In view of expected market developments and after a reassessment of the Medium-Term Plan, it is RSDB’s intention to change both the scale and organisation of the group’s activities. This involves abandoning the current model, based on the three brand names Roto Smeets, PlantijnCasparie and Media Partners. The core business will now be grouped into two business lines: 'print productions' and 'marketing communications'.

Among the reasons for this decision is the fact that RSDB sees its clients increasingly basing their purchasing activities on price alone, or on jointly developed marketing communications strategy, or on a mixture of both approaches.

RSDB’s strength lies in both the creation of rotogravure printed work for mass circulation and the editorial creation and design of marketing communications concepts. It is with this in mind that RSDB intends to combine all the printing activities of Roto Smeets with all technical and process-related activities, such as database and workflow management systems, afterpress and predistribution services within the 'print productions' business line. This business line will concentrate primarily on the European rotary market. The position in the mass-circulation rotary market will be strengthened thanks to a significant investment programme, including a 48-page rotary offset press for Roto Smeets Weert, a 3.68 m wide rotogravure press for Roto Smeets Deventer and an adhesive binding train for De Wit Grafische Projecten in Eindhoven.
It is proposed that the second business line ­ 'marketing communications' ­ will combine the communications and creative activities of Media Partners with the project management and marketing automation activities of PlantijnCasparie. In terms of turnover and service, this will belong among the top in its field in the Netherlands.

Despite the fact that the sheet-fed offset activities of PlantijnCasparie are on the road to financial recovery, this proposal means that they no longer fall under the core activities of the revised business model. The sheet-fed offset companies will be offered for sale at an appropriate time, in an market where they will be able to show themselves to better advantage.

This refocusing within RSDB has led Markus Bos, the Board member currently responsible for PlantijnCasparie, to announce his departure from the company as of 1 May 2005. As of 1 November 2004 Markus Bos will cease to act as member of the company’s Board and as Managing Director of PlantijnCasparie. He will remain with the company in an advisory capacity until his departure. John Caris, a fellow Board member, will take over responsibility for PlantijnCasparie.

The provisional figures for the third quarter confirm the expectation expressed on the announcement of the half-year results that the operating profits over the entire year 2004 will show a considerable improvement over the previous year.
Clearly, in view of the amended strategy the amount set aside as provision for the existing reorganisation will have to be revised.

The Works Council, employees and trades unions have today been informed of the intended policy.

Hilversum, 20 October 2004

ROTO SMEETS DE BOER NV
Executive Board

For further information: Hans de Jong / Leo van Gelder, tel. +31 35 625 86 00