Placing

Milestone Group PLC
17 February 2005


For Immediate Release                                          17 February 2005



                              MILESTONE GROUP PLC


                         ('Milestone' or 'the Company')


            Placing of 5.5 million ordinary shares for £1.1 million



Milestone Group PLC (AIM:MSG), announces that it is placing 5,500,000 new
ordinary shares of 10p pence each in the Company (representing in aggregate
approximately 19.92 per cent of the enlarged share capital of the Company) at a
price of 20 pence each.


Application is being made to the London Stock Exchange plc for admission of the
new ordinary shares to trading on AIM. Following the placing, the enlarged share
capital of the Company will comprise 27,605,095 ordinary shares.


The 5,500,000 new ordinary shares are being placed for a total of £1.1 million
(before expenses) with clients of Arden Partners Limited.


Current trading


In the announcement of its final results for the year ended 31st December 2004,
Andy Craig, the Company's Chief Executive stated:


'Through increased efficiencies and further growth in turnover, the Group is
moving its current trading activities towards a position of positive cash-flow
on our existing operations in the current year.  Trading in the first quarter of
the new period gives us the confidence that this will be achieved.'


Reasons for the Placing and use of proceeds


With the existing operations now established, the placing will provide the
Company with additional funds to pursue applications for identified local radio
licences and to expand its local media network.


Locally focussed radio stations are a key part of the Group's cross-media
strategy and the Board sees exciting opportunities to add to the Group's
portfolio in broadcasting and publishing, through new licence applications in
the coming year.  The Group has a policy of submitting well researched, targeted
applications for new radio licences and for setting up new local newspapers and
magazines to complement its existing interests


Placing Agreement


The Company has today entered into a placing agreement with Arden under the
terms of which Arden has agreed, as agent for the Company, to use its reasonable
endeavours to procure placees for the new shares at the placing price of 20p per
new share.  Completion of the Placing is conditional upon resolutions being
passed at an EGM on 14th March 2005:



  * pursuant to section 80 (1) of the Companies Act 1985 to allot the new
    shares and
  * to disapply statutory pre-emption rights in connection with the placing


and admission, which is expected to occur on March 15th 2005 (and in any event,
no later than 22nd March 2005).  A circular containing the notice of EGM will be
sent to shareholders shortly.


Certain Directors and other Shareholders have indicated that they intend to vote
in favour of the

resolutions in respect of in aggregate 15,228,445 existing Ordinary Shares
representing 69 per cent. of the issued share capital of the Company.


Commenting on the placing, Andy Craig said: 'This placing is a significant
indication of support from our major shareholders and also new investors as we
reach an important stage in the development of the Group. Management will
continue to focus on the costs in the business.'


For further information please contact:

Milestone Group                                              Tel: [phone]
Andy Craig , Chief Executive
Brian Chester, Finance Director

Arden Partners                                               Tel: [phone]
Richard Day

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








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