New Contract

MILESTONE GROUP PLC
                         ("Milestone" or the "Company")

                                  New Contract

AIM quoted Milestone, the provider of digital media solutions and technology, is
pleased to announce today that it has been appointed by Music Monk to design and
develop a new innovative iPhone Application aimed at live music and event goers
around the world.

Music Monk is a global club and music events/venues directory which offers
promotional services and information for music events/venues in real time.  The
Music Monk team are a highly experienced group of entertainment industry
professionals with a particular focus within the club and promotion industry.
Having launched some of the biggest music events in the world at clubs including
Pacha, Fabric and Ministry of Sound, the Music Monk team have now brought their
vision of a global clubbing platform to fruition.

Music Monk is focused on providing a solution to delivering key functionality to
every part of the music entertainment sector and in order to help them achieve a
scalable  creative platform, Milestone will also be developing a Web application
and  advising on other  aspects of digital  marketing and online/mobile services
for Music Monk.

The  Music Monk  iPhone App,  set for  release in  April, will  be universal and
compatible to run on the iPhone, iPod Touch and iPad.

Deborah White, Chief Executive, Milestone Group Plc, commented:

"Over the last few months we have been working hard to reposition ourselves as a
digital  media group.  Following the recent launch  of the iPad and with over 3
billion  downloads  from  the  iPhone  App  store,  now  is the perfect time for
Milestone  to demonstrate its strength in creating interactive digital solutions
that integrate and exploit all communication platforms.

We  feel that our understanding of the relationships between content, technology
and  new media, will set us apart from our competitors and provide real value to
our shareholders."

For further information:


  Milestone Group                        Tel: [phone]
  Deborah White, Chief Executive


  Strand Hanson Limited                  Tel: [phone]
  Richard Tulloch / David Altberg


  Hybridan LLP                           Tel: [phone]
  Claire Louise Noyce / Stephen Austin




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