Response to ITC Announcement

SMG PLC
19 March 2001

Response to ITC Announcement on Scottish Television Limited and Grampian
Television Limited's Licence Renewal Terms


SMG plc - New Licence Terms for Scottish & Grampian Television


SMG plc ('SMG') has received from the Independent Television Commission
('ITC') the financial terms for the renewal of its television broadcasting
licences for Scottish Television and Grampian Television for a further 10
years.

                          Cash Bid  Percentage of Qualifying Revenue ('PQR')

Scottish Television        £1.7m                        11%
Grampian Television        £0.1m                        6%



(NB: Cash bids will apply from 1 January, 2002; PQR will apply from 1 April,
2001)



SMG confirms that is minded to apply for renewal of its licences under the new
terms, however these are currently being evaluated by the company and it is
seeking clarification from the ITC on the basis on which the new terms have
been determined.


Commenting on the announcement, Andrew Flanagan, SMG's Chief Executive, said:

'We are pleased that the uncertainty around licence renewal has now been
removed and we can look forward to another 10 years of award winning
broadcasting to viewers across Scotland.'


Further enquiries:


Callum Spreng

Corporate Affairs Director

SMG plc

Tel: [phone]