Corporate Action

Scottish Media Group PLC
22 June 2000

SCHEME OF ARRANGEMENT
SECURITY TITLE
*Ord Shs, 6.5% Conv Uns Loan Stk 2007
MNEMONIC CODE           *SSM, SSMA
SEDOL CODE              *784-906, 042-682
TERMS                   *Scottish Media Group shareholders will receive 4 Ord   
                        Shs of 2.5p in SMG instead of each Ord Shr of 10p       
                       held.
                         Existing Scottish Media 6.5% Cnv Loan Stk will be      
                        cancelled and replaced by Cnv Uns Loan Stock of SMG on  
                       a £1 for £1 basis. The conversion rate of the SMG Cnv    
                      Loan Stock will be adjusted, to account of the            
                     increase in the number of Ord Shs following the Scheme     
                    of Arrangement.
PROVISIONAL EX DATE     *26-06-00
NOTES *