At Peter Harvie’s address to the 2002 Austereo Annual General Meeting the Austereo Chairman highlighted some of the achievements of the company over the past 12 months and some of the key people involved in Austereo’s success.

Here is some of what he said:

The single most important characteristic of Austereo is its creativity. Our Group
Managing Director, Brad March, provides creative leadership of a great executive
group, including Brian Bickmore, Michael Anderson, Jeff Allis and an impressive staff
team with enormous skills. I pay tribute to their focus and achievements.

In turn,
we have Australia’s foremost on-air talent. They include Wendy Harmer, Rove
McManus, Amanda Keller, Jamie Dunn, Tracy Bartram, Peter Berner and Brigitte
Duclos. No Australian radio group has such a star profile and none has our record
in discovering, encouraging and developing talent.

The same focus applies to our
support of Australian music and to our innovative promotions… we are an immediate and constant participant in each of our communities. This live and local presence is the underlying and unique strength of the radio medium and, more particularly, of Austereo, as the industry leader.

REVENUE

Austereo Sales performed well to hold market share against the toughest challenges
in decades, conceding only one share point. We believe that our sales operation is
outstanding, not only in the commercial radio field but also in the overall media sales
spectrum…The dimension of sales offerings has been further enhanced through other platforms,including promotions, online, database, email and sms marketing.

The group has also built non-traditional radio ventures through CD sales and
Austereo Live, which launched the successful Rumba! concerts in the past year.
These activities are not without risk and I will discuss the M One concert position in
my comments on the 2003 year.

OVERSEAS STATIONS

Since 1995, Austereo has built an offshore presence. We have exported our
intellectual capital to Malaysia, Greece and the UK.

The Malaysian venture continues to be the leading radio operation in that nation, in
both ratings and revenue terms. We accounted for 63% of Malaysia’s radio
revenues in the past year, with the number one Malay, Chinese and English stations,
amongst our nationwide five-network group.

In the UK, we hold 6% of the non-metropolitan network, UKRD, comprising 14
stations. The UK radio industry could be deregulated, which may provide growth
opportunities through acquisitions and mergers.

The Athens station, Village 88, was relaunched in October 2001 and peaked at
number one position in its market – an outstanding achievement, with a consequent
move into profit. We will continue to seek new market opportunities offshore as one
of our potential paths of growth and one which has already proved successful in both
Malaysia and Greece.

ADVERTISING AND RATINGS

With regard to 2003, the year is now showing some early signs of advertising spend
improvement, in the second quarter.

Our audience survey results have been consistently strong in this financial year, with
our stations regaining #1 10+ share in all markets as of Survey 7, 29 October. The
10+ share increased from 28.2% to 28.4% and the under 40 share was 45.3%, well
ahead of our nearest competitor at 16.4%.

Austereo is the leader in the radio medium and it is focused upon success. It has
retained leadership in audience and sales terms. You have the commitment of the
company, the board and I that we will apply every effort to maximise this leadership
and enhance the value of your company.