131,171 103,750 8,892 4,208Defined contribution retirement plan 17,361 13,289 1,411 539Termination benefits 520 206 – –Employees’ share option scheme (Note 10) 1,266 – 71 –Other employee benefits 10,320 7,174 227 151

160,638 124,419 10,601 4,898

165

5 PROFIT FROM OPERATIONS

Profit from operations is stated after charging/(crediting):Group Company

2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000

Royalties 2,883 2,635 – –Auditors' remuneration:- statutory audit 683 470 50 40- fees for other services 159 319 159 319- fees for tax advisory and compliance work 579 157 42 19Prepaid expenditure written off 284 284 – –Amortisation of transaction fees – UREB 1,238 262 1,238 262Property, plant and equipment written off 305 – – –Rental income from equipment (5,461) (7,190) – –Rental income from premises (193) (656) – –Reversal of allowance for diminution in value of quoted investments (912) (204) – –Gross dividends from:- Quoted shares in Malaysia (5) (2) – –- Property and unit trusts (48) (133) – –Net exchange (gain)/loss:- Realised (1,636) (622) – 10- Unrealised (547) (463) – (106)Gain on disposal of property, plant and equipment (199) (413) – –Loss on disposal of investment properties 83 – – –Write back of long outstanding accruals (24,380) (6,756) – –

Direct operating expenses from investment properties that generated rental income of the Group during the financial yearamounted to RM524,702 (2006: RM912,439).

Direct operating expenses from investment properties that did not generate rental income of the Group during the financialyear amounted to RM88,671 (2006: RM167,440).

6 DIRECTORS’ REMUNERATIONGroup Company

2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000

Non-executive Directors:- Fees 490 374 272 194- Allowance 252 219 137 120- Defined contribution retirement plan 46 40 23 20- Bonus 98 60 73 45

Executive Directors:- Basic salaries and bonus 2,438 1,928 1,023 550- Allowance 732 484 390 132- Defined contribution retirement plan 474 396 203 136

4,530 3,501 2,121 1,197

Estimated monetary value of benefits-in-kind 135 169 9 41

notes to the financial statements (cont’d)


166

6 DIRECTORS’ REMUNERATION (cont’d)

Executive Directors of the Company have been granted options under the ESOS on the same terms and conditions as thoseoffered to other employees of the Group (see Note 10) as follows:

Number of options over ordinary shares of RM1.00 eachAt At

Exercise price 1 January 31 DecemberGrant date Expiry date RM/share 2007 Granted Exercised 2007

’000 ’000 ’000 ’000

Financial year ended 31 December 2007

11 January 2005 10 January 2010 1.55 1,500 – (1,150) 35014 December 2005 10 January 2010 1.46 1,250 – (1,250) –

2,750 – (2,400) 350

Number of options over ordinary shares of RM1.00 eachAt 1 January At 31

Exercise price 2006/Date of DecemberGrant date Expiry date RM/share appointment Granted Exercised 2006

’000 ’000 ’000 ’000

Financial year ended 31 December 2006

11 January 2005 10 January 2010 1.55 1,500 – – 1,50014 December 2005 10 January 2010 1.46 2,250 – (1,000) 1,250

3,750 – (1,000) 2,750

2007 2006’000 ’000

Number of share options vested at balance sheet date 350 2,750

7 TAXATIONGroup Company

2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000

Current tax:- Malaysian tax 32,945 22,691 37,936 1,992- Foreign tax 848 484 – –

33,793 23,175 37,936 1,992Deferred tax (Note 24) (2,138) (518) – –

31,655 22,657 37,936 1,992

167

7 TAXATION (cont’d)Group Company

2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000

Current tax:- current financial year 40,263 31,146 37,675 1,992- Under/(over) accrual in prior financial years (6,470) (7,971) 261 –

33,793 23,175 37,936 1,992

Deferred tax: - origination and reversal of temporary differences (2,246) (371) – –- change in tax rate 108 (147) – –

(2,138) (518) – –

31,655 22,657 37,936 1,992

Income tax is calculated at the statutory tax rate of 27% (2006: 28%) of the estimated assessable profit for the financial year. Thestatutory tax rate will be reduced to 26% from the current financial year’s rate of 27% effective from year of assessment 2008 and to25% effective from year of assessment 2009. The computation of deferred tax as at 31 December 2007 has reflected these changes.

The explanation of the relationship between taxation and profit before taxation is as follows:

Group Company2007 2006 2007 2006

RM’000 RM’000 RM’000 RM’000

Profit before taxation 149,095 105,651 131,016 5,915

Tax calculated at the Malaysian tax rate of 27% (2006: 28%) 40,256 29,582 35,374 1,656Tax effects of:- expenses not deductible for tax purpose 11,780 7,076 2,301 336- Small and Medium Enterprises tax rate (133) – – –- income not subject to tax (2,662) – – –- temporary differences and unutilised tax losses not recognised 4,339 7,300 – –- utilisation of previously unrecognised temporary differences

and unutilised tax losses (11,860) (10,201) – –- share of results of an associate (3,791) (2,978) – –- under/(over) accruals of current tax in prior years (6,470) (7,971) 261 –- others 196 (151) – –

Taxation 31,655 22,657 37,936 1,992

Included in income tax expense of the Group are tax savings amounting to RM1,997,523 (2006: RM107,666) from utilisationof current year tax losses.



168

8 EARNINGS PER SHARE

(a) Basic earnings per share

The basic earnings per share for the Company has been calculated by dividing the net profit attributable to ordinary equityholders of the Company for the financial year of RM117,440,000 (2006: RM80,282,000) by the weighted average numberof ordinary shares in issue during the financial year, adjusted to include the potential ordinary shares that would be issuedupon conversion of a mandatorily convertible instrument, ICULS, from the date the contract is entered into, amounting to817,212,000 (2006: 709,261,000).

Group2007 2006

RM’000 RM’000

Net profit attributable to ordinary equity holders of the Company (RM’000) 117,440 80,282

Weighted average number of ordinary shares in issue, adjusted for the potential ordinary shares of the mandatorily convertible instrument, ICULS (‘000) 817,212 709,261

Basic earnings per share (sen) 14.37 11.32

(b) Diluted earnings per share

For the diluted earnings per share calculation, the weighted average number of ordinary shares in issue is adjusted toassume conversion of all dilutive potential ordinary shares. The Company has two categories of dilutive potential ordinaryshares, Warrants and ESOS.

In the diluted earnings per share calculation in respect of Warrants, a calculation is done to determine the number ofshares that could have been acquired at market price (determined as the average annual share price of the Company’sshares) based on the monetary value of the subscription rights attached to outstanding Warrants. This calculation serves todetermine the “bonus” element to the ordinary shares outstanding for the purpose of computing the dilution. Noadjustment is made to the net profit attributable to ordinary equity holders of the Company for the Warrants calculation.

In respect of share options granted to employees, a calculation is done to determine the number of shares that could havebeen acquired at fair value (determined as the annual average share price of the Company’s shares) based on themonetary value of the subscription rights attached to outstanding share options. The number of shares calculated iscompared with the number of shares that would have been issued assuming the exercise of the share options. Thedifference is added to the denominator as an issue of ordinary shares for no consideration. This calculation serves todetermine the “bonus” element to the ordinary shares outstanding for the purpose of computing the dilution. Noadjustment is made to net profit for the financial year for the share options calculation.

169

8 EARNINGS PER SHARE (cont’d)

(b) Diluted earnings per share (cont’d)Group

2007 2006RM’000 RM’000

Net profit attributable to ordinary equity holders of the Company 117,440 80,282

Weighted average number of ordinary shares in issue, adjusted for the potential ordinary shares of the mandatorily convertible instrument, ICULS (‘000) 817,212 709,261

Adjustments for:- Exercise of Warrants (‘000) 10,297 28,813- Exercise of ESOS (‘000) 6,261 8,646

Weighted average number of ordinary shares for diluted earnings per share (‘000) 833,770 746,720

Diluted earnings per share (sen) 14.09 10.75

9 DIVIDENDS

2007 2006Gross dividend Amount of Gross dividend Amount of

per share net dividend per share net dividendSen RM’000 Sen RM’000

Final dividend less income tax of 27% (2006: 28%) 3.5 21,105 2.0 10,651

At the forthcoming Annual General Meeting on 29 April 2008, a final dividend of 9.3 sen gross per ordinary share less incometax of 26% amounting to RM57,964,151 in respect of the financial year ended 31 December 2007 will be proposed forshareholders’ approval. This final dividend will be accrued as a liability in the financial year ending 31 December 2008 whenapproved by the shareholders.

10 SHARE CAPITAL2007 2006

Note RM’000 RM’000

Ordinary shares of RM1.00 each:

AuthorisedAt 1 January/At 31 December 2,000,000 2,000,000

Issued and fully-paidAt 1 January 763,852 600,109Issuance of shares arising from:- Conversion of ICULS (a) 3,098 52,424- Exercise of Warrants (b) 18,600 90,144- Exercise of ESOS (c) 18,062 21,175- Acquisition of subsidiaries (d) 38,571 –

At 31 December 842,183 763,852



170

10 SHARE CAPITAL (cont’d)

During the financial year, the Company increased its issued and fully paid-up share capital from RM763,852,370 toRM842,183,254 by way of the issuance of :

(a) 3,097,860 (2006: 52,424,022) ordinary shares of RM1.00 each through the conversion of 4,646,797 ICULS of RM1.00each on the basis of two new ordinary shares for every three ICULS exercised. The premium arising from the ICULSconversion of RM1,549,387 (2006: 26,212,021) has been credited to the Share Premium account.

(b) 18,599,995 (2006: 90,143,871) ordinary shares of RM1.00 each arising from the exercise of 18,599,995 Warrants ofRM0.10 each at an exercise price of RM1.10 per Warrant. The premium arising from the exercise of Warrants ofRM3,704,099 including the transfer of proceeds from issuance of Warrants of RM1,860,000 (2006: 18,028,774) fromwarrants reserve, has been credited to the Share Premium account.

(c) 18,061,600 (2006: 21,175,400) ordinary shares of RM1.00 each pursuant to the exercise of ESOS at an exercise price ofRM1.46, RM1.55 and RM2.23 per option. The premium arising from the exercise of ESOS of RM10,391,384 (2006:10,308,978) has been credited to the Share Premium account.

(d) 38,571,429 ordinary shares of RM1.00 each pursuant to the acquisition of Big Tree Outdoor Sdn. Bhd. (“BTO”). Thepremium arising from the issuance of ordinary shares of RM55,928,571 has been credited to the Share Premium account.

The new ordinary share issued during the financial year ranked pari passu in all respects with the existing ordinary sharesof the Company.

Employees’ Share Option Scheme (“ESOS”)

The Company’s ESOS was approved by the shareholders on 7 January 2005 and became effective on 11 January 2005 for aperiod of five (5) years, expiring on 10 January 2010.

The main features of the ESOS are:

(i) The total number of ordinary shares to be issued by the Company under the ESOS as approved by the SecuritiesCommission shall not exceed ten per centum (10%) of the total issued and paid-up share capital of the Company at anyone time during the existence of the ESOS.

(ii) The options granted may be exercised at any time within the option period.

(iii) The exercise price is at a discount of 10% from the weighted average market price of the shares for the five (5) marketdays preceding the respective dates of offer of the options or the par value of the shares of the Company of RM1.00,whichever is higher.

(iv) Options granted under the ESOS carry no dividend or voting rights. Upon exercise of the options, shares issued rank paripassu in all respects with the existing ordinary shares of the Company.

(v) The persons to whom the options have been granted have no right to participate by virtue of the options in any shareissue of any other company.

171

10 SHARE CAPITAL (cont’d)

Set out below are details of options over ordinary shares of the Company granted under the ESOS:

Number of options over ordinary shares of RM1.00 eachExercise price At 1 At 31

Grant date Expiry date RM/share January Granted Exercised Lapsed December’000 ’000 ’000 ’000 ’000

Financial year ended31 December 2007

11 January 2005 10 January 2010 1.55 15,606 – (10,159) – 5,44714 December 2005 10 January 2010 1.46 7,966 – (6,385) – 1,58128 February 2007 10 January 2010 2.23 – 4,819 (1,518) – 3,301

23,572 4,819 (18,062) – 10,329


11 January 2005 10 January 2010 1.55 21,942 – (6,137) (199) 15,60614 December 2005 10 January 2010 1.46 23,238 – (15,038) (234) 7,966

45,180 – (21,175) (433) 23,572

2007 2006RM’000 RM’000

Number of options over ordinary shares vested, as the end of the financial year 10,329 23,572

The weighted average fair value of options granted during the year, determined using the binomial valuation model, wasRM0.26 per option (2006: RMNil). The significant inputs into the model are as follows:

2007 2006

Valuation assumptions:Expected volatility 21.00 % –Expected dividend yield 3.00 % –Expected option life 1.5 years –Share price at date of grant RM2.40 –Risk free interest rate (per annum) 3.60% –

The expected volatility is based on the statistical analysis of historical daily share prices over the previous 2 years.

The charges to the income statements arising from share-based payment during the financial year amounted to RM1,265,980(2006: Nil) for the Group and RM70,928 (2006: Nil) for the Company (Note 4).



172

11 SHARE PREMIUMGroup and Company2007 2006

Note RM’000 RM’000

At 1 January 111,677 57,127Arising from:- Conversion of ICULS 10 (a) 1,549 26,212- Exercise of Warrants 10 (b) 3,704 18,029- Exercise of ESOS 10 (c) 10,391 10,309- Acquisition of subsidiaries 10 (d) 55,929 –

At 31 December 183,250 111,677

12 OTHER RESERVESExchange Merger Share

Revaluation fluctuation reserve Warrants optionreserve reserve (Note 13) reserve reserve Total

Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

2007

At 1 January 2007 1,809 (2,366) 26,337 2,385 – 28,165Exercise of Warrants during the financial year – – – (1,860) – (1,860)Options granted to employees of the Group – – – – 1,266 1,266Reversal of deferred tax liabilities 704 – – – – 704Currency translation differences (1,221) 3,078 – – – 1,857

At 31 December 2007 1,292 712 26,337 525 1,266 30,132

2006

At 1 January 2006 1,809 (1,117) 26,337 11,399 – 38,428Exercise of Warrants during the financial year – – – (9,014) – (9,014)Currency translation differences – (1,249) – – – (1,249)

At 31 December 2006 1,809 (2,366) 26,337 2,385 – 28,165

ShareWarrants option

reserve reserve TotalCompany RM’000 RM’000 RM’000

2007

At 1 January 2007 2,385 – 2,385Exercise of Warrants during the financial year (1,860) – (1,860)Options granted to employees of the Group – 1,266 1,266

At 31 December 2007 525 1,266 1,791

173

12 OTHER RESERVES (cont’d)Share

Warrants optionreserve reserve Total

Company RM’000 RM’000 RM’000

2006

At 1 January 2006 11,399 – 11,399Exercise of Warrants during the financial year (9,014) – (9,014)

At 31 December 2006 2,385 – 2,385

13 MERGER RESERVE

The merger reserve represents the difference between the nominal value of shares issued as consideration for the acquisition on28 May 2003 of a subsidiary, Sistem Televisyen Malaysia Berhad (“STMB”), which met the criteria for the use of the mergermethod of accounting under the provisions of FRS 1222004 “Business Combinations”, and the nominal value of the shares ofthe subsidiary which was acquired.

