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GWR Group PLC (GWG)

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Wednesday 27 December, 2000

GWR Group PLC

New Partnership Initiative

GWR Group PLC
27 December 2000

                                GWR GROUP PLC


                          New Partnership Initiative




GWR Group plc ('GWR'), the independent radio broadcaster, today announces a
new partnership initiative with Guardian Media Group and Caledonia
Investments, the principal shareholders of Radio Investments Limited ('RIL'),
the local radio station operator.


Upon completion RIL will own 100% of The Local Radio Company ('TLRC'), Minster
Radio Group and Stray FM. GWR will also have a seat on the Board of RIL.


GWR has owned a shareholding of 20% in TLRC, the holder of several local radio
stations in the South of England, since TLRC's formation in 1995. Under the
agreement with RIL, GWR will exchange this stake and its 49% holding in
Minster and Stray, for a 20% shareholding in RIL, the parent company of TLRC,
Minster and Stray. The consideration for this transaction will be satisfied by
the issue by RIL of shares and loan notes. The transaction is conditional on
the adoption by RIL of new articles of association.


At 30 September 1999 RIL had net assets of £21.3 million and profits before
taxation for the year then ended of £6.9 million.


Ralph Bernard, Chief Executive, commented:


'The combination of these radio assets, together with RIL's strong management
team, provide great potential for operational benefits and synergies that will
give the group strong prospects under RIL's ownership. '

                                                              27 December 2000
Enquiries:
GWR Group plc                                                Tel: 0118 928 4313

Ralph Bernard, Chief Executive
Patrick Taylor, Deputy Chief Executive & Finance Director
College Hill                                                 Tel: 020 7457 2020

Matthew Smallwood
Nick Elwes