Disposal and Open Offer

World Sport Group PLC
23 December 2002

World Sport Group plc

23 December 2002

Proposed Disposal of The World Sport Group Limited ('WSGL')

Capital Reconstruction and Reduction

Open Offer to raise £2,078,131

Change of Company name to Parallel Media Group plc

Board Changes



SUMMARY OF KEY INFORMATION

The following information has been derived from, and should be read in
conjunction with, the full text of the circular sent to shareholders today.
Investors should read the whole document and not just rely on the key
information set out below.


  • World Sport Group was admitted to AIM in August 2001. Since then an
    economic slowdown and the events of September 11 2001 have severely affected
    the advertising and sponsorship industries and have thus impacted on the
    trading performance of the Group;

  • Following Initial Admission, a restructuring was undertaken by the Board
    to streamline business operations and reduce costs. However, these measures
    were not sufficient to counter the effects of the aforementioned slowdown in
    the economy. The Board did not anticipate the severity of the cutbacks in
    global marketing budgets that followed the events of September 11 2001. In
    particular, the Company suffered the adverse effect of poor market
    conditions on TV advertising revenues in Europe and on sponsorship
    negotiations for football and cricket;

  • The Independent Directors and the Proposed Director have concluded that
    the best tactical approach for recovery will be a concentration on the
    Company's existing profitable golf business and a repositioning of the
    Company as a specialist in sports sales and marketing. In order to do this,
    the disposal of certain of its other sports businesses, specifically cricket
    and football, is required. This will reduce the level of overheads,
    eliminate certain debts and other liabilities and improve the Company's net
    cash position;

  • The Company has entered into a conditional agreement to dispose of part of
    the Group, being WSGL, to Park House, a company in which Seamus O'Brien and
    Anthony Morgan, currently Directors, have an interest. The consideration to
    be paid by Park House comprises cash of £1 million, the capitalisation of
    all loans made by Park House to the Company into the Deferred Shares and the
    re-designation of the Ordinary Shares to which Park House becomes entitled
    under the Capital Reconstruction and such capitalisation as Park House
    Deferred Shares and their subsequent cancellation;

  • It is proposed that, on Completion of the Disposal and subject to the
    approval of Shareholders, the name of the Company will be changed to
    Parallel Media Group plc;

  • At present the nominal value of the Company's Existing Ordinary Shares is
    20p each compared to a share mid-price of 6.5p immediately prior to the
    suspension of trading and it is therefore intended to effect a
    consolidation, sub-division and re-designation of the capital of the Company
    to reduce the number of ordinary shares in issue so that the nominal value
    of each share will not exceed the Issue Price under the Open Offer;

  • The Company is proposing to raise approximately £2,078,131 (before
    expenses) by way of an underwritten Open Offer of 13,854,210 New Ordinary
    Shares at an Issue Price of 15p per New Ordinary Share to strengthen its
    working capital position. As a result of the Capital Reconstruction, one
    Ordinary Share will equate to five Existing Ordinary Shares. The equivalent
    issue price prior to the Capital Reconstruction is therefore 3p per share,
    being one fifth of 15p. In addition it is also proposed to effect a Capital
    Reduction in order to eliminate the accumulated deficit on the Company's
    profit and loss account.

  • Qualifying Shareholders are invited to subscribe for New Ordinary Shares
    under the Open Offer on the basis of 1 New Ordinary Share for every 3
    Existing Ordinary Shares;

  • The Disposal and Open Offer are conditional on, inter alia, the passing of
    the Resolutions (other than Resolutions 4, 10, 11and 12) to be proposed at
    the EGM on 20 January 2003 and on Admission;

  • Your Board has also announced today the Company's final results for the
    six months ended 30 December 2001 and the unaudited interim results for the
    six months ended 30 June 2002

  • The following is the expected timetable for the Open Offer:

Record Date                                                 17 December 2002
Latest time and date for splitting application forms        3 pm on 14 January 2003
Latest time and date for receipt of application forms and   3pm on 16 January 2003
payment in full
Admission of the New Ordinary Shares to trading on AIM      8am on 21 January 2003



Full details of all of the above are included in the document sent to
shareholders today, which will also be available from the offices of Denton
Wilde Sapte, 1 Fleet Place, London EC4M 7WS for one month from today.

Enquiries to:

David Ciclitira, Chairman                          Tel: [phone]

World Sport Group plc

Nominated Adviser & Broker

Louise Carpenter                                   Tel: [phone]

Seymour Pierce

PR

Emma Kane                                          Tel: [phone]

Redleaf Communications


                      This information is provided by RNS
            The company news service from the London Stock Exchange