Network Expansion Agreements

    RNS Number : 6768B
  Vision Media Group (Intl) PLC
  20 August 2008
   

    

 Press Release  20 August 2008

    Vision Media Group (International) plc

    ("VMG", "the Group" or "the Company")

    Major expansion of VMG's shopping mall network  
    Creation of largest digital mall network in the UK 
    with gross advertising sales value estimated at £25 million per annum

    Vision Media Group (International) plc (AIM:VMG), the outdoor media contractor, today announces that it has signed contracts or heads of
agreement with shopping mall owners that will more than double the size of its UK network.  

    Terms have been agreed, including agreements with two large property groups, which will add a further 33 shopping malls to the VMG
estate and bring the total number of malls to 57 and 527 operating panels, of which 350 will be Iconic Pod portrait-style digital panels. 
The average length of the new contracts is 8 years with no minimal rental guarantees.  The first phase of the roll-out will equip 16 malls
with 200 Iconic Pod portrait panels ahead of the 2008 Christmas period, with further installations commencing in early 2009.  

    Clear Channel Outdoor UK ("Clear Channel") is responsible for the procurement of national advertising across the VMG shopping mall
network.  The Company believes that the addition of these malls represents a significant escalation, by in excess of £7 million per annum,
in the total value of potential advertising that can be sold by Clear Channel and that the enlarged VMG media inventory now represents a
total gross annual advertising sales value of £25 million, enabling total possible gross advertising sales to a value of circa £200 million
over the life of the contracts.

    The Directors believe that the additional malls will provide the Group with approximately a further £1.5 million in net sales per annum
upon the completion of the installations.  This, combined with the estimated net sales value announced on 18 August 2008, should enable,
once fully rolled out, annualised net sales in excess of £5 million per year for the Group.   

    In signing these agreements, VMG has created the largest contracted digital media network in UK shopping malls, in terms of number of
malls and the combined potential audience.  VMG now has more leading malls, as ranked by industry research organisation TWA (Trevor Wood
Associates), under contract for digital media than any other UK media company. The Group's expanded network will be seen by an annual
audience in excess of 1 billion consumers at the point-of-purchase.  

    Pursuant to the funding facility provided by Trafalgar Capital Specialised Investment Fund ("Trafalgar Capital") to enable the
development and deployment of VMG's Iconic Pods, as announced on 18 August 2008, application has now been made to AIM for the issue and
allotment of a total of 2,985,966 new Ordinary Shares at 3.349 pence per share in lieu of fees to Trafalgar Capital; the price being
calculated as 95% of the volume-weighted average price on the day prior to the draw down of the funds.  The new Ordinary Shares will be
admitted to trading on AIM on Friday 22 August 2008.

    Following this notification, the total number of shares in issue stands at 83,149,664.  The total number of voting rights in the Company
is therefore 83,149,664.  The above figure of 83,149,664 may be used by shareholders as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or a change to their interest in, the Company, under the Disclosure and
Transparency Rules.  

    Mike Cottman, Executive Chairman of VMG, commented: "These agreements herald the success of the drive by the Group's new executive team
to dominate the UK shopping mall market.  By bridging the gap between major brands and their potential consumers, shopping mall panels are
an increasingly valued advertising medium because of their unique position at point-of-purchase.  This latest raft of agreements marks the
Group's commitment to developing the UK's premier digital retail network utilising VMG's own ground-breaking Iconic Pods."  

    - Ends -

    For further information:
 Vision Media Group (International) plc
 Mike Cottman, Executive Chairman           Tel: [phone]
 [e-mail]           www.visionmediagroupplc.com 

 Seymour Pierce Limited
 Stuart Lane / John Depasquale, Corporate Finance  Tel: [phone]
 [e-mail]                          www.seymourpierce.com

    Media enquiries:
 Abchurch
 Henry Harrison-Topham / Gareth Mead  Tel: [phone]
 [e-mail]          www.abchurch-group.com


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