Acquisition

RNS Number:2078Z
Music Choice Europe PLC
29 July 2002

Music Choice acquires leading European competitor Multimusic

29 July 2002

Music Choice Europe plc ("Music Choice"), Europe's leading digital audio
broadcaster, today announced that it has acquired Multiradio, whose Multimusic
brand distributes music channels through digital TV to almost two million homes
across Europe and Asia.  This will increase Music Choice Europe's reach to
almost 14 million digital TV homes.

The consideration for the purchase of Multiradio, and its holding company Opus
21, from owner Orbus is an initial cash payment of €0.9 million (£570,450).  In
addition, a further payment of €0.2 million (£126,768) is due on the achievement
of certain conditions relating to the installation and launch of Multimusic's
service in Taiwan.  Multiradio was formed in 1991 by the Orbus group, which also
owns leading Paris radio station SkyRock.

Multimusic has residential distribution for its music channels on digital TV
platforms in eight countries, including almost one million homes through Telepiu
in Italy, and more than 600,000 on Canal+ in Poland.  The acquisition also sees
Music Choice gain distribution in Taiwan, marking its entry to the Asian market
for the first time.  With further distribution in Israel, Germany, Belgium,
France and Greece, the acquisition will increase Music Choice's subscriber
numbers by 15%, without adding significantly to its cost base.

The directors of Music Choice estimate the value of net assets being acquired to
be €500,000.

Over the next six months, the Multimusic service will be upgraded with Music
Choice branding and content, allowing increased local language song ID and more
comprehensive programming in the future.  The Multimusic digital TV partners
will benefit from increased resources in programming, marketing support and
interactive TV enhancements to their service.  Dedicated Polish, Israeli and
Taiwanese channels will also be added to Music Choice's channel line-up.

The acquisition is expected to generate incremental positive cashflow for Music
Choice by the end of 2002 as well as increasing its digital TV distribution base
which remains the platform for the Company's growth.

Simon Bazalgette, Music Choice Europe plc's chief executive, said "The addition
of Multimusic's 1.8 million digital TV homes to the Music Choice base cements
our position as the market leader in this sector.  Music Choice has shown that,
even in this difficult environment, there are continued opportunities to
maintain growth."



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About Music Choice Europe

Music Choice is Europe's leading digital audio music broadcaster, available in
more than 13 million homes in 18 countries across Europe and the Middle East.
Music Choice provides consumers with non-stop digital-quality music channels,
completely uninterrupted by DJ chat, adverts, VJs or presenters, 24 hours a day,
seven days a week.  With no interruptions for advertising, Music Choice's
channels play about 25% more music than the average commercial radio station or
music television channel.  Founded in 1993, Music Choice is a public company
listed on the London Stock Exchange (LSE: MUS), with key shareholders including
BSkyB, Warner Music and Sony Corporation.

To find out more about Music Choice visit: http://www.musicchoice.co.uk.

For more details, please contact:

Weber-Shandwick Square Mile                                        020 7950 2800
Louise Robson or Stephanie Smart                       [e-mail]

Music Choice Europe plc                                            020 7014 8789
Dylan Jones                                             [e-mail]



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