Restructuring Update

Yoomedia PLC
21 July 2006


            YooMedia plc / Ticker: YOO / Index: AIM / Sector: Media

21 July 2006

                   YooMedia plc ('YooMedia' or the 'Company')

                      Update on Restructuring Initiatives

YooMedia plc, the AIM-traded interactive media and gaming group, is pleased to
announce an update on its on-going restructuring programme aimed at
rationalising the business, strengthening its balance sheet and re-positioning
the Company's product offering to capitalise on growing opportunities within the
interactive media market.

The Company is pleased to announce that it has agreed new financing facilities
with Mentor Marketing & Investment Ltd ('MMI') which is replacing the previous
credit facilities provided by Lloyds TSB. MMI, an active investor and finance
provider in the marketing and marketing services sector, has agreed to provide
equivalent financing to the bank debt and in addition, further financing to a
combined total facility of £2.9 million towards the completion of the
re-structuring of the Company's business activities. This in tandem with its
recent convertible loan note transaction materially improves the financial
health of the Group and provides the basis on which the remaining restructuring
objectives and any associated financing requirements can be achieved.

The on-going restructuring programme has been aimed at creating the correct
business structure and product offering and rebuilding shareholder value. A
number of significant initiatives have been made from which the Company is now
beginning to benefit, although the full effects of these have not been realised
at this stage. These actions have characterised trading in the first half of
2006. It was announced with the preliminary results for 2005 that the Company
expected to achieve positive EBITDA in 2006. This remains unchanged. However,
unaudited interim results, which will be announced in September, indicate an
outcome below expectations. The Company believes that it is in the final stages
of its restructuring programme and now has the right balance and ingredients to
create shareholder value.

In order for shareholders to understand the current situation, the Board is
pleased to provide an update on the reasons why it remains confident of the long
term outlook and future of the Company.

Significant progress has been achieved in the Games & Gambling division. The
major project to develop and launch the head to head gaming system for Catalyst
Media Group is now underway but this falls outside of the first half reporting
period. This will however impact the year end accounts. The Company continues to
operate the Avago channel in advance of the launch of the new Gala channel in
its place. The project to launch on the ntl cable service has been deferred to
tie in with the Gala channel launch. This slight delay has impacted short but
not long term revenue.

The Company's Interactive Services division is delivering the previously
announced data-casting services on Freeview for Gemstar, Electra, tvtv and
Virgin Radio. These will make a material contribution to revenues in the second
half of the year, as will the contract with NHS Direct, which was extended for a
further two years in April. Interactive marketing business performed well in the
first half, including the mobile and web services provided for Anheuser Busch's
Budweiser world cup campaign, and further for Boots and Nestle, amongst others.

It had been announced in February 2006 that the Board was examining strategic
options for YooMedia Dating including a potential sale or spin-off of the
business. Following refinancing this process has been discontinued and YooMedia
is concentrating on developing the growth of both the Dateline and Avenues
branded businesses. Although not core to the Company's activities, the Board is
conscious of the value of the dating business, which will be realised either
from in-house development or disposal at an appropriate time.

Under the convertible loan arrangement concluded in May 2006, YooMedia drew down
£6m of the £7.5m facility. The funds were used to reduce bank debt and meet
other trade debt liabilities. While on an operating basis and excluding historic
debt re-payment, the Company was cashflow positive in the first quarter, full
cash break even was not achieved in the first half. Bank debt stood at less than
£2m by the end of the first half, compared with £5.4m for the same period in
2005.

YooMedia Group MD Neil MacDonald said: 'I am pleased to report that we are now
entering the final stage of the re-structuring and transformation of YooMedia.
During the last six months we have not only implemented far reaching changes in
our business but we have also seen new business lines emerging into revenue and
profit streams for this year.

'We have also seen significant changes in our marketplace such as the negative
impact of the re-ordering of the Sky electronic programme guide on a number of
our channel clients, the start of internet and mobile phone television, and
developments such as the Virgin Mobile merger with ntl and Telewest. Our
re-positioning will enable us to become a stronger competitor in this fast
moving environment. The new generation of services we are delivering for the
Freeview platform and the innovative head to head gaming service we are
developing for Catalyst is evidence of this.'

                                  * * ENDS * *


Contacts:
YooMedia plc
Neil MacDonald, Group Managing Director
Tel: [phone]

St Brides Media & Finance Ltd
Isabel Crossley
Tel: [phone]


Notes on YooMedia plc:

YooMedia is one of the fastest growing interactive entertainment companies in
the UK. Essentially, it develops and delivers premium interactive content and
services to households and individuals via TV, the web, telephony and mobile
phones. It has four main divisions:

• YooMedia Dating - manages dating brands including Dateline and
  Avenues from over 20 locations throughout the UK. Operates across traditional
  media, digital TV, internet and mobile phones.

• YooMedia Gambling & Games - interactive fixed odds, play for fun
  casino and poker related games services for digital TV, the web and mobile
  phones. Brands include Channel 852, operated on behalf of William Hill, and
  Avago, which was established by YooMedia and is now managed on behalf of Gala
  Group.

• YooMedia Interactive Services - delivers interactive content
  that enhances consumer and audience experiences. Customers include the BBC,
  Nestle, Celador, Channel 4, The Cartoon Network, Anheuser Busch, and HR Owen.

• YooMedia Public Sector - provides digital solutions/media
  services to leading public sector organisations including the NHS Direct
  Interactive TV service, the Learning and Skills Council TV Kickstart service 
  and a range of local authority TV services.


The Group's experienced management team includes: Chairman, Dr. Michael Sinclair
, who holds a number of directorships in both the UK and the USA having
previously founded Lifetime Corporation; and Managing Director, Neil MacDonald,
whose career spans 11 years in multimedia and interactive sectors plus a further
19 years in the retail industry.






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