Trading Statement

    RNS Number : 0352F
  Local Radio Company PLC (The)
  03 October 2008
   

    The Local Radio Company plc
    Trading Statement


    The Local Radio Company plc (the "Company") today provides an update on trading ahead of its full year results for the year ended 30
September 2008, which are expected to be announced in early December.

    This has been a year of significant change for the Company as we have focused our activities on the areas where we see the greatest
opportunity to deliver value to shareholders.  In particular, we are delighted to have secured the licence to operate Jazz FM from Guardian
Media Group for an initial three year period.  

    The relaunch of Jazz FM at 7pm on October 6th on DAB, Sky channel 0202 and online at www.jazzfm.com represents a significant opportunity
for the Company to build on the strong brand loyalty that exists for the Jazz FM brand at low cost. We expect to begin seeing an impact from
the relaunch of Jazz FM on the Company's results in the next year and will provide an update on the progress of the station when we report
our full year results.

    We are pleased to report that our national radio sales house, First Radio Sales, has increased sales both across our network of stations
and for all of its other approximately 100 client stations. As a result it has seen revenue growth of approximately 2% in the year, an
excellent performance in current market conditions.

    It is also pleasing to report that our web sales are continuing to grow. By the end of the calendar year they are expected to represent
5% of turnover and to make a positive contribution to the Company following the investments made last year.

    We have continued to take steps to reduce both central and operating costs and have disposed of a number of unprofitable stations. Most
recently we disposed of our 64% stake in Central FM, which serves Falkirk and Stirling, for £575,000.

    In common with the media industry as a whole it has been a difficult year for radio advertising sales, particularly during the last six
months.  Consequently overall revenue for the year is expected to be 4% lower than the previous year on a continuing station basis.

    As previously announced, Portsmouth Football Club has stated its intention to exercise its option to acquire a further 24% shareholding
in our radio joint venture, and the two parties have recently agreed an extension to this option until February 15th 2009.  The joint
venture continues to perform well and the loan of £200,000 advanced to it by the Company will be repaid shortly.

    For further enquiries, please contact:

    The Local Radio Company    01494 688 205

    Richard Wheatly, Executive Chairman
    Alistair Mackenzie, Finance Director

    Landsbanki Securities    020 7426 9000

    John Craven
    Simon Robinson

    Aura Financial    020 7321 0000

    Andy Mills
    Nina Legge 



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