Catalyst Media Regulatory News (CMX)

31 Oct 2005 17:56

Catalyst Media Group PLC31 October 2005 31 October 2005 Catalyst Media Group Plc ("Catalyst Media Group" or the "Company") Disposal Catalyst Media Group is pleased to announce that it has completed the sale ofMedia Services Acquisition Corporation ("MSAC"), the Company's New York basedmedia services business, to JSAC LLC. MSAC trades under the name GMS. The consideration payable to Catalyst Media Group is 15 per cent. of grossrevenue of MSAC from 1 January 2006 to 31 December 2010, payable in cashquarterly in arrears and will be applied to general working capital purposes. GMS will continue to provide the Catalyst Media Group with the technologyinfrastructure necessary to host and serve the Company's websites at no costuntil 31 December 2010. Catalyst Media Group will continue to offer GMS'sservices, acting as an authorised reseller and GMS will continue to promote andmarket the Catalyst Media Group intellectual property catalogue on anon-exclusive basis and will share the revenue 50/50 with Catalyst Media Group.This revenue does not form part of the 15 per cent. consideration payable toCatalyst Media Group as described above. In the financial year ended 31 October 2004 MSAC recorded a loss before tax of£0.229 million on turnover of £0.52 million and had net liabilities of £0.194million as at that date. JSAC is jointly owned by Adam Cohen, a former directorof the Company and Jennifer Sultan. Accordingly the transaction is a relatedparty transaction under the AIM Rules. The Directors of Catalyst Media Groupconsider, having consulted with Strand Partners Limited, that the terms of thetransaction are fair and reasonable insofar as its shareholders are concerned. Paul Duffen, Chief Executive of Catalyst Media Group, commented: "This is a win-win solution for GMS and CMG and is in keeping with our newstrategy to re-focus the Group on our UK operations following the recentacquisition of Alternateport. The local management are best placed to take thenecessary decisions to drive the GMS business forward and this deal enables CMGto retain the ability to represent and benefit from the streaming media productsand services that have been developed under our ownership. I wish Adam andJennifer every success in the future and look forward to working with them." Enquiries: Paul DuffenCatalyst Media Group plc020 7927 6699 This information is provided by RNS The company news service from the London Stock Exchange