VNU Cash Earnings Increase by 27%.

Business Editors

HAARLEM, The Netherlands--(BUSINESS WIRE)--March 14, 2001

VNU, a leading international media and information company, today announced

- Cash earnings - earnings before
  goodwill amortization and
  extraordinary items                     + 27% to EUR     407 million

- Cash earnings per share earnings per
  share before goodwill amortization
  and extraordinary items                  + 8% to EUR 1.78

- Average number of common shares
  outstanding increased by 17% to
  227 million

- Net earnings                           + 226% to EUR     799 million

- Total operating income before goodwill
  amortization                            + 21% to EUR     729 million

- Net revenues                            + 20% to EUR   3,385 million

- Operating income to 20.7% from 20.3%
  of net revenues

In 2000, cash earnings (net earnings before goodwill amortization and extraordinary items) increased by 27% to EUR 407 million from EUR 320 million. As a result of an increase in the average number of common shares outstanding of 17%, cash earnings per share (earnings per share before goodwill amortization and extraordinary items) increased by 8% to EUR 1.78 from EUR 1.65. This is higher than previously announced expectations. Net earnings significantly increased to EUR 799 million, specifically due to an extraordinary gain from the sale of VNU Newspapers to Wegener, which was completed on March 14, 2000.

At our General Meeting of Shareholders to be held on April 17 the Board will propose to increase the annual dividend of common shares from EUR 0.48 to EUR 0.52 per share of which EUR 0.12 has already been paid as an interim dividend in September 2000. If desired, the final dividend of EUR 0.40 per share can be converted into shares to be charged to the additional paid-in capital reserve.

Total number of shares necessary to obtain one new common share will be fixed on the basis of the average final price during the last three days of the period in which shareholders can make the choice between a cash dividend or shares.

The value of the closing dividend in shares will approximate as closely as possible the value of the cash dividend.

Total operating income including VNU's share in operating income of non-consolidated subsidiaries increased by 21% to EUR 729 million from EUR 604 million. Excluding foreign currency rate effects, this increase amounted to 18%.

Operational expenditures for the development of Internet activities including NetRatings increased by EUR 82 milllion to EUR 110 million. Internet revenues amounted to EUR 47 million, an increase of EUR 31 million compared with 1999. Accordingly, operating income in 2000 was EUR 63 million lower due to these Internet activities. Start-up costs, excluding those for the Internet amounted to EUR 50 million. This increase of 48% compared to 1999 was primarily caused by Nielsen Media Research projects.

Net revenues increased by 20% to EUR 3,385 million from EUR 2,809 million. Internal growth in net revenues amounted to 14% (including foreign currency rate effects of 4%). Operating income expressed as a percentage of net revenues increased to 20.7% from 20.3%.

Nielsen Media Research and NetRatings have been consolidated in our 2000 results. In 1999, only a few months of Nielsen Media Research have been consolidated. VNU Newspapers have not been consolidated in 2000, while consolidation did take place in 1999.

In 2000 and 1999, VNU's various business groups generated the following net revenues and operating income (including operating income of non-consolidated subsidiaries):

Amounts x EUR 1 million           2000      2000      1999      1999
                                           total               total
                                   net  operating      net  operating
                               revenues   income   revenues   income

Marketing Information             1,107       211       554        88
Business Information                911       165       645       122
Directories                         433       236       414       224
Consumer Information                823       137       732       122
Educational Information              76        17        69        15
Newspapers                           --        --       382        69
Other                                35       (37)       13       (36)
                                 ------    ------    ------    ------
Total                             3,385       729     2,809       604

Compared with our 1999 presentation, the professional information sector has been divided into the business groups Marketing Information and Business Information. We have eliminated the geographic breakdown.

Effective in 2000, only one-time gains and losses of considerable size, such as the book gain on the sale of VNU Newspapers, are regarded as an extraordinary item. Accordingly, in 2000 some non-recurring items of revenues and expenses have been reflected in operating income, thereby increasing operating income by EUR 12 million. Excluding these non-recurring items, cash earnings per share would have increased by 8% instead of 6%.

