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Wednesday 20 September, 2006


Withdrawal of Merger Proposal

20 September 2006

UTV plc

20 September 2006


UTV plc ('UTV') has today written to the Board of SMG plc ('SMG') to confirm
that it no longer intends to pursue its merger proposal with SMG. In reaching
its decision, the board of UTV has taken into account the interim results of SMG
announced on 13 September 2006 and the ongoing weakness in the advertising
market faced by the ITV network.

As a consequence of this statement, the City Code on Takeovers and Mergers
prohibits UTV from, inter alia, announcing an offer or possible offer for SMG
within six months of today's date unless there is a material change of
circumstances or there has occurred an event which UTV has specified in this
statement as an event which would enable the statement to be put aside.
Accordingly, UTV reserves the right to announce an offer or possible offer for
SMG and/or to take any other action which would otherwise be restricted under
Rule 2.8 of the City Code within six months of the date of this statement in the
event that either:
(i)   an agreement or recommendation from the board of SMG is forthcoming; or

(ii)  there is an announcement by a third party of an offer (as defined in the 
      City Code) for SMG; or

(iii) SMG announces a 'whitewash' proposal (as described in Note 1 of the Notes 
      on Dispensations from Rule 9) or a reverse takeover.

Press enquiries:

UTV plc
John McCann, Group Chief Executive                    Tel: +44 (0)28 9026 2202

Felicity Templeton, Head of Press and PR              Tel: +44 (0)28 9026 2188

Numis Securities Limited
Jag Mundi, Head of Corporate Finance                  Tel: +44 (0)20 7776 1582

Anthony Silverman, Director                           Tel: +44 (0)20 7236 5615

Numis Securities Limited, which is authorised and regulated by the Financial
Services Authority, is acting exclusively for UTV and for no-one else in
connection with the matters referred to in this announcement and will not be
responsible to anyone other than UTV for providing the protections afforded to
customers of Numis Securities Limited nor for giving advice in relation to the
matters referred to in this announcement.

                      This information is provided by RNS
            The company news service from the London Stock Exchange