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West 175 Media Grp (WEP)

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Monday 16 September, 2002

West 175 Media Grp

Trading Statement

West 175 Media Group Inc
16 September 2002


     West 175 Media Group Inc. (the 'Company') to repay loan in and proceed
        with plans to realise the sale of its New Zealand based interests

West 175 Media Group Inc. announces that it has repaid early, on behalf of its
New Zealand subsidiary, £150,000 of the total amount of approximately £425,000
(NZ$1,350,000) on an outstanding loan, due for repayment on or before 30
September 2002.   The loan agreement to which this relates granted the providers
of the loan with a debenture over the assets of the New Zealand subsidiary.

On 13 September 2002 the Company entered into a Settlement Deed on behalf of its
New Zealand based subsidiary to repay the balance of the loan (approximately
£275,000) plus interest and an agreed amount of costs by the final due date on
30 September 2002.  Once this has been repaid, the Company will be clear to
proceed with the disposal programme of its remaining business assets in New
Zealand, which are expected to contribute a net surplus of funds for the parent
company.

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Further details:

The Company announced on 15 March 2002 that its wholly-owned subsidiary, West
175 Media (NZ) Limited (the 'Subsidiary') had entered into a loan agreement for
the purpose of providing the Subsidiary with additional working capital pending
the sale of certain of the group's interests in New Zealand. On 8 May 2002 the
Company announced that the loan agreement and the related debenture had been
amended (the agreements as each then amended being the 'Loan Agreement' and the
'Debenture' respectively) whereby Film Investment Corporation of New Zealand No.
2 Limited ('Film') substituted the original lender in respect of the principal
sum of NZ$1,000,000 under the Loan Agreement and the Debenture. On 15 May 2002,
Film made available a further advance of NZ$350,000. In total the loan amounted
to NZ$1,350,000, equivalent to approximately £425,000 at today's sterling:NZ$
exchange rate.

The Company announces that on 13 September 2002 it entered into a deed of
settlement (the 'Settlement Deed') with the Subsidiary (1), Film (2) and John
Lawrence Vague and Graeme George McDonald (3) in connection with certain
purported events of default under the terms of the Loan Agreement, which the
Subsidiary disputes. Under the terms of the Settlement Deed, in order to resolve
the dispute with Film and the other parties, the Company has agreed to pay
£150,000 to Film on account of the indebtedness and to ensure repayment of the
balance of the indebtedness, approximately £275,000, plus interest, on or before
30 September 2002 in accordance with the terms of the Loan Agreement and the
Debenture (together with a contribution of approximately £21,000 towards Film's
legal costs). Failure by the Company to repay these sums before the end of
September would result in the Company incurring liability for additional costs
(amounting to approximately £50,000 as at close of business on 11 September
2002).

Pending repayment of the balance of the indebtedness, the Company has agreed to
hold on trust for Film or procure that the Subsidiary shall hold on trust for
Film proceeds from the sale of the Subsidiary's assets, required to repay the
amount outstanding.

Since the resignation of former chairman and chief executive officer John McEwen
in June 2002, the Subsidiary has sold or closed all loss making businesses and
is currently making disposals of the remaining businesses in an orderly
withdrawal from New Zealand. This is expected to have been completed by the end
of 2002, resulting in positive net proceeds for the group.

Ends.



                      This information is provided by RNS
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