Within the Marketing Information Group, the book gain from the sale of CMR amounting to EUR 66 million is slightly higher than the one-time negative effect, due to a change in the revenue recognition policy of our American subsidiaries Spectra Marketing Systems, Trade Dimensions and Claritas. In the past, revenues and operating income were primarily recognized during the fourth quarter. As a result of the gradual shift in delivery of electronic services from once a year to monthly, revenues are now spread throughout the entire year. This revenue recognition policy is now consistent with recent developments in international regulations, which is already used by Nielsen Media Research.

In addition to the costs for VNU's corporate headquarters, the book gain caused by the sale of the Scoot interests has been included in the category "other". This book gain has been offset substantially by start-up losses of these participations during the first six months of the year as well as by one-time expenditures for the reorganization of the direct marketing organization Geomatic International.

Review

All business groups contributed to the improvement in results. Specifically, the results of the business groups Marketing Information and Business Information were higher than in 1999.

The Marketing Information Group in the United States and Europe achieved higher operating income. Operating income of the Marketing Information Group is only partially comparable with 1999 results. Operating income of Nielsen Media Research and NetRatings, which incurred start-up losses, have been consolidated in the 2000 results. For 1999, only Nielsen Media Research has been consolidated for a few months. With these acquisitions, we significantly expanded in the United States and both companies fully met our expectations. The number of markets in which Nielsen Media Research operates actively, continues to expand. Market share of NetRatings as a provider of highly qualified data for Internet use is developing rapidly. Cooperation of our subsidiary VNU Marketing Information with Nielsen Media Research has resulted in the development of new products and services at our subsidiaries Spectra Marketing Systems, Claritas and Scarborough Research. VNU Marketing Information implemented a number of initiatives to strengthen its strategic position in various markets. In addition, organizational measures were implemented to achieve synergetic advantages. The results of business and interactive publications of SRDS developed favorably due to positive development in the advertising markets.

The Marketing Information Group in Europe developed satisfactorily. Results in the United Kingdom, Germany and The Netherlands improved, but declined in France. The results of ORG-MARG, a leading market research company in India, were satisfactory. Meanwhile, our interest in ORG-MARG has been expanded to 96%.

The Business Information Group in the United States and Europe achieved higher operating income. In the United States, the Business Information Group has been significantly strengthened by the acquisition in September of Miller Freeman.

USA for USD 650 million. Miller Freeman USA is one of the largest trade show organizers and a leading publisher of trade periodicals in the USA. The company is active in the following market segments: sports and sports clothing, jewelry, gifts, real estate and construction and travel. In connection with the seasonal pattern of its operations, the contribution of Miller Freeman USA to operating income was very limited.

VNU Business Media, which comprises Bill Communications, BPI Communications, VNU eMedia and VNU Expositions is striving for leading positions in various markets. The trade periodicals of Miller Freeman USA have been integrated at Bill Communications. As a result, the market position of this publishing company has been strenghtened. The Internet activities of BPI Communications, Bill Communications and Miller Freeman USA have been combined with VNU eMedia. Bill Communications and Miller Freeman USA have merged their trade show and events businesses into VNU Expositions. This company organizes approximately 80 events each year. In mid-year, ShoWest, an important trade show for the motion picture industry, was acquired.

In Europe, the Business Information Group strengthened its leading position as European publisher of computer magazines with the acquisition in August of the publishing activities of Ziff Davis Media in the United Kingdom, France and Germany. As a result of this acquisition, a good start has been made in the German market for computer publications. In spite of increased competition for recruitment advertising, results in The Netherlands remained about the same. In the United Kingdom, earnings increased as a result of the acquisition of the publishing company CMP in 1999 and the Ziff Davis computer publications in 2000, as well as by increased efficiency and streamlining of our portfolio. In the field of on-line career planning activities, the joint venture newmonday.com was established with Randstad Holding. The assets contributed by Randstad Holding resulted in a book gain which has been reserved to cover start-up costs for this activity.

