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Wednesday 28 February, 2007


Merger Talks & Board Changes

28 February 2007

For immediate release                                          28 February 2007

                                    SMG plc

              Termination of merger discussions and Board changes

On 11 December 2006, SMG plc ('SMG') announced that it had received an approach
from UTV plc ('UTV') regarding a possible nil premium merger of SMG and UTV,
based on relative market values. It also announced that, as a result, it had
entered into discussions with UTV which may or may not lead to a merger.  In
view of the Board changes set out below and as a result of differing views over
the level of SMG's pension liabilities, the discussions between SMG and UTV in
connection with the proposed merger have now been terminated.  Shareholders
should note that SMG announced on 29 January 2007 the details of its new funding
agreement with the trustees of its pension schemes.

Following the termination of these merger discussions and in response to a
request from Hanover Investors Management LLP who has the support of a group of
shareholders, Chris Masters has agreed to step down as Chairman and the Board
has appointed Richard Findlay as the new Chairman of SMG with immediate effect.
 In addition, David Dunn, Steve Maine, Martyn Smith, MT Rainey and Tim Gardam
have resigned with immediate effect. An announcement in respect of the
appointment of new non-executive directors will be made shortly.

Separately, SMG reports that the processes continue for the disposals of
Primesight and Pearl & Dean. Further announcements will be made in due course.

SMG's bank syndicate has been kept informed of developments.

SMG                                                        0141 300 3640
Callum Spreng

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