MediaHouse Limited. Directors Report for the six months ended March 31, 2006

Hamilton, Bermuda, August 17, 2006 -- Caribbean Publishing Company Ltd. (CPC) continues to perform well, and although most of the larger directories do not go to print until the second half of the financial year the sales campaigns for them all got off to promising starts.  In accordance with our accounting policy however, revenues are not recognized until the directories have gone to print.  The period also saw the start of our first sales campaign in Jamaica as publishers and this also started with substantial promise.

As previously announced the group ceased its activities in Maine, U.S.A., during the period so a cost burden was removed from the Group's results.

Bermuda.com continues to improve with enhancements to the site and further growth in revenues and profits.

The results of other Bermuda-based activities continue to improve as a consequence of initiatives put in place by your board and management in prior years. 

I believe that the period represents an excellent start to the financial year and I look forward to sharing the results for the full year with you with anticipation and optimism.  

Your board and management continue their pursuit of new opportunities for the Group in an effort to produce further growth and profitability.  Although these activities consume significant resources of both manpower and funding I feel that they are essential for the continued development and profitability of the Group.

Basic Earnings Per Share for the six months ended March 31, 2006 was 0.84 versus 0.47 in 2005.

Randy French, President and Chief Executive Officer

MediaHouse Limited.

August 17, 2006

MediaHouse Limited

Principal Subsidiaries

Island Press Limited

Bermuda Sun Limited

Preview of Bermuda Ltd.

Industrial Electrics & Controls Ltd.

Bermuda.com Limited

Global Directories Limited

Caribbean Publishing Company Ltd.

Global Directories (USA) Inc.

Registered Office             Clarendon House,

                                                Church Street,

                                                Hamilton,

                                                Bermuda.

Company Secretary           Tucker Hall

Directors                               Randy French                        President & Chief Executive Officer

                                                Warren Brown                  

Vice President

                                                Kenneth DeFontes              

Vice President

                                                Bruce Gordon

                                                Pamela Quarterly    

The directors and officers of the Company hold 341,445 common shares and 53,752 preference shares.  No rights to subscribe for shares in the Company have been granted to any director or officer.