Trading Statement

RNS Number:4137S
Medal Entertainment & Media PLC
06 March 2007

6 March 2007



                        Medal Entertainment & Media plc

                            ("MEM" or "the Company")

                                 Trading Update


The board of directors of MEM ("the Board") today announces an update on trading
and on the integration of UGD/Britannia Music ("UGD"), the DVD and CD direct
marketing business that MEM acquired in October 2006 for a deferred
consideration of #1.5m payable in March 2008.


Expectations for year to 31 March 2007

At the time of the announcement of MEM's interims results on 15 December 2006,
the Company was trading in line with market expectations for the year ending 31
March 2007.  Following sales below internal forecasts in UGD in January and
February 2007 and in DD Home Entertainment ("DDHE") in February 2007, it has
become apparent to the Board, for the reasons stated below, that MEM will make a
loss before tax and exceptional items in the year ending 31 March 2007 of
approximately #1million.  As anticipated, the Company will incur exceptional
one-off costs associated with the acquisition and integration of UGD and
disposal of Fountain Television Limited in September 2006.


UGD integration

The expected shortfall for the year ending 31 March 2007 has arisen principally
due to lower sales achieved in the acquired UGD business in January and February
2007.  These lower sales levels in UGD are as a result of the incidence of
non-recurring issues arising within inherited systems and outsourced contracts
at UGD.  These issues have led to lower quantities of customer mailings being
sent out and significantly later than were required.  From April 2007, the
integration of UGD into DDHE will be substantially complete and the inherited
systems discontinued.


Outlook

The Board firmly believes that the MEM business has the foundations to continue
to grow and make progress in both its DDHE/UGD direct marketing business and in
its TV production division, Scarlet TV.  With the integration of UGD
substantially complete, the elimination of UGD's legacy costs, the economies of
scale arising from the combination of DDHE and UGD and the expected positive
impact of VAT exempt sales on some of DDHE's shipments out of Jersey, the Board
is of the opinion that the Company will achieve market expectations for the year
ending 31 March 2008.

In the near term, the Board expects to be able to announce a significant content
licensing agreement for DDHE and also several new TV production commissions for
Scarlet TV.



Enquiries:

Steve Ayres,                                            020 8900 5890
Chief Executive, Medal Entertainment & Media plc

Richard Swindells,                                      020 7710 7400
Nabarro Wells & Co. Limited

Katie Shelton,                                          020 7776 6593
Daniel Stewart & Co






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