Strat.Alliance with Heart Mid

SCOTTISH MEDIA GROUP PLC 
6 September 1999


SCOTTISH MEDIA GROUP FORMS STRATEGIC ALLIANCE WITH HEART OF MIDLOTHIAN
FOOTBALL CLUB

Scottish Media Group plc ('SMG') announces today, Monday, 6 September, 1999,
that it has entered into a strategic alliance with Heart of Midlothian plc
('Hearts'), one of the leading football clubs in Scotland.  SMG has undertaken
to subscribe for 19.9 per cent of the ordinary share capital of Hearts and
£4.5 million of convertible loan stock, for an aggregate cash consideration of
£8.0 million.  Pursuant to this agreement, SMG may convert all or part of its
convertible loan stock, in accordance with the terms thereof, into ordinary
shares in Hearts.  Full conversion would give SMG a maximum of 37.4 per cent
of Hearts' enlarged share capital.  This agreement does not, however,
represent a general offer to all existing Hearts shareholders.

Hearts is one of the oldest football clubs in the world.  Based in Edinburgh
and founded in 1874, Hearts has a long and distinguished record in Scottish
Football and competes in the Scottish Premier League.  Hearts has won the
Scottish League four times in addition to winning six Scottish Cups and four
Scottish League Cups.  Recent years have seen a revival at the club: new
ownership, flotation to become Scotland's first fully listed football club on
the London Stock Exchange and stadium redevelopment (capacity 18,000) has
accompanied on-field success.  Hearts is well placed to strengthen its
position as a major force in Scottish football, supported by a pool of young
talented players developed through its own youth development policy.

In the twelve months ended 31 July, 1999, Hearts reported trading profits of
£763,000 (excluding amortisation of players' registrations, gain on sale of
players' registrations and depreciation) on turnover of £7,725,000.  The net
assets of Hearts as at 31 July, 1999, amounted to £1.9 million.

Football has enjoyed a resurgence in popularity in the 1990's.  Television
revenues have grown substantially with the increased penetration of pay-TV and
the enhanced value of football as premium content.  The new Scottish Premier
League, launched at the start of the 1998 season, has raised the profile of
the Scottish game, resulting in a growth of income from television,
sponsorship and marketing.

SMG believes that Hearts will benefit from its commercial and media expertise
and the availability of funds raised through the subscription, which will be
utilised to strengthen the squad, further develop the stadium and invest in
the club's already successful youth development programme.  In addition, SMG
will assist the club in maximising its potential from advertising, publishing,
electronic commerce and merchandising activities which are all complementary
to SMG's own operations.

This investment represents a further step in SMG's declared intention to build
the Group around well-branded, focused and complementary media assets.   It
reinforces SMG's position as Scotland's premier media company and provides an
excellent opportunity to become involved with a leading participant in a
rapidly changing and expanding sector.  The cash consideration payable upon
subscription will be funded from SMG's existing bank facilities.

Under the terms of the strategic partnership, SMG will initially nominate one
non-executive director to the Hearts board.

Commenting on today's announcement, Andrew Flanagan, SMG's chief executive,
said:

'Our investment will help cement a successful long-term media partnership
between Scottish Media Group and Hearts.  We are confident that the funds we
have made available will be wisely invested in helping to realise the full
potential of the club and we look forward to working with Hearts across a wide
range of exciting projects.'

Douglas Smith, chairman of Hearts, said:

'We are delighted to welcome SMG as a major investor in Hearts.  SMG is an
ideal media partner for the Company and we are committed to using the new
funds available to us to improve the challenge on-field for domestic honours,
and regular European participation, and to add value to the Company.  We look
forward to developing a successful relationship with SMG which will enable us
to develop further the Hearts brand and unlock its full potential.'


Further enquiries to:

Scottish Media Group plc                             0141 300 3640
Gary Hughes, Group Finance Director
Callum Spreng, Director of Corporate Affairs

Schroders                                            0171 658 6000
Simon Gluckstein
David Wormsley

Brunswick                                            0171 404 5959
James Hogan