1. To what extent did the Turkish ad market recovered from the global economic crisis? And what is the size of Turkish ad market?
Overcoming the adverse effects of 2009 global crisis, Turkish ad market posted strong recovery in 2010 and estimated yoy growth is 30% in 2010 (26% in 4Q10), reaching TL 3.9 bn.
Turkish ad market continued to grow rapidly in 1H 2011. It reached TL 2.3 bn ($ 1.5 bn) with a growth of 18.5%, compared to 1H10
As a result, the Turkish ad market is estimated to have amounted to TL 3.9 bn (USD 2.6 bn) in 2010, compared to TL 3.0 bn (USD 1.9) in 2009. In the ad market, the share of TVs is estimated to be TL 2.0 bn (USD 1.3 bn), newspapers TL 920 mn (USD 614 mn), internet TL 410 mn (USD 273 mn), outdoor TL 263 mn (USD 175 mn), radio TL 107 mn (USD 71 mn), magazines TL 111 mn (USD 74 mn) and cinema TL 51 mn (USD 34 mn), as of 2010 year-end.

2. Is the growth in the ad market expected to continue this year?
Parallel to a robust economic growth in 2010, Turkish ad market recovered from the adverse effects of the global crisis with a growth as strong as 30%. Ad market growth in 2011 is estimated to be around 15-18%, unless there is no unexpected negative development in the global markets.

3. Which are the major advertising sectors for Hurriyet?
The advertisers who made the highest ad spending in FY10 were real estate, automotive, retail, finance and tourism sectors.
For 1H11, with slight changes, real estate, retail, automotive, tourism and finance sectors are the highest ad spending sectors for Hurriyet.

4. How do you define your reader profile?
According to recent researches made by BİAK (Press Ad Research Institute) 80% of our readers belong to ABC1 socio-economic group and 50% are between 18-44 years old.

5. Can you give some information about TME, such as the region of operations, the products and market share?
TME is the leading marketplace for communities of real estate, auto and recruitment, with strong local brands, serving local markets in Russia, CIS, Central and Eastern Europe. More specifically, TME operates in Russia, Croatia, Hungary, Ukraine, Slovenia, Belarus, Bosnia & Herzegovina, Kazakhstan and Serbia, employing a total of 4,323 people in this region.
Trader Media East produces around 183 print titles and hosts 27 websites, with 15.9 million unique monthly visitors.
TME publishes newspapers and magazines in various frequencies, such as dailies, weeklies, etc., with advertising content only. TME's flagship publication in Russia Iz Ruk v Ruki is among the top 5 most recognized brands in the country, as the brand recognition of this publication is as high as 89%. The classified daily newspaper Iz Ruk v Ruki is the clear market leader in Russia.
TME's publications, as well as its websites, are mainly concentrated on advertising of real estate, auto and job recruitement sectors. Advertising in these sectors being mostly of local nature, TME's operates in a large geography. In fact, TME has operations in over 90 cities in Russia, producing local content publications in all of these cities. In this sense, TME is the only nationwide company in this sector, with local operations.
TME's main title in Hungary is Expressz and the main title in Croatia is Oglasnik. Both brands are market leaders in the countries they are issued.

6. Can you describe the effects of the global economic crisis on TME? Are there signs of recovery in TME's 2010 financial results?
The largest portion of TME's revenues is drived by Russian economy and advertising market, which has been affected very severly from the global crisis in 2009. It is expected that the re-emergence of Russian economy will take some time. Unlike the rapid growth in Turkish economy in 2010, Russian economy growth is still not at the desired level, economic recovery is slower than expected. In fact, Russia's GDP grew 4% on average in 2010, after a contraction of 8% in 2009. Likewise, the economic recovery is still lagging in other operating countries of TME.
As a result, the recovery in TME's revenues is also delayed. In 2010, TME revenues shrinked around 8% in local currency. On the other hand, the tight cost saving measures enabled the company to achieve an EBITDA margin of 13.4%. (2009: %13.7)
In 1H11, TME’s revenues surged by 1.2% in local currency and 5.1% in USD, compared to last year.

