Milestone Group PLC : Definitive Agreement

MILESTONE GROUP PLC

"Milestone" or the "Company"

Definitive Agreement

Milestone, the AIM quoted (AIM: MSG) provider of digital media and technology solutions, is pleased to announce that it has entered into a Definitive Agreement with Spirituality for Kids International Inc ("SFK"), which will allow Milestone to deliver educational materials to schools that meets the Governments expectations and Ofsted requirements with respect to teaching of Spiritual, Moral, Social and Cultural Education ("SMSC") ("Agreement").  

SFK is a non-profit organisation founded in Los Angeles, California, whose programmes provide parents and children with online classes to foster spiritual awareness and dialogue. Milestone has been working with Prospects Improve, a leading education, employment and training company, to modify these materials into a format that meet the standards for SMSC within the UK Curriculum.

Prospects Improve is one of the country's leading school and academy improvement service providers and is a part of the Prospects Group. Prospects Improve has an expert team of experienced and skilled staff who have undertaken a range of work to support schools and academies on their journey of self-improvement.

The revised materials are now being trialled in 50 UK primary schools across the UK and will form the feedback forum to enable the materials to be finalised before a full commercial release which is expected to take place in the summer of 2013.

In 2008, the RAND Corporation conducted a quasi-experimental research study across 19 program sites in South Florida. The study found that the Spirituality for Kids program had significant beneficial effects on nearly every domain tested:  social skills, leadership, adaptability, communication and study skills as well as attention problems, hyperactivity and withdrawal. Spirituality For Kids had a significantly greater impact than any other similar program according to the RAND Corporation.

RAND's evaluation also revealed that many of these effects persisted at 12-week follow-up. This study also provides the first causal link between spiritual development and resilience. The RAND Corporation is a non-profit organisation that provides objective analysis and effective solutions that address the challenges facing the public and private sectors around the world.  

In 2008 the SFK programme won the KidsCount Inspiration Award 2008 for Best Contributions to Youth Organisations. Prospects Improve recently received the Education Consultant of the Year Award at the Education Investors Awards 2012 ceremony in November 2012.

Deborah White, a director of Milestone, has been working with a dedicated team of consultants on this project for a number of years and has a financial interest in the project. As a result Deborah White is deemed to be a related party and future transactions arising under the terms of any such licence agreement may constitute related party transactions pursuant to AIM Rule 13.  Should this occur, a further announcement will be made.  

Deborah White, Milestone's CEO commented:

"The introduction of Spiritual, Moral, Social and Cultural Education into the UK Curriculum is an important development for young people and we are pleased to be able to work with SFK and Prospects to develop education materials which help get the message across in a fun and engaging way."      

For further information:

Milestone Group PLC Deborah White, Chief Executive	Tel: [phone]
Cairn Financial Advisers LLP, Nominated Adviser Liam Murray / Avi Robinson	Tel: [phone]
Hybridan LLP, Broker Claire Louise Noyce / Deepak Reddy	Tel: [phone]

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Source: Milestone Group PLC via Thomson Reuters ONE

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