Relajaci´ on exponencial

(thousands of individuals) 07 08 09 10 815 1,248 825 819 99 388 287 433 1,112 918 388

Number of Pay TV Subscribers Number of Free Users

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Overseas Operations

Doğan Media International (DMI):

Doğan Media International was established in 1999 to function as DYH’s window on Europe. The Company prints 17 periodicals in seven languages from four continents, foremost Hürriyet. These publications include international daily financial newspapers such as, The Wall Street Journal Europe and The Financial Times, the American newspaper Stars&Stripes, German sports newspaper Sportwelt, Egyptian newspaper Al-Ahram and the Saudi Asharq Al-Awsat. There are also other periodicals, such as the Polish newspaper Info&Tips, Rhein Hunsrück from the KRV region as well as The German Times, The Asia Pacific Times and New Europe - all considered important sources for opinion leaders. Together with these publications, the total number of newspapers printed at DMI is approximately 300,000 daily.

Trader Media East Limited (TME): TME, operating under the Hürriyet umbrella, is involved in the publication of property, automotive and human resources classified ads for daily and weekly newspapers, magazines and websites. TME’s activities are concentrated in Russia and Eastern Europe.

Kanal D Romania: Kanal D Romania started broadcasting in Romania in February 2007. It soon rose to fifth place among 40 nationwide TV channels in the country. In 2010, when Romanian TV advertising expenditures decreased by 10%, Kanal D Romania came in fifth with an all day audience rating of 4.7% and maintained its share in the advertising market at 5.5%.

Financial Highlights

In parallel with the recovery in the advertising market, the consolidated revenue of DYH rose 8% in 2010 to reach TL 2,620 million. Earnings before interest, tax, depreciation and amortization (EBITDA) increased to TL 196 million in 2010, up from TL 7 million in 2009. In 2010, the net loss stood at TL 237 million, corresponding to a significant improvement over the previous year.

DYH Consolidated Revenue and EBITDA

Revenue EBITDA* TL millions 2010 2009 Change (%) 2010 2009 Change (%) Publishing 1,363 1,348 1 163 167 (3) Broadcasting 929 683 36 33 (163) - Retail 322 410 (21) 17 3 559 Other 130 116 13 (16) 0 - Eliminations (124) (122) 2 0 0 - Total 2,620 2,435 8 196 7 2,880

Management Discussion and Analysis

Publishing: Across Turkey, falling average daily circulation figures had an adverse effect on revenue in 2010; however, the increase in newspaper and magazine advertisement increased total revenue from publishing. In 2010, advertisement from domestic publishing increased 10% to reach TL 566 million. However, recovery was slower in overseas markets and DYH’s overall advertisement revenue from publishing increased by 6% to TL 730 million.

According to data from Doğan Dağıtım, Doğan Group’s average daily newspaper circulation dropped to 1.5 million in 2010. In 2010, there was no increase in newspaper cover prices, except Milliyet. There were various increases in the cover prices of certain magazines due to market conditions. However, revenue from circulation and publishing dropped by 6% to TL 377 million. The increase in advertisement revenue more than compensated for this drop, with the overall consolidated publishing revenue increasing by 1% to TL 1,363 million.

The countries where TME runs its operations started to shake off the effects of the global crisis in 2010. In this period, TME focused on investments in the Internet, shaped its online products according to local needs and launched new products responding to the market demand. As such, despite the ongoing repercussions of the crisis, in 2010 TME succeeded in maintaining its EBITDA margin at the level of the previous year.

Savings measures implemented in DYH since 2008 continued in 2010. In this respect, in 2010, Vatan moved from its previous rented office to Doğan Medya Center, the coordination among departments was enhanced to ensure the efficient use of Company resources and newspaper pages were utilized in a more efficient manner; all of which had a positive effect on profitability.

As in the previous year, the EBITDA margin of the publishing segment stood at 12% and its EBITDA at TL 162 million.

Publishing

(TL millions) 2010 2009 Change (%)

Consolidated Revenue 1,363 1,348 1 Operating Profit / (Loss) 47 56 (16)

EBITDA (*) 163 167 (3)

Net Profit (67) (46) 48

(*)EBITDA calculated by DYH.

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Broadcasting: Due to 40% growth in the television ad spending in 2010, the advertisement revenues in the broadcasting segment increased. Kanal D maintained its leading position in 2010 with an impressive audience rating in both “All Day” and “Prime Time” categories, whereas Star TV moved up a step in “All Day” and “Prime Time” to become the third most-viewed television channel. As a result, DYH’s broadcasting advertisement revenue increased 42% in 2010 to TL 746 million, up from TL 524 million. The ratio of non- advertisement revenue in total broadcasting revenue stood at 16%.

Active in the digital platform segment, D-Smart continued to prioritize Pay TV projects in 2010. In parallel with increased HD TV sales in the market, new HD channels were added to the platform and customers were offered more convenient packages and prices to boost HD box sales. Inspired by the global spread of triple game strategies, the Company started to offer customers D-Smart and Smile products in a single package. Thanks to the new modular package launched in January 2010, the subscribers now enjoy the freedom to pay only for the program of their choice. As a result of these efforts, D-Smart’s Pay TV subscribers rose to 433,000 in 2010, up from 276,000 in 2009.

Retail: DYH’s retail revenue comes from D&R, Doğan Dağıtım’s non-media product distribution and telecommunications retailing. DYH’s 2010 consolidated retail revenue decreased 21% over the previous year from TL 410 million to TL 322 million. This drop is mainly due to the termination of telecommunications retailing activities and falling card sales. In parallel with the increase in the number of shopping malls, D&R opened 14 new stores in 2010 and brought the total number up to 101. The total retail space reached 37,710 square meters, corresponding to an increase of 4%. In 2010, D&R continued efforts to increase product diversity in its stores and added e-books to its product range. Thanks to the newly added product categories, D&R stores and the website gained new customers; the value of the shopping basket also grew. D&R implemented projects to bring costs down and increased its profitability during the year. The EBITDA of the retail branch came in at TL 17 million.

Although the ongoing investment projects in the digital platform segment have an adverse effect on profitability, the recovery in advertisement revenue translated into a significant improvement in DYH’s broadcasting profits over the previous year. EBITDA in the broadcasting segment created a profit of TL 33 million in 2010, up from a loss of TL 163 million in 2009.

Retail

(TL millions) 2010 2009 Change (%)

Consolidated Revenues 322 410 (21) Operating Profit / (Loss) 7 (6) -

EBITDA (*) 17 3 559

Net Profit 4 (19) -

Broadcasting

(TL millions) 2010 2009 Change (%)

Consolidated Revenue 929 683 36 Operating Profit / (Loss) (20) (211) (90)

EBITDA (*) 33 (163) -

Net Profit (166) (384) (57)

(*) EBITDA calculated by DYH.

The figures reflect the values before the inter-segment eliminations.

(*)EBITDA calculated by DYH.

The figures reflect the values before the inter-segment eliminations.