Trading Statement

Newsplayer Group PLC
10 December 2002

For immediate release: 10th December 2002



NEWSPLAYER GROUP PLC

-         Trading Update
-         Provision of Working Capital
-         Proposed additional Acquisition of Global Media Services (GMS) in the
          United States

Newsplayer Group PLC ('NPG' or the 'Company') announced in its Interim Results
for the period ended 30 April 2002 that it expected to achieve profitability by
April 2003. The Directors of the Company recognise that difficult market
conditions have had an adverse effect on the business for the year ended 31
October 2002. NPG anticipates that its results for the year ended 31 October
2002 will be significantly below market expectations.  The Directors have been
undertaking a number of initiatives to improve the performance of the Company
and as a result now forecast that the Company will break even for the year
ending 31st October 2003.

The Directors of NPG have indicated that they expect the Pre-Tax Loss for the
year ended 31st October 2002 to be in the region of £2.3 million. Total Revenues
for the period are likely to be in the region of £ 0.95 million. As at 31st
October 2002, the Company's cash reserves stood at £438,000. The Company's
current rate of cash burn is approximately £160,000 per month.  The Board is in
negotiations with a number of parties and individuals both in London and New
York who have expressed an interest in investing in the Company and believes
that it will have access to sufficient funds, if required, in addition to the
reserves stated above in order to fund the working capital requirements of the
Company.

NPG also announces that Sir David Frost, a non-executive director of the
Company, has agreed to defer payment of advance royalties due to him in January
2003 in the sum of £150,000 and has notified the Board of his intention to
extend a convertible loan to the Company in the sum of £160,000. The loan will
be made available for a period of three years at an interest rate of 6% per
annum and will be convertible at any time into NPG stock at 5p per share. The
provision of this loan by Sir David Frost will provide the Company with
additional working capital for the business and demonstrates the confidence he
has in NPG.

The Company has engaged the services of PricewaterhouseCoopers to provide a
valuation of the Company based on its intellectual property assets.  The
Directors are confident that this valuation will exceed the current market
capitalisation of the Company, which was approximately £8.5 million at the close
of business on Friday 5th December.

NPG also announces that it has signed a letter of intent to acquire Global Media
Services (GMS), a leading provider of managed Media and Professional Services
based in New York.  GMS was founded by Adam Cohen, who most recently served as
the Chief Media Officer for Cable and Wireless in North America and was
responsible for the overall vision and strategy of Cable and Wireless's Media
Services business and Jennifer Sultan, who recently served as Director of
Operations for Cable and Wireless.

Cohen and Sultan were previously founders of New York-based Live On Line, which
was founded in 1995 and acquired by Digital Island in January of 2000. Live On
Line was an early pioneer in the production, acquisition, and delivery of
streaming media and rich media over the Internet.

The Directors expect this acquisition to be completed by the end of December
2002. The acquisition of GMS will provide the Company with service based
revenues from activities such as the encoding, hosting, delivery, encryption,
distribution and rights management of audiovisual assets as well as revenues
from e-messaging and e-mail based direct marketing. The consideration for GMS
will be wholly satisfied by the issue of shares in NPG.

Since 30 April 2002, NPG has achieved a number of strategic milestones that
jointly provide the Directors with confidence in the business going forward.

  • Launch of VideoTV, a new on-line subscription music video streaming
    service providing subscribers with access to a unique interactive, on-line
    database of EMI music videos and video footage.
  • Launch of PureWorldCup.com, an on-line video subscription service
    featuring World Cup action.
  • Global agreement with BBC Worldwide to licence archive material from
    Breakfast with Frost and earlier David Frost programmes.
  • Seven year worldwide licence agreement signed with David Paradine
    Productions and Archbuild to digitise all the Frost programmes originally
    broadcast on Associated Rediffusion.
  • Launch of distribution relationships in the UK with BT, Freeserve and NTL.
  • Launch of a pilot mobile relationship with SFR in France.


NPG continues to look for opportunities to extend its catalogue of content and
is actively seeking to further strengthen its distribution and rights management
capability through the acquisition of complementary technology and further
strategic relationships.  The Company is involved in discussions regarding a
number of potentially exciting transactions and expects to be able to announce
further revenue enhancing opportunities in the first quarter of 2003.



Ends


For further enquiries, please contact:

Paul Duffen, NPG                                                    020 7927 6699
David Simonson/Nicola Davidson, Merlin Financial                    020 7606 1244



                      This information is provided by RNS
            The company news service from the London Stock Exchange