Final Results

Media Content PLC 6 December 2000 MEDIA CONTENT PLC Announcement of Final Results for the year ended 30 June 2000 Media Content PLC ('Media Content' or 'the Company') today announces its final results for the year ended 30 June 2000. The Annual Report and Accounts has also been sent to shareholders today and copies are available from the Company's registered office, 29 Pall Mall Deposit, 124-128 Barlby Road, London, W10 6BL. SALIENT FEATURES 2000 1999 £ £ Turnover 328,989 40,555 Loss after taxation (5,225,289) (1,061,194) Loss per ordinary share (0.9) (0.5) (pence per share) CHAIRMAN'S STATEMENT Dear Shareholders I am pleased to announce the first full year operating results of Media Content PLC, highlighted by a significant growth in revenue to a level eight times that of the previous year. At the same time, although this produces an apparently large headline loss, the Board has decided to operate the highest possible prudence in its approach to goodwill, notably through the write-off of £4.7m related to the reversal in March 1999. This will enable investors to have a clearer picture of Media Content's financial position now and in future, which the Board believes is very positive given the development prospects which the company foresees for itself, as well as its healthy balance sheet. The market for sports media rights and related products and services continues to grow at a tremendous pace. In addition to being the driver of pay TV penetration, sports is proving to be critical to the development of emerging media mass markets such as internet and wireless. As such, the platform for Media Content's activities is enormously healthy. In its first full year of operations, Media Content has significantly developed its business and further refined its strategy. Critically, the company's operating approach has been clearly validated by the market, as evidenced by the key sports media brands that have chosen Media Content as their advisers. In addition to previously announced activities, highlights of the operating year are the signing of a long-term deal as media advisors to Manchester United PLC - the world's pre-eminent sporting brand, and the appointment of Media Content by the New Zealand Rugby Union to advise the legendary All Blacks on their media rights. Central to these deals are the merging of old and new media and the continued transformation of these properties into the digital era. Consistent with Media Content's operating bias, both deals enable us to participate in upside derived from the exploitation of our clients' rights and, in turn, build asset value. Media Content has divided itself into two units on an operating basis, Media Content Sports Media Advisors Ltd., and Media Content Development Ltd. These two units are strategically linked and are designed to provide mutual benefits to each other. Media Content Sports Media Advisors' activity is to act as an independent advisor to broadcasters, rightsholders and other sports media firms as regards the media rights. Due to the experience and relationships of the principals and the clear need for an independent, non-aligned operator, this entity is serving a growing roster of clients. Activities have included the successful worldwide marketing of the television rights for the Sydney 2000 Paralympics to record worldwide audiences, the procurement of a major European contract for US sports entertainment group the World Wrestling Federation, the programming of the International Football Channel, and an advisory contract with AirTV, an entity set up to feed live sports programming to aeroplanes. Media Content Development undertakes, with relevant partners, to develop new properties, principally in the new media area. Its role is in the conception, strategic and operational development, arrangement of finance and contribution to ongoing management of such sports media entities. We expect to use the proceeds of this year's successful capital raising to further our interests in this regard. Although we view the current flagging perception on the part of financial markets of the value of internet and technology-based businesses as temporary, we have nonetheless taken a sensible approach to this area. We continue to review many deals but remain cautious, as evidenced by our current strong cash and capital positions. An example of the synergy Media Content sees between its operating subsidiaries is the company's acquisition of 25% of Sportev Ltd, owner of sports webcaster sportev.com. While Media Content Development Ltd seeks to build asset value through this investment, Media Content Sports Media Advisors benefits from