AGM Statement

SMG PLC
03 June 2005


SMG Chairman's AGM Statement

The following statement will be made by SMG's Chairman, Chris Masters, at
today's Annual General Meeting to be held at 12 noon:-

Progress in 2005 has been good - both in terms of operational achievements and
trading performance.

There is considerable positive momentum across each of our businesses, which has
manifested itself in a number of successes in recent weeks.

In Television our studios have rarely been busier. We have just reached the end
of a successful six week run of our live ITV network show, People's Court, and
have started filming another network show, Uncle Dad, for Children's ITV.
Meanwhile on location in Glasgow we are currently filming the 75th episode of
Taggart - part of a new two-year commission for the UK's longest-running police
drama.

Our television production facilities business has now successfully reached the
end of its first season for Setanta, which included the simultaneous coverage of
the two matches that decided the outcome of the Scottish Premier League. While
in our broadcast business we await the outcome of OFCOM, our regulator's review
of Public Service Broadcasting, which will establish if our plans for enhancing
the news service we provide across Scottish and Grampian TV will be viable.

At Pearl & Dean, part of our Out of Home Division, winning the Ster Century
cinema contract, alongside two independent chains, has taken our market share to
40%. This will go some way towards mitigating the effect of the loss of the UGC
contract when this takes effect in 2006.

Its sister business, Primesight outdoor advertising, continues to thrive and
just recently signed its biggest ever single booking of over £0.5 million. In
addition we are continuing to roll out our large format, high quality Backlight
panels in cities across the UK.

In Radio, we have made excellent progress on a number of fronts. Listening
performance on Virgin Radio has grown - by some 20% in comparison to last year -
and our two new digital stations have achieved over 1.3 million listening hours
between them since their launch last autumn. We have also been successful in
attracting some top grade talent to the business - Fru Hazlitt, the new Chief
Executive, will be joining us in the late summer and Christian O'Connell, an
award winning radio presenter, is set to go on air with a new breakfast show in
the New Year.

On the trading front, prospects for 2005 remain encouraging. Although the strong
first quarter, reported at the time of our preliminary results in March, has
been followed by more moderated growth in a quieter Q2, this was, at least in
part, anticipated in light of the early Easter, the general election and the
effect on comparatives of Euro 2004. That said, there is undoubtedly more
caution on the part of advertisers due to the slowdown in consumer spending.
This has led to the market becoming more short term but, as yet, we have not
seen evidence of a major downturn in advertising spending. Our businesses
continue to see growth and we remain cautiously optimistic that we will achieve
our current expectations for the Group in 2005.

Chris Masters
Chairman
SMG plc

3 June, 2005



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