Renewal of Licence

Scottish Media Group PLC
11 April 2000


VIRGIN RADIO AGREES NEW AM LICENCE TERMS

Virgin Radio said today that it has agreed terms with the Radio Authority for
the renewal of its AM national licence.

The licence will be renewed for eight years, starting from 1 May 2000.

The new terms are a cash bid sum of £1 million annually plus a payment of
twelve per cent of qualifying national revenue per annum.

John Pearson, Chief Executive of Virgin Radio said : 'The renewal terms are in
line with our expectations and have already been accounted for in our
forecasts. The performance of Virgin AM to date has been very successful and
this is reflected in the revised terms.'

Virgin Radio has agreed its renewal terms just days after the Switchdigital
consortium was awarded the second London multiplex licence. This means that
Virgin Radio now holds four licences :

-  AM national licence
-  FM London licence
-  National digital licence
-  London digital licence

Virgin Radio's role within Switchdigital means that its FM licence for London
will roll over on an uncontested basis. Following today's announcement its AM
national licence will also run for a further eight years.

11 April 2000


Enquiries

Scottish Media Group plc                            0141 300 3300

George Watt - Group Financial Controller