INR Financial Terms Response

SMG PLC
04 July 2006


SMG Response to Proposed National Radio Licence Terms


SMG plc ('SMG') welcomes OFCOM's announcement today of proposed new, reduced
licence terms for Virgin Radio.

The proposed terms equate to a fee of £100,000 per annum in payment for 
Virgin Radio's national AM licence. This represents a reduction of 
approximately £2m per annum. Virgin Radio will continue to pay no licence fee 
for its local London FM licence, in keeping with all local radio operators
in the UK.

SMG has until 4 August 2006 to formally accept these terms which, as proposed,
will apply to a four year licence extension commencing in May 2008. The
company anticipates entering into discussions with OFCOM regarding an earlier
date for adoption of these terms. However, it is unlikely that this position
will be clarified until later this year.

Although advertising markets remain challenging, the Group continues to
outperform in its relevant markets and, with over 50% of 2006 revenues expected
to be generated from sources other than television spot advertising, SMG
continues to perform in line with the Board's expectations for 2006.


Ends 

4 July, 2006

Further enquiries:

Callum Spreng 
Corporate Affairs Director
SMG plc

Tel: [phone]
Mob: [phone]




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