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Chrysalis Group PLC (CHS)

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Tuesday 12 September, 2000

Chrysalis Group PLC

Agreement

Chrysalis Group PLC
12 September 2000

                       CHRYSALIS GROUP plc
                               
      PSION AND UBC TO JOIN MXR DIGITAL RADIO CONSORTIUM
                               
                               

Psion  InfoMedia and UBC Media Group have agreed to  join  the
MXR  consortium currently bidding for regional  digital  radio
licences  through  their newly created  company  UBC  Digital.
The two companies have agreed to work exclusively with MXR  on
the  regional  licences and will be creating applications  and
content  for  a data channel which will run on all multiplexes
won  by the consortium. They will also be responsible for  the
management  of  other data capacity including  the  Electronic
Programme Guide.

MXR  is a consortium founded by the listed companies Chrysalis
Group  plc, Capital Radio plc and Jazz FM plc, along with  the
Guardian  Media Group. These four companies between  them  own
all  of  the  analogue regional licences covered by  the  five
digital areas being bid for.

Speaking  on  behalf  of the consortium,  Chief  Executive  of
Chrysalis  Radio  Phil  Riley said 'providing  compelling  and
innovative data is something the MXR consortium members wanted
to  do. We're thrilled to have found the right partners to  do
it  with.  Psion is a world-class British technology  company,
which  has  already  committed itself via Psion  InfoMedia  to
digital  radio with the development of its unique 'Wavefinder'
PC-based receiver. UBC media has a track record second to none
in  the  supply  of innovative programming to  radio,  and  is
poised  to  replicate  that success in the  field  of  digital
data.'

Simon  Cole,  Chief  Executive  of  UBC  Media  commented  'PC
penetration  in the UK is amongst the highest  in  the  world.
Digital  radio  will allow MXR to deliver a  variety  of  data
applications  to  these  PCs. Much  of  the  early  excitement
surrounding  digital  radio concerns its  potential,  via  the
delivery of data, to encourage PC owners to install audio/data
receivers  within their machines, effectively creating  a  new
market  for both radio and data application delivery.  We  are
committed  to  providing the content  which  will  allow  this
potential to become a reality'

Full  details of MXR's programming and data proposals will  be
made in their submissions, the first of which is for the North
East of England, which closes on October 17th.

Photograph of the Psion Wavefinder PC-based receiver available
via ISDN

For more information contact:

Jo Milloy, Chrysalis Radio         0207 470 1028
Anthony Garvey, Psion              0207 317 4265
Bobbie Swanson, Buchanan           0207 466 5000


Editor's Notes

1)Many  of  the  Local  Digital Radio  multiplex  licences
  covering the same areas as the regional licences listed above
  have already been awarded. Full details of all awards can be
  obtained from the Radio Authority.

2)Digital radio is a new transmission system that provides
  the listener with bundles (multiplexes) of audio services to
  new portable radios, in-car receivers and personal computers,
  with  unprecendently clear reception. Being digital, it  can
  also broadcast data services, which may or may not be related
  to the radio programming. As such, digital radio will provide
  an  excellent  opportunity to both enhance  the  quality  of
  existing radio services and introduce new services and formats
  across the UK.


3)The  Radio  Authority  will make the  licence  award  by
  reference to the criteria laid down in section 51 of the 1996
  Broadcasting Act. This includes, inter alia, the diversity of
  appeal of the proposed services on the multiplexes, as well as
  the  applicant being sufficiently resourced to  deliver  the
  proposals.

4)Amongst the services being offered exclusively to the MXR
  consortium by its broadcast partners are Century and Galaxy in
  the North East, Century and Jazz in the North West, along with
  Galaxy 102 in Manchester, Galaxy 105 in Yorkshire, 100.7 Heart
  FM in the West Midlands along with Galaxy 102.2 in Birmingham
  and  Galaxy  101 and Real Radio in the Severn  Estuary/South
  Wales.


5)Between  them, these analogue upgrades reach almost  4.3
  million adults every week, equivalent to 25% of the available
  population.  (Combined all adult reach  of  Galaxy  Network,
  Century  100-102  & 105.4, Jazz 100.4 & 100.7  Heart  FM  is
  4,286,000 - 24.9% of Combined TSA (RAJAR Weeks 2-25 2000))