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Forever Broadcast (FOB)

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Friday 29 June, 2001

Forever Broadcast

Acquisition

Forever Broadcasting PLC
29 June 2001

Forever Broadcasting plc



Forever Broadcasting Acquires Peak 107 FM in Chesterfield



Forever Broadcasting plc ('Forever' or 'the Company'), the Newcastle-based
independent radio group is pleased to announce that it has acquired,
conditional upon admission of the consideration shares, the entire issued
share capital of Grand Central Broadcasting Ltd (GCB) which owns and operates
the analogue radio broadcast licence for Chesterfield under the name of Peak
107FM.



The consideration payable under the acquisition agreement is £4.82m which will
be satisfied as to £558,000 payable in cash and the balance by the issue of
3,207,600 new ordinary shares in the Company.  In the year to 30 September
2000, being the latest date for which GCB has prepared audited financial
statements, GCB recorded a turnover of £741,904, a loss on ordinary activities
after taxation of £3,767, and at that time had net assets of £148,644.



In the RAJAR survey for the first quarter 2001, Peak had almost 94,000
listeners listening for 10.8 hours per week each, giving total listening of
1,013,000 hours per week.  This survey was based on a survey area of 285,000
adults.  The survey area has recently been expanded to 401,000 adults.  The
RAJAR results for the third quarter 2001 will reflect listening in the
enlarged area.



The Directors of Forever are confident that they will be able to build on the
operational performance of Peak and generate additional advertising revenues.



Application has been made for admission of the new ordinary shares of 50p each
in the Company to be issued pursuant to the acquisition on the Alternative
Investment Market of the London Stock Exchange.  The new shares will rank pari
passu in all respects with the ordinary shares of the Company.



Forever Broadcasting was established in September 1999 and currently owns four
radio stations: Juice 107.6FM in Liverpool which was acquired in November 1999
serving a population of 1.2m adults; Tower FM, broadcasting to Bolton and Bury
which was acquired on 30th June 2000, now serving 415,000 adults; Surf 107.2
in Brighton which was acquired in December 2000 serving 311,000 adults and
107.7 The Wolf in Wolverhampton which was acquired in February 2001 serving
432,000 adults.



Commenting on the announcement, John Josephs, Chairman of Forever
Broadcasting, said:



'Peak has been broadcasting for less than three years and has already built a
substantial presence in its marketplace.  Peak has recently increased its
survey area to 401,000 adults and we believe we can help the management team
to develop the station's audiences, revenues and profitability.  Unlike most
UK radio markets of this size, Chesterfield is a market in which there is no
significant competition from older established commercial radio services'.



Barrie Evans, the first Chairman and one of the founders of Peak 107FM said
today:



'We are delighted to be part of the Forever Broadcasting group of radio
stations.  Wayne Chadwick, Managing Director and I intend to remain with Peak
to help build our business as the number one station for Chesterfield.  Like
us, the Forever team believe that local management is important in developing
audiences and profitability, in a station such as Peak, and we look forward to
working with them'



Enquiries:


Forever Broadcasting

John Josephs, Chairman
Eric Lawrence, Managing Director                  Tel: 0191 286 0000

Merlin Financial

David Simonson
Sadhbh O'Gorman                                   Tel: 020 7606 1244







                                                                                
                                                           

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