Group2007 2006

RM’000 RM’000

Nominal value of shares issued (263,375) (263,375)Less:Nominal value of shares in the subsidiary 289,712 289,712

Merger reserve 26,337 26,337

14 (ACCUMULATED LOSSES)/RETAINED EARNINGS

Under the single-tier tax system which comes into effect from the year of assessment 2008, companies are not required to havetax credits under Section 108 of the Income Tax Act, 1967 for dividend payment purposes. Dividends paid under this systemare tax exempt in the hands of shareholders.

Companies with Section 108 credits as at 31 December 2007 may continue to pay franked dividends until the Section 108credits are exhausted or 31 December 2013, whichever is earlier, unless they opt to disregard the Section 108 credits to paysingle-tier dividends under the special transitional provisions of the Finance Act, 2007.

Subject to the agreement by the Inland Revenue Board, the Company has sufficient tax credit under Section 108 of the IncomeTax Act, 1967 to frank the payment of net dividends out of all (2006 : All) its retained earnings as at 31 December 2007.

15 IRREDEEMABLE CONVERTIBLE UNSECURED LOAN STOCKS (“ICULS”)

The Company issued 180,000,000 2% five (5) years ICULS on 18 July 2003 at a nominal value of RM1.00 each for cash tofinance the acquisition of The New Straits Times Press (Malaysia) Berhad (“NSTP”), which was constituted by a Trust Deeddated 10 July 2003.

The principal terms of the ICULS are as follows:

(a) The face value of the ICULS is RM180 million;

(b) The ICULS bear interest of 2% per annum payable semi-annually in arrears, except for the first payment which was madeon 31 December 2003 and the last payment which is due on the maturity date, 18 July 2008. Interest is calculated on thebasis of the actual number of days elapsed;

(c) The tenure of the ICULS is five (5) years from the date of issue;



174

15 IRREDEEMABLE CONVERTIBLE UNSECURED LOAN STOCKS (“ICULS”) (cont’d)

(d) The ICULS are convertible at any time on and after 18 July 2005 into new ordinary shares in the Company at theconversion ratio at RM3.00 nominal value of ICULS to two (2) ordinary shares of RM1.00 each;

(e) The new ordinary shares allotted and issued upon conversion of the ICULS will be considered as fully paid up and will rankpari passu in all respects with the existing ordinary shares of the Company; and

(f) The ICULS are listed on Bursa Malaysia.

During the financial year, 4,646,797 (2006: 78,636,043) ICULS were converted into ordinary shares in the Company, asdisclosed in Note 10 (a) to the financial statements. As at 31 December 2007, outstanding ICULS totalling RM9,274,536(2006: RM13,921,333) have not been converted.

16 BANK GUARANTEED MEDIUM TERM NOTES/ COMMERCIAL PAPERS (“BGMTN/CP”) Group and Company2007 2006

RM’000 RM’000

Current:CP (unsecured) 100,000 –

Non-current:4-year 4.15% BGMTN (unsecured) 70,000 –5-year 4.27% BGMTN (unsecured) 100,000 –

170,000 –Less: Transaction costs (8,196) –

161,804 –Add: Accumulated amortisation of transaction costs 547 –

162,351 –

On 7 September 2007, the Company issued Bank Guaranteed Medium Term Notes (“BGMTN”) and Commercial Papers(“CP”) of RM170 million and RM100 million respectively. The CP/BGMTN were constituted by separate Trust Deeds dated 23August 2007 and 28 August 2007 respectively.

The principal terms of the BGMTN and CP are as follows:

(a) The face value of the BGMTN is RM170 million and the CP is RM100 million;

(b) The CP are issued at a discount to face value of 3.95% per annum and shall be repayable at par;

(c) The interest on the BGMTNs of RM70 million and RM100 million are 4.15% and 4.27% per annum respectively, payablesemi-annually in arrears, calculated on the basis of the actual number of days elapsed in a year of 365 days with the lastpayment of interest to be made on the maturity date of the BGMTNs;

(d) The tenure of BGMTN of RM70 million and RM100 million are 4 and 5 years from the date of issue;

(e) The tenure of the CP is 7 years from the date of issue; and

(f) The maturity date of the CP is between one (1) to twelve (12) months and the BGMTN is between twelve (12) to sixty(60) months.

175

17 WARRANTS

On 31 July 2003, the Company issued 115,000,000 detachable Warrants at an issue price of RM0.10 per Warrant, which wasconstituted by a Trust Deed dated 17 July 2003.

The principal terms of the Warrants are as follows:

(a) 115,000,000 detachable Warrants at an issue price of RM0.10 each;

(b) The exercise price of the Warrants is fixed at RM1.10 per Warrant;

(c) The Warrants may be exercised at any time on or before the maturity date, 31 July 2008, falling five (5) years from the date ofissue of the Warrants, 31 July 2003. Unexercised Warrants after the exercise period will thereafter lapse and cease to be valid;

(d) The Warrants will rank pari passu without any preference or priority among themselves including in an event of liquidation.In the event the security is insufficient, the outstanding claim will rank pari passu with other unsecured obligation, and

(e) The Warrants are listed on Bursa Malaysia.

During the financial year, 18,599,995 (2006: 90,143,871) Warrants were exercised, as disclosed in Note 10 (b) to the financialstatements. As at 31 December 2007, outstanding Warrants totalling RM524,413 (2006: RM2,384,413) have not been exercised.

18 REDEEMABLE UNSECURED LOAN STOCKS (“RULS”)

On 31 July 2003, pursuant to the Debt Settlement Agreement under the corporate proposals undertaken by the Group, as partsettlement of the debts owing to the Scheme Creditors, a subsidiary, STMB, issued RULS amounting to RM88,634,223.

The principal terms of the RULS are as follows:

(a) 88,634,223 units of 4.50% five (5) year RULS in STMB issued at 100% nominal amount of RM1.00 each;

(b) The RULS bear interest of 4.50% per annum payable semi-annually in arrears, calculated on the basis of the actual numberof days elapsed in a year of 365 days with the last payment of interest to be made on the maturity date of the RULS;

(c) The tenure of the RULS is 5 years from the date of issue;

(d) The RULS are repayable at 30%, 35% and 35% of the nominal value at the end of the third, fourth and fifth anniversaryrespectively of the date of issue of the RULS; and

(e) The maturity date is the date preceding the fifth anniversary of the date of issue of the RULS.

During the financial year, the entire balance of the outstanding RULS was fully redeemed.



176

19 COMMERCIAL PAPERS/MEDIUM TERM NOTES (“CP/MTN”)

On 30 September 2004, the Company issued Commercial Papers (“CP”) and Medium Term Notes (“MTN”) of RM30 millionand RM70 million respectively. The CP/MTN were constituted by a Trust Deed dated 21 September 2004.

The principal terms of the CP/MTN are as follows:

(a) The face value of the CP is RM30 million and the MTN is RM70 million;

(b) The CP are issued at a discount to face value ranging from 2.80% to 3.00% per annum and shall be repayable at par;

(c) The interest on the MTNs of RM30 million and RM40 million are 6.75% and 7.10% per annum respectively, payable semi-annually in arrears, calculated on the basis of the actual number of days elapsed in a year of 365 days with the lastpayment of interest to be made on the maturity date of the MTNs;

(d) The tenure of the CP/MTN is 5 years from the date of issue; and

(e) The maturity date of the CP is between one (1) to twelve (12) months and the MTN is between twelve (12) to sixty (60)months.

The CP/MTN were secured by the Company’s entire shareholdings in STMB and a debt service reserve account ofRM7,000,000. Upon the full settlement of the outstanding CP/MTN balance, the security has been discharged.

In the previous financial year, the Company fully repaid the CP of RM30 million.

During the financial year, the Company fully repaid the MTN of RM70 million.

20 UNSECURED REDEEMABLE EXCHANGEABLE BONDS (“UREB”)Group and Company2007 2006

RM’000 RM’000

5-year 6.35% UREB 85,000 85,000Less: Transaction costs (1,500) (1,500)

83,500 83,500Add: Accumulated amortisation of transaction costs 1,500 262

85,000 83,762Less : Redemption of UREB (85,000) –

– 83,762

On 8 December 2005, the Company issued RM85,000,000 nominal value 5-year 6.35% UREB for cash for the Group’s workingcapital purposes. The UREB was constituted by a Trust Deed dated 25 November 2005.

177

20 UNSECURED REDEEMABLE EXCHANGEABLE BONDS (“UREB”) (cont’d)

The principal terms of the UREB are as follows:

(a) The face value of the UREB is RM85 million;

(b) The coupon on the UREB will accrue at 6.35% per annum based on the face value and shall be payable semi-annually inarrears, calculated on the basis of the actual number of days elapsed in a year;

(c) The tenure of the UREB is five (5) years from the date of issue;

(d) The Company may at any time after the third anniversary of the date of issue, redeem the UREB in whole but not in part ata redemption amount of 101% of its nominal value, plus any accrued and unpaid interest to the date of redemption;

(e) The UREB are exchangeable into The New Straits Times Press (Malaysia) Berhad ("NSTP") shares held by the Company, atthe election of the bondholders (but subject to the cash settlement option at the election of the Company) at anytimeduring the Exchange Period, where the Exchange Rights may be exercised by the UREB holders at any time from 30 daysafter the issuance of the UREB and will end 7 market days prior to the maturity date of the UREB. If the UREB shall havebeen called for early redemption, the Exchange Period will end 7 market days prior to the early redemption date. TheUREB may only be exchanged in a minimum amount of RM250,000 nominal value at the Exchange Price fixed at RM3.78per NSTP share, being a price set at a premium over the prevailing volume weighted average price (“VWAP”) of NSTPshares immediately prior to the price-fixing date; and

(f) In the event the UREB holders exercise the Exchange Rights, the Company has the right to provide the UREB holderspayment in cash (in whole or in part) in lieu of NSTP shares calculated based on the average of the VWAP of the NSTP sharesfor 5 market days immediately after, but excluding the date of issuance of the cash settlement notice by the Company.

During the financial year, the entire UREB balance was fully redeemed.

21 INTEREST BEARING BANK BORROWINGSGroup Company

2007 2006 2007 2006Note RM’000 RM’000 RM’000 RM’000

Current:Term loans (unsecured) (a) 14,000 48,490 14,000 48,490Term loans (secured) (a) 2,510 333 – –Bank overdrafts (unsecured) (Note 38) 705 783 – –

17,215 49,606 14,000 48,490

Non-current:Term loans (unsecured) (a) 56,865 – 56,000 –Term loans (secured) (a) – 70,000 – –

56,865 70,000 56,000 –

74,080 119,606 70,000 48,490



178

21 INTEREST BEARING BANK BORROWINGS (cont’d)

The currency exposure profile of the above borrowings is as follows:Group Company

2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000

Ringgit Malaysia 73,874 119,273 70,000 48,490Cedi 206 333 – –

74,080 119,606 70,000 48,490

The weighted average effective interest rates applicable to the Group and the Company are as follows:

Group Company2007 2006 2007 2006

% % % %

For the financial yearTerm loans 3.85 5.57 2.35 1.77Bank overdrafts 8.25 8.00 * *

As at the financial year endTerm loans 5.12 7.43 5.48 6.08Bank overdrafts 8.25 8.00 * *

* Not applicable

(a) Term loans

The term loans are repayable as follows:Group Company

2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000

UnsecuredCurrent: Repayable within 12 months 14,000 48,490 14,000 48,490Non-current:Repayable after 12 months:- between 2 and 5 years 56,865 – 56,000 –

70,865 48,490 70,000 48,490

179

21 INTEREST BEARING BANK BORROWINGS (cont’d)

(a) Term loans (cont’d)Group Company

2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000

Secured: Current: Repayable within 12 months 2,510 333 – –Non-current:Repayable after 12 months:- between 2 and 5 years – 70,000 – –

2,510 70,333 – –

73,375 118,823 70,000 48,490

The secured term loan of RM70 million was fully settled during the financial year.

The secured term loans as at the end of the previous financial year were secured over the property, plant and equipmentof a subsidiary with a net book value of RM29.4 million (Note 25).

22 HIRE-PURCHASE AND LEASE CREDITORS

This represents future instalments under hire-purchase and lease agreements, repayable as follows:Group

2007 2006RM’000 RM’000

Finance lease liabilities:Minimum lease payments:- not later than 1 year 3,622 3,114- later than 1 year and not later than 5 years 10,038 11,349

13,660 14,463Future finance charges on finance leases (1,935) (2,404)

Present value of finance lease liabilities 11,725 12,059

Present value of finance lease liabilities:- not later than 1 year 2,753 2,925- later than 1 year and not later than 5 years 8,972 9,134

11,725 12,059

Analysed as:Due within 1 year (Note 23) 2,753 2,925Due after 1 year 8,972 9,134

11,725 12,059

Finance lease liabilities are effectively secured as the rights to the leased assets revert to the lessors in the event of default. The finance lease liabilities contain covenants which require a subsidiary to maintain minimum debt service ratio.

As at 31 December 2007, the weighted average effective interest rate applicable to the lease liabilities as at the financial yearend is 3.98% (2006: 3.98%) per annum and interest for the financial year is fixed at 3.84% (2006: 1.69%) per annum for theGroup. The entire balance is denominated in Ringgit Malaysia.



