Re Agreement

Catalyst Media Group PLC
05 January 2005

5 January 2005 

Catalyst Media Group PLC

Catalyst Media Group PLC ('the Company' or 'CMG') announces that it has issued
14,678,968 new ordinary shares of 1p each ('Shares'), representing 8.28 per cent
of the Company's share capital as enlarged by the issue of Shares, to Champ Car
World Series LLC ('Champ Car') in relation to an agreement dated 15 December
2004. The Shares, which have a value of £1.14million (US$2.2million) based on
the closing share price of 7.75p on 12 November 2004 (the date prior of the
suspension of trading in the Company's shares) have been issued in consideration
for Champ Car agreeing to satisfy certain financial obligations of up to
£1.14million (US$2.2 million) of the Company's television production subsidiary
Betelgeuse Productions, Inc ('Betelgeuse') incurred by Betelgeuse whilst
providing television production services to Champ Car for the 2004 Champ Car
World Race Series. Champ Car has given certain undertakings with respect to the
sale of the Shares such that they may be only be sold in specified tranches
during a 90 day period from the date that the shares re-commence trading, such
sales to be with the assistance of CMG. If funds received from the sale of the
Shares by Champ Car exceed payments made by them under this agreement the
balance will be payable to CMG. If there is a deficit, CMG is required to pay
any shortfall to Champ Car. Any such shortfall would not increase the Group's
liabilities and would only result in an acceleration of cash outflows from the
Group. However, as the proceeds of the sale of the Shares by Champ Car reduces
Betelgeuse's, and hence the Group's, overall liabilities, CMG will be in a
stronger financial position following any sale of Shares by Champ Car.

Application will be made for the Shares to be admitted to trading on AIM.
Admission is anticipated to be effective from 12 January 2005.

The Company announced on 12 November 2004 that it was in advanced negotiations
to acquire a 20 per cent stake in Satellite Information Services Holdings
Limited ('SIS') from United Business Media ('The SIS Acquisition'). The SIS
Acquisition would constitute a reverse takeover in accordance with the AIM
Rules. Accordingly, the Company announced the suspension of its shares from
trading on the Alternative Investment Market of the London Stock Exchange. These
negotiations are continuing and the shares remain suspended for the time being.
Further announcements will be made as appropriate.

END

Enquiries

Paul Duffen, Catalyst Media Group PLC
020 7927 6699




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