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ITV PLC (ITV)

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Monday 10 May, 2004

ITV PLC

Agreement with SMG

ITV PLC
10 May 2004





10th May 2004


                        ITV announces agreement with SMG

ITV announces agreement with SMG on a range of commercial issues.  These
include:

  • agreement on the use of the ITV brand name by ITV plc;
  • the use by ITV plc, for its multi-channel offering, of SMG's digital
    terrestrial spectrum in Scotland;
  • cross promotion of ITV2 and ITV News Channel on Scottish Television and
    Grampian Television; and
  • the sale of SMG's national television airtime on its Scottish Television
    and Grampian Television Channel 3 licences.

ITV plc will also acquire SMG's 25% shareholding in GMTV Limited for £31.0m in
cash payable on completion.  GMTV owns the sole national Channel three licence
which is broadcast on weekdays at breakfast time between 6.00 am and 9.25 am,
consistently being the highest rated UK breakfast time programme.  In line with
other Channel three licensees, GMTV expects to negotiate revised financial terms
for its Channel three licence from 1st January 2005, and is currently one of the
highest paying licensees in terms of its PQR (percentage of qualifying revenue)
payments.

The agreement in relation to the acquisition of SMG's shareholding in GMTV is
conditional upon regulatory approval, SMG shareholders' approval and the rights
of The Walt Disney Company.  Completion of the acquisition would oblige ITV to
make an offer at the same price to The Walt Disney Company for its 25%
shareholding in GMTV.

Charles Allen, CEO of ITV, said:

'This is another step in delivering our strategy to develop further the single
ITV business.   We have reached agreement with SMG on a number of points
confirming the operation of the ITV Network, the digital transmission in
Scotland of ITV channels including ITV2 and ITV News Channel and the sale of all
SMG's national television airtime through our single ITV sales house.

'GMTV is an excellent business and in 2003 grew its share of viewing from 1.58%
to 1.61%.  ITV plc's acquisition of an increased stake in GMTV at a reasonable
price will simplify the ownership structure and enable more agile decision
making which will benefit both ITV and GMTV as we work even more closely
together.'



For further information contact:



ITV plc                                   020 7620 1620
Susan Donovan



Citigate Dewe Rogerson                    020 7638 9571
Jonathan Clare
Simon Rigby






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