Disposal

SMG PLC
16 January 2004


SMG plc
Disposal of SRH Stake

The Board of SMG plc ('SMG') announces that it has today (16 January) sold its
27.8% shareholding in Scottish Radio Holdings plc ('SRH') to Emap plc.

The sale of 9,729,361 ordinary shares in SRH realised cash proceeds of £90.5m or
930p per share. This represents a premium of 5% over SRH's share price of 888p
as at close of business on 15 January. The value attributed to the shareholding
by SMG in its consolidated balance sheet at 30 June 2003 was £79.4m. The pre-tax
profit, after goodwill amortisation, attributable to the stake for the year
ending 31 December 2002 was £0.8m.

The shareholding was acquired by SMG in late 2000 and early 2001, at which point
both SMG and SRH operated in the radio, newspaper and outdoor advertising
sectors. Since that time, SMG has exited the newspaper market and SRH has sold
its outdoor business. As a result of the consequential reduction in the level of
synergies capable of being secured in a combination of the companies, together
with the inability to secure an agreement on terms that deliver value to SMG
shareholders, the Board of SMG takes the view that, notwithstanding the
relaxation of media ownership regulations, it is in the best interests of SMG's
shareholders to dispose of the stake. The proceeds of the sale will be used by
SMG to reduce debt.

SMG, whose preliminary results for 2003 are scheduled for publication in March,
confirms that Group trading for 2003 was in line with market expectations. The
Board intends to recommend a full year dividend for 2003 in line with that of
2002.

Commenting on the announcement, Andrew Flanagan, Chief Executive of SMG, said:

'We have explored all the options for the stake and it is clearly now better for
our shareholders that we sell the shareholding, reduce our debt and move on. We
continue to focus on operating and developing our profitable, strong brands in
radio, television, outdoor and cinema across national markets.'

Further Enquiries:

SMG

Andrew Flanagan, Chief Executive                   0141 300 3300
Callum Spreng, Corporate Affairs Director          0141 300 3640 / 07803 970103

Citigroup
David Wormsley                                     020 7986 4000
Simon Gluckstein

Brunswick
James Hogan                                        020 7404 5959
Ben Brewerton

Citigroup Global Markets Limited is acting for SMG and no one else in connection
with the disposal and will not be responsible to anyone other than SMG for
providing the protections afforded to clients of Citigroup Global Markets
Limited or for providing advice in relation to the disposal.






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