Directorate Change

SMG PLC
28 February 2007

28 February 2007



SMG plc



CHANGES TO THE BOARD OF DIRECTORS OF SMG PLC



Further to the directorate changes announced today by the Board of SMG plc,
Hanover Investors, a turn-around investment specialist and 12.6 per cent
shareholder of SMG, in conjunction with the new Chairman Richard Findlay,
announce the following new board composition:



Executive directors



The Executive team will comprise:



-        Rob Woodward, appointed today as Chief Executive

-        George Watt, Finance Director

-        Donald Emslie, Executive Director



Rob Woodward (47) was Commercial Director of Channel 4 and on the main board.
He was CEO of 4Ventures and achieved a dramatic turnaround of legacy businesses,
and built a set of successful new media and digital businesses.  Rob was
previously an MD of UBS Warburg and global COO of corporate finance in Media and
Communications.  He was formerly Managing Partner of Deloitte's European TMT
business and UK strategy consulting practice.



Non-executive directors



The Non-executive team will comprise:



-        Richard Findlay, appointed today as Non-executive Chairman

-        David Shearer, appointed today as Senior Independent Director

-        Matthew Peacock, appointed today as Non-executive Director

-        Vasa Babic, appointed today as Non-executive Director



Richard Findlay (63) is the former Chief Executive of Scottish Radio Holdings,
which he ran for 10 years, building it into a portfolio of 22 radio services and
45 regional newspapers, and consistently delivered shareholders returns that
outperformed peer companies.  In August 2005, SRH was sold to EMAP.  Richard is
a Scot and has strong links in the Scottish arts and political establishments.
He also chairs the new National Theatre for Scotland, a growing life sciences
company, has served on various boards including that of a leading law firm, a
Scottish University and as chair of the Lothian NHS Board.



David Shearer (47) joined the Board of HBOS plc as a non-executive director in
March 2004.  David was previously Senior Partner of Deloitte & Touche for
Scotland and Northern Ireland and a UK Board member of Deloitte & Touche.  He is
also a Governor and Non-executive Director of The Glasgow School of Art and a
Non-executive Director of Scottish Financial Enterprise and of the Aberdeen New
Dawn Investment Trust plc.  David is a Scot and a qualified Chartered
Accountant.



Matthew Peacock (45) is the founding partner of Hanover. He has led investments
for over 16 years in, amongst other sectors, manufacturing, outsourced business
services, chemicals, financial services, textiles and logistics. Prior to this,
he ran the international M&A team in London at BZW, having started his career at
Credit Suisse First Boston in New York.  He holds an LLM from Cambridge
University. He currently is non-executive Chairman of Renold PLC and a
non-executive director of Elementis PLC



Vasa Babic (40) is a partner in Hanover. Previously, he was Group Director of
Business Integration at Vodafone plc, leading major global programs of change
and restructuring. Prior to that, he was a strategy consultant for 15 years in
the London office of Mercer Management Consulting, and, for a number of those
years, the youngest senior Partner in the firm worldwide. He worked in a broad
range of sectors, including a focus on the Telecoms, Internet, Media and
Technology industries. Vasa has an MA in Economics from King's College,
Cambridge.



The new Board structure outlined above has received overwhelming support from
leading institutional shareholders in SMG who gave their consent prior to making
the changes.



Richard Findlay, Chairman of SMG plc:



'I am delighted to have been appointed to take the company into a new period of
transition and development.  I will be working closely with our new team, led by
Rob Woodward to implement a strategy to deliver value to our shareholders'.



Rob Woodward, Chief Executive of SMG plc:



'I've observed the business closely for some time and am delighted to have the
opportunity to revive its fortunes.  This business displays some unique assets,
along with a wealth of creative talent.  I very much look forward to unlocking
its future potential, serving its audiences and participating fully in the
digital world'.



Matthew Peacock, principal of Hanover Investors, commented:



'Hanover has assembled an impressive new management team with the expertise
required to lead the successful turnaround of SMG.  We believe that the business
has been fundamentally undervalued and has a promising independent future under
the right leadership.



'I would like to thank Chris Masters and his colleagues for their co-operation
during our recent discussions and wish them every future success'.





- Ends -



Further Enquiries:



Julie Foster, Tulchan Communications
        [phone]

Miranda Acland, Tulchan Communications




Notes to Editors:



About Hanover Investors:



Hanover Investors is a specialist turnaround investment firm based in London. It
typically focuses on businesses where underperformance can be attributed to
company-specific operating and management issues, rather than to market or
sector weakness. Its approach is distinctive because its team of principals has
first-hand experience of deal execution, corporate turnarounds, strategy
development and operating general management.



Hanover has a track record of leading turnaround situations. Its investments
have included 4imprint, a promotional products firm, Elementis, a specialty
chemicals business, and Renold, a precision engineering business.



-        Hanover acquired 27 per cent of 4imprint Group and joined its board in
October 2003. Following a change of strategic direction there was a rapid return
to profitability and distribution of cash to shareholders. This led to a seven
fold share price rise in eighteen months.



-        Hanover acquired 15 per cent of Elementis and joined the board in June
2005. Since then Elementis has delivered an improved performance across numerous
operational areas. This led to an almost three fold rise in the share price in
ten months.



-        Hanover acquired a 14% shareholding in Renold and joined the board in
September 2006.  Since then, Renold has embarked on a turn-around programme of
the core business.  Since September 2006, the share price has doubled.





Existing Directors' Biographies:



Finance director - George Watt (38)



George joined the Company in 1998 as Group Financial Controller and Treasurer
and joined the Board as Group Finance Director in 2001. Prior to joining SMG,
George worked with KPMG's audit and assurance services practice in the UK and
also in the US.  George has a BAcc from the University of Glasgow and is a
member of the ICAS.



Executive director - Donald Emslie (48)



Donald joined the Board in 1999.  Donald joined Scottish Television in 1985,
taking over the role of Commercial Director in 1994.  In 1997 he was appointed
Managing Director of the broadcasting division leading the post-acquisition
merger of Scottish TV and Grampian TV.  In 1999 he was appointed Chief Executive
of the television business. Donald was appointed Acting Chief Executive of SMG
on 17 July 2006. He is currently chairman of ITV Network Limited, the Royal
Lyceum Theatre (Edinburgh), the Scottish Industry Skills Panel, Honorary Chair
of Bafta Scotland, a Fellow of the RTS as well as a non-executive director of
Skillset UK and Scottish Screen.






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