AGM Statement

SMG PLC
26 May 2006


                        Chairman's AGM Statement - 2006


The Annual General Meeting of SMG plc ('SMG') will be held today at 12 noon, at
which Chairman, Chris Masters, intends to make the following remarks:

'I am pleased to report that SMG has continued to make good progress in the
first few months of 2006 in developing new revenue streams and strengthening our
existing businesses.

The Group has powerful brands and we continue to accelerate our strategy of
capitalising on their strengths and the affinity that they attract from
advertisers and consumers. Our television stations will next week re-brand as
STV, bringing a common on-screen look and feel to complement the shared
programming that is now a feature of both schedules, and enabling us to pursue a
cohesive on-line strategy for our broadcast TV business. Pearl & Dean,
traditionally a business to business brand, is now transacting directly with
consumers for the first time in its 50+ year history and Virgin Radio continues
to make good progress in exploiting its unique brand to broaden its listener
base.

This brand strength places SMG in an advantageous position to harness the
advances in digital technology and consumer uptake. The re-branding of our TV
stations is a precursor to the launch, this summer, of an innovative on-line
strategy spearheading our stated aim of achieving 25% of broadcast television
revenues from areas other than conventional spot advertising by 2010. This will
complement Pearl & Dean's consumer-focused website, launched in February, and
will be supplemented by the enhancement of Virgin Radio's pioneering online
presence later this year.

We continue to focus on enhancing efficiency across the Group and our
Glasgow-based TV operations will transfer on schedule to their new studios in
the city in July, facilitating improved working practices and an
industry-leading working environment in what will be one of the most advanced TV
facilities in the world. Meanwhile the separation of Primesight and Pearl & Dean
into standalone businesses has resulted in improved focus and effectiveness.

Overall, advertising markets in the first few months of 2006 have been
challenging. Advertiser response to the World Cup is below expectations at this
point and our TV airtime sales are in line with those of ITV1. However, the
effect of CRR (Contract Rights Renewal) means that short-term fluctuations are
smoothed out across the year. Our network productions and solutions businesses
continue to make good progress. Virgin Radio's revenue out-performance against
the UK radio market, reported at the year-end, continues, driven by strong
sponsorship and promotions activity. Primesight's revenue growth has also been
strong in the early months of 2006 and we continue to out-perform the UK outdoor
market, while the improvement in margins we are seeking in this business is
beginning to show through. Pearl & Dean is seeing underlying revenue growth on
the back of a much-improved movie schedule, particularly as we approach the
summer months, albeit that year-on-year revenue performance has been impacted by
the loss, as previously announced, of the low margin UGC contract.

As is consistently the case, SMG's revenues will be weighted towards the second
half of the year and, at this stage, the Group continues to perform in line with
the Board's expectations for 2006.'


Further enquiries:

Callum Spreng
Corporate Affairs Director
Tel: [phone]

26 May 2006


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