Issue of Equity and Total Voting Rights

MILESTONE GROUP PLC

"Milestone" or the "Company"

Issue of Equity and Total Voting Rights

Issue of Equity

Milestone, the AIM quoted (AIM: MSG) provider of digital media and technology solutions, announces that it has agreed to issue 6,200,000 ordinary shares of 0.1 pence each in the capital of the Company ("Ordinary Shares") at a price of 1 penny per Ordinary Share, raising £62,000. The Company has also agreed to issue a further 1,750,000 Ordinary Shares at a price of 1 penny per Ordinary Share to certain creditors in lieu of £17,500.00 payable in respect of services provided for the Company.

Despite the Company's current liability position being reduced as a result of the issue of equity, the Company continues to be reliant on its ability to manage the timing of settlement of its liabilities and further fundraisings will be required in the short term.

Application will be made for, in aggregate, 7,950,000 Ordinary Shares to be admitted to trading on AIM, which is expected to occur on or around 5 January 2012.  The new Ordinary Shares will rank pari passu with the existing Ordinary Shares of Milestone.

Total Voting Rights

In accordance with the Financial Services Authority's Disclosure and Transparency Rules, following the issue of equity, the Company will have in issue 297,178,025 ordinary shares of 0.1 pence each, each share carrying the right to one vote. The Company does not hold any ordinary shares in treasury. 

The above figure of 297,178,025 ordinary shares 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 under the Financial Services Authority's Disclosure and Transparency Rules.

So far as the Company is aware and subject to any new notifications received, the following persons will have a notifiable interest in the issued share capital of Milestone following this issue of Ordinary Shares:

Current holding Resultant holding Deborah Jane White  34,883,774 (12.06%) 34,883,774 (11.74%) HBS 049 Limited 30,000,000 (10.37%) 30,000,000 (10.09%) Cormac Crawford 18,954,772 (6.55%) 18,954,772 (6.38%) BGP Global Services Ltd 15,590,909 (5.39%) 15,590,909 (5.25%) Martin King 13,667,049 (4.73%) 13,667,049 (4.60%) Lynchwood Nominees Ltd 9,083,489 (3.14%) 9,083,489 (3.06%)

For further information:

Milestone Group PLC Deborah White, Chief Executive	Tel: [phone]
Cairn Financial Advisers LLP, Nominated Adviser Liam Murray / Avi Robinson	Tel: [phone]
Hybridan LLP, Broker Claire Louise Noyce / Tim Goodman / Deepak Reddy	Tel: [phone]
College Hill, PR Jamie Ramsay	Tel: [phone]

---

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.

Source: Milestone Group PLC via Thomson Reuters ONE

HUG#1573970