Launch of smart media division

30.06.11

                           Parallel Media Group PLC                            

                           ("PMG" or the "Company")                            

                      Launch of new smart media division                       

PMG, a leading sports media and promotion company, is pleased to announce the
launch of a new smart media division through the indirect acquisition of 50% of
Parallel Smart Media Limited ("PSM"), a joint venture with Talspace Inc, for a
consideration of approximately £1m. Further details of the acquisition and the
satisfaction of the consideration are set out below.

PSM has launched a new "smart media" viewing platform, developed using
Talspace's proprietorial technology, which provides a step-change in the way
that sports, entertainment and lifestyle media can be delivered. The new
viewing platform offers consumers the ability to dynamically stream multiple live and
video-on-demand HD camera feeds across a global distribution network to all
major `smart' device platforms including Apple's IOS, Android, Windows and
Blackberry Tablet OS ("Apps").

PSM intends to combine the smart media viewing platform technology (to which
Talspace has attributed a value of US$5m) with the experience and contact base
of PMG to develop Apps that enable consumers to interact and engage with their
favourite sports, athletes and brands. Following the successful trial at the
recent Ballantine's Championship, PSM has identified numerous sports
federations and athletes who, through the deployment of the PSM viewing
platform, will be able to create their own media channel and offer a level of
access not currently available elsewhere. PSM has exclusive worldwide rights
for deployment of the technology other than in Korea and Japan where it has
non-exclusive rights.

PSM's low-overhead, flexible and scalable business model is well-placed to
complement the existing PMG group business through combining its more
traditional sports marketing sponsorship strategy with PSM's advanced digital
smart media solutions. For consumer brands, the viewing platform opens B2B and
B2C communication channels and delivers key consultative data on geo-location
and audience specific on and off line marketing activity.

PSM's business plan is based on a number of revenue streams:-

  * provision of bespoke viewing platforms for events, federations and
    athletes;
   
  * consultancy fees for digital strategy; and
   
  * share of download and subscriber revenues after recoupment of costs.
   
David Ciclitira, Chairman of PMG commented: "I firmly believe that we should
embrace the opportunities for user interaction in the sporting industry, with
PSM using golf to lead the way in allowing fans to control their own viewing
experience and encouraging the technological revolution happening in the world
of sport. We expect PSM to contribute a significant proportion of PMG's
revenues by 2012."

As mentioned above, PSM successfully trialled the smart media viewing platform
at the Ballantine's Championship earlier this year. It provided the user with a
unique and highly personal experience of the golf tournament combining the bene
fits of viewing the very best of filmed tournament coverage, with the atmosphere
of being amongst the galleries. Ballantine's Championship debutant and US Ryder
Cup player Dustin Johnson said "Parallel Smart Media's Ballantine's
Championship application takes golf viewing to a new level. It's a must-have
for every fan who really wants to follow the action."

The board of PSM comprises David Ciclitira and Charlie Wale (PMG), Chinui Kim,
(Talspace) and Alex Bang (Chosun Media). Alex Bang was nominated by Talspace.

Details of the acquisition and related party transaction

PMG has agreed to acquire the whole of the issued share capital of Parallel
Media Korea Limited ("PMK"). PMK owns 50% of the issued share capital of PSM.
PMG has also agreed to acquire the whole of the issued share capital of
Parallel Media (Africa) Limited ("PMA") which is intended to be used to roll
out the Apps in South Africa. The vendors of the issued shares of PMK and of
PMA are Luna Trading Limited (a company controlled by David Ciclitira) and
Stewart Mison who hold the shares in the proportions of 99% and 1%
respectively. The consideration for the acquisition of PMK and PMA is to be
satisfied by (i) PMG agreeing to waive repayment of £606,568 of amounts due in
respect of the costs of developing the business of PSM and (ii) the allotment
of 1,153,746 new ordinary shares of PMG at a price of 35p per share,
representing expenditure incurred to date on the PSM project by Luna Trading
Limited (a company controlled by David Ciclitira) ("the consideration shares").
The allotment of the consideration shares, which will rank pari passu with the
existing ordinary shares, is conditional on the passing of resolutions renewing
PMG's share authorities at the Company's forthcoming Annual General Meeting.

The acquisition of PMK and of PMA is deemed to be a related party transaction
under the AIM Rules for Companies. The directors of PMG, other than David
Cicilitira, Serena Ciclitira and Stewart Mison, having consulted with the
Company's Nominated Adviser, Northland Capital Partners Limited, consider that
the terms of the acquisition of PMK and PMA are fair and reasonable so far as
the shareholders of the Company are concerned.

                                     -End-                                     

For further information, please contact:

Parallel Media Group 020 7225 2000

David Ciclitira 0776 605 8566

Charles Wale 0792 001 7360

Northland Capital Partners 020 7796 8800

Luke Cairns, Edward Hutton

Bishopsgate Communications

Laura Stevens, Deepali Schneider, Natalie Quinn 020 7562 3350

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