HT&E : ATO issues amended assessments regarding NZ Branch Matter

MARKET ANNOUNCEMENT

AMENDED ASSESSMENTS ISSUED BY ATO

IN RELATION TO NEW ZEALAND BRANCH MATTER

SYDNEY, 23 January 2018 - HT&E Limited (ASX: HT1) advises that the Australian Taxation Office (ATO) has now issued amended income tax assessments to HT&E.

These amended assessments relate to the previously disclosed New Zealand Branch matter and follow the ATO audit of the licensing of New Zealand mastheads by a New Zealand Branch of an Australian HT&E (formerly APN News & Media) group entity. The New Zealand Branch was closed as part of the demerger of NZME on 29 June 2016.

The amended assessments are for the financial years ended 31 December 2009 to 31 December 2012 inclusive, with tax adjustments of $72m plus interest of $32m. The ATO is yet to determine whether any penalties will be applied. HT&E understands the ATO intends to issue further amended assessments in relation to this matter for the financial years ended 31 December 2013 to 31 December 2016 inclusive, with further tax adjustments of approximately $30m to be assessed plus interest and any penalties if applied.

HT&E remains satisfied that its treatment of this matter is consistent with relevant taxation legislation. HT&E intends to lodge an objection with the ATO and if necessary contest the amended assessments through litigation proceedings. While these dispute processes are being completed, HT&E would typically be required to deposit with the ATO 50% of the tax in dispute. The timing of any deposit is yet to be agreed with the ATO.

HT&E looks forward to resolving this matter and will continue to update the market as required.

ENDS

For further information, please contact:

Helen McCombie

M: [phone]

E:[e-mail]