Legal claim & Update on Working Capital

MILESTONE GROUP PLC

                          "Milestone" or the "Company"

                   Legal claim and Update on Working Capital

Legal claim

AIM  quoted  Milestone  Group  PLC  (AIM:MSG),  the  digital solutions provider,
announces  that it  is in  receipt of  a legal  claim from Mr Cormac Crawford, a
shareholder in the Company (the "Claim").  The Claim follows certain allegations
made  by Mr Crawford against  the Company and the  Directors as announced on 28
February 2011.

The  Claim is in relation  to the issue of  ordinary shares of 0.1 pence each in
the  capital of the Company  ("Ordinary Shares") to Ms  Deborah White and Mr Guy
van Zwanenberg as announced on 20 December 2010.  The Claim alleges, inter alia,
that the Board's resolution to allot and issue such Ordinary Shares was not made
in  good faith and,  whilst each of  the allegations contained  in the Claim are
being  brought against  the individual  Directors, the  Company is  also a named
defendant.

As  previously announced on 28 February 2011 and  as addressed in the Chairman's
statement  of the Financial Statement for  the year ended 30 September 2010, the
Board was of the opinion that the allegations made at that time were without any
merit  and  would  be  vigorously  defended.   The  Board continues to be of the
opinion that the Claim is without any merit and will be vigorously defending the
Claim.

Update on Working Capital

As  at 12 April 2011, the Company had net  cash of £47,468 following the receipt
of  a three month short term loan of £17,000.  In addition, the Company also has
a  committed three month short term loan of  £35,000, which it will draw down as
required.  Additionally, the Directors are also confident that the Company will,
towards  the end of  this month, receive  a VAT rebate  of approximately £30,000
from  HMRC.  Following receipt of  the loans and on  the basis of receipt of the
VAT  rebate, the  Directors believe  that they  will have  adequate funds for at
least  the next six weeks, on the basis that the Company continues to be able to
manage  the timing  of settlement  of its  current liabilities.  However, in the
event  that the costs associated with defending the Claim are over and above the
Directors  current expectations,  the Company's  cash position  may be adversely
impacted.

As  such, as previously  announced, the Company  continues to be  reliant on its
ability  to raise further funds in the immediate to short term.  The Company can
confirm  that it  is in  discussions with  a number  of interested  parties with
regard to the provision of funding.  However, should the Company be unsuccessful
in  raising  further  funds,  this  will  have  a material adverse effect on the
Company's  financial position and operations.  In the event that such activities
are  not successful  the Company  will not  be able  to continue  trading in its
current form.  There can be no guarantee that such funding will be available, or
on terms acceptable to the Company.

Further announcements will be made in due course as appropriate.


 FOR FURTHER INFORMATION:


 Milestone Group PLC               Today:        020 7457 2020
 Deborah White, Chief Executive    Thereafter:   020 7929 7826



 Strand Hanson Ltd, NOMAD
 Richard Tulloch / David Altberg   Tel:          020 7409 3494



 Hybridan LLP, Broker              Today:        020 7457 2020
 Claire Louise Noyce               Thereafter:   020 7947 4350



 College Hill, PR
 Jamie Ramsay                      Tel:          020 7457 2020












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Source: Milestone Group PLC via Thomson Reuters ONE

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