180

23 TRADE AND OTHER PAYABLESGroup Company

2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000

Non-current:Trade payables – 4,524 – –Programme rights payables – 3,743 – –

– 8,267 – –Other payables – 10,465 – 8,507

– 18,732 – 8,507

Current:Trade payables 40,609 26,333 – –Programme rights payables 27,257 22,772 3,730 2,519

67,866 49,105 3,730 2,519Trade accruals 29,861 13,344 – –Other accruals 69,355 106,869 7,703 2,248Other payables 97,778 51,216 30,113 25,160Hire-purchase and lease creditors (Note 22) 2,753 2,925 – –Deferred income 132 – – –Advance billings 3,610 – – –

271,355 223,459 41,546 29,927

The currency profile of trade payables and programme rights payables is as follows:

Group Company2007 2006 2007 2006

RM’000 RM’000 RM’000 RM’000

Ringgit Malaysia 62,563 49,105 738 554US Dollar 4,555 7,987 2,992 1,965EURO 479 – – –Hong Kong Dollar 79 – – –Indonesian Rupiah 34 – – –Cedi 156 280 – –

67,866 57,372 3,730 2,519

181

23 TRADE AND OTHER PAYABLES (cont’d)

Credit terms of trade payables range from 45 days to 90 days (2006: 45 days to 90 days).

At the end of the previous financial year, the non-current payables represent the outstanding balance of a subsidiary acquiredin the previous year amounting to RM10,224,345 pursuant to a debt restructuring scheme. The outstanding balance is payablesemi-annually over a period of three years and bears interest of 4.00% per annum on a reducing balance basis.

Included in other payables of the Group and of the Company at the end of the financial year are outstanding purchaseconsideration for the acquisition of subsidiaries and remaining interest in subsidiaries of RM15,000,000 and RM10,400,000respectively (2006: RM21,493,342 and RM8,506,659) payable within a year.

24 DEFERRED TAXATION

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against currenttax liabilities and when the deferred taxes relate to the same tax authority.

The following amounts, determined after appropriate offsetting, are shown in the balance sheet:Group

2007 2006RM’000 RM’000

Deferred tax assets- Subject to income tax 7,692 2,938

Deferred tax liabilities- Subject to income tax (16,828) –- Subject to real property gains tax – (704)

The movement during the financial year relating to deferred tax is as follows:Group

2007 2006RM’000 RM’000

At 1 January 2,234 1,716(Charged)/credited to income statement (Note7)- Property, plant and equipment (3,526) (3,639)- Intangible assets- Programme, film rights and royalties (2,040) 1,411- Acquired concession rights (Note 31) 2,433 –

- Allowances and provisions 403 (37)- Hire purchase creditors 479 –- Unused tax losses 2,105 –- Unutilised capital allowances 2,274 2,783- Advance billings (215) –- Others 225 –

2,138 518

Credited to equity- Property, plant and equipment 704 –

Acquisition of subsidiaries (14,212) –

At 31 December 9,136 2,234



182

24 DEFERRED TAXATION (cont’d)

Subject to income tax:Group

2007 2006RM’000 RM’000

Deferred tax assets (before offsetting)- Intangible assets 1,662 3,704- Allowances and provisions 938 119- Hire purchase creditors 479 –- Unused tax losses 2,105 –- Advanced billings 1,485 –- Unutilised capital allowances 7,231 2,783

11,641 6,606Offsetting (3,949) (3,668)

Deferred tax assets (after offsetting) 7,692 2,938

Deferred tax liabilities (before offsetting)- Intangible assets (10,207) –- Property, plant and equipment (10,570) (3,668)Offsetting 3,949 3,668

Deferred tax liabilities (after offsetting) (16,828) –

Subject to real property gains tax:

Deferred tax liabilities- Revaluation of land and buildings – (704)

The amount of deductible temporary differences and unused tax losses (both of which have no expiry date) for which nodeferred tax asset is recognised in the balance sheet is as follows:

Group2007 2006

RM’000 RM’000

Unused tax losses 231,509 221,778Deductible temporary differences 5,222 13,663Unutilised capital allowances 96,946 98,875

350,593 334,316

Deferred tax assets not recognised at 25% (2006: 26%) 83,419 86,922

183

25 PROPERTY, PLANT AND EQUIPMENT

Long termleasehold Long term Plant and

Freehold land at leasehold Building Building machineryland at cost valuation land at cost at valuation at cost at cost

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Group2007

Cost/valuation

At 1.1.2007 (restated) 10,246 – – 5,751 41,551 795Acquisition of subsidiaries (Note 39) 582 – – – 647 193Additions – – – – – 869Disposals – – – – – –Write off – – – – – (177)Reclassified from investment property (Note 26) – – – – 149 –Reclassified to investment property (Note 26) (582) – – – (593) –Reclassification – – – – – –Currency translation differences – – – – – (67)

At 31.12.2007 10,246 – – 5,751 41,754 1,613

Accumulated depreciation

At 1.1.2007 (restated) – – – 1,699 9,863 795Acquisition of subsidiaries (Note 39) – – – – 205 155Charge for the financial year – – – 117 790 837Disposals – – – – – –Write off – – – – – (153)Reclassified from investment property (Note 26) – – – – 20 –Reclassified to investment property (Note 26) – – – – (207) –Currency translation differences – – – – – (29)

At 31.12.2007 – – – 1,816 10,671 1,605

Accumulated impairment

At 1.1.2007 (restated) 3,265 – – – 5,618 –Acquisition of subsidiaries (Note 39) – – – – – –Charge for the financial year – – – – – –

At 31.12.2007 3,265 – – – 5,618 –

Net book value

At 31.12.2007 6,981 – – 3,935 25,465 8



184

185

Broad Officecasting and equipment, Leasehold Assets

transmission Production furniture Office Motor improve- under cons-equipment equipment and fittings renovations vehicles ments truction Structures

at cost at cost at cost at cost at cost at cost at cost at cost TotalRM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

503,548 763 69,326 16,162 11,507 29,067 349 – 689,065– – 12,090 712 844 – 806 63,867 79,741

20,406 226 6,231 1,630 5,197 1 882 1,264 36,706(49) – (119) – (908) – (19) (27) (1,122)

– – (1,795) (629) – – (136) (49) (2,786)– – – – – – – – 149– – – – – – – – (1,175)

183 – 36 – – – (819) 600 –(1,304) – (315) – (190) – (14) – (1,890)

522,784 989 85,454 17,875 16,450 29,068 1,049 65,655 798,688

357,078 579 50,838 13,777 6,669 22,783 – – 464,081– – 6,530 643 471 – – 39,385 47,389

20,275 98 5,527 682 2,772 1,917 17 4,607 37,639(20) – (89) (9) (516) – – (7) (641)

– – (1,761) (533) – – – (34) (2,481)– – – – – – – – 20– – – – – – – – (207)

(936) – (234) – (136) – – – (1,335)

376,397 677 60,811 14,560 9,260 24,700 17 43,951 544,465

36,407 – 3,975 – 910 – – – 50,175– – – – – – – 175 175– – – – – – – 207 207

36,407 – 3,975 – 910 – – 382 50,557

109,980 312 20,668 3,315 6,280 4,368 1,032 21,322 203,666

25 PROPERTY, PLANT AND EQUIPMENT (cont’d)

Long termleasehold Long term Plant and

Freehold land at leasehold Building Building machineryland at cost valuation land at cost at valuation at cost at cost

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Group2006

Cost/valuation

At 1.1.2006 (As previously reported) 10,368 316 38 5,859 41,629 839Effect of adoption of FRS 117 (Note 43) – (316) (38) – – –

At 1.1.2006 (Restated) 10,368 – – 5,859 41,629 839Additions – – – – – –Disposals – – – – – –Write off – – – – – –Reclassifications (122) – – – – –Currency translation differences – – – (108) (78) (44)

At 31.12.2006 (Restated) 10,246 – – 5,751 41,551 795


At 1.1.2006 (As previously reported) – 53 5 1,670 9,133 839Effect of adoption of FRS 117 (Note 43) – (53) (5) – – –At 1.1.2006 (Restated) – – – 1,670 9,133 839Charge for the financial year – – – 117 790 –Disposals – – – – – –Write off – – – – – –Reclassifications – – – – – –Currency translation differences – – – (88) (60) (44)

At 31.12.2006 – – – 1,699 9,863 795

Accumulated impairment losses

At 1.1.2006 3,265 – – – 5,618 –Currency translation differences – – – – – –

At 31.12.2006 3,265 – – – 5,618 –

Net book value

At 31.12.2006 (Restated) 6,981 – – 4,052 26,070 –



186

187

Broad Officecasting and equipment, Leasehold Assets

transmission Production furniture Office Motor improve- under cons-equipment equipment and fittings renovations vehicles ments truction

at cost at cost at cost at cost at cost at cost at cost TotalRM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

460,921 14,508 62,499 14,061 12,257 29,067 157 652,519– – – – – – – (354)

460,921 14,508 62,499 14,061 12,257 29,067 157 652,16531,244 129 7,041 2,102 1,598 – 192 42,306

(918) – (41) – (2,327) – – (3,286)– – – (1) – – – (1)

13,874 (13,874) – – – – – (122)(1,573) – (173) – (21) – – (1,997)

503,548 763 69,326 16,162 11,507 29,067 349 689,065

330,165 10,674 46,651 13,151 7,729 20,962 – 441,032– – – – – – – (58)

330,165 10,674 46,651 13,151 7,729 20,962 – 440,97418,098 37 4,243 627 1,283 1,821 – 27,016

(906) – (5) – (2,327) – – (3,238)– – – (1) – – – (1)

10,132 (10,132) – – – – – –(411) – (51) – (16) – – (670)

357,078 579 50,838 13,777 6,669 22,783 – 464,081

36,773 – 4,097 – 910 – – 50,663(366) – (122) – – – – (488)

36,407 – 3,975 – 910 – – 50,175

110,063 184 14,513 2,385 3,928 6,284 349 174,809

25 PROPERTY, PLANT AND EQUIPMENT (cont’d)Company

2007 2006RM’000 RM’000

Office equipment, furniture & fittingsCostAt 1 January 32 11Additions 40 21

At 31 December 72 32

Accumulated depreciationAt 1 January 8 4Charge for the financial year 7 4

At 31 December 15 8

Net book valueAt 31 December 57 24

(a) The value of property, plant and equipment of the Group includes the following assets acquired under hire-purchase andfinance lease agreements:

Accumulated Net bookCost depreciation value

Group RM'000 RM'000 RM'000

2007Broadcasting, transmission and production equipment 14,653 1,908 12,745Motor vehicles 522 152 370

15,175 2,060 13,115

2006Broadcasting, transmission and production equipment 12,400 499 11,901Motor vehicles 532 125 407

12,932 624 12,308

(b) As at the end of the previous financial year, the net book value of property, plant and equipment of a subsidiaryamounting to RM29.4 million has been pledged as security for term loans (Note 21). Upon redemption of the term loansin the current financial year, the security has been discharged.



188

26 INVESTMENT PROPERTIESLong term

Freehold land leasehold land Buildings Cinema TotalRM'000 RM'000 RM'000 RM'000 RM'000

Group2007

CostAt 1 January 2007 (Restated) 1,037 – 14,935 2,382 18,354Disposal – – (444) – (444)Reclassified to property, plant and equipment(Note 25) – – (149) – (149)

Reclassified from property, plant and equipment(Note 25) 582 – 593 – 1,175

At 31 December 2007 1,619 – 14,935 2,382 18,936


At 1 January 2007 (Restated) – – 1,738 558 2,296Charge for the financial year – – 227 47 274Disposal – – (82) – (82)Reclassified to property, plant and equipment (Note 25) – – (20) – (20)

Reclassified from property, plant and equipment (Note 25) – – 207 – 207

At 31 December 2007 – – 2,070 605 2,675

Accumulated impairment losses

At 1 January 2007 (Restated) 482 – 4,987 228 5,697Impairment losses - Charge for the financial year 20 – 5 – 25- Reversal during the financial year (466) – (3,894) (150) (4,510)

At 31 December 2007 36 – 1,098 78 1,212

Net book valueAt 31 December 2007 1,583 – 11,767 1,699 15,049

189

26 INVESTMENT PROPERTIES (cont’d)

Long termFreehold leasehold

land land Buildings Cinema TotalGroup RM'000 RM'000 RM'000 RM'000 RM'000

2006Cost

At 1 January 2006 (As previously reported) 1,037 28,573 92,784 2,382 124,776Effect of adoption of FRS 117 (Note 43) – (4,372) – – (4,372)

At 1 January 2006 (Restated) 1,037 24,201 92,784 2,382 120,404Additions – – 295 – 295Reclassified to assets held-for-sale (Note 32) – (24,201) (78,144) – (102,345)

At 31 December 2006 1,037 – 14,935 2,382 18,354

Accumulated depreciationAt 1 January 2006 (As previously reported) – 2,899 11,843 510 15,252Effect of adoption of FRS 117 (Note 43) – (216) – – (216)

At 1 January 2006 (Restated) – 2,683 11,843 510 15,036Charged for the financial year – 6 1,513 48 1,567Reclassified to assets held-for-sale (Note 32) – (2,689) (11,618) – (14,307)

At 31 December 2006 – – 1,738 558 2,296

Accumulated impairment lossesAt 1 January 2006 (As previously reported) 482 7,308 23,902 – 31,692Effect of adoption of FRS 117 (Note 43) – (723) – – (723)

At 1 January 2006 (Restated) 482 6,585 23,902 – 30,969Impairment losses for the financial year – – 1,937 228 2,165Reclassified to assets held-for-sale (Note 32) – (6,585) (20,852) – (27,437)

At 31 December 2006 482 – 4,987 228 5,697

Net book valueAt 31 December 2006 (Restated) 555 – 8,210 1,596 10,361



190

26 INVESTMENT PROPERTIES (cont’d)

The above properties are not occupied by the Group and are used to earn rentals or for capital appreciation.

The Group recognised an impairment loss of RM24,900 (2006: RM2,165,000) during the financial year in respect of buildingsand freehold land, for which the recoverable amount using the selling price based on independent professional valuationreports was lower than the carrying amount.

The Group has also recognised a reversal of impairment loss of RM4,510,000 (2006 : RMNil) during the financial year inrespect of buildings and freehold land, for which the recoverable amount using the selling price based on independentprofessional valuation reports was higher then the carrying amount.

