Disposal

Milestone Group PLC
25 August 2005


For Immediate Release                                            25 August 2005

                              MILESTONE GROUP PLC

                  Disposal of Minority Holding in Reading 107

Milestone Group PLC ('Milestone' or 'the Group'), the AIM listed media group,
announces it has entered into an agreement to sell its 36.8% shareholding in
Reading Broadcasting Company Limited ('Reading 107') to GMG Radio Holdings
Limited and Goodhead Group Plc, existing shareholders in Reading 107, for an
aggregate cash consideration, including repayment of Milestone loans, of
£571,000.

In the year ending September 2004, Reading 107 made a loss of £274,000 on
turnover of £717,000. The latest (Q2, 2005) RAJAR audience research gave the
station a 14% weekly adult reach in the Reading area (36,000 listeners) and a
total market share of 3.6%.

Milestone Chief Executive, Andy Craig, said:

'This disposal completes the first stage of the review of strategy which
Milestone announced in June 2005. Milestone is proud to have played its part in
the establishment of a new radio station for Reading. Nevertheless, as a
minority shareholder, the Group found itself limited in its ability to influence
the ongoing operations of the station. By disposing of this non-core investment
Milestone is able to fully focus it's resources and develop cross media at the
four radio stations in which the Group possesses ownership control.'

The sale of Milestone's investment in Reading 107 represents a loss of £335,000
to the Group in respect of a write down of unamortised good will. The cash
proceeds will be used for general working capital purposes of the Group.

For further information:

Milestone Group                                              Tel: [phone]
Andy Craig

Buchanan Communications                                      Tel: [phone]
Bobby Morse / Suzanne Brocks

Arden Partners                                               Tel: [phone]
Richard Day




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