Disposal

Catalyst Media Group PLC
31 October 2005


31 October 2005

Catalyst Media Group Plc ('Catalyst Media Group' or the 'Company')

                                    Disposal

Catalyst Media Group is pleased to announce that it has completed the sale of
Media Services Acquisition Corporation ('MSAC'), the Company's New York based
media services business, to JSAC LLC. MSAC trades under the name GMS.

The consideration payable to Catalyst Media Group is 15 per cent. of gross
revenue of MSAC from 1 January 2006 to 31 December 2010, payable in cash
quarterly in arrears and will be applied to general working capital purposes.

GMS will continue to provide the Catalyst Media Group with the technology
infrastructure necessary to host and serve the Company's websites at no cost
until 31 December 2010. Catalyst Media Group will continue to offer GMS's
services, acting as an authorised reseller and GMS will continue to promote and
market the Catalyst Media Group intellectual property catalogue on a
non-exclusive basis and will share the revenue 50/50 with Catalyst Media Group.
This revenue does not form part of the 15 per cent. consideration payable to
Catalyst Media Group as described above.

In the financial year ended 31 October 2004 MSAC recorded a loss before tax of
£0.229 million on turnover of £0.52 million and had net liabilities of £0.194
million as at that date. JSAC is jointly owned by Adam Cohen, a former director
of the Company and Jennifer Sultan. Accordingly the transaction is a related
party transaction under the AIM Rules. The Directors of Catalyst Media Group
consider, having consulted with Strand Partners Limited, that the terms of the
transaction are fair and reasonable insofar as its shareholders are concerned.

Paul Duffen, Chief Executive of Catalyst Media Group, commented:

'This is a win-win solution for GMS and CMG and is in keeping with our new
strategy to re-focus the Group on our UK operations following the recent
acquisition of Alternateport. The local management are best placed to take the
necessary decisions to drive the GMS business forward and this deal enables CMG
to retain the ability to represent and benefit from the streaming media products
and services that have been developed under our ownership. I wish Adam and
Jennifer every success in the future and look forward to working with them.'

Enquiries:

Paul Duffen
Catalyst Media Group plc
020 7927 6699




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