Loan Agreement

MILESTONE GROUP PLC
                         ("Milestone" or the "Company")

                                 Loan Agreement

The  Board of AIM quoted Milestone (AIM: MSG), the provider of digital media and
technology  solutions, announces  that it  has today  entered into a convertible
loan  agreement in  respect of  a convertible  loan in  the sum of £150,000 (the
"Convertible Loan").

The terms of the Convertible Loan are as follows:


 Term                               12 months


 Fees / costs payable               £3,500 plus VAT in respect of legal fees


 Net proceeds                       £145,887.50


 Coupon                             8 per  cent. per annum  payable on a annual
                                    basis


 Final conversion / redemption date 31st March 2011


 Conversion price                   Equivalent   to   15 per  cent.  below  the
                                    average   mid-market   price  for  the  20
                                    business   days   prior   to  the  date  of
                                    conversion




The  Convertible  Loan  will  be  drawn  down immediately. This funding provides
additional  working capital and enables the Board to further develop the Company
in the short term.

Deborah White, Chief Executive of Milestone, commented:

"We  are grateful for the continued support of our stakeholders. This short term
loan  will allow  us to  continue to  develop and  deliver our expanding bespoke
solutions for web and mobile platforms."



  FOR FURTHER INFORMATION:



  Milestone Group PLC
  Deborah White, Chief Executive         Tel: [phone]



  Strand Hanson Limited
  Richard Tulloch / David Altberg        Tel: [phone]



  Hybridan LLP
  Claire Louise Noyce / Stephen Austin   Tel: [phone]
                                                             

[HUG#1399948]