Re Contract

SMG PLC
13 November 2001

Landmark contract win for SMG's Pearl & Dean


SMG plc ('SMG') announces today (13 November) that its subsidiary, Pearl &
Dean Cinemas Ltd ('Pearl & Dean'), has been awarded a four year contract to
sell advertising across the UK and Ireland cinema network of UGC Cinemas Ltd
('UGC'), the European cinema owner.


The contract will take effect from 7 January 2002 and covers UGC's 43 cinemas
in the UK and Ireland, whose screens total 405. This will increase to 1,406
the number of screens handled by Pearl & Dean, whose existing clients include:
Warner Village, Showcase Cinemas, Apollo and SBC International. Pearl & Dean
will now account for 43% of the UK cinema advertising market.


Commenting, Christine Costello, Chief Executive of SMG's Out of Home Division,
said:

'This agreement underpins Pearl & Dean's strong position in the cinema sector,
which in the face of the current downturn is forecast to grow by around 40% in
2001. UGC is a significant player in UK cinema, and now with almost half of
the cinema market, we can focus on increasing the profile of cinema
advertising overall in the UK to the benefit of all our customers.'

Andrew Flanagan, SMG's Chief Executive, said:

'This is a significant step forward in our strategy of expanding SMG's
presence in the fastest growing sectors of media across the UK. Cinema's a
unique medium that has proved remarkably buoyant throughout the advertising
downturn, putting advertisers in front of valuable and attentive audiences.'

Margaret Taylor, Managing Director of UGC Cinemas, UK and Ireland said:

'UGC has over 30 years' experience in the cinema industry. UGC is committed to
building cinema audiences by broadening film range and increasing
accessibility and at the same time delivering the best possible cinematic
experience. Pearl & Dean's heritage is in cinema advertising. We see this
partnership as a great opportunity to combine the expertise of both companies
to drive the quality and volume of cinema advertising.'

13 November 2001

Further enquiries:

Callum Spreng, Corporate Affairs Director - SMG plc

Tel: [phone]

Lucy Hackett, UGC Cinemas

Tel: [phone]