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UBC Media Group Plc

Trading Update and Further Investment in Audioboo

UBC Media Group plc (AIM: UBC) ("UBC" or the "Company"), the multimedia content and services company, today issues the following Trading Update ahead of its Interim Results for the six months to 30 September 2013, expected to be announced on 25 November 2013. In addition, UBC announces that it has made a further investment into Audioboo, the audio social network platform.

In June last year UBC indicated that it had identified the emerging interactive media market as the sector of its business that offered the best opportunity for growth as so-called 'connected' devices became more important for the consumption of content. Our activities in this area include our investment in the audio social network platform Audioboo and our work in developing interactive software applications and mobile apps for global media clients, including the main software elements behind the UK's Radioplayer. As well as organic growth in these areas, the Company indicated that it planned to seek to use its cash balances to invest further and seek acquisitions.

As part of this focus, UBC also announced that Imagination Technologies were to become a significant shareholder. An initial 10% holding has subsequently been increased to 14%, with the two companies indicating the benefits in many areas of combining Imagination's leading position in silicon with UBC's software and knowledge of the media industry and that several areas of potential co-operation were being explored. Audioboo is just one of those areas.

Growth at Audioboo continues to be encouraging. In the last year, registered users have increased nearly three-fold from 600,000 to over 1.7 million and are now growing at an average of 5,000 a day. Several significant new content partners are now using Audioboo, including ESPN Radio in the US, the UK Premier League and the Australian Football League. This means Audioboo now holds over 1.6 million audio clips with more than 2,000 being added daily - more than one every minute - driving the number of audio clips played using Audioboo via Twitter and other social media to around 1 million a day. Last week, Audioboo had 1.7 million audio 'listens' in a single day with around 60% from outside the UK. It is expected that in October, Audioboo will deliver more than 20 million 'listens' in total. Technology to serve advertising before and after audio clips, as well as trigger accompanying display advertising, has been implemented and is now being gradually rolled-out across the platform. The first revenues from sales of advertising have been received in October.

To support Audioboo's continued growth, UBC has, over the last 6 months, loaned the company a total of £432,000 which is convertible into Audioboo stock at preferential terms. Furthermore as part of the on-going financing of Audioboo, UBC has agreed to make a further equity investment of £210,000 as part of the current round of funding. Following the current round of funding, which is due to close at the end of this month, it is expected that UBC will hold 34% of the ordinary share capital of Audioboo. If UBC and other shareholders converted their current loans into equity, UBC would hold 52% of the ordinary share capital of Audioboo on a fully diluted basis.

In its current trading business, UBC expects turnover to be approximately £1.5m for the six months to 30 September 2013. Operational losses are expected to be in line with market expectations. The Company's cash balance at 30 September 2013 was £1.8 million (£2.6 million at 31 March 2013). UBC has no debt.

Current trading is in line with management's expectations and the Board will update the market further with its Interim Results.

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About UBC Media Group

UBC is quoted on the London Stock Exchange's AIM market. UBC is a leading provider of digital content, software and mobile applications. The Group is the largest independent producer of radio programming for the BBC and a provider of entertainment programming to commercial radio stations throughout the UK. Its software division, Unique Interactive, is a global supplier of digital radio text and data services.

www.ubcmedia.com