ongoing fees emanating from this relationship. Since the financial year in question, Media Content has also announced its joint-venture to create an online marketplace for the trading of sports television and media rights, sportsmediarights.com, and the company has also confirmed the opening of a Media Content office in Hong Kong to target the fastest growing sports media region in the world. As regards the financial results, Media Content recorded revenues of £328,989, expenses of £930,745, as well as an exceptional item (representing the prudent write-off of the remaining goodwill associated with the reversal of Media Content Limited) thus producing a net loss of £5,225,289. The full balance of the goodwill on the reversal of Media Content Limited has been written off in the current year and amounts to £4,706,284. Looking ahead, Media Content intends to continue to develop strategic and advisory relationships with the leading brands in the marketplace. As these brands build revenues and value, Media Content benefits correspondingly. Moreover, Media Content will continue to look at expanding its capabilities from its London and Hong Kong bases in order to offer clients more global coverage as appropriate. Importantly, Media Content has clearly made its presence felt at the international sports media table. I am confident that the company is poised to deliver the value to its shareholders which this privileged position may confer. Robert Montgomery Chairman CONSOLIDATED PROFIT AND LOSS ACCOUNT Year ended 30 June 2000 Year 19 June ended 1998 to 30 June 30 June 2000 1999 £ £ TURNOVER 328,989 40,555 Administrative expenses Exceptional item: Amortisation of goodwill (4,706,284) (240,750) Other administrative expenses (930,745) (593,076) ----------- ----------- (5,637,029) (833,826) ----------- ----------- OPERATING LOSS (5,308,040) (793,271) Loss on disposal of - (300,000) subsidiary Interest receivable and 82,751 32,625 similar income Interest payable and similar - (548) charges LOSS ON ORDINARY ACTIVITIES BEFORE AND AFTER TAXATION ----------- ----------- BEING RETAINED LOSS FOR THE (5,225,289) (1,061,194) YEAR =========== =========== Basic loss per share (pence) (0.9) (0.5) =========== ============ Diluted loss per share (0.9) (0.5) (pence) =========== ============ All of the company's operations were classified as continuing in the year. There were no other recognised gains or losses other than shown above. CONSOLIDATED BALANCE SHEET Year ended 30 June 2000 2000 1999 £ £ FIXED ASSETS Intangible assets - 4,706,284 Tangible assets 32,389 26,750 Investments 375,102 - --------- --------- 407,491 4,733,034 --------- --------- CURRENT ASSETS Debtors 69,677 19,204 Cash at bank and in hand 4,190,385 440,009 --------- --------- 4,260,062 459,213 CREDITORS: amounts falling due (74,969) (44,924) within one year --------- --------- NET CURRENT ASSETS 4,185,093 414,289 --------- --------- TOTAL ASSETS LESS CURRENT LIABILITIES 4,592,584 5,147,323 ========= ========= CAPITAL AND RESERVES Called up share capital 6,359,114 5,812,500 Share premium 4,519,953 396,017 Profit and loss account (6,286,483) (1,061,194) --------- --------- EQUITY SHAREHOLDERS' FUNDS 4,592,584 5,147,323 ========= ========= These financial statements were approved by the Board of Directors on 30 November 2000. CONSOLIDATED CASH FLOW STATEMENT Year ended 30 June 2000 Year 19 June ended 1998 to 30 30 June June 2000 1999 £ £ Net cash outflow from operating (566,965) (654,932) activities Returns on investments and 82,751 32,077 servicing of finance Capital expenditure and financial (435,960) (28,533) investment Acquisitions and disposals - 272,880 ---------- -------- NET CASH OUTFLOW BEFORE FINANCING (920,144) (378,508) FINANCING 4,670,550 818,517 ---------- -------- INCREASE IN CASH 3,750,376 440,009 ========== ======== RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS Year ended 30 June 2000 Year 19 June ended 1998 to 30 30 June June 2000 1999 £ £ Increase in cash in year/period 3,750,376 440,009 Net funds at beginning of 440,009 - year/period --------- ------- Net funds at end of year/period 4,190,385 440,009 ========= ======= RECONCILIATION OF MOVEMENTS IN CONSOLIDATED SHAREHOLDERS' FUNDS Year ended 30 June 2000 2000 1999 £ £ Net funds at 1 July 1999/19 June 5,147,323 - 1998 Loss for the financial year/period (5,225,289) (1,061,194) Shares issued in the year/period 4,670,550 6,208,517 --------- --------- Net funds at 30 June 4,592,584 5,147,323 ========= ========= ENQUIRIES: Jean-Paul de la Fuente 0702 1136550 Media Content PLC Nick Oborne 0207 601 1000 Square Mile Communications

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