At the Business Information Group, initial signs of weakening economic growth in the United States and Europe became noticeable during the last quarter of 2000. Therefore, a series of cost saving measures are being implemented. Early 2001 also showed a weak beginning of this group as a result of declining advertising volume.

Operating income of VNU World Directories increased in spite of increased costs for Internet activities. In 2000, the number of paying Internet advertisers increased substantially. The sales cycle for 2001, which already started in mid-2000, progressed well. Websites in The Netherlands, Belgium and Portugal have been significantly improved and expanded with additional information, new search opportunities, versions in more languages, route maps and route descriptions. These additional information services developed successfully. Gouden Gids, VNU's Golden Pages company in The Netherlands, retained its leading market position despite strong competition. In Belgium, Promedia enjoyed a prosperous year. Cooperation with Belgacom has contributed to a strong market position. In Portugal, Paginas Amarelas achieved good results and strong economic growth stimulated the development of Golden Pages in Ireland. Our joint venture in Puerto Rico contributed to develop. In South Africa, Telkom Directory Services in which VNU participates, experienced strong growth.

The Consumer Information Group has been strengthened and expanded by acquisitions and new product launches. Operating income in The Netherlands once again increased. Circulation revenues remained stable and advertising markets developed favorably.

In 2000, by acquiring ilse media groep and Startpagina, VNU achieved a leading position in the Dutch business-to-consumer Internet market. VNU Magazines acquired a 58.7% interest in ilse media groep in which the consumer Internet activities have been integrated as well as Startpagina, which successfully exploits an Internet site with the same name.

Our consumer magazines in Belgium achieved lower operating income. Circulation weakened, however, after a record year in 1999 the advertising market developed less favorably. Internet activities have been expanded.

Operating income in the United Kingdom, the Czech Republic, Hungary and Slovakia grew satisfactorily. In Romania, operating income declined slightly. The acquired publishing company EKH in Hungary has been fully integrated in VNU Budapest. The local equivalent of the Dutch Internet site Startpagina has been introduced in the Czech Republic, Hungary and Romania. After the economic decline in Russia, signs of a recovery are visible at Independent Media and we also have started Internet activities at this publishing company.

The growth of VNU's Educational Information companies in The Netherlands and Belgium has continued in 2000. Revenues and operating income increased. The Dutch educational publishing company Malmberg acquired the educational website collegenet.nl. The Belgian educational publishing company Van In has grown considerably in the secondary education market.

Bid on ACNielsen Corporation

At the end of 2000, VNU made a cash tender offer of USD 36.75 per share for ACNielsen Corporation, representing a transaction value of approximately USD 2.3 billion (EUR 2.6 billion). ACNielsen is a worldwide leader in providing consumer goods information for major international clients. By combining the sales data of ACNielsen with the marketing data of VNU, the opportunity has been created for VNU to offer on a worldwide basis a complete range of market support services. The acquisition fits into VNU's strategy for further expansion through acquisitions of companies which possess strong brands and are recession-resistant, because they offer "must have" information. The acquisition closed on February 16, 2001.

Sale of the Consumer Information Group and Educational Information Group

At the end of December 2000, it was announced that an investigation would be initiated regarding the possible sale of both the Consumer Information Group and Educational Information Group. This investigation is in process.

Finances

In 2000, VNU spent EUR 952 million on acquisitions, of which the acquisition of Miller Freeman USA, an organizer of trade shows and publisher of trade periodicals, for USD 650 million was the largest. Other major acquisitions took place in Europe. In Hungary, EKH (Consumer Information) was acquired. In addition, we acquired the European computer magazines of Ziff Davis Media.

