Island Press Releases Director's Letter To Shareholders

Hamilton, Bermuda: 1^st November 2005 - Island Press (Holdings) (now MediaHouse Ltd.) has released the following Director's Report to Shareholders to the Bermuda Stock Exchange (BSX).

"The Group is reporting a net profit of $157,321 or $0.23 per common share for the year-ended September 30, 2004. The year was one of much activity and involved significant challenges.

Effective April 1, 2004 the Group's newly formed subsidiary Vanilla Limited (now
Bermuda.com Limited) acquired the assets and businesses of the entities known as Bermuda.com and The Tourist Box. This brought positive cash flow and also broadened the Group's interests in Bermuda to include electronic media. Consequently the Company is now able to offer a much broader range of options to the Bermuda advertiser including commercial printing, news media, three different types of tourist related publications and electronic media. Your board believes that the acquisition of Bermuda.com will bring much value to the Group in the future.

During the year the Group's Bermuda based activities were consolidated into its premises at       19 Elliott Street, Hamilton. This involved moving the Bermuda Sun from its previous location at 41 Victoria Street.  The Victoria Street premises are subsequently let to primarily third parties, resulting in a reduction in overheads and spreading of the Elliott Street overheads over a broader revenue base. This will have a beneficial effect on Bermuda operations; however the full benefit will not be seen until fiscal 2005.

The work previously done to strengthen Caribbean Publishing Company Ltd. (CPC) continues and is showing significant success as CPC made a substantial contribution to Group profits in the year under review. At the same time, CPC's head office in Grand Cayman was totally destroyed by Hurricane Ivan on September 11th and 12th, 2004. Significant challenges were encountered which had to be overcome, including the competition for scarce resources in post hurricane Grand Cayman, total loss of office furniture, equipment, and the loss of documentation. Alternative premises were subsequently acquired which required build-out, new furnishings, computer and network systems. I would like to pay tribute to all our management and company members in Grand Cayman whose efforts, determination, perseverance and tolerance enabled the CPC to fully recover. This all happened the same time as many of our company members were trying to recover from significant, and in some cases devastating personal loss.

The challenges encountered in Grand Cayman resulted in the delay of CPC's audit and consequently the late issue of the attached financial statements.

Your board continues to actively search for new opportunities for both the Group's Bermuda subsidiaries and its directory publishing business in the Caribbean, with a view to stimulating growth and building shareholder value.

I would like to thank our board for their continued support, wise counsel and the commitment they show to the Group despite the many competing demands on their time and energy.

The board would like to thank all our company members for their continued efforts on behalf of the Group and commitment in a period of constant change.

As a public company listed on the Bermuda Stock Exchange, it should be noted that the directors and officers of Island Press (Holdings) Limited held 339,360 of the common shares and 51,975 preference shares. No rights to subscribe for shares in Island Press (Holdings) Limited have been granted to any director or officer and there are no service contracts with any director or officer. No dividend is proposed on the common shares for the period under review." 

Signed by:

Randy French, Chairman and Chief Executive Officer

Island Press (Holdings) Limited.