7. As Hurriyet is now an international media company, how much of its revenues and EBITDA is coming from Turkey and how much is coming from abroad?
In FY10, 27% of Hurriyet's consolidated revenues and 20% of EBITDA came from TME. If we take into consideration the revenues and EBITDA stemming from Hurriyet Germany as well, 30% of consolidated revenues and 24% of consolidated EBITDA in FY10 came from outside Turkey.

8. Can you give the regional breakdown of TME's revenues and EBITDA?
The bulk of TME's revenue and EBITDA is coming from Russia. As of FY10, 74% of TME's revenues stemmed from Russia, 15% from CIS countries and 11% from CEE countries. A breakdown of Russian revenues as Moscow and the other cities, one can observe that 38% of TME's revenues came from Moscow and 36% from the other cities in FY10.
Meanwhile, 80% of TME's EBITDA stemmed from Russia (45% Moscow, 35% other cities) and 20% from CIS countries in FY10.
As of 1H11, 77% of TME’s revenues came from Russia (38% Moscow, 36% other cities), 13% from CIS countries and 10% from CEE countries. 72% of TME’s EBITDA stemmed from Russia (25% Moscow, 47% other cities), 22% from CIS countries and 6% from CEE countries, in 1H11.

9. Can you give a brief distribution of Hurriyet's revenues?
In FY10, 66% of Hurriyet's revenues were advertising, 14% printing, 14% circulation and 5% other income.
As of 1H11, 67% of Hurriyet consolidated revenues were advertising, 14% pringtin, %13 circulation and 6% other income.

10. What is the trend in internet revenues?
Although internet revenues makes a relatively small portion of out total revenues, it's a high growth and very important business line in our operations. In FY10, the share of online revenues in total ad revenues has been realized as 10.1%. Considering that this ratio was only 1.7% in 2006, the high growth in this business line in just 4 years becomes more evident.

11. What are your major cost items?
In FY10, personel expenditures constituted 31% of our total costs (defined as the sum of cost of sales and operating expenses). Raw material expenses is another major cost item in our operations. In FY10, raw material expenses made 25% of our total costs.
As of 1H11, personnel costs and raw material costs formed 30% and 27% of total costs.

12. What's the weight of newsprint (paper) costs in your total costs?
Newsprint is a very important cost item in newspaper production. In FY10, 25% of Hurriyet's cost of sales and 16% of its total costs stemmed from newsprint costs.
As of 1H11, 27% of Hurriyet’s cost of sales and 18% of its total costs generated by newsprint costs.

13. How is the newsprint purchased and what are the terms?
There is no newsprint production in Turkey. Hurriyet purchases paper from abroad as all other newspapers. Newsprint is imported mainly fron Scandinavian countries and North America. Newsprint for Hurriyet is imported by Dogan Dis Ticaret (Dogan Foreign Trade), a subsidiary of our main shareholder Dogan Yayin Holding. Dogan Dis Ticaret imports the newsprint for all the newspapers of the Dogan Group and benefits of the advantages stemming from larger amount of purchases.

14. Can you give a brief description of your dividend policy?
Our dividend policy is designed in accordance with the relevant Capital Markets Legislation and the provisions of the Articles of Association.
In principle, minimum 50% of "net distributable profit" based on Financial Statements prepared in line with International Financial Reporting Standards (IFRS) and Capital Market Board Regulations are distributed.
Dividend distribution is evaluated in the presence of investment plans that require considerable fund outflow, events that may affect the Company's financial structure and uncertainty and adverse developments in the economy and market conditions.

15. What are your future prospects?
Platforms utilised by media has been varying every day. Content needs of our readers change from day to day. We see these changes as an opportunity to invest in our areas of strength. We generate successful projects in new generation platforms. We follow up developments in internet area and improve our news portal accordingly and feed this portal with strong communities. In addition, we aim to carry our leadership in "classified" ads to internet medium. This way we increase our revenue types.