Cash flow from operations of consolidated subsidiaries amounted to EUR 710 million and is EUR 180 million higher than in 1999. Cash flow from operational activities (after interest and taxes) increased by 53% to EUR 528 million. The effective tax rate amounted to 40%. Adjusted for non-deductible goodwill amortization, the tax rate amounted to 31%. VNU has approximately EUR 1,300 million of net operating loss carryforwards and the remaining carrying value of intangible assets, which are amortized for tax purposes and not reflected in the financial statements.

During the year, three share issuances have taken place. In February, 4.5 million common shares at a price of EUR 58.50 per share were issued. In September, in order to finance the acquisition of Miller Freeman USA, 10.3 million common shares were issued at EUR 59.25 per share. In addition, EUR 90 million in cumulative preferred shares B were issued and in May a Euro loan for EUR 500 million was placed.

The interest coverage ratio, which is of importance in evaluating VNU's financial strength, amounted to 4.1, which is within the targeted range 4 to 6. The ratio of stockholders' equity in relation to financing capital, including current liabilities, increased as a result of book gains and the share issuances from 24% to 42%. Including subordinated loans, this ratio amounted to 52%. VNU is rated by both Standard & Poor's and Moody's with respective ratings of BBB+ and A3.

Personnel

On December 31, 2000 the number of full-time employees amounted to 19.108 compared with 19.039 in 1999.

Prospects

In 2001, barring unforeseen events, VNU expects cash earnings per share (earnings per share before goodwill amortization and extraordinary items) to further increase.

The VNU annual report for 2000 will be published on April 2, 2001.

Forward Looking Statements

This document contains forward looking statements. These statements may be identified by words such as "expect", "should", "could", "shall" and similar expressions. These statements are subject to risks and uncertainties, and actual results and events could differ materially from what presently is expected. Factors leading thereto may include without limitations general economic conditions, conditions in the markets VNU is engaged in, behavior of customers, suppliers and competitors, technological developments, as well as legal and regulatory rules affecting VNU's business.

(Tables to follow)

CONSOLIDATED BALANCE SHEET

Amounts x EUR 1,000
                                                    2000        1999

Fixed assets
Intangible assets                               6,581,944   5,529,298
Property, plant and equipment                     303,790     264,434
Long-term financial assets                        168,845     244,762
                                               ----------  ----------
                                                7,054,579   6,038,494

Current assets
Inventories                                        95,975      81,352
Accounts receivable and other current assets    1,113,985     905,453
Cash and cash equivalents                         602,422     616,524
                                               ----------  ----------
                                                1,812,382   1,603,329

Current liabilities                             1,943,291   2,987,447
                                               ----------  ----------
Working capital                                  (130,909) (1,384,118)

Capital to be financed                          6,923,670   4,654,376


Non-current liabilities
Debenture loans and private placements          1,771,634   1,358,241
Other long-term liabilities                       231,219     318,470
                                               ----------  ----------
                                                2,002,853   1,676,711

Provisions for liabilities and charges            173,498     148,523

Subordinated loans                                831,984     832,223

Minority interests                                168,321     162,593

Shareholders' equity
Capital stock                                      49,762      45,137
Additional paid-in capital                      2,050,466   1,083,821
Retained earnings                               1,646,786     705,368
                                               ----------  ----------
                                                3,747,014   1,834,326

Financing capital                               6,923,670   4,654,376



CONSOLIDATED STATEMENT OF EARNINGS

Amounts x EUR 1,000
                            2000         in %       1999         in %

Net revenues            3,384,560       100.0   2,809,151       100.0

Raw materials             605,368        17.9     507,004        18.1
Purchased services        303,555         9.0     331,910        11.8
Personnel costs         1,121,073        33.1     890,402        31.7
Depreciation of
 property, plant
 and equipment             86,320         2.5      64,881         2.3
Other operating
 expenses                 567,394        16.8     444,975        15.8
                       ----------   ---------  ----------   ---------
Total operating costs
 and expenses           2,683,710        79.3   2,239,172        79.7