In the preceding financial year, an investment property had been classified as “assets held-for-sale” as it satisfies the criteria setout in FRS 5 “Non-current assets Held for Sale and Discontinued Operations.”

The fair value of the properties was estimated at RM15.2 million (2006: RM16.2 million) based on valuations by independentprofessionally qualified valuers. Valuations were based on current prices in an active market for all properties except forproperties in certain locations where this information is not available. For these properties, the fair value was estimated byreference to open market value of properties in the vicinity.

27 PREPAID LEASE RENTALSGroup

2007 2006RM’000 RM’000

Cost

At 1 January:As previously reported – –Effect of adoption of RFS 117 43 4,829 4,726

As restated 4,829 4,726Additions / Reclassifications 6,995 122Currency translation differences (810) (19)

At 31 December 11,014 4,829

Accumulated amortisation/impairmentAt 1 January:As previously reported – –Effect of adoption of RFS 117 43 1,219 997

As restated 1,219 997Charge for the financial year 827 225Currency translation differences (238) (3)

At 31 December 1,808 1,219

Net book valueAt 31 December 9,206 3,610

(a) Long term leasehold land and buildings of a subsidiary were last revalued by the Directors on 20 September 1996 based onvaluations carried out by professional valuers to reflect the market value for existing use. The book values of the leasehold landand buildings were adjusted to the revalued amounts and the resultant surpluses were credited to the revaluation reserve.

(b) The net book value of revalued long term leasehold land and buildings of the Group that would have been included in thefinancial statements, had these assets been carried at cost less accumulated depreciation, is RM1,715,000 (2006 :RM1,805,000).

191

28 SUBSIDIARIESCompany

2007 2006RM’000 RM’000

Unquoted shares, at cost 614,280 430,481

The details of the subsidiaries are as follows:

Country of Interest in equityName of company incorporation Principal activities 2007 2006

% %

Sistem Televisyen Malaysia Berhad Malaysia Commercial television broadcasting 100 100(“STMB”)

Ch-9 Media Sdn. Bhd. (“TV9”) Malaysia Commercial television broadcasting 100 100

Natseven TV Sdn. Bhd. (“ntv7”) Malaysia Commercial television broadcasting 100 100

Synchrosound Studio Sdn. Bhd. Malaysia Commercial radio broadcasting 100 100

Big Tree Outdoor Sdn. Bhd. Malaysia Provision of advertising space and 100 –related services, investment holdingand management services

UPD Sdn. Bhd. Malaysia Outdoor Advertising 100 –

The Right Channel Sdn. Bhd. Malaysia Outdoor Advertising 100 –

Merit Idea Sdn. Bhd. Malaysia Investment holding 100 80

Perintis Layar Sdn. Bhd. Malaysia Investment holding 100 100

Grand Brilliance Sdn. Bhd. (“GBSB”) Malaysia Production of motion picture films, 100 100acquiring ready made films fromlocal producers and productionhouses and investment holding

Big Events Sdn. Bhd. Malaysia Events management 100 –

The Talent Unit Sdn. Bhd. Malaysia Talent management of artistes 100 100(formerly known as Tiga Events Sdn. Bhd.)

Alternate Records Sdn. Bhd. Malaysia Album production and 100 100(formerly known as recording studioAmbang Klasik Sdn. Bhd.)



192

28 SUBSIDIARIES (cont’d)


% %

Amity Valley Sdn. Bhd. Malaysia Investment holding 100 100

Esprit Assets Sdn. Bhd. Malaysia Property investments and provision 100 100of property management services

Animated & Production Malaysia Dormant 100 100Techniques Sdn. Bhd.

Newslink Asia Sdn. Bhd. Malaysia Dormant 100 100

Able Communications Sdn. Bhd. Malaysia Dormant 100 100

Encorp Media Technology Sdn. Bhd. Malaysia Dormant 100 100

Held by Merit Idea Sdn. Bhd.Metropolitan TV Sdn. Bhd. (“8TV”) Malaysia Commercial television broadcasting 100 99.5

Held by Perintis Layar Sdn. Bhd.Max-Airplay Sdn. Bhd. Malaysia Commercial radio broadcasting 75 75

Held by Big Tree Outdoor Sdn. Bhd.Big Tree Productions Sdn. Bhd. Malaysia Undertaking outdoor advertising business 100 –

and carrying out related production works

Uniteers Outdoor Advertising Sdn. Bhd. Malaysia Advertising contracting and agents, 100 –sale of advertising spaces

Gotcha Sdn. Bhd. Malaysia Undertaking outdoor advertising business 100 –and carrying out related production works

Eureka Outdoor Sdn. Bhd. Malaysia Dormant 100 –

Anchor Heights Sdn. Bhd. Malaysia Dormant 100 –

Uni-Talent Gateway Sdn. Bhd. Malaysia Dormant 100 100

Held by Alternate Records Sdn. Bhd.Booty Studio Productions Sdn. Bhd. Malaysia Dormant 60 60

193

28 SUBSIDIARIES (cont’d)


% %

Held by Grand Brilliance Sdn. Bhd.Alt Media Sdn. Bhd. (formerly known as Malaysia New media businesses and related activities 100 100Cineart Enterprises Sdn. Bhd.)

Held by UPD Sdn. Bhd.Utusan Sinar Media Sdn. Bhd. Malaysia Dormant 100 –

Held by The Right Channel Sdn. Bhd.MMC-AD Sdn. Bhd. Malaysia Undertaking outdoor advertising business 100 –

Media Master Industries (M) Sdn. Bhd. Malaysia Dormant 100 –

Held by Amity Valley Sdn. Bhd.Gama Media International (BVI) Ltd British Virgin Investment holding 100 100

Islands

Held by Gama Media International (BVI) Ltd

Gama Film Company Limited ^ Republic of Film production, pre and post production, 70 70Ghana audio/video recording and duplication,

video exhibition and distribution

TV3 Network Limited ^ Republic of Media and communication businesses, 90 70Ghana managerial services and operation

of free-to-air television service

Cableview Network Limited ^ Republic of Dormant 70 70Ghana

Gama Media Systems Limited ^ Republic of Dormant 70 70Ghana

^ Audited by a firm other than PricewaterhouseCoopers, Malaysia



194

29 ASSOCIATES

Group Company2007 2006 2007 2006

RM’000 RM’000 RM’000 RM’000

Unquoted shares, at cost 49 49 – –Share of post acquisition results, net of dividends received (49) (49) – –

– – – –

Quoted shares, at cost 399,651 399,651 399,651 399,651Share of post acquisition results, net of dividends received 21,594 14,415 – –Goodwill on acquisition written off (88,763) (88,763) – –

332,482 325,303 399,651 399,651

Total 332,482 325,303 399,651 399,651

Market value of quoted shares 187,131 218,162 187,131 218,162

The Group’s share of revenue, profit, assets and liabilities of the associates are as follows:

Group2007 2006

RM’000 RM’000

Revenue 241,930 225,135Net profit for the financial year 14,630 10,635

Non-current assets 316,228 324,022Current assets 116,073 127,001Current liabilities (95,380) (125,677)Non-current liabilities (4,439) (43)

Share of net assets 332,482 325,303

Contingent liabilities relating to associates are shown in Note 45 (c) to the financial statements.

195

29 ASSOCIATES (cont’d)

Details of the associates, all of which are incorporated in Malaysia, are as follows:

Name of company Principal activities Interest in equity2007 2006

% %

The New Straits Times Press Publishing and sale of newspaper 43.29 43.29(Malaysia) Berhad and investment holding

Sistem Network Nusantara Sdn. Bhd. Dormant 49.00 49.00

Contingent liabilities relating to associates are shown in Note 45(c) to the financial statements.

Based on the Group's share of net assets and best estimate of the Group's share of net present value of future cash flow, theDirectors are at the opinion that the investment in NSTP is not impaired.

30 INVESTMENTSGroup

2007 2006RM’000 RM’000

At cost:Shares in corporations, quoted in Malaysia 291 288Less: Allowance for diminution in value (127) (190)

164 98

Units in property and unit trusts, quoted in Malaysia 5,210 5,210Less: Allowance for diminution in value (1,976) (2,822)

3,234 2,388

Shares in corporations, unquoted 381 381Less: Allowance for diminution in value (245) (245)

136 136

Club membership, unquoted 70 70

3,604 2,692

At market value:Quoted shares 190 185Quoted property and unit trusts 3,235 2,402



196

31 INTANGIBLE ASSETSGroup

AcquiredProgrammes concession

and film rights Goodwill rights TotalRM’000 RM’000 RM’000 RM’000

At 1 January 2007 38,736 – – 38,736Additions during the financial year 192,376 – – 192,376Acquisition of subsidiaries (Note 39) – 94,525 67,015 161,540

231,112 94,525 67,015 392,652Amortisation during the financial year (179,650) – (6,823) (186,473)Write off during the financial year (44) – – (44)

At 31 December 2007 51,418 94,525 60,192 206,135

At 1 January 2006 33,843 – – 33,843Additions during the financial year 158,140 – – 158,140

191,983 – – 191,983Amortisation during the financial year (152,727) – – (152,727)Write off during the financial year (520) – – (520)

At 31 December 2006 38,736 – – 38,736

Deferred tax liabilities arising from the amortisation of the acquired concession rights of RM2,433,000 (2006 : RMNil) havebeen credited to the income statement (Note 24), resulting in net amortisation of RM4,390,000 (2006 : RMNil).

Included in intangible assets arising from the acquisitions during the financial year were acquired rights which have indefiniteuseful lives, totalling RM22,113,00 (2006 : RMNil). These assets are deemed to have indefinite useful lives as they arerenewable with minimum costs to the Group and there is no foreseeable limit to the period over which the assets are expectedto generate net cash inflows for the Group.

Impairment tests for goodwill

The carrying amounts of goodwill allocated to the Group’s cash-generating units (“CGUs”) are as follows:

Group2007 2006

RM’000 RM’000

TV 72,812 –Radio 3,979 –Outdoor 17,734 –

94,525 –

197

31 INTANGIBLE ASSETS (cont’d)

The recoverable amount of the TV, Radio and Outdoor CGU, is determined based on value-in-use calculations, using pre-taxcash flow projections based on financial budgets approved by the Directors covering a five-year period.

The key assumptions used for value-in-use calculations are as follows:TV Radio Outdoor% % %

Growth rate 7.00 15.00 7.00Pre-tax discount rate 9.06 9.06 9.06

The Directors have determined the average growth rate based on their expectations of market developments. The discountrate used is pre-tax and reflects specific risks relating to the segment.

32 ASSETS HELD-FOR-SALEGroup

2007 2006RM’000 RM’000

Property classified as assets held-for-sale:- Leasehold land 14,927 14,927- Leasehold building 45,674 45,674

60,601 60,601Less: Loss on measurement to fair value less cost to sell (1,941) (1,941)

Fair value less cost to sell 58,660 58,660

In the previous financial year, a subsidiary had entered into a sale and purchase agreement for the disposal of a piece ofleasehold land together with a six storey building. This satisfies the criteria set out in FRS 5 “Non-current Assets Held for Saleand Presentation of Discontinued Operations” and hence, the property was classified as “asset held-for-sale”. The differencebetween the carrying value of the investment property and the fair value less cost to sell, amounting to RM1,941,000, wasrecognised as a loss in the income statement in the previous financial year.

As at 31 December 2007, the disposal has yet to be completed pending the completion of certain conditions precedent set outin the sale and purchase agreement.

33 INVENTORIESGroup

2007 2006RM’000 RM’000

Consumable spares 426 645Musical albums 13 –Events-in-progress – 659

439 1,304



198

34 TRADE AND OTHER RECEIVABLESGroup Company

2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000

Trade receivables 263,420 200,639 – –Less: Allowance for doubtful debts (40,143) (42,360) – –

223,277 158,279 – –Less: Billing in advance (4,066) – – –

219,211 158,279 – –

Deposits 7,714 3,443 69 –Tax recoverable – 717 – –Prepayments 17,628 13,316 12 551Other receivables 176,030 172,533 4,942 2,474

201,372 190,009 5,023 3,025Less: Allowance for doubtful debts (166,147) (164,693) – –

35,225 25,316 5,023 3,025

254,436 183,595 5,023 3,025

The currency exposure profile of trade receivables is as follows:

Group Company2007 2006 2007 2006

RM’000 RM’000 RM’000 RM’000

Ringgit Malaysia 248,412 186,903 – –US Dollar 1,016 13,736 – –Cedi 13,756 – – –Singaporean Dollar 147 – – –Brunei Dollar 89 – – –

263,420 200,639 – –

Credit terms of trade receivables are 90 days (2006: 90 days).

199

35 AMOUNTS DUE FROM SUBSIDIARIESCompany

2007 2006RM’000 RM’000

Amounts due from subsidiaries 471,587 263,594

The amounts due from subsidiaries are denominated in Ringgit Malaysia, unsecured, interest free and have no fixed terms ofrepayment. Included in amounts due from subsidiaries is a loan denominated in Ringgit Malaysia of RM99 million (2006: RM99million) which bears interest at 5.00% (2006: 5.00%) per annum.

36 DEPOSITS, CASH AND BANK BALANCESGroup Company

2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000

Cash and bank balances 53,923 39,933 12,724 6,670

Deposits with licensed financial institutions:- Deposits with licensed banks 30,259 79,275 959 74,153- Deposits with licensed finance companies 1,016 948 – –- Deposits with discount houses 43,160 8,000 21,122 –- Deposits with other licensed financial institutions – 2,109 – –

74,435 90,332 22,081 74,153

Deposits, cash and bank balances (Note 38) 128,358 130,265 34,805 80,823

The currency exposure profile of deposits, cash and bank balances is as follows:

Group Company2007 2006 2007 2006

RM’000 RM’000 RM’000 RM’000

Ringgit Malaysia 128,358 129,595 34,805 80,823Cedi – 670 – –

128,358 130,265 34,805 80,823

During the financial year, the interest rates for the deposits ranged from 3.00% to 3.70% (2006: 3.00% to 3.55%) per annumfor the Group and for the Company. As at 31 December 2007, the effective interest rates for the deposits ranged from 3.00%to 3.70% (2006: 3.00% to 3.55%) per annum for the Group and for the Company.

