Re SIS Dividend Policy

Catalyst Media Group PLC
09 February 2007



                            Catalyst Media Group PLC
                            ('CMG' or the 'Company')

                         Further re SIS Dividend Policy

CMG owns a 22.2% stake in Satellite Information Services (Holdings) Limited
('SIS'), the leading producer of video, audio and data to over 9,700 licensed
betting offices in the UK and Ireland whose major customers include Ladbrokes,
William Hill, Coral and the Tote.

In the Company's Interim Statement for the six month period ended 30 September
2006, the Board stated 'SIS has, in the recent past, had a policy of declaring a
dividend every four years. In line with this policy, the Board believes a
significant dividend from SIS will be paid in the first quarter of 2007 which,
if paid will have a direct impact on profits and earnings.'

On 15 January 2007, the Company announced that it had been advised by the SIS
board that it is no longer the intention of SIS to pay a dividend in the first
quarter of 2007 and that the future SIS dividend policy is more likely to be
that it will pay regular annual dividends consistent with annual profits instead
of significant four yearly payments.

Accordingly, the directors of CMG have been examining the implications of that
possible change in dividend policy on its funding arrangements following the SIS
decision to defer payment of an exceptional dividend.

On 2 October 2006, CMG announced that it had increased its effective interest in
SIS for a cash consideration of £5.5 million. In order to acquire this from The
Eureka Interactive Fund Ltd ('Eureka'), CMG was contractually required to first
repay the balance of £10.64 million to redeem the Deep Discount Bonds held by
Eureka. These were issued to Eureka at the time of CMG's initial acquisition of
an interest in SIS. In order to finance this transaction and the associated
costs, CMG has drawn down £17.3 million of an £18.625 million facility
('Facility') that has been arranged with Investec Bank (UK) Limited
('Investec').

Under the terms of the Facility, in the event that the outstanding debt and
accrued interest due to Investec is in excess of £10 million at any time after
31 March 2007, then Investec can exercise a warrant to acquire an effective 10%
out of the 22.2% holding held by CMG at a nominal price, giving CMG a resultant
shareholding of 12.2% in SIS.

Accordingly, the Directors are actively progressing a number of refinancing
opportunities in order to raise approximately £10 million by 31 March 2007. Such
funding, which may include, either in whole or in part, an equity issue is
required in order to safeguard CMG's interest in SIS. The board has received
assurances from certain major shareholders that they are supportive of an equity
issue at 1 pence per share and is therefore confident that appropriate funding
arrangements will be secured, although there can be no formal guarantee that
such will be the case. It is anticipated that the final structure of the funding
will include an opportunity for all qualifying shareholders to participate
through an open offer of new ordinary shares in the Company. It should be noted
that the funding arrangements with Investec are all effectively secured on the
shares in SIS and no parent guarantees are involved.

A further announcement will be made as appropriate.


Enquiries:

Michael Rosenberg
Catalyst Media Group plc                           [phone]

James Harris & Angela Peace
Strand Partners Limited                            [phone]





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