Operating income          700,850        20.7     569,979        20.3

Equity in operating
 income of
 non-consolidated
 subsidiaries              28,586                  34,511
                       ----------              ----------
Total operating income
 before goodwill
 amortization             729,436                 604,490

Goodwill amortization    (185,562)               (73,477)
                       ----------              ----------
Operating income after
 goodwill amortization    543,874                 531,013

Interest income            51,698                  20,775
Interest expense         (192,659)               (134,917)
                       ----------              ----------
Results from financial
 income and expense      (140,961)               (114,142)

Earnings from ordinary
 activities before
 income taxes             402,913                 416,871

Income taxes             (161,881)               (148,981)
                       ----------              ----------
Earnings from ordinary
 activities after
 income taxes             241,032                 267,890

Minority interests        (19,176)                (21,177)
                       ----------              ----------
Earnings from ordinary
 activities after
 income taxes and
 after minority
 interests                221,856                 246,713


Extraordinary items
 before income taxes      577,183                  (1,785)
Income taxes                   --                      --
                       ----------               ----------


Extraordinary items
 after income taxes       577,183                  (1,785)

Net earnings              799,039                 244,928


Per common share
Amounts x EUR 1

Earnings before
 amortization of
 goodwill and
 extraordinary items         1.78                    1.65

Earnings before
 extraordinary items         0.96                    1.27



CONSOLIDATED STATEMENT OF CASH FLOW

Amounts x EUR 1,000
                            2000                       1999

Operating
 income of
 consolidated
 subsidiaries
 after
 goodwill
 amortization             516,663                    496,502
Adjustments
 for:
Depreciation
 of property,
 plant and
 equipment                 86,320                     64,881
Goodwill
 amortization
 of
 consolidated
 subsidiaries             184,187                     73,477
Change in
 provisions
 and other
 long-term
 liabilities              (44,364)                   (28,285)

Change in
 accounts
 receivable
 and other
 current
 assets         (142,422)                   (86,434)
Change in
 inventories     (12,822)                    (6,372)
Change in
 current
 liabilities     122,834                     16,385
               ----------                 ----------
Change in
 working
 capital                  (32,410)                   (76,421)
                        ----------                 ----------
Cash flow
 from
 operations
 of
 consolidated
 subsidiaries             710,396                    530,154

Interest
 received         43,621                     20,639
Dividends
 received from
 non-consolidated
 subsidiaries     16,389                     14,119
Interest paid   (178,013)                  (122,962)
Income taxes
 paid            (63,952)                   (97,325)
               ----------                 ----------
                         (181,955)                  (185,529)
                        ----------                 ----------
Cash flow from
 operational
 activities                        528,441                    344,625


Acquisitions of
 consolidated
 and
 non-consolidated
 subsidiaries          (1,007,043)                (2,353,975)

Divestitures of
 consolidated
 and
 non-consolidated
 subsidiaries             849,283                     42,343

Net investment
 in property,
 plant and
 equipment               (153,488)                   (66,056)
Net investment
 in long-term
 financial
 assets                    (7,185)                    (7,645)
                        ----------                 ----------
Cash flow from
 investment
 activities                       (318,433)                (2,385,333)

Proceeds from
 long- and
 short-term
 debt                     919,315                  1,759,101
Repayment of
 long- and
 short-term
 debt                  (1,968,596)                  (240,874)
Proceeds from
 share issuance           947,646                    955,236
Dividends paid            (65,597)                   (82,708)
                        ----------                 ----------
Cash flow from
 financing
 activities                       (167,232)                 2,390,755
                                 ----------                 ----------

Net cash flow                       42,776                    350,047

Foreign
 currency
 differences
 and other
 changes                           (56,878)                   (58,904)
                                 ----------                 ----------
Changes in cash
 and cash
 equivalents                       (14,102)                   291,143


Free cash flow                     309,356                    195,861