Fixed deposits with licensed financial institutions have a maturity period ranging between 30 days to 365 days (2006: 30 daysto 365 days).

Bank balances are deposits held at call with banks and earn no interest.



200

37 AMOUNT DUE TO AN ASSOCIATE

The amount due to an associate is denominated in Ringgit Malaysia, unsecured, interest free and has no fixed terms of repayment.

38 CASH AND CASH EQUIVALENTSGroup Company

2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000

Deposits, cash and bank balances (Note 36) 128,358 130,265 34,805 80,823Less:Restricted deposits:- Deposits with a licensed bank (25) (7,025) – (7,000)- Deposits with a licensed finance company (1,016) (948) – –

(1,041) (7,973) – (7,000)

127,317 122,292 34,805 73,823Less: Bank overdrafts (Note 21) (705) (783) – –

126,612 121,509 34,805 73,823

Bank balances at the end of the financial year include the following deposits which are not available for use by the Group andthe Company:

(a) Deposits with a licensed bank, amounting to RM25,000 (2006: RM7,025,000), which have been placed with the licensedbank for bank guarantee facilities extended to the Group;

(b) Deposits with a licensed finance company, amounting to RM1,016,103 (2006: RM948,162), which have been placed witha licensed finance company pending the completion of the installation of certain equipment of the Group.

39 ACQUISITION OF SUBSIDIARIES

During the financial year, the Group acquired the following companies:

(a) Big Tree Outdoor Sdn. Bhd. (“BTO”)

On 20 November 2006, the Company entered into conditional share sale agreements with CIMB Private Equity Sdn. Bhd.,Suridah Jalaluddin and Sunnetic Sdn. Bhd. to acquire, in total, 350,000 ordinary shares of RM1.00 each in BTOrepresenting 70% of the issued and paid-up share capital of BTO for an aggregate purchase consideration of RM97.24million. The purchase consideration is partly to be satisfied via the issuance of 38,571,429 ordinary shares of RM1.00 eachin the Company and the balance of the purchase consideration of RM16.24 million is to be satisfied via cash.

On 12 January 2007, the Company also entered into a conditional share sale agreement with Eye Corp Asia Limited (“EYE”)to acquire the remaining 150,000 shares of RM1.00 each in BTO from EYE representing 30% of the issued and paid-upshare capital of BTO for a purchase consideration of RM43.39 million to be satisfied via cash.

201

39 ACQUISITION OF SUBSIDIARIES (cont’d)

(a) Big Tree Outdoor Sdn. Bhd. (“BTO”) (cont’d)

The acquisition was completed on 30 March 2007.

The acquired business contributed revenues of RM50,057,044 and net profit of RM11,743,914 to the Group for the periodfrom 30 March 2007 to 31 December 2007. If the acquisition had occurred on 1 January 2007, Group revenue and profitwould have been increased by RM65,413,999 and RM14,972,024 respectively. These amounts are calculated using theGroup’s accounting policies.

Details of net assets acquired and the resulting intangibles and goodwill are as follows:RM’000

Purchase consideration:- Cash paid 59,633- Direct costs relating to the acquisition 4,987- Fair value of shares issued 94,500

Total purchase consideration 159,120Fair value of net assets acquired (32,399)

126,721Intangibles - Acquired concession rights (63,748)Deferred tax liabilities on fair value of intangibles 12,391Goodwill 75,364

The goodwill is attributable to the significant synergies expected to arise for the Group after the Group’s acquisition of thissubsidiary.

The fair value of the shares issued was based on the published share price on 30 March 2007.

The assets and liabilities of BTO as of the date of acquisition are as follows:

Acquiree’sAt date of carrying

acquisition amountRM’000 RM’000

Property, plant and equipment (Note 25) 23,541 23,541Intangible assets (Note 31) 63,748 –Trade and other receivables 13,983 13,983Cash and bank balances 17,937 17,937Trade and other payables (16,821) (16,821)Current tax liabilities 531 531Deferred tax liabilities (13,921) (1,530) Borrowings (5,242) (5,242)

Net assets acquired 83,756 32,399

Purchase consideration and direct costs relating to the acquisition settled in cash 64,620Cash and cash equivalents in subsidiary acquired (17,937)

Cash outflow on acquisition 46,683



202


(b) UPD Sdn. Bhd.

On 30 November 2006, the Company entered into a conditional share sale agreement with Utusan Melayu (Malaysia)Berhad to acquire 2,128,000 ordinary shares of RM1.00 each in UPD Sdn. Bhd. (“UPD”), representing 100% of the issuedand paid-up share capital of UPD for a cash consideration of RM1.00. Subsequent to the acquisition date, an additionalconsideration of RM500,000 was paid to Utusan Melayu (Malaysia) Berhad.

The acquisitions of UPD was completed on 28 February 2007.

The acquired business contributed revenues of RM11,334,384 and net profit of RM2,157,307 to the Group for the periodfrom 28 February 2007 to 31 December 2007. If the acquisition had occurred on 1 January 2007, Group revenue and netprofit would have been increased by RM13,128,563 and RM1,059,434 respectively. These amounts would have beencalculated using the Group’s accounting policies.

Details of net assets acquired and the resulting intangibles and goodwill are as follows:RM’000

Purchase consideration:- Cash paid 500- Direct costs relating to the acquisition 76

Total purchase consideration 576Fair value of net liabilities acquired 7,039

7,615Intangible assets – Acquired concession rights (314)Deferred tax liabilities on fair value of intangibles 85Goodwill 7,386

The goodwill is attributable to the synergies expected to arise for the Group after the Group’s acquisition of this subsidiary.

The assets and liabilities of UPD as of the date of acquisition are as follows:Acquiree’s

At date of carryingacquisition amount

RM’000 RM’000

Property, plant and equipment (Notes 25) 7,130 7,130Intangible assets (Note 31) 314 –Trade and other receivables 5,748 5,748Cash and bank balances (864) (864)Trade and other payables (19,001) (19,001)Deferred tax liabilities (85) –Borrowings (52) (52)

Net assets acquired (6,810) (7,039)

Purchase consideration and direct costs relating to the acquisition settled in cash 576Cash and cash equivalents in subsidiary acquired 864

Cash outflow on acquisition 1,440

203


(c) The Right Channel Sdn. Bhd.

On 30 November 2006, the Company entered into a conditional share sale agreement with NSTP, its associate, to acquire5,000,000 ordinary shares of RM1.00 each in The Right Channel Sdn. Bhd. (“TRC”), representing 100% of the issued andpaid-up share capital of TRC for a cash consideration of RM1.00.

The acquisition of TRC was completed on 28 February 2007.

The acquired business contributed revenues of RM2,352,450 and net profit of RM6,272,504 to the Group for the periodfrom 28 February 2007 to 31 December 2007. If the acquisition had occured on 1 January 2007, Group revenue and netprofit would have been increased by RM2,606,065 and RM5,711,870 respectively. These amounts are calculated using theGroup’s accounting policies.

Details of net assets acquired and the resulting intangibles and goodwill are as follows:

RM’000

Purchase consideration:– Cash paid –– Direct costs relating to the acquisition 138

Total purchase consideration 138Fair value of net liabilities acquired 14,426

14,564Intangibles assets – Acquired concession rights (2,953)Deferred tax liabilities on fair value of intangibles 164Goodwill 11,775

The goodwill is attributable to the synergies expected to arise for the Group after the Group’s acquisition of this subsidiary.

The assets and liabilities of TRC as of the date of acquisition are as follows:Acquiree’s

At date of carryingacquisition amount

RM’000 RM’000

Property, plant and equipment (Note 25) 1,506 1,506Intangible assets (Note 31) 2,953 –Trade and other receivables 956 956Cash and bank balances 407 407Trade and other payables (17,010) (17,010)Current tax liabilities (243) (243)Deferred tax liabilities (206) (42)

Net assets acquired (11,637) (14,426)

Purchase consideration and direct costs relating to the acquisition settled in cash 138Cash and cash equivalents in subsidiary accquired (407)

Cash inflow in acquisition (269)



204

40 CASH FLOWS GENERATED FROM OPERATIONSGroup Company

2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000

Net profit for the financial year 117,440 82,994 93,080 3,923

Adjustments for:Programmes, film rights and album production cost- Amortisation 179,650 152,727 – –- Write off 44 520 – –Prepaid expenditure written off 284 284 – –Property, plant and equipment- Depreciation 37,639 27,016 7 4- Gain on disposals (199) (413) – –- Write off 305 – – –Investment properties- Depreciation 274 1,567 – –- loss on disposal 83 – – –Amortisation of prepaid lease rentals 827 225 – –Amortisation of intangibles 6,823 – – –(Write back)/charge of impairrment losses on assets (4,278) 2,165 – –Loss on measurement of asset held-for-sale to fair value less cost to sell – 1,941 – –

Prepaid programme and film rights written off – 2,680 – –

Interest expenses 24,209 24,847 15,972 12,833Amortisation of transaction fees – UREB 1,238 262 1,238 262Reversal of allowance for diminution in value of quoted investments (912) (204) – –Net unrealised exchange gain (547) (463) – (106)Share of results of an associate (14,044) (10,635) – –Dividend income (53) (135) (146,494) (6,730)Interest income (2,338) (2,048) (6,327) (6,321)Taxation 31,655 22,657 37,936 1,992Options granted during the year 1,266 – 71 –

379,366 305,987 (4,517) 5,857

Changes in working capital:Inventories 865 (112) – –Receivables (54,619) (27,273) (1,998) (35)Payables (173,426) (189,035) 42,831 12,292Subsidiaries – – (123,200) (34,855)Associates 5,999 224 – –

Cash flows generated from / (used in) operations 158,185 89,791 (86,884) (16,741)

205

41 SIGNIFICANT NON-CASH TRANSACTIONS

The significant non-cash transactions during the financial year are as follows:Group

2007 2006RM’000 RM’000

Property, plant and equipment obtained through:- contra arrangements with customers 1,704 1,715- hire-purchase arrangements 2,253 12,552

Investment properties obtained through contra arrangements with customers – 295

42 SIGNIFICANT RELATED PARTY TRANSACTIONS

Key management personnel are those persons having authority and responsibility for planning, directing and controlling theactivities of the Group, directly or indirectly, including any Director (whether executive or otherwise) of the Group.

Key management personnel of the Company are the Directors (executive/non-executive) of the Company and includes seniormanagement.

Group Company2007 2006 2007 2006

RM’000 RM’000 RM’000 RM’000

Key management:- Fees 490 374 272 194- Basic salaries and bonus 5,276 3,992 1,961 1,388- Allowance 1,496 1,308 732 495- Defined contribution retirement plan 1,031 813 396 298

8,293 3,501 3,361 2,375

Estimated monetary value of benefits-in-kind 248 257 16 48



206

42 SIGNIFICANT RELATED PARTY TRANSACTIONS (cont’d)

Key management personnel of the Group and of the Company have been granted options under the ESOS on the same termsand conditions as those offered to other employees of the Group (see Note 10) as follows:

Number of options over ordinary shares of RM1.00 eachAt At

Exercise price 1 January 31 DecemberGrant date Expiry date RM/share 2007 Granted Exercised 2007

’000 ’000 ’000 ’000


11 January 2005 10 January 2010 1.55 2,210 – (1,390) 82014 December 2005 10 January 2010 1.46 2,180 – (1,730) 450

4,390 – (3,120) 1,270

Number of options over ordinary shares of RM1.00 eachAt 1 January At

Exercise price 2006/Date of 31 DecemberGrant date Expiry date RM/share appointment Granted Exercised 2006

’000 ’000 ’000 ’000


11 January 2005 10 January 2010 1.55 2,620 – (410) 2,21014 December 2005 10 January 2010 1.46 4,230 – (2,050) 2,180

6,850 – (2,460) 4,390

Included in the key management compensation is Directors’ remuneration as disclosed under Note 6 to the financial statements

207

42 SIGNIFICANT RELATED PARTY TRANSACTIONS (cont’d)

In addition to related party disclosures mentioned elsewhere in the financial statements, set out below are other significantrelated party transactions which were carried out on terms and conditions attainable in transactions with unrelated parties.

Name of company Relationship

The New Straits Times Press (Malaysia) Berhad (“NSTP”) An associate of the CompanySistem Televisyen Malaysia Berhad A Subsidiary of the CompanyMetropolitan TV Sdn Bhd A Subsidiary of the CompanyNatseven TV Sdn Bhd A Subsidiary of the CompanyCh-9 Media Sdn Bhd A Subsidiary of the CompanyBig Tree Outdoor Sdn Bhd A Subsidiary of the Company

Company2007 2006

RM’000 RM’000

(a) Fees receivable in relation to provision of procurement service to:- Sistem Televisyen Malaysia Berhad 5,109 6,125- Metropolitan TV Sdn Bhd 2,126 4,018- Natseven TV Sdn Bhd 1,497 1,985- Ch-9 Media Sdn Bhd 1,988 1,631

(b) Interest receivable in relation to advances given to:- Sistem Televisyen Malaysia Berhad 4,950 4,950

(c) Dividens received/receivable net of tax from:- Sistem Televisyen Malaysia Berhad 80,366 1,460- Big Tree Outdoor Sdn Bhd 19,710 -- NSTP 6,864 3,385

(d) Loan due from- Sistem Televisyen Malaysia Berhad 99,000 99,000

The Group and its associate, NSTP, have an arrangement whereby all sales and placement of advertisements between the twoGroups of entities are made in slots/space usually reserved for in-house advertisements and promotions. The fair values of thesesales and placement of advertisements are not material in relation to the financial statements.

43 CHANGES IN ACCOUNTING POLICIES

The following describes the impact of the new standards, effective for the Group’s and Company’s financial years beginning onor after 1 January 2007, on the financial statements of the Group and the Company.

(a) Irrelevant or immaterial effect on financial statements

The adoption of FRS 124 has no significant impact on the financial statements of the Group and the Company, other thanthe identification of related parties and some related party disclosures. The related party disclosures are set out in Note 42to the financial statements.

(b) Reclassification of prior year comparatives

FRS 117 “Leases” requires the classification of leasehold land as prepaid lease rental. Accordingly, leasehold land of theGroup has been reclassified from property, plant and equipment and investment properties to prepaid lease rentals.



