Agreement with Gala Group

Yoomedia PLC
23 December 2005

23 December 2005

                    YooMedia PLC ('YooMedia' or the 'Group')

                           Agreement with Gala Group



YooMedia, the AIM-traded interactive media and games group, announces that it is
entering a long term strategic agreement with Europe's largest integrated
betting and gaming operator, Gala Group ('Gala'), involving its gaming channel,
Avago.  Under this agreement, Gala is acquiring the Avago brand and associated
intellectual property together with the database of over 250,000 registered
customer accounts.



Gala intends to re-brand the channel and re-launch it by the end of the third
quarter of 2006. YooMedia continues to have a prominent interest in the
business, as well as continuing to provide its interactive gaming portal behind
the channel.  The Avago channel is currently available on Sky Digital, channel
181, and will launch on NTL as the first 'live' presented interactive gaming
channel on UK cable in early 2006.



The terms of the agreement for YooMedia include an asset sale consideration, an
ongoing share of gaming revenues, and support and development contracts across
the initial period of in excess of three years.  It is expected that the
financial benefit to YooMedia will be a net income contribution of between £5.1m
and £8.05m, depending on performance of the channel over the initial period.
The proceeds of the agreement will be used by YooMedia to continue to support
the relationship with Gala and to reinvest in the other parts of the Group, as
well as general working capital requirements.



YooMedia Chairman, Michael Sinclair, said: 'Having built a cross-platform
service, we are now delighted to have formed a partnership with the UK's leading
provider of high-volume, low-stake leisure gaming.  The deal highlights our
ability to create value through our innovative approach in supplying digital
content for the fast-growing worldwide market.   We look forward to working with
Gala, continuing to develop our cutting-edge software and being part of such a
strong and exciting brand.'



Gala Group Chief Executive Neil Goulden said:  'We are delighted to be entering
the dynamic world of interactive television and this project will form a key
part of Gala's expanding multi-media strategy.  Gala TV will allow additional
opportunities for our existing registered membership of over seven million
customers to access Gala's products and services. It will also allow Gala to
promote its brand to a new audience across both the digital satellite and cable
platforms in the UK. '



                                  * * ENDS * *



Contacts:

YooMedia plc

Neil MacDonald, Group Managing Director

Tel: [phone]



St Brides Media & Finance Ltd

Isabel Crossley

Tel: [phone]



Gala Group

Neil Goulden, Chief Executive

Dominic Harrison, Trading Director

Tel: [phone]



Brunswick

Jon Rhodes / Mark Antelme

Tel. [phone]



Notes on YooMedia plc



YooMedia is one of the fastest growing interactive entertainment companies in
the UK.  Essentially, it develops and delivers premium interactive content and
services to households and individuals via TV, the web, telephony and mobile
phones.  It has four main divisions:

•               YooMedia Dating - manages dating brands including Dateline and
Avenues from over 20 locations throughout the UK. Operates across traditional
media, digital TV, internet and mobile phones.

•               YooMedia Gambling & Games - interactive fixed odds, play for fun
casino and poker related games services for digital TV, the web and mobile
phones. Brands include Avago and Channel 425.  It also manages YooPlay, the only
interactive games channel found on all four Digital TV platforms in the UK.

•               YooMedia Enhanced Solutions (YES) - delivers interactive content
that enhances consumer and audience experiences.  Customers include the BBC,
Nestle, Celador, William Hill, Channel 4, The Cartoon Network and HR Owen.

•               YooMedia Public Sector - provides digital solutions/media
services to leading public sector organisations including the NHS Direct
Interactive TV service for the Department of Health, the Learning and Skills
Council TV Kickstart service and a range of local authority TV services.



The Group's experienced management team includes: Chairman, Dr. Michael
Sinclair, who holds a number of directorships in both the UK and the USA having
previously founded Lifetime Corporation; and Managing Director, Neil MacDonald,
whose career spans 11 years in multimedia and interactive sectors plus a further
19 years in the retail industry.



Notes on Gala Group



Gala Group is Europe's leading integrated gaming company operating casinos,
bingo clubs, licensed betting offices and with a leading on line gaming
business.  Through Coral Eurobet, Gala Group is now the UK's third largest
bookmaker with 1,267 licensed betting offices, the UK's largest bingo operator
with 167 clubs and a leading operator of casinos with 30 outlets. Coral
Eurobet's established online business, matched with Gala's web based products,
makes Gala a significant online gaming operator with strong prospects for
further growth.



History



  • December 1997 - PPMV and Royal Bank Development Capital back John Kelly
    and Richard Sowerby's management buy-in team of Gala's 130 bingo clubs from
    Bass.
  • July 1998 - Gala acquires Ritz from Duke Street Capital for £36 million.
    Ritz has 17 bingo clubs.
  • June 1999 - Gala acquires Jarglen Group for £21 million. Jarglen has 10
    bingo clubs.
  • March 2000 - CSFB Private Equity acquires Gala for £400 million. PPMV and
    Royal Bank Development Capital invest new money in the business.
  • April 2000 - Gala acquires Riva Clubs from NatWest Equity Partners for £90
    million. Riva is the third largest bingo operator with 27 clubs. Gala
    becomes the UK's largest bingo operator overtaking Mecca.
  • December 2000 - Gala acquires Ladbrokes Casinos from Hilton Group for £235
    million. Ladbrokes Casinos has 27 casinos in the UK in addition to casinos
    in the Isle of Man and Gibraltar.
  • February 2003 - Candover and Cinven back £1.24 billion buy-out of Gala.
  • January 2005 - Gala completes refinancing and returns £275m to
    shareholders.
  • August 2005 - Permira buys equity stake, valuing Gala at £1.89bn
  • October 2005 - Gala buys Coral Eurobet for £2.18bn




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