Interest in SIS

10 Nov 2005 07:00

Catalyst Media Group PLC10 November 2005 10 November 2005 Catalyst Media Group PLC Increase in interest in Satellite Information Services (Holdings) Limited Catalyst Media Group PLC ("CMG") is pleased to announce that SatelliteInformation Services (Holdings) Limited ("SIS") has purchased 20,638 of its ownshares from the Racecourse Association for a consideration of £10.7 million incash. As a consequence, CMG's interest in SIS has increased from 16% to 17.6% atno cost to CMG. Accordingly, CMG's share of the profits from and any futuredividend paid by SIS will increase from 16% to 17.6% with immediate effect. CMG acquired its interest in SIS in September 2005 by the purchaseof Alternateport Limited from United Business Media plc (the"Acquisition"). This acquisition was made through CMG's subsidiary, CatalystMedia Holdings Ltd, which is owned as to 80% by CMG and 20% by EurekaInteractive Fund Limited. At the time of the Acquisition, Alternateport owned20% of SIS which has increased to 22% as a result of the share buy-backdescribed above. Since the completion of the Acquisition in September 2005, CMG has embarked on astrategy to de-risk and reduce costs in the Group so as to maximise the benefitto shareholders of its ownership in SIS. As part of this process GMS, the NewYork based Media Services business, has been sold to management and BetelgeuseProductions Inc ("BPI"), the New York based television production company, hasentered into a joint venture with Pow Pix Productions who have assumed theresponsibility for running the post production facility. As a result of thisagreement BPI's annual cost base has been reduced to less than £100,000. TheGroup is currently in discussions with a number of interested parties withregard to its remaining US subsidiary, NPG Inc., which operates the world'sleading stock footage portal, Footage.net. In the UK a comprehensive re-structuring has been implemented which has reducedoverheads by a further £500,000 annually and the Group now employs a total of 12people worldwide.Notwithstanding this reduction in overhead the Group continues to generaterevenues from its on-going relationships with GMS, BPI and Footage.net as wellas its content licensing activities in the UK and its investment in SIS. EnquiriesPaul DuffenCatalyst Media Group PLC020 7927 6699 This information is provided by RNS The company news service from the London Stock Exchange