Subscription

RNS Number : 0769J

Milestone Group PLC

27 November 2008

MILESTONE GROUP PLC

'Milestone' or the 'Company'

SMALL SUBSCRIPTION

APPOINTMENT OF STRATEGY CONSULTANTS

The Company announces a small subscription to raise £132,870 (before expenses) through the issue of 11,416,251 new Milestone Ordinary Shares of 0.1p each ('Ordinary Shares') (collectively the 'Subscription').

The Company additionally announces the appointment of Knowledge MGI Limited ('KMGI') as its new strategy consultants. KMGI will initially be engaged to assist the Board with reviewing funding and development opportunities for the group. As part of this process, discussions relating to the planned partnership between Nexstar League Limited (a subsidiary of the Company) and Enrich Social Productions Limited, announced on 29 September 2008, continue to progress.

Milestone Chief Executive, Deborah White, said:

'It has been a difficult period for the Company but we are working with a strong team of advisors helping us to put in place our plans for future development. The Board aims over time to develop a portfolio of interests and is pleased to be working closely with KMGI to assist in the process of reviewing strategic opportunities.'

Under the terms of the Subscription, the Company has agreed to issue new Ordinary Shares to the following parties:

Name of Subscriber	Ordinary Shares	Subscription price
Sara Kathryn Berry	750,000	1.2p
Timothy Bottoms*	566,667	1.2p
KMGI Ltd*	375,000	0.1p
Eugenia Koroni*	1,031,250	1.2p
Magdalene Manikam**	4,166,667	1.2p
Andrew Martinez*	360,000	1.2p
Simon John Player***	1,666,667	1.2p
Anish Sharma	2,500,000	1.2p

* These parties are contractors of the Company or its subsidiaries and have agreed not to dispose of any of the subscription shares until 1 March 2009 without the prior approval of the Company

** Held by Alliance Trust Pensions Ltd

*** Held by Brewin Nominees Ltd

The Company will be making application for the new Ordinary Shares to be admitted to trading on AIM with admission anticipated on 3 December 2008. The shares will rank pari passu with all existing Ordinary Shares of the Company. Post-admission the total issued share capital of the Company will increase to 69,306,569 (excluding deferred shares which have no rights attached to them).

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 post-admission:

	Pre-admission	Post-admission
TRMK Estate Income Ltd (& connected parties)	12,690,155 (21.92%)	12,690,155 (18.31%)
Deborah Jane White	7,606,698 (13.14%)	7,606,698 (10.97%)
Reginald John Brealey (& connected parties)	7,325,000 (12.65%)	7,325,000 (10.57%)
Magdalene Manikam	-	5,666,667 (8.18%)
CMH Management Ltd	4,261,734 (7.36%)	4,261,734 (6.15%)
John Godfrey	4,166,667 (7.20%)	4,166,667 (6.01%)
Susan Auden	4,166,667 (7.20%)	4,166,667 (6.01%)
Compass Securities Ltd	4,166,667 (7.20%)	4,166,667 (6.01%)
Andrew Timms Craig (& connected parties)	2,621,838 (4.53%)	2,621,838 (3.78%)
Anish Sharma	-	2,500,000 (3.61%)