Update

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

                                     Update

INTRODUCTION

Milestone,  the AIM quoted  (AIM: MSG) provider  of digital media and technology
solutions, is pleased to announce an update on recent developments following its
acquisition of the FEDS / LIMIT software solutions (announced 2 August 2011) and
Oil Productions Ltd (announced 15 August 2011),.

Highlights

  * Onside - Pilot commenced with Charlton Athletic Community Trust. Discussions
    now taking place with other sporting entities, including Saracens Rugby Club
    and Premiership Rugby.
  * VO1CE - Pilot of new community initiative launched with the Metropolitan
    Police Hackney Gangs Intervention Team.
  * Oil Productions - Contract with Unilever's "Lynx" Brand renewed.



SUCCESSFUL DEVELOPMENT OF FEDS / LIMIT PRODUCTS

FEDS  is a  collaborative working  tool that  allows for  real-time feedback and
sharing of information. The Company has extended the programme and is developing
it in a number of new sectors including sport and the community.

1: OnSide

The  "OnSide" project, which was first  announced on 8 April 2011, uses the FEDS
software  to produce  a dynamic  risk assessment  tool within  community sports,
initially  in football and then being rolled  out across various sports. This is
initially  being piloted with  Charlton Athletic Community  Trust ("CACT"). CACT
runs  football coaching sessions in  the community and is  using the software to
monitor  and  evaluate  attendance,  demonstrate  good governance and procedures
within the organisation, real-time information sharing with various stakeholders
and  as a dynamic risk assessment tool. OnSide was developed to help build safer
local communities.

The  Company  is  also  in  discussions  with other sporting entities, including
Saracens Rugby Club and Premiership Rugby, in relation to a potential rollout of
the OnSide application.

2: VO1CE

The Company has also developed the FEDS software into VO1CE, a community project
in  conjunction with the Metropolitan  Police's Hackney Gangs Intervention Team.
The  platform allows over  30 stakeholders, such as  the local police, community
organisations  and focus  groups to  share information,  news and events in real
time  and  on  mobile  devices.  Initial  trials  of  VO1CE  in Hackney have now
commenced.


FURTHER CONTRACT WINS FOR OIL PRODUCTIONS

Oil  Productions Limited is  a multi-platform, digital  media design studio that
was acquired by Milestone in August 2011.  Since the acquisition, Oil has signed
four  new projects for  the Conran Group,  Scholastic, Eyemedia Ltd and Heretics
Agency, as announced on 25 August 2011.

Recently,  Oil has been retained  to carry out a  further project for Unilever's
"Lynx"  brand.   In  January  2010, Oil  launched  Lynx  Twist with the "Keeping
Keeley"  interactive sitcom on Facebook, which featured Keeley Hazel (Model) and
Blake  Harrison (From  Channel 4's The  Inbetweeners).  This  was followed up in
March  2011 with the Lynx Excite "Fallen Angel"  campaign in which Oil created a
personalised movie of "you" tempting the Angel Gabriel (Kelly Brook) from heaven
to  visit you in your street.  The campaigns  have been a great success and as a
result Lynx's Facebook community is set to top 500,000 fans this month.  Oil has
been asked to re-launch both campaigns via Lynx's Facebook channel.


BOARD STRENGTHENED WITH NEW NON-EXEC

On  15 August 2011, Milestone announced the appointment  of David Hill as a Non-
Executive  Director of the Company. David has  a strong skill set for developing
and  executing  strategy  to  achieve  the  successful delivery of the Company's
objectives.


FUNDRAISING CONTINUES

As announced on 15 August 2011, the Company raised £201,893, at a premium to the
prevailing  market price, through the issue of 20,189,300 new ordinary shares in
the Company.

The  Company is  seeking to  raise further  funds in  the near future to further
accelerate its growth strategy.


Deborah White, CEO, commented:

"The  amount of progress  we have made  over the last  3 months is very pleasing
indeed.   Whilst there is  still much work  to do the  positive response we have
received and heightened level of enquiries seen across the product range further
demonstrates  the strength of offering we have worked very hard to put in place.
We are building momentum and this is an exciting time for Milestone Group."

Nick Darvill, Charlton Athletic Community Trust (CACT), comments on OnSide:

"Onside  designed and  created by  Milestone provides  the CACT  with reportable
structures and procedures. Coach certification, dynamic risk assessments and the
immediate  monitoring  of  participants  and  stakeholders  are all recorded and
evaluated.   Immediate  access  to  statistics  ensures  our  coaching  resource
(including  139 casual  coaches)  is  correctly  managed  and  deployed.  Onside
provides  us with the facility for real time information sharing between all our
stakeholders   thereby   ensuring   training  sessions  are  conducted  in  safe
environments    based    on   current   information.   This   demonstrates   the
CACT/stakeholder commitment to building safer communities."

Inspector  Russ  Joao,  Gangs  Intervention  Team,  Hackney Borough Metropolitan
Police Service, comments on VO1CE:

"VO1CE   brings   together  the  Metropolitan  police  and  the  32 third  party
stakeholders  in the  London Borough  of Hackney.  Milestone Group  provides the
managed  service  that  enables  the  real  time information sharing between the
stakeholders.    This  will  enhance  community  cohesion,  increase  trust  and
confidence  and demonstrates a  commitment to building  safer communities within
the Borough"

Helen Clayton, Programme Manager, Premiership Rugby

"The  safety of all those involved in rugby is at the centre of what Premiership
Rugby  strives  to  achieve.  The  OnSide  initiative  aims  to  deliver a safer
environment  for  all  young  people,  staff  and volunteers that participate in
sports within the community. We are pleased to be actively participating in this
pilot with Milestone and look forward to working with them going forward."




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                               Tel: [phone]


 College Hill, PR
 Jamie Ramsay                                      Tel: [phone]








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Source: Milestone Group PLC via Thomson Reuters ONE

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