208

43 CHANGES IN ACCOUNTING POLICIES (cont’d)

(c) Restatement of comparatives

The following comparative amounts have been restated due to the adoption of FRS 117:

Changes in accounting policiesEffects of

As previously adoption of Asreported FRS 117 restatedRM’000 RM’000 RM’000

Group

Income statements/Cash flow statements for financial year ended 31 December 2006

Depreciation of property, plant and equipment (27,022) 6 (27,016)Depreciation of investment properties (1,786) 219 (1,567)Amortisation of prepaid lease rentals – (225) (225)

Balance sheet as at 31 December 2006

Property, plant and equipment 175,195 (386) 174,809Investment properties 13,585 (3,224) 10,361Prepaid lease rentals – 3,610 3,610

44 COMMITMENTS

(a) Capital commitmentsGroup

2007 2006RM’000 RM’000

Capital commitments, approved but not contracted for- Property, plant and equipment 50,445 30,846- Programmes and film rights 193,553 123,663

243,998 154,509Capital commitments, approved and contracted for- Acquisition of subsidiaries – 140,634

243,998 295,143

Share of an associate’s capital commitments 25,228 18,797

(b) Operating lease commitments

The future minimum lease payments under non-cancellable operating leases are as follows:Group

2007 2006RM’000 RM’000

- Not later than 1 year 10,438 9,263- Later than 1 year and not later than 5 years 17,618 26,701- Later than 5 years 1,164 2,521

29,220 38,485

The operating lease commitments relate to the rental of the Company’s registered office and principal place of business asdisclosed in Note 1 to the financial statements.

209

45 CONTINGENT LIABILITIES

(a) Material litigation

(i) A claim of RM100 million (2006: RM100 million) for defamation action was brought against STMB for wordsmentioned and visual broadcasting during its news programme in 1998. The Directors are of the opinion, based onlegal advice, that the claim has no merit and is unlikely to succeed.

(ii) A claim of RM24 million (2006: RM24 million) for an alleged breach of contract for the marketing of STMB’s Tamilbelt programme was brought against STMB in 2002. The parties are in the process of settling the matter out of courtupon mutually agreed terms.

(iii) Three new claims totalling RM270 million (2006: RM Nil) for defamation action was brought against STMB during thefinancial year for visual images and statements made during its news programme broadcasted in 2006 and 2007. TheDirectors are of the opinion, based on legal advice, that the claims have no merit and are unlikely to succeed.

(iv) A claim of RM100 million (2006: RM100 million) for defamation action was brought against a subsidiary, ntv7, forvisual images and statements made during its programme in 2004. The Directors are of the opinion, based on legaladvice, that the claim has no merit and is unlikely to succeed.

(b) The Group is a defendant in various other legal actions with contingent liabilities amounting to approximately RM3.6million (2006: RM11 million). The Directors are of the opinion, after taking appropriate legal advice, that the outcome ofsuch actions will not give rise to any significant loss.

(c) There are several libel suits which involve claims against NSTP, an associate, of which the outcome and compensation, ifany, are not determinable. No provision has been made in the financial statements of the associate as at 31 December2007 as the Directors of the associate are of the opinion that the claims have no merit. The Directors of the associate donot expect the outcome of these claims to have a material impact on the financial position of the associate.

46 SEGMENTAL ANALYSIS

(a) Primary reporting format – business segment

The Group operates primarily within one business segment, namely commercial television broadcasting and relatedservices.

Other operations of the Group consist of the activities set out in Note 1 to the financial statements, none of which are of asufficient size to be reported separately.



210

46 SEGMENTAL ANALYSIS (cont’d)

(b) Secondary reporting format – geographical segment

The Group operates in two main geographical areas as shown below:Total

Capital segmentRevenue expenditure assets*RM'000 RM'000 RM'000

2007

Malaysia 666,958 35,046 1,186,778Republic of Ghana 23,238 8,655 27,988

690,196 43,701 1,214,766

2006

Malaysia 515,697 40,477 897,301Republic of Ghana 18,992 1,829 34,332

534,689 42,306 931,633

* Excludes deferred tax assets and tax recoverable

47 FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value of a financial instrument is assumed to be the amount at which the instrument could be exchanged or settledbetween knowledgeable and willing parties in an arm’s length transaction.

Quoted market prices, when available, are used as a measure of fair values. However, for a significant portion of the Group’sand Company’s financial instruments, quoted market prices do not exist. For such financial instruments, fair values presentedare estimates derived using the net present value or other valuation techniques. These techniques involve uncertainties and aresignificantly affected by the assumptions used and judgements made regarding risk characteristics of various financialinstruments, discount rates, estimates of future cash flows and other factors. Changes in assumptions could significantly affectthese estimates and the resulting fair values.

211

47 FAIR VALUE OF FINANCIAL INSTRUMENTS (cont’d)

The carrying values of financial assets and financial liabilities of the Group and the Company at the balance sheet dateapproximated their fair values, except as set out below:

2007 2006Carrying Carryingamount Fair value amount Fair valueRM’000 RM’000 RM’000 RM’000

Group

Investments- Quoted shares ^ 164 189 98 185- Quoted property and unit trusts ^ 3,234 3,234 2,388 2,402- Unquoted investments 206 Note (a) 206 Note (a)Irredeemable convertible unsecured loan stocks ^ 9,275 15,488 13,921 21,996Bank guaranteed medium term notes * 162,351 170,000 – –Medium term notes * – – 70,000 76,885Unsecured redeemable exchangeable bonds * – – 83,762 92,100Redeemable unsecured loan stocks (non-current) * – – 31,022 31,330Term loans (secured) (non-current) * – – 70,000 73,173Term loans (unsecured) (non-current) * 56,865 63,815 – –Hire-purchase and lease creditors * 11,725 11,463 12,059 12,526Trade and other payables (non-current) * – – 18,732 17,628

Company

Irredeemable convertible unsecured loan stocks ^ 9,275 15,488 13,921 21,996Bank guaranteed medium term notes * 162,351 170,000 – –Medium term notes * – – 70,000 76,885Term loans (unsecured) (non-current) * 56,000 62,949 – –Unsecured redeemable exchangeable bonds * – – 83,762 92,100Trade and other payables (non-current) * – – 8,507 7,877

Note (a):It is not practicable to estimate the fair value of the Group’s unquoted investments because of the lack of reference marketprices and the inability to estimate fair value without incurring excessive costs. However, the carrying amounts recorded arenot anticipated to differ significantly from their fair values at the balance sheet date.

^ The fair value of these financial instruments has been estimated using quoted market prices at balance sheet date.

* The fair value of these financial instruments has been estimated using future contractual cash flows discounted at current market interest ratesavailable for similar financial instruments/ loans.



212

48 FINANCIAL RISK MANAGEMENT

The Group’s activities expose it to a variety of financial risks, including:

• foreign currency exchange risk – risk that the value of a financial instrument will fluctuate due to changes in foreignexchange rates

• fair value interest rate risk – risk that the value of a financial instrument will fluctuate due to changes in market interest rates

• cash flow interest rate risk – risk that future cash flows associated with a financial instrument will fluctuate. In the case of afloating rate debt instrument, such fluctuations result in a change in the effective interest rate of the financial instrument,usually without a corresponding change in its fair value

• price risk – risk that the value of a financial instrument will fluctuate as a result of changes in market prices, whether thosechanges are caused by factors specific to the individual instrument or its issuer or factors affecting all instrument traded inthe market

• credit risk – risk that one party to a financial instrument will fail to discharge an obligation and cause the other party toincur a financial loss

• liquidity risk (funding risk) – risk that an entity will encounter difficulty in raising funds to meet commitments associatedwith financial instruments

The Group’s overall financial risk management programme focuses on the unpredictability of financial markets and seeksto minimise potential adverse effects on the financial performance of the Group. Financial risk management is carried outthrough risk reviews, internal control systems and adherence to the Group’s financial risk management policies. The Boardregularly reviews these risks and approves the treasury policies, which covers the management of these risks.

(a) Foreign currency exchange risk

The Group operates internationally and is exposed to currency risk as a result of the foreign currency transactionsentered into by companies in currencies other than their functional currency.

The exposure of the Group to currency fluctuations of Ringgit Malaysia to the US Dollar is constantly monitored bymanagement. The exposures of the Group to other currency fluctuations are minimal.

(b) Fair value interest rate risk

The Group’s income and operating cash flows are substantially independent of changes in market interest rates.Interest rate exposure arises from the Group’s borrowings and deposits, and is managed through the use of fixed andfloating rate debt.

(c) Price risk

For key product purchases, the Group establishes floating and fixed priced levels that the Group considers acceptableand enters into physical supply agreements, where necessary, to achieve these levels.

213

48 FINANCIAL RISK MANAGEMENT (cont’d)

(d) Credit risk

Credit risk arises when sales are made on deferred credit terms. The Group seeks to invest cash assets safely and profitably.It also seeks to control credit risk by setting counterparty limits and ensuring that sales of products and services are madeto customers with an appropriate credit history. The Group considers the risk of material loss in the event of non-performance by a financial counterparty to be unlikely.

The Group has no significant concentrations of credit risk except that the majority of its deposits are placed with majorfinancial institutions in Malaysia.

The Group trades with a large number of customers who are nationally and internationally dispersed but within thecommercial television and radio broadcasting industry. Due to these factors, management believes that no additionalcredit risk beyond amounts allowed for collection losses is inherent in the Group’s trade receivables.

(e) Liquidity risk and cash flow interest rate risk

The Group manages its debt maturity profile, operating cash flows and availability of funding so as to ensure that allrepayment and funding requirements are met. As part of its overall prudent liquidity management, the Group maintainssufficient levels of cash or cash convertible investments to meet its working capital requirements. Due to the dynamic natureof the underlying business, the Group aims at maintaining flexibility in funding by keeping committed credit lines available.

49 APPROVAL OF FINANCIAL STATEMENTS

The financial statements have been approved for issue in accordance with a resolution of the Board of Directors on 7 March 2008.



214

We, Dato’ Abdul Mutalib bin Datuk Seri Mohamed Razak and Abdul Rahman Ahmad, two of the Directors of Media Prima Berhad,do hereby state that, in the opinion of the Directors, the financial statements set out on pages 139 to 214 are drawn up so as togive a true and fair view of the state of affairs of the Group and of the Company as at 31 December 2007 and of the results andcash flows of the Group and of the Company for the financial year ended on that date in accordance with the provisions of theCompanies Act, 1965 and MASB Approved Accounting Standards in Malaysia for Entities Other than Private Entities.

Signed on behalf of the Board of Directors in accordance with their resolution dated 7 March 2008.

DATO’ ABDUL MUTALIB BIN DATUK SERI MOHAMED RAZAK ABDUL RAHMAN AHMADCHAIRMAN GROUP MANAGING DIRECTOR

I, Amil Izham Hamzah, the Officer primarily responsible for the financial management of Media Prima Berhad, do solemnly andsincerely declare that the financial statements set out on pages 139 to 214 are, in my opinion correct and I make this solemndeclaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act, 1960.

AMIL IZHAM HAMZAHSubscribed and solemnly declared by the above named Amil Izham Hamzah, at Petaling Jaya, Malaysia on 7 March 2008, before me.

COMMISSIONER FOR OATHS

statement by directorspursuant to section 169(15) of the companies act, 1965

215

statutory declarationpursuant to section 169(16) of the companies act, 1965

We have audited the financial statements set out on pages 139 to 214. These financial statements are the responsibility of theCompany’s Directors. It is our responsibility to form an independent opinion, based on our audit, on these financial statements andto report our opinion to you, as a body, in accordance with Section 174 of the Companies Act, 1965 and for no other purpose. Wedo not assume responsibility to any other person for the content of this report.

We conducted our audit in accordance with approved auditing standards in Malaysia. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significant estimates made by the Directors, as well as evaluating theoverall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion:

(a) the financial statements have been prepared in accordance with the provisions of the Companies Act, 1965 and MASBApproved Accounting Standards in Malaysia for Entities Other than Private Entities so as to give a true and fair view of:

(i) the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the financial statements; and

(ii) the state of affairs of the Group and the Company as at 31 December 2007 and of the results and cash flows of the Groupand the Company for the financial year ended on that date;

and

(b) the accounting and other records and the registers required by the Act to be kept by the Company and by the subsidiaries ofwhich we have acted as auditors have been properly kept in accordance with the provisions of the Act.

The names of the subsidiaries of which we have not acted as auditors are indicated in Note 28 to the financial statements. We haveconsidered the financial statements of these subsidiaries and the auditors’ reports thereon.

We are satisfied that the financial statements of the subsidiaries that have been consolidated with the Company’s financialstatements are in form and content appropriate and proper for the purposes of the preparation of the consolidated financialstatements and we have received satisfactory information and explanations required by us for those purposes.

The auditors’ reports on the financial statements of the subsidiaries were not subject to any qualification and did not include anycomment made under subsection (3) of Section 174 of the Act.

PRICEWATERHOUSECOOPERS SRIDHARAN NAIR(No. AF: 1146) (No. 2656/05/08 (J))Chartered Accountants Partner of the firm

Kuala Lumpur7 March 2008

report of the auditorsto the members of media prima berhad

216

analysis of shareholdingsas at 29 February 2008

217

Authorised Capital : RM2,000,000,000Issued and paid capital : RM844,738,046Class of shares : Ordinary Shares of RM1 eachNo. of Shareholders : 28,295

DISTRIBUTION SCHEDULE OF SHARE (ORDINARY)As At 29 February 2008

% of % ofSize of Shareholdings No. of Holders Shareholders No. of Shares Share Capital

less than 100 4,899 17.31 209,378 0.02100 to 1,000 14,083 49.77 7,048,829 0.831,001 to 10,000 8,362 29.55 24,456,530 2.9010,001 to 100,000 761 2.69 18,897,398 2.24100,001 to less than 5% of issued shares 188 0.67 494,336,983 58.525% and above of issued shares 2 0.01 299,788,928 35.49

TOTAL 28,295 100.00 844,738,046 100.00

LIST OF DIRECTORS' SHAREHOLDINGS (ORDINARY)as at 29 February 2008

Direct Indirect TotalNo. Names Holdings Holdings Shares %

1 Dato' Abdul Mutalib Bin Datuk Seri Mohamed Razak – – – –2 Abdul Rahman Bin Ahmad – 600,000 600,000 0.07

Registered With Cimsec Nominees Tempatan Sdn. Bhd.3 Shahril Ridza bin Ridzuan – – – –4 Dato' Dr Mohd Shahari Bin Ahmad Jabar – – – –5 Tan Sri Lee Lam Thye – – – –6 Dato' Sri Ahmad Farid Bin Ridzuan 190,000 – 190,000 0.027 Hj Datuk Kamarulzaman Bin Haji Zainal 200,000 – 200,000 0.028 Dato' Seri Mohamed Jawhar – – – –9 Dato' Abdul Kadir Bin Mohd Deen – – – –

Total 990,000 0.11

LIST OF SUBSTANTIAL SHAREHOLDERS (5% And Above) (ORDINARY)As At 29 February 2008

Name Shareholdings %

1 Employees Provident Fund Board 182,799,558 21.64

2 Alliancegroup Nominees (Tempatan) Sdn. Bhd. 116,989,370 13.85(Alliance Investment Management Berhad for Gabungan Kesturi Sdn. Bhd.)

analysis of shareholdings (cont’d)

as at 29 February 2008

218

LIST OF THIRTY (30) LARGEST SHAREHOLDERS (ORDINARY)As At 29 February 2008

Name Investor ID Shares %

1 Employees Provident Fund Board EPFACT1991 182,799,558 21.64

2 Alliancegroup Nominees (Tempatan) Sdn. Bhd. 42234H 116,989,370 13.85(Alliance Investment Management Berhad For Gabungan Kesturi Sdn. Bhd.)

