AGM Statement

SMG PLC
21 June 2002

SMG plc

Company No. SC203873


The following statement was made by Don Cruickshank, Chairman of SMG plc, at the
Company's Annual General Meeting held at 200 Renfield Street, Glasgow at 12 noon
on Friday 21 June 2002.


2002 ANNUAL GENERAL MEETING

CHAIRMAN'S STATEMENT


The advertising downturn that began in the last months of 2000 and deepened for
much of 2001 has now been with us for more than 18 months. This is a cyclical
industry and such periods of downturn are inevitable. However, the advertising
market has gradually become more stable in 2002, with a challenging first
quarter, as we anticipated, being followed by an improving trend in the second.
As a result, advertising revenues for the Group were down 5% in the first
quarter of 2002 and we expect the second quarter to end showing growth of 4%.


Undoubtedly the World Cup has boosted May and June, particularly in Television
and Radio, but continued growth in July and some early, but tentative, signs of
improvement across the remainder of the summer are evident across most of the
sectors in which we operate.


Without doubt the most significant external event of recent months has been the
publication of the first draft of the new Communications Bill that will fashion
the shape of the media landscape in the UK for the foreseeable future. In broad
terms, we welcome its deregulatory spirit and we are well-placed to capitalise
on the opportunities that it promises to present to the UK communications
industry as a whole. However, there are elements within the draft bill that are
unclear. We have played a full part in the progress of this important piece of
legislation thus far and we will continue to do so as the bill makes its way
onto the statute book.


As the whole industry readies itself to enter a period of inevitable, but
exciting change, SMG is well-prepared to play a full part. While the indications
are that we have entered a period of greater stability and we have seen some
signs of improvement, it is premature to speculate on how the advertising market
will perform beyond the summer. Meanwhile, we continue to focus on driving
market share and managing tightly our cost base and at this stage our
performance is broadly in line with expectations.


Don Cruickshank
Chairman, SMG plc



Enquiries:


Callum Spreng, Director of Corporate Affairs
0141-300-3605



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