Proposed Reduction of Capital

RNS Number:5232A
Music Choice Europe PLC
06 July 2004



                            Music Choice Europe plc
                        ("Music Choice" or the "Company")
                                        
     Announcement of Reduction of Capital and Return of Cash to Shareholders

Music Choice Europe plc, Europe's leading digital audio broadcaster, announces
proposals to return cash to shareholders through a reduction of capital. The
capital reduction is conditional upon obtaining shareholder and court approval.

The Company has today issued a Circular to its shareholders to convene an
extraordinary general meeting on 28 July 2004 at which shareholder approval to
the reduction will be sought. Subject to such approval, as soon as practicable
after the EGM, the Company will apply to the Court for approval of the reduction
of capital.

In its preliminary results announcement on 24 March 2004, Music Choice stated
that it would be reviewing the ongoing cash requirements of the business. Strong
financial stewardship during the past year has enabled the Company to breakeven
at an EBITDA level in the first quarter of the current financial year. As cash
levels exceed those required to meet the existing business plan, the review has
concluded that a return of cash to shareholders is now possible.

The Company therefore intends to return #15 million to its shareholders.

Subject to shareholder and court approval, 73% of each shareholder's holding of
ordinary shares in the Company will be cancelled and they will receive 16.75
pence per ordinary share cancelled.

Payment will be made to shareholders whose names appear on the register on the
date of the Court Order confirming the reduction of capital.

Mike Thomas, Chairman of Music Choice, said:

"We are delighted that Music Choice has fulfilled its promise of becoming
breakeven in the opening quarter of the current financial year and, therefore,
to be in a position to return cash to shareholders".

                                    - ends -

For further information, please contact:

Music Choice Europe plc                                          020 7014 8700
Margot Daly, Chief Executive
Dylan Jones

Weber Shandwick Square Mile                                      020 7067 0700
Louise Robson or Helen Thomas


Notes to Editors

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, Time Warner and Sony Corporation of America.

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



                      This information is provided by RNS
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