3 HSBC Nominees (Asing) Sdn. Bhd. 4381U 30,645,100 3.63(Exempt An For JPMorgan Chase Bank, National Association U.K.)

4 HSBC Nominees (Asing) Sdn. Bhd. 4381U 26,942,440 3.19(Exempt An For Morgan Stanley & Co Incorporated)

5 Cartaban Nominees (Asing) Sdn. Bhd. 263367W 24,434,800 2.89[Government Of Singapore Investment Corporation Pte Ltd For Government Of Singapore (c)]

6 HSBC Nominees (Asing) Sdn. Bhd. 4381U 22,593,200 2.67(Exempt An For Morgan Stanley & Co International Plc)

7 Citigroup Nominees (Asing) Sdn. Bhd. 263875D 22,350,400 2.65(CB LUX For Vontobel Fund - Far East Equity)

8 Alliancegroup Nominees (Asing) Sdn. Bhd. 272859W 21,333,056 2.53(Alliance Investment Management Berhad For Altima Inc)

9 Citigroup Nominees (Asing) Sdn. Bhd. 263875D 20,737,800 2.45(GSCO For Indus Asia Pacific Master Fund Ltd)

10 Cartaban Nominees (Asing) Sdn. Bhd. 263367W 19,687,400 2.33(SSBT Fund 21B6 For The Oakmark International Small Cap Fund)

11 Sunnetic Sdn. Bhd. 579859P 19,285,715 2.28

12 HSBC Nominees (Asing) Sdn. Bhd. 4381U 19,158,378 2.27(Morgan Stanley & Co International Plc Firm A/C)

13 HSBC Nominees (Asing) Sdn. Bhd. 4381U 17,017,700 2.01(TNTC For Saudi Arabian Monetary Agency)

14 Citigroup Nominees (Asing) Sdn. Bhd. 263875D 14,465,500 1.71(Exempt An For Mellon Bank Mellon)

15 HSBC Nominees (Asing) Sdn. Bhd. 4381U 12,530,400 1.48(BNY Brussels For Special Foreningen Bankpension Emerging Markets Aktier Pal)

LIST OF THIRTY (30) LARGEST SHAREHOLDERS (ORDINARY) (cont’d)As At 29 February 2008

Name Investor ID Shares %

16 HSBC Nominees (Asing) Sdn. Bhd. 4381U 11,150,600 1.32(Exempt An For JPMorgan Chase Bank, National Association U.A.E.)

17 HSBC Nominees (Asing) Sdn. Bhd. 4381U 10,720,700 1.27(BBH (LUX) SCA For Fidelity Funds Malaysia)

18 Cartaban Nominees (Asing) Sdn. Bhd. 263367W 10,500,500 1.24[Government Of Singapore Investment Corporation Pte LtdFor Monetary Authority Of Singapore (H)]

19 HSBC Nominees (Asing) Sdn. Bhd. 4381U 10,250,000 1.21(BNY Brussels For Brooklawn House)

20 Cartaban Nominees (Asing) Sdn. Bhd. 263367W 7,461,100 0.88(SSBT Fund WB2M For Bill And Melinda Gates Foundation Trust)

21 Citigroup Nominees (Tempatan) Sdn. Bhd. 267011M 6,705,163 0.79(Exempt An For Prudential Fund Management Berhad)

22 Cartaban Nominees (Asing) Sdn. Bhd. 263367W 5,874,800 0.70(Investors Bank And Trust Company For Ishares Inc)

23 RHB Nominees (Tempatan) Sdn. Bhd. 259064V 5,222,214 0.62[RHB Investment Management Sdn. Bhd. For Telekom Malaysia Berhad (c)]

24 HSBC Nominees (Asing) Sdn. Bhd. 4381U 4,843,300 0.57(UBS AG Zurich For SBC LUX Equity Portfolio Malaysia)

25 Am Nominees (Tempatan) Sdn. Bhd. 445276X 4,443,900 0.53(Employees Provident Fund Board A/C 1)

26 Citigroup Nominees (Asing) Sdn. Bhd. 263875D 4,420,900 0.52(CB LUX For Vontobel Fund Emerging Markets Equity)

27 HSBC Nominees (Asing) Sdn. Bhd. 4381U 4,241,500 0.50(Exempt An For JPMorgan Chase Bank, National Association Netherlands)

28 Cartaban Nominees (Asing) Sdn. Bhd. 263367W 4,226,700 0.50(State Street Luxembourg Fund 9T02 For Emerging Markets High Value Teilfonds)

29 Minister Of Finance MOFIACT3751957 4,140,027 0.49

30 HSBC Nominees (Asing) Sdn. Bhd. 4381U 4,120,200 0.49(UBS Ag Zurich For UBS Equity Invest Asia New Horizon)

219

No. of ICULS converted : RM 172,610,353No. of ICULS Outstanding : RM 7,389,647Conversion period : 18 July 2003 to 18 July 2008

DISTRIBUTION SCHEDULE OF ICULSAs At 29 February 2008

No. of % of No. of % ofSize of ICULS holdings ICULS Holders ICULS Holders ICULS Shares ICULS Holding

less than 100 376 11.55 15,644 0.21100 to 1,000 1,996 61.30 1,231,014 16.661,001 to 10,000 820 25.19 2,384,591 32.2710,001 to 100,000 61 1.87 1,562,776 21.15100,001 to less than 5% of issued shares 2 0.06 301,666 4.085% and above of issued shares 1 0.03 1,893,956 25.63

TOTAL 3,256 100.00 7,389,647 100.00

LIST OF DIRECTORS' SHAREHOLDINGS (ICULS)As At 29 February 2008

None of the Directors of the Company has any direct or indirect interest in the ICULS.

LIST OF SUBSTANTIAL ICULS HOLDERS (5% And Above) (ICULS)As At 29 February 2008

No. ofName Investor ID ICULS held %

1 CIMSEC Nominees (Tempatan) Sdn. Bhd. 265449P 1,893,956 25.63(CIMB for Malaysian Resources Corporation Berhad)


220

LIST OF THIRTY (30) LARGEST ICULS HOLDERSAs At 29 February 2008


1 CIMSEC Nominees (Tempatan) Sdn. Bhd. 265449P 1,893,956 25.63[CIMB For Malaysian Resources Corporation Berhad (CASS)]

2 HSBC Nominees (Asing) Sdn. Bhd. 4381U 151,666 2.05(Exempt An For JPMorgan Chase Bank, National Association U.K.)

3 HSBC Nominees (Tempatan) Sdn. Bhd. 258854D 150,000 2.03(HSBC Malaysia Trustee Bhd For OSK-UOB Smart Balanced Fund)

4 Wui Mee Ling 690215-08-6202 91,016 1.23

5 HSBC Nominees (Tempatan) Sdn. Bhd. 258854D 90,000 1.22[HSBC Malaysia Trustee Bhd For Growthpath 2025 (4587-005)]

6 CIMSEC Nominees (Tempatan) Sdn. Bhd. 265449P 80,600 1.09(Kim Eng Securities Pte Ltd For Tay Tong Tai)

7 TSI Films Limited 255008 77,263 1.05

8 Yeoh Tiong Lay 291218-10-5079 73,000 0.99

9 Toh Yew Keong 551008-07-5367 60,000 0.81

10 CIMSEC Nominees (Tempatan) Sdn. Bhd. 265449P 58,100 0.79[CIMB Bank For Mohammed Amin Bin Mahmud (MM1004)]

11 HSBC Nominees (Tempatan) Sdn. Bhd. 258854D 53,700 0.73[HSBC Malaysia Trustee Bhd For OSK-UOB Smart Income Fund (4694-004)]

12 TCL Nominees (Asing) Sdn. Bhd. 455044H 50,000 0.68(OCBC Securities Pte Ltd For Kwa Chui Lan)

13 Arif Bin Faruk 760825-14-5709 37,300 0.50

14 Low Keng Boon @ Lau Boon Sen 411120-10-5349 30,000 0.41

15 YTL Power Generation Sdn. Bhd. 252932H 29,900 0.40

16 Siew Yau Wai @ Siew Ah Why 470813-08-5029 29,700 0.40

221

LIST OF THIRTY (30) LARGEST ICULS HOLDERS (ICULS) (cont’d)As At 29 February 2008


17 Ke-Zan Nominees (Tempatan) Sdn. Bhd. 94309V 29,000 0.39(Kim Eng Securities Pte Ltd For Sulaiman Bin Bawi)

18 CIMSEC Nominees (Tempatan) Sdn. Bhd. 265449P 29,000 0.39(Exempt An For CIMB-GK Securities Pte Ltd Retail Clients)

19 HSBC Nominees (Tempatan) Sdn. Bhd. 258854D 28,500 0.39[HSBC Malaysia Trustee Bhd For Growthpath 2015 (4587-003)]

20 RHB Nominees (Tempatan) Sdn. Bhd. 259064V 25,777 0.35(Pledged Securities Account For Dorairajoo A/l Irulandy)

21 Hamidon Bin Abdullah 530129-01-6037 24,555 0.33

22 Juita-Viden Sdn. Bhd. TEM102714K 24,487 0.33

23 YTL Power International Berhad 406684H 24,000 0.32

24 Koh Kok Cheng 560201-04-5009 22,277 0.30

25 Loh Chee Yau 510219-08-5513 22,000 0.30

26 HLG Nominee (Asing) Sdn. Bhd. 250883D 21,766 0.29[Exempt An For UOB Kay Hian Pte Ltd (A/C Clients)]

27 HDM Nominees (Tempatan) Sdn. Bhd. 41117T 20,511 0.28(Kim Eng Securities Pte Ltd For Tay Tong Tai)

28 Choy Shien Ing 840701-01-5339 20,200 0.27

29 Zainal Abidin Bin Abdul Majeed 480417-08-5245 20,022 0.27

30 Ng Chan Fai 640424-08-5091 20,000 0.27


222

No. of warrant exercised : 110,681,066No. of warrant Outstanding : 4,318,934Exercised period : 31 July 2003 to 31 July 2008

DISTRIBUTION SCHEDULE OF WARRANTSAs At 29 February 2008

No. of % of % ofwarrant warrant No. of warrant

Size of Warrant holdings Holders holders warrant holding

less than 100 139 19.61 6,582 0.15100 to 1,000 340 47.95 212,888 4.931,001 to 10,000 191 26.94 685,660 15.8810,001 to 100,000 32 4.51 819,861 18.98100,001 to less than 5% of issued shares 3 0.42 441,300 10.225% and above of issued shares 4 0.57 2,152,643 49.84

TOTAL 709 100.00 4,318,934 100.00

LIST OF DIRECTORS' WARRANT HOLDINGS (WARRANTS)As At 29 February 2008

None of the Directors of the Company has any direct or indirect interest in the warrants.

LIST OF SUBSTANTIAL WARRANT HOLDERS (5% And Above) (WARRANTS)As At 29 February 2008

No. ofName Investor ID warrant held %

1 Citigroup Nominees (Asing) Sdn. Bhd. 263875D 800,000 18.52(CBHK PBGHK For Golden Millennium Worldwide Limited)

2 Wui Mee Ling 690215-08-6202 735,743 17.04

3 Toh Yew Keong 551008-07-5367 385,900 8.94

4 CIMSEC Nominees (Tempatan) Sdn. Bhd. 265449P 231,000 5.35(CIMB Bank For Mohammed Amin Bin Mahmud)

223

LIST OF THIRTY (30) LARGEST WARRANT HOLDERS (WARRANTS)As At 29 February 2008

No. ofName Investor ID Warrants held %

1 Citigroup Nominees (Asing) Sdn. Bhd. 263875D 800,000 18.52(CBHK PBGHK For Golden Millennium Worldwide Limited)

2 Wui Mee Ling 690215-08-6202 735,743 17.04

3 Toh Yew Keong 551008-07-5367 385,900 8.94

4 CIMSEC Nominees (Tempatan) Sdn. Bhd. 265449P 231,000 5.35[CIMB Bank For Mohammed Amin Bin Mahmud (MM1004)]

5 Mayban Nominees (Tempatan) Sdn. Bhd. 258939H 178,300 4.13(Mayban Trustees Berhad For PB Asean Dividend Fund)

6 Sai Yee @ Sia Say Yee 400607-10-5427 155,000 3.59

7 Mayban Nominees (Asing) Sdn. Bhd. 258956H 108,000 2.50(Pledged Securities Account For Teo Huay Siong)

8 Teo Huay Siong S1330352E 75,000 1.74

9 Cheong Chong Kong @ Chong Cheong Kin 420619-08-5011 55,000 1.27

10 Chin Chein Tet 340306-08-5037 50,000 1.16

11 Lee Chee Beng 631008-04-5299 45,800 1.06

12 Lee Chin Watt @ Lee Lip Giap 411203-04-5011 40,000 0.93

13 Mazlan Bin Muhamed 551106-03-5019 32,000 0.74

14 Soo Choon Swee 4735490 30,000 0.69

15 TA Nominees (Tempatan) Sdn. Bhd. 268290H 30,000 0.69(Pledged Securities Account For Ong Lee Chuan)

16 YTL Power Generation Sdn. Bhd. 252932H 29,900 0.69

17 Soo Choon Swee 4735490 28,000 0.65

18 Law How Hock 611010-01-5509 26,500 0.61


224

LIST OF THIRTY (30) LARGEST WARRANT HOLDERS (WARRANTS) (cont’d)As At 29 February 2008

