Update Announcement

SMG PLC
15 March 2002


SMG plc



In the light of the difficult market conditions during 2001, SMG plc ('SMG') has
been in discussions with its lenders to renegotiate its principal borrowing
facilities.

SMG can confirm that it has made good progress in these discussions and has
reached in principle agreement with the co-ordinating committee of its debt
providers, in a form acceptable to SMG, on the key terms for the provision of
sufficient funding to satisfy group requirements until June 2003. This in
principle agreement is subject, inter alia, to completion of documentation and
to final approval from each debt provider's credit committee.

SMG anticipates that this process will be completed within a short period of
time and will announce its 2001 preliminary results once arrangements are
finalised.

SMG can confirm that its underlying performance in 2001 was in line with market
expectations and that it continues to satisfy all of its funding obligations
from its established, market leading businesses which remain profitable and cash
generative.


15th March 2002


Further enquiries:

SMG plc     Tel: [phone]

Andrew Flanagan, Chief Executive

George Watt, Group Finance Director

Callum Spreng, Corporate Affairs Director



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