Issue of Equity

RNS Number:0288K
Imagesound PLC
05 October 2006



5 October 2006


                                 Imagesound plc


                 Issue of new shares and convertible loan notes


Imagesound plc (AIM: ISD), one of the UK's leading suppliers of in-store music,
radio and TV services to the branded retail and leisure sectors, today announces
that it has issued and allotted to Quester, one of its largest shareholders,
312,500 ordinary shares at 16p per share and fixed rate unsecured convertible
loan notes with a nominal value of #1.45m.

The Company has applied for the 312,500 ordinary shares to be admitted to
trading on AIM and admission is expected to occur on 9 October 2006.

The convertible loan notes carry a 5% annual coupon which accrues from day to
day and is payable twice annually. During the six year period following the date
of the convertible loan notes, the notes may be converted at any time into
ordinary shares of Imagesound plc at 16p per share.

The proceeds of the refinancing will be used to repay existing debt and
therefore as a consequence of this financing, Imagesound will have debt of
approximately #500,000.

Derek Mapp, Executive Chairman of Imagesound said:

"This is the final part of our refinancing. Over the past year we have re-built
the balance sheet, put in place new bank financing and refocused the company
onto more stable, higher quality earnings. Our market continues to consolidate
and as a result of these actions, we are well placed to continue to seek
profitable growth through acquisition, to make best use of the Group's
established infrastructure."


For further information:

Imagesound                                                      01246 572 998
Derek Mapp, Executive Chairman

Hogarth Partnership                                             020 7357 9477
James Longfield / Georgina Briscoe / Sarah Richardson


Notes to Editors:

Imagesound is the UK's leading listed supplier of in store music, radio and TV
services. It provides music and messaging services to over 45 leading branded
retail and leisure chains.

Customers include Superdrug, Yates, B&Q, Kwik Save, Foot Locker, Carphone
Warehouse, McDonald's, Subway, Halifax, Pitcher & Piano, Tiger Tiger, Holiday
Inn, Holmes Place, O'Neill's, Fitness First, Pizza Express and JJB.

Imagesound is listed on the AIM market of the London Stock Exchange (ISD.L)


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

END
IOEEALESEEKKFFE