25 June 2007

UBC Media Group plc

Preliminary results for the year ended 31 March 2007

POSITIONED FOR GROWTH AFTER CHALLENGING YEAR FOR RADIO

-          Normalised loss* ahead of Reuters consensus estimate

-          New financial year has started with return to revenue growth

Financial Highlights

-          £1.6m invested in service to purchase music from radio stations, branded today as ‘Cliq’.

-          Digital software sales show strong international growth with revenues up  31.5% at £1.06 million (2006: £806,000).

-          Group revenues down 9.3% to £17.63 million (2006: £19.44 million).

-          Normalised loss* £948,000 (2006: £55,000 loss).

-          Successful sale of non-core 80% holding in Classic Gold business subject to Ofcom approval after year-end for £3.95m in cash, boosting cash reserves.

Statutory Results

-          Group Turnover of £17,628,000  (2006: £19,435,000).

-          Operating loss  of £1,264,000 (2006: £193,000 loss).

-          Loss before taxation for the year was £1,685,000 (2006: £234,000 loss).

Strategic Highlights

• - Cliq music purchase system now broadcast in London and ready for national launch before year-end.
  
  
• - Imagination Technologies to incorporate Cliq application in future digital radio devices.
  
  
• - Cliq technology to be licensed for trials in Ireland with other European trials expected shortly.
  
  
• - Major deal announced with XM Satellite Radio in the US for text and data software.
  
  
• - UBC chosen by BBC for new DRM broadcast trials in SW England.

-          Sky News Radio Network now in profit and Networked Programming revenues recovering strongly: April & May 2007 30% up on same period last year.

-          Digital Content businesses move into TV:  Unique launches web video service for Marie Claire, Smooth Operations wins contract for Microsoft Live Earth coverage.

-   Partnership with Channel 4 in application for second national digital multiplex.

* Normalised loss is the group loss on ordinary activities before taxation but excluding exceptional items, goodwill amortisation and the impairment of fixed asset investment.

Chief Executive, Simon Cole, commented,

“This has been an exceptionally difficult year for the radio industry.  However we maintained our strategic focus throughout.  We now emerge into a more benign climate with advertising revenues recovering, good growth in our first quarter, a stronger cash position and poised to launch our innovative Cliq service with the backing of the industry’s biggest device maker”.

There will be a presentation to analysts and investors at 9.00am BST, which will take place at Tower 42, 25 Old Broad Street, London, EC2N 1HQ.

Enquiries

Simon Cole, Chief Executive, UBC Media Group plc: Tel: 020 7453 1600

Diane Barnes, Portland for UBC: Tel: 020 7404 5344

2007-06-25 11:08:56

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