Regulatory Approval

SMG PLC
28 March 2003

SMG plc


DTI Approves £216 m Sale of Publishing Division


SMG plc ('SMG') welcomes today's announcement by the DTI clearing the £216
million sale of SMG's publishing division ('SMG Publishing') to Gannett UK
Limited ('Gannett'). The disposal is now expected to complete shortly.


On 23 December 2002, SMG announced that it had agreed the sale of its publishing
division to Gannett, which was subject to an automatic referral to the DTI under
the provisions of the Fair Trading Act. SMG shareholders approved the disposal
on 24 January, 2003.


The successful completion of this transaction will sharpen SMG's focus on
national advertisers and strengthen its balance sheet. The proceeds of the sale
will be used to significantly reduce the group's debt. New finance facilities
have been put in place and will be available for drawdown from completion of the
sale through to December 2005.


SMG indicated when the sale was announced that it intended to pay a dividend for
the year of 2.5 pence (2001: 3.0 pence) on completion. SMG now plans to formally
propose payment of the dividend at the company's AGM on 6 June 2003.
Shareholders on the share register at 29 August, 2003 will qualify to receive
the dividend on 1 October, 2003.


Andrew Flanagan, Chief Executive of SMG, said:


'We've achieved an excellent deal for an excellent business at a price that was
well ahead of expectations. I'm confident that the business will continue to
thrive under its new owner. Delivery of this transaction will provide us with
both regulatory and financial flexibility and we'll be well placed to capitalise
on the opportunities that the Communications Act promises to present.'




                                                                  28 March, 2003


Further enquiries:
Andrew Flanagan                    Chief Executive                0141 300 3300
George Watt                        Group Finance Director
Callum Spreng                      Corporate Affairs Director

James Hogan                        Brunswick                      020 7404 5959
Ben Brewerton

Simon Borrows                      Greenhill & Co.                020 7440 0400


Notes to Editors

SMG Publishing consists of three newspapers: The Herald, Sunday Herald and
Evening Times; a stable of 11 business to business and specialist consumer
magazine titles; and an online advertising and content business.

SMG's other businesses are: Scottish and Grampian TV; Virgin Radio; Pearl & Dean
(cinema advertising); and Primesight (outdoor advertising).


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