Scheme of Arrangement

Scottish Media Group PLC
16 June 2000


Scottish Media Group plc

Scheme of Arrangement ('the Scheme') to create SMG plc as the holding company
of Scottish Media Group plc, including an effective 4 for 1 sub-division of
existing ordinary shares

Further to the announcement of 5 May, 2000, in which, inter alia, the board of
Scottish Media Group plc announced the approval by the shareholders of the
Scheme to create SMG plc as the holding company of Scottish Media Group plc
and the effective 4 for 1 sub-division of the ordinary share capital, the
Board notes that the date of the court hearing to sanction the Scheme has been
adjourned to Friday, 23 June 2000.

Subject to the Scheme being sanctioned by the Court, the revised timetable of
events will be as follows.  The record date for the Scheme will be 5:30 p.m.
Thursday 22 June, 2000.  The last day of dealings in Scottish Media Group plc
10p ordinary shares and CULS will be Friday 23 June, 2000.  The Scheme is
expected to become effective, and dealings in the new shares and new CULS
commence, on Monday, 26 June 2000.

The Scheme will result in 4 new SMG plc 2.5p ordinary shares being allotted
for each Scottish Media Group plc 10p ordinary share in consideration for the
cancellation of the Scottish Media Group plc 10p ordinary shares.  The new SMG
plc 2.5p ordinary shares will have substantially the same rights as the
existing Scottish Media Group plc 10p ordinary shares.

At the same time, £1 nominal SMG plc CULS will be allotted for each £1
Scottish Media Group plc CULS, in consideration for the cancellation of
Scottish Media Group plc CULS.


Enquiries:

SMG
----------------
Callum Spreng     0141 300 3300
Dawn Davidson     0141 300 3300


Schroder Salomon Smith Barney
----------------
Simon Gluckstein  020 7658 6000

Schroder Salomon Smith Barney ('SSSB'), which is regulated in the United
Kingdom by The Securities and Futures Authority Limited, is acting for
Scottish Media and for SMG and no one else in connection with the Scheme and
will not be responsible to anyone other than Scottish Media or SMG for
providing the protections afforded to customers of SSSB or for providing
advice in relation to the Scheme or any element thereof.