New Sales Contract

SMG PLC
10 May 2004


                       SMG's National TV Airtime Revenues
                       Underwritten by New Sales Contract


The Board of SMG plc ('SMG') announces that it has reached formal agreement with
ITV plc on the sale of SMG's national television airtime. The terms of this
agreement, when combined with the existing mechanism by which SMG's contribution
to the ITV Network Programme Budget is calculated, and its level of PQR
(percentage of qualifying revenue), protect SMG against the consequences of any
reduction in its share of ITV NAR (net advertising revenues), thus securing the
position of SMG's ITV franchises within UK national advertising markets.

The contract will see ITV plc transact SMG's national television advertising and
sponsorship sales on improved terms for SMG. National advertising revenues
account for 85% of SMG's existing television advertising revenues and SMG's
national television airtime sales were previously contracted to Carlton
Communications plc, prior to its merger with Granada plc to form ITV plc. SMG
will continue to service local Scottish advertisers through its own sales
operation, based in Scotland.

The remaining financial details of this sales agreement are confidential, due to
their commercial sensitivity.

Commenting on the new sales agreement, Andrew Flanagan, Chief Executive of SMG,
said:

'This is a very significant and positive achievement for SMG. Television airtime
sales account for approximately half of the Group's revenue and to have secured
our long term position within the ITV landscape in this way is a major boost for
SMG. As the advertising recovery continues to gather pace, Scottish and Grampian
TV will continue to benefit alongside ITV as a whole.'

                                                                    10 May, 2004

Further enquiries:


SMG
Callum Spreng                                 0141 300 3640
Corporate Affairs Director

Brunswick
James Hogan                                   020 7404 5959
Ben Brewerton




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