Sale of Classic Gold Network

25 Apr 2007 07:02

UBC Media Group PLC25 April 2007 25 April 2007 UBC Media Group plc Sale of Classic Gold Network UBC Media Group plc (UBC.L) today announces that it has sold the 18 AM andassociated digital radio licences that comprise its Classic Gold network to GCapMedia in a deal which values the radio stations at £4.94 million. UBC willreceive a total payment upon completion of the deal of £3.95 million in cash asa result of GCap Media having an existing 20% interest in Classic Gold Digital. UBC expects to show a profit on the sale of these assets of £2.5 million, whichit will report in the current financial year (2007/8). The profitability of the Classic Gold licences has fallen over the last threeconsecutive years as AM listening has declined. Both UBC and GCap Mediarecognise that the best way to maintain the profitability of these licences isto consolidate them with GCap Media's existing Capital Gold network to create asingle classic hits network ultimately transferring to digital platforms. Commenting on the deal, Simon Cole, CEO of UBC Media said: "UBC is now concentrated on building service businesses rather than owningbroadcast licences. We expect our network business to grow strongly this yearand this, together with the important launch of our music downloading servicefor radio stations, needs to be management's focus. I am pleased we have beenable to reach an agreement with GCap that represents good value for ourshareholders and allows GCap Media to take on the development of the ClassicGold radio station network." The disposal is subject to Ofcom approval. Enquiries Simon Cole, Chief Executive, UBC Media Group plc: Tel: 020 7453 1600Diane Barnes, Portland: Tel: 020 7404 5344Sarah Wharry, Seymour Pierce: Tel: 020 7107 8047 There will be a conference call for analysts and investors at 8.30a.m. (BST)today. Details are as follows: Conference call number: 020 7131 0400Pass code: 415470 # Notes to Editors Classic Gold Digital acquired the Classic Gold licences from GCap Media in twoseparate transactions in 2000 and 2002, for a total consideration of £4.3million, which was paid by Classic Gold Digital partly in UBC shares and partlyin cash/cash equivalent. About UBC Media Group UBC is quoted on the London Stock Exchange's AIM market. The Group is themarket leader in the supply of audio content and broadcast data software to theradio industry in the UK. In addition to the entertainment, traffic and traveland national news services provided to commercial radio, the Group is thelargest independent producer of radio programming for the BBC and the UK'sleading supplier of digital radio scrolling text and EPG software. The Groupalso has a partnership with Channel 4 Television in national speech stationOneword and is part of the MXR Regional Multiplex consortium. This information is provided by RNS The company news service from the London Stock Exchange