Executive Chairman's Review

In a challenging year for most sectors of the economy, Ten Holdings has remained focused on its core businesses, adhering to the operational and financial discipline that has for the past decade kept your Company among Australia's most successful media businesses.

With a strong balance sheet, conservative gearing and all divisions equipped to weather the cycle, Ten Holdings is well positioned for future growth.

Network Ten (TEN) continues to concentrate on its primary 18-49 demographic and deliver clients a competitive commercial share of that audience.

TEN's demographically-targeted programming strategy enables the efficient viewer delivery that underpins our 'seriously different' business model. With television costs firmly under control, and buoyed by its most robust schedule in many years, TEN continues to build its position in 18-49s, remain number one in under-40s and grow its share of the 25-54 demographic. TEN will further capitalise on its programming and ratings performance in launching its new digital multi-channel in 2009.

Ten's out-of-home (OOH) advertising division, Eye Group (EYE), has progressed its significant international expansion program. Although softer economic conditions in the United States and United Kingdom have impacted the pace of progress, our strategy is on course – as demonstrated by the profitability of EYE's established Australian and New Zealand operations – and we continue to invest prudently for future growth.

In all aspects of our business, Ten's board of directors and management team continually look ahead; the initiatives and infrastructure in place will see Ten Holdings withstand the current contraction in the advertising market and position the Company to take full advantage of eventual improvements in the external environment.

Nick Falloon Executive Chairman