Disposal of Passion Radio Ltd

Milestone Group PLC
08 June 2006


For Immediate Release                                                8 June 2006


                              MILESTONE GROUP PLC

                         ('Milestone' or 'the Company')


                                  DISPOSAL OF
                         PASSION RADIO (OXFORD) LIMITED
                            TRADING AS PASSION 107.9
                                  ('Passion')


Milestone today announces the successful completion of a strategic review of its
radio assets with the disposal of the entire issued share capital of Passion,
free of intra group loans, to Absolute Radio International Limited for a cash
consideration of £300,000.


Passion is a youth targeted local radio station operating in the Oxford area. In
the financial year ended 30 September 2005, Passion reported losses of £284,000
on sales of £178,000. Unaudited management accounts show that in the first eight
months of the new financial year ended 31 May 2006, Passion made losses of
£203,000 on total sales of £96,000.


The sale of Passion completes the strategic review of Milestone's radio division
which, in the financial year ended 30 September 2005, made consolidated losses
of £0.4 million on sales of £1.5 million.


Milestone Chief Executive, Andy Craig, said:


'In the past four months, Milestone has successfully disposed of its majority
shareholdings in three analogue radio stations as well as the whole of Passion
for a total consideration, in aggregate, of approximately £2.3 million. The
Board is pleased to have been able to achieve these valuations on small radio
stations at a time when the commercial radio industry as a whole is widely
acknowledged to be depressed.


'Passion has been a wholly owned subsidiary of Milestone since the Company's
admission to AIM in July 2003. Under the Milestone management team, the station
has grown its official RAJAR audience figures from total hours of 22,000 and a
market share of 0.4% (Q1, 2003) to total hours of 119,000 and a market share of
2.3% (Q1, 2006). Despite this progress, the Board realistically assessed that
further audience and revenue growth would require significant additional
investment at a time when the radio advertising outlook remains uncertain.


'Having successfully disposed of all of the Company's radio interests, the Board
intends to appraise the continuing operations in publishing and television with
a view to exploring all opportunities to maximise value for shareholders.'


Milestone has agreed to acquire £25,000 of advertising airtime with Passion over
the next 24 months in order to continue to cross promote its local media
interests in Oxfordshire. Milestone has also agreed to continue to provide a
limited number of head office administrative functions to Passion, without
charge, for a maximum period of four months.

The sale of Passion represents a non-cash loss of approximately £450,000 to the
Company in respect of a write down of  unamortised good will. The proceeds,
which have been received in full, will be used for the general working capital 
purposes of the Company.


For further information please contact:

Milestone                                        Tel: [phone]
Andy Craig / Daniel Cass

Buchanan Communications                          Tel: [phone]
Bobby Morse / Suzanne Brocks



Appendix - Milestone is an AIM listed media group. Its main trading companies
comprise of:


   •Courier Newspapers (Oxford) Limited - publishes Courier Journal, Property
    Weekly, Oxfordshire Living
   •Basingstoke Observer Limited - publishes Basingstoke Observer
   •Oxford Broadcasting Limited (trading as SIX TV) - operates SIX TV Oxford
    and SIX TV Southampton




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