AGM Statement

SMG PLC
25 May 2007


25 May 2007

Chairman's AGM Statement

The following statement will be made by SMG's Chairman, Richard Findlay at
today's Annual General Meeting to be held at 10.30am:-

I am pleased to report that trading is in line with our expectations. As we
previously stated, advertising markets have been varied in the first half of
2007. Overall, television airtime revenues are expected to decline in the 
period to June by 7% over the same period last year, but this represents an
outperformance against ITV1 as a whole which was down by over 9% year on year.
Having said that, ITV's view expressed in their recent AGM statement, of a
weakness in interactive TV revenues is one we would share.

Virgin Radio revenues have grown by 8% also outperforming the market, and
displaying particularly strong online revenue growth. Pearl & Dean too has seen
strong revenue growth of 7% outperforming its 5% growth in screens, while
Primesight has grown revenues by 8% on flat panel numbers. Assuming these 
trends continue, the Board views advertising markets for the remainder of the 
year with cautious optimism.

There has been much business activity since the Boardroom changes in February
and the appointment of Rob Woodward as Chief Executive. Following renegotiation
of our banking facility we have reached agreement with our banks on a renewed
facility until September 2008. We have appointed a new leadership team to work
with Rob; we have terminated the sale process of Primesight for the time being
and are re-energising the sale of Pearl & Dean. In addition, we have announced
an IPO of Virgin Radio. We believe a flotation of Virgin Radio will create a
strong and clearly focussed radio business, with a powerful brand and will
provide an attractive pure play investment opportunity. Once completed, it will
leave SMG with a stronger balance sheet on which to move forward and rebuild
shareholder value.

The company intends to announce further details of the turnaround plan for the
business by the end of June as previously promised and will be announcing its
interim results for the six months ended 30 June in September.

25 May 2007

Further information:

SMG
Debbie Johnston, Head of Communications - 0141 300 3168


Brunswick
Simon Sporborg/Ash Spiegelberg/James Hogan - 020 7404 5959







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