Placing to raise £250,000

MediaZest Plc

("MediaZest", the "Company” or “Group"; AIM: MDZ)

Placing to raise £250,000

MediaZest, the creative audio-visual company, is pleased to announce that it has raised £250,000 (before expenses) through an oversubscribed placing of 166,666,800 new ordinary shares of 0.1p each (“Ordinary Shares”) with existing and new institutional investors (the “Placing Shares”) arranged by Hybridan LLP and that, in addition, it will issue 33,333,333 new Ordinary Shares to City and Claremont Capital Assets Ltd following the conversion of loan interest amounting to £50,000 (the “Conversion Shares”), in each case at a price of 0.15p per Ordinary Share (the “Issue Price”). The Issue Price is the price that the market bid price was at closing on 10 May 2016 (being the Business Day before the announcement of the placing).

Reasons for the Placing

The Group has made significant progress over the last 12 months and finished the year ended 31 March 2016 with its best ever financial performance. The net funds raised will be used to help deliver current and future projects for existing clients including Hyundai, Adidas, HMV, Diesel and Kuoni.

The funds will also provide MediaZest with additional working capital and will help the Company to develop new business opportunities and expand the client base as it looks to build upon recent success and implement its key growth strategy of building a more consistent and recurring income base.

In addition, the conversion of £50,000 of outstanding interest will further reduce the amount of shareholder debt owed by the Company and strengthen the balance sheet. Following this conversion, City and Claremont Capital Assets Ltd will hold 192,231,176 Ordinary Shares in the Company which represents 15.5% of the Company’s enlarged issued share capital.

New shares

The 200,000,133 Placing Shares and Conversion Shares which are to be issued will be credited as fully paid and will rank pari passu in all respects with the existing Ordinary Shares, including the right to receive all dividends and other distributions declared on or after the date on which they are issued.

Application will be made for admission of the 200,000,133 Placing Shares and Conversion Shares to trading on AIM (“Admission”) and it is expected that Admission will be effective on or around 8.00 am on 18 May 2016.

Total voting rights

Following Admission, the Company's total issued share capital will comprise of 1,239,757,774 Ordinary Shares. The Company does not hold any Ordinary Shares in treasury. Therefore the total number of Ordinary Shares with voting rights in the Company will be 1,239,757,774. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company following Admission.

Enquiries:

Geoff Robertson

Chief Executive Officer

MediaZest Plc                                                    0845 207 9378

Edward Hutton / David Hignell

Nominated Adviser

Northland Capital Partners Limited          020 3861 6625

Claire Noyce / William Lynne / Niall Pearson

Broker

Hybridan LLP                                                      020 3764 2341/ 2342/ 2343

Notes to Editors:

About MediaZest

MediaZest is a creative media agency and audio visual systems integrator that specialises in providing innovative marketing solutions to leading retailers, brand owners and corporations, but also works in the public sector in both the NHS and Education markets. The Group supplies an integrated service from content creation and system design to installation, technical support and maintenance. MediaZest was admitted to the London Stock Exchange's AIM market in February 2005. For more information, please visit www.mediazest.com