No. ofName Investor ID Warrants held %

19 YTL Power International Berhad 406684H 24,000 0.56

20 Olive Lim Swee Lian 480530-10-5324 24,000 0.56

21 Ahmad Azam Bin Sulaiman 580618-10-5159 21,000 0.49

22 Choy Shien Yang 780209-01-6389 20,000 0.46

23 Low Kim Whatt 540225-01-5113 20,000 0.46

24 Quey Sew Leng @ Quek Siew Leng 0017022 20,000 0.46

25 Lim Yong Keat 390920-08-5657 20,000 0.46

26 Lee Lay Chen 730205-04-5216 20,000 0.46

27 Lee May Choo 720209-04-5142 20,000 0.46

28 Chan Chon Ying @ Chen Chor Eng 390605-07-5184 20,000 0.46

29 Lee Chee Eng 680319-04-5035 20,000 0.46

30 Kweh Bee Har 600704-02-5150 20,000 0.46

225

Approximate

Age of

Date of Building Net Book

Location Type Tenure Acquisition Area Description (Years) Value (RM)

Country Height Leasehold 99 years 5-May-01 14,863 kps Bungalow 10 2,680,586The Mines Resort City Expiry : 2091 house43300 Seri Kembangan including Selangor furniture

Lot 2494 Freehold – 16-Aug-87 0.7039 ha Television 20 180,655Mukim Peringat transmissionDaerah Peringat stationKampung ParitKota Bharu, Kelantan

P.T. 4991, Jalan 9/27A Leasehold 99 years 21-Sep-90 8.0937 ha TV3 complex 10 59,498,285Section 5, Wangsa Maju Expiry : 208953300 Kuala Lumpur

Lot 374, Block 12 Leasehold 60 years 8-Apr-93 0.4815 ha Television 15 109,108Miri Concession Expiry : 2053 transmissionLand District stationKm 3, Jalan Miri-BintuluMiri, Sarawak

Pandan Ville Condominium Leasehold 99 years 1-Oct-01 8 unit x Condominium 11 1,152,496Block B Expiry : 2091 1,587 sq ftJalan Pandan Indah1/16 Pandan Indah55100 Kuala Lumpur

Lot 340 Leasehold 99 years 21-Aug-96 8,860 sq ft Commercial 17 1,263,758Jalan Bangsar Utama 3 Expiry : 2085 buildingOff Jalan Maarof59100 Kuala Lumpur

Pangsapuri Greenpark Freehold – 25-Jun-96 5 unit x Condominium 9 507,176Block B, Jalan Awan Pintal 1,232 sq ftPangsapuri Taman Hijau58200 Kuala Lumpur

list of propertiesas at 31 December 2007

226

Approximate

Age of



Sri Intan Condominium Freehold – 21-Aug-96 2 unit x Condominium 10 513,073No. 2, Jalan Terolak 6 206 sq metreOff Jalan Batu 5Jalan Ipoh51200 Kuala Lumpur

Commerce Square Leasehold 99 year 30-May-01 1 unit x Commercial 9 775,003Batu 10 Expiry : 2091 2,963 sq ft buildingJalan Kelang Lama SS8/1 1 unit x Commercial 9Petaling Jaya Selatan 3,130 sq ft buildingMukim Damansara Petaling, Selangor

Lembah Beringin Freehold – 27-Jul-99 1 unit x Residential 8 176,000P.T. No 2133 43,597 sq ft landMukim Sungai GumutDaerah Hulu Selangor, Selangor

Lembah Beringin Freehold – 27-Jul-99 1 unit x Residential 8 216,000P.T. No 2133 53,561 sq ft landMukim Sungai GumutDaerah Hulu Selangor, Selangor

Lembah Beringin Freehold – 21-Sep-04 1 unit x Residential 3 142,142P.T. No 2133 10,934 sq ft landMukim Sungai GumutDaerah Hulu Selangor, Selangor

Lembah Beringin Freehold – 21-Sep-04 1 unit x Residential 3 142,415P.T. No 2133 10,955 sq ft landMukim Sungai GumutDaerah Hulu Selangor, Selangor

227

Approximate

Age of



Putrajaya Precinct 8 Freehold – 22-Dec-00 8,981.8 Commercial 7 126,052Phase 5A, Unit C-3A-3A sq metre buildingLevel 4 (3rd Floor), Block CPusat Pentadbiran Kerajaan Persekutuan Putrajaya

Unit No. 102 Freehold – 14-May-04 942 sq ft Apartment 3 89,414Jalan Seksyen 3/3Sekyen 3, Kajang Utama43000 Kajang, Selangor

Lot No. 76 Freehold – 14-May-04 1,650 sq ft Commercial 3 452,887Jalan Seksyen 3/3 buildingSekyen 3, Kajang Utama43000 Kajang, Selangor

Summerset Resort Leasehold 99 years 12-Dec-02Unit No : D120 Expiry : 2094 1,455 sq ft Holiday 5 575,097

bungalowUnit No : D124 1,455 sq ft Holiday 5 649,484

bungalowUnit No : GS-01-11 377 sq ft Studio 5 247,643Unit No : D108 4-May-04 1,500 sq ft Holiday 3 647,797Mukim Rompin bungalowDaerah RompinNegeri Pahang

Lot 2B-4-20 & 2B-4-21 Leasehold 99 years 31-May-95 7,316 sq ft Cineplex 12 1,699,984Kompleks Tun Abdul Razak Expiry : 2093Geogetown, Penang

Damai Laut Leasehold 99 years 5-Aug-97 2 lots x Apartment 9 340,000Holiday Apartments Expiry : 2098 981 sq ftLot F2-01-03A& Lot F2-GF-03AJalan Titi Panjang32200 Lumut, Perak

list of properties (cont’d)

as at 31 December 2007

228

Approximate

Age of



Kawasan Perniagaan Freehold – 29-Apr-97 5 lots x Commercial 11 1,530,000Permatang Rawa 5,092 sq ft buildingJalan Permatang Rawa 114000 Bukit MertajamPulau Pinang

Summit Centre Shopping Complex

Lot No. 2.30 Freehold 99 years 15-Sep-04 603.88 sq ft Commercial 3 230,000expiry : 2093 building

Lot No. 2.31 Freehold 15-Sep-04 603.88 sq ft Commercial 3 230,000building

Lot No. 2.32 Freehold 15-Sep-04 596.99 sq ft Commercial 3 230,000building

Lot No. 2344/45 Freehold – 9-Aug-06 4292 sq ft Double storey 1 287,024Mukim of Jeram terraceSelangor

Lot 159 & 160 Freehold – 12-Nov-96 80,063 sq ft Commercial – 6,800,000Jalan Jurubina U1/18 LandSeksyen U1Hicom GlenamrieIndustrial Park40150 Shah AlamSelangor

Lot 7/9 Freehold – 12-Nov-96 7,562 sq ft Commercial 10 21,994,813Jalan Jurubina U1/18 buildingSeksyen U1Hicom GlenamrieIndustrial Park40150 Shah AlamSelangor

Nos. 12 & 14 Freehold – 1-Aug-90 2 Units x Commercial 17 967,835Jalan SS 22/25 1,650 sq ft building47400 Damansara JayaSelangor

229

MEDIA PRIMA BERHADSri PentasNo. 3 Persiaran Bandar UtamaBandar Utama47800 PetalingSelangor Darul EhsanMalaysiaTel : +603 7726 6333Fax : +603 7726 1367 Email:[email protected]:http://www.mediaprima.com.my

SISTEM TELEVISYEN MALAYSIABERHADSri PentasNo. 3 Persiaran Bandar UtamaBandar Utama47800 PetalingSelangor Darul EhsanMalaysia(P.O Box 11124, 50736 Kuala Lumpur)Tel : +603 7726 6333Fax : +603 7727 8455Email: [email protected]: http://www.tv3.com.my

GRAND BRILLIANCE SDN. BHD.Sri Pentas, 3rd Floor, North Wing No. 3 Persiaran Bandar UtamaBandar Utama47800 PetalingSelangor Darul EhsanMalaysiaTel : +603 7726 6333Fax : +603 7725 7324 Email: [email protected] Website: http://www.gbsb.com.my

BIG TREE OUTDOOR SDN. BHD.Lot 1.06, 1st Floor, KPMG Tower8, First Avenue, Bandar Utama47800 PetalingSelangor Darul EhsanMalaysiaTel : +603 7728 3889Fax : +603 7729 3999Website: http://www.bigtreeoutdoor.com

CH-9 MEDIA SDN. BHD.Sri Pentas, 3rd Floor, South WingNo. 3 Persiaran Bandar UtamaBandar Utama47800 PetalingSelangor Darul EhsanMalaysiaTel : +603 7985 8360Fax : +603 7952 7819 / 7809Website: http://www.tv9.com.my

NATSEVEN TV SDN. BHD.Sri Pentas, 2nd Floor, North WingNo. 3 Persiaran Bandar UtamaBandar Utama47800 PetalingSelangor Darul EhsanMalaysiaTel : +603 7726 8777Fax : +603 7726 9777Email: [email protected]: http://www.ntv7.com.my

THE NEW STRAITS TIMES PRESS(MALAYSIA) BERHADBalai Berita, 31 Jalan Riong59100 Kuala LumpurMalaysia Tel : +603 2282 3131 Fax : +603 2282 1428 Email : [email protected]: http://www.nstp.com.my

GAMA MEDIA INTERNATIONAL (BVI) LIMITED12th Road Kanda-AccraOpposite the French EmbassyBox M83 Accra-GhanaTel : +21-763458 / 763462Fax : +233-21-763450E-mail: [email protected]: http://www.tv3.com.gh

METROPOLITAN TV SDN. BHD.Sri Pentas, 3rd Floor, South Wing No. 3 Persiaran Bandar UtamaBandar Utama47800 PetalingSelangor Darul EhsanMalaysiaTel : +603 7728 8282Fax : +603 7726 8282Website: http://www.8tv.com.my

ALT MEDIA SDN. BHD.(Formerly known as Cineart Enterprises Sdn. Bhd.)

Sri Pentas, 3rd Floor, North WingNo. 3 Persiaran Bandar UtamaBandar Utama47800 PetalingSelangor Darul EhsanMalaysiaTel : +603 7726 6333Fax : +603 7710 3876Email: [email protected]: http://www.gua.com.my

group directory

230

proxy form

(Before completing this form, please see the notes below)

I/We (Full Name in Capital Letters)

of (Full Address)

being a member/members of MEDIA PRIMA BERHAD hereby appoint *The Chairman of the Meeting or (Full Name)

of (Full Address)

or failing whom (Full Name)

of (Full Address)

as my/our proxy to attend and vote for me/us on my/our behalf at the Seventh (7th) Annual General Meeting of the Company tobe held on Tuesday, 29 April 2008 at 10.00 a.m. and at any adjournment thereof.

Please indicate with an “X” on the Resolutions below on how you wish your vote to be cast. If no specific direction as to voting isgiven, the proxy will vote or abstain at his discretion.

No. Resolution For Against1. To receive and adopt the Statutory Financial Statements

To re-elect the following Directors under Articles 101 and 102:2. Abdul Rahman Bin Ahmad3. Dato’ Sri Ahmad Farid Bin Ridzuan4. Tan Sri Lee Lam Thye

To re-elect the following Director under Article 106:5. Dato’ Abdul Kadir Bin Mohd Deen6. To approve a final dividend of 9.3 sen ordinary share less 26% income tax for the financial year

ended 31 December 20077. To approve the Directors’ fees of RM272,000.00 for the financial year ended 31 December 20078. To re-appoint Messrs PricewaterhouseCoopers as Auditors of the Company and to authorize

the Directors to fix their remunerationAS SPECIAL BUSINESS:

9. ORDINARY RESOLUTIONSDirectors Authority pursuant to Section 132D

10. Proposed Renewal of Share Buy-Back Authority

Dated this ____________________ day of ____________________ 2008

Number of shares held _______________ Signature of Shareholder ____________________________________

* Delete if not applicable

Notes:1. A member of the Company entitled to attend and vote at the meeting is entitled to appoint one or more proxies (or in the case of a corporation, to appoint

a representative) to attend and vote in his stead. A proxy need not be a member of the Company.2. The Proxy Form must be signed by the appointor or his attorney duly authorized in writing. In the case of a corporation, it shall be executed under its

Common Seal or signed by its attorney duly authorized in writing or by an officer on behalf of the corporation.3. The instrument appointing the proxy must be deposited at the Registrar, Symphony Share Registrars Sdn. Bhd., Level 26, Menara Multi Purpose, Capital Square,

No. 8 Jalan Munshi Abdullah, 50100 Kuala Lumpur not less than 48 hours before the time appointed for holding the meeting or any adjournment thereof.** Resolution 9

The proposed Resolution 9 if passed, will empower the Directors to issue shares of the Company up to a maximum of 10% of the issued share capital of theCompany for the time being for such purposes as the Directors consider would be in the interest of the Company. This authority, unless revoked or varied ata general meeting will expire at the conclusion of the next Annual General Meeting of the Company. The rationale for this resolution is to save cost and timefor convening a general meeting.

** Resolution 10Please refer to the Statement to Shareholders dated 3 April 2008 for further information.

(Company No: 532975 A)(Incorporated in Malaysia)

MEDIA PRIMA BERHADc/o The RegistrarSymphony Share Registrars Sdn. Bhd.Level 26, Menara Multi PurposeCapital SquareNo. 8 Jalan Munshi Abdullah50100 Kuala LumpurMalaysia

Stamp

Media Prima Berhad 532975 A

Sri Pentas, No. 3, Persiaran Bandar UtamaBandar Utama, 47800 PetalingSelangor Darul Ehsan, Malaysia

www.mediaprima.com.my

Media Prim

a Berhad 532975 AA

nnual Report 2007

Annual Report 2007

Documents

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