CanWest Announces Record Year-End Results For Australian Operations.

WINNIPEG, Manitoba--(BUSINESS WIRE)--Oct. 13, 1999--

(TSE:CGS.A.) (WINNIPEG STOCK EXCHANGE:CGS.A.) (TSE:CGS.S.) (WINNIPEG STOCK EXCHANGE:CGS.S.) (NYSE:CWG)

Network TEN posts record performance in uneven year

CanWest Global Communications Corp., Canada's leading international diversified media company, announced today that Network TEN Australia posted a record year in its fiscal year ended August 31, 1999. CanWest Global holds a 57.5% economic interest in Network TEN.

TEN's earnings before interest, income taxes and depreciation (EBITDA) were A$186.3 million up 2.5% on the A$181.8 million achieved for the previous year. TEN's EBITDA margin increased from 33.0% in 1998 to 33.1% in 1999. These earnings were achieved on net revenues of A$513.7 million (up 2%) while total costs were up 1.3%.

John McAlpine, Chief Executive Officer of Network TEN said that the network's structural initiatives taken a few years ago have enabled the Company to improve earnings and margins, despite the lacklustre growth in the television advertising market over the fiscal year. "We had the ability to react as the revenue climate weakened because of the hard work already done to lower the fixed cost base and to make program and facilities costs flexible through the use of outsourcing," said McAlpine.

"This is a satisfying result in a year where the Australian industry was still in a recovery position from the year earlier," said Leonard Asper, CanWest's President and Chief Executive Officer. "It shows that our costs are very much under control and puts Network TEN in an excellent position for growth into the next fiscal year."

Asper noted the results are gratifying as they were recorded in a programming transition year. Network TEN was faced with the loss of several blockbuster U.S. series, such as Seinfeld and Mad About You, and replaced them with a mixture of popular new U.S. series and domestic Australian programming which is now building an audience.

"Our investment in local programming paid off this year with News, The Panel and E!News, while the Good News Week team made a successful transition after coming over from the state-owned broadcaster," explained McAlpine. "We have seen several popular US series conclude, but these have been replaced with some great assets such as Charmed, Dawson's Creek and the hit sitcom, Just Shoot Me, and we have established a new relationship with Paramount." McAlpine added that the Australian development slate for 2000/2001 is stronger than it has been for many years with drama, mini series, telemovies and pilots of new sitcoms.

The record results come on the heels of an announcement of an online joint venture between Network TEN and Village Roadshow Limited, Australia's leading cinema, theme park and radio operator. "This logical move into new media is part of our strategy to partner where it makes sense, capitalize on our audience and promotional strength and import the skill base to reflect our new business interests," said McAlpine.

"These results confirm to us that Network TEN's core business is in very good shape and well positioned for future growth in new media, the emerging digital environment as well as the more traditional media," said Asper.

CanWest Global Communications Corp. (NYSE: CWG; TSE, WSE: CGS.S and CGS.A; www.canwestglobal.com) is an international media company. CanWest owns and operates conventional television and specialty cable operations in Canada; television and radio broadcast operations in New Zealand, and has significant investments in broadcasters in Australia, Ireland and the United Kingdom. CanWest Entertainment, the Company's program production and distribution division has offices in Canada, the U.K., the U.S. and Ireland. The Company also has a New Media division focused on acquiring and developing Internet companies.