MUS.L Regulatory News (MUS)

22 Feb 2005 15:19

Music Choice Europe PLC22 February 2005 Music Choice Europe ("The Company") Trading update 22 February 2005 In its last interim statement dated 28 September 2004, the Company warned that,while achieving a good first half performance, it was facing strongercompetition in its market place. In recent months the Board has noted that the pace of change in its marketplacehas accelerated. In particular, the Board expects that TV broadcastingplatforms will seek greater discounts for basic content which is, currently, theprime source of the Company's revenue and that this will place increasedpressure on margins. At the same time, the costs to the Company of maintainingits technical infrastructure are increasing. The Board is therefore undertaking a strategic review of its activities giventhis worsening outlook for its operations. This review will include a wideranging examination of the Company's cost structure and its approach tomarketing value added services. The Board expects to provide a further update atthe time the Company announces its preliminary results towards the end of March. Contacts: Teather & GreenwoodJeff Keating020 7426 9000 Music Choice Europe plcMargot Daly020 7014 8755 This information is provided by RNS The company news service from the London Stock Exchange