EXP Expomedia Grp

RNS Number:1664O
Expomedia Group PLC
19 December 2006


                                                                19 DECEMBER 2006

                              EXPOMEDIA GROUP PLC
                          ("Expomedia" or "the Group")

                     Sale and leaseback of Warsaw Property
                              Acquisition of BBPG
                       Update on restructuring programme
                               Board Appointment


The Board of Expomedia, the AIM quoted pro-sumer media group with interests in
exhibitions, conferences, venue management and related publishing is pleased to
update shareholders today on the following news:

   *Successful Completion of the sale and lease back of the Warsaw Exhibition
    Venue (Expo XXI);

   *Acquisition of an 80% interest in a conference and forum events business
    BBPG; and

   *Update on disposal of non core operations.

   *Appointment of Michael Stift to the Board

SALE AND LEASE BACK
The Board is pleased to report that is has successfully completed the sale and
lease back of its Warsaw Exhibition Venue (Expo XXI) to Immoconsult Leasing, a
division of Osterreichische Volksbanken-AG, a leading Austrian Bank.

Under the terms of the agreement, Immoconsult will acquire the venue for Euro18
million and a subsidiary of the Group, Warsaw International Expocentre Sp. Z
o.o, will lease the venue for 15 years at an annual rent of approximately
Euro1.7million. At the end of the lease term, the Group can re-acquire the venue
for Euro2.4million. The proceeds of the disposal will be used to repay existing
bank borrowings of Euro3.7million and to provide funds for acquisitions and
expansion in the Group's core markets.


ACQUISITION OF BBPG
The Board is also pleased to announce that it has acquired an 80% interest in
BBPG, a conference and forum events business which operates predominantly in
Moscow, where the Group has an existing and rapidly growing conference business.
BBPG currently organises 12 annual events and the group expects that these will
complement its existing portfolio of events.

Under the terms of today's acquisition, Expomedia will pay total consideration
of US$1.0million in cash. The unaudited accounts of BBPG in 2005 showed revenues
of $729,000 and a profit before tax of $69,000


DISPOSAL
In addition, the Group has made progress with its stated plan, as announced in
its interim results on 20 September 2006, to dispose of non core operations. To
date, the Group has disposed of all of its operations in Belgrade and its
interest in the construction of a venue in Moscow, both for a nominal
consideration. The resultant effect of this is that the Group no longer has any
further liability to fund the developments. The Group will receive a licence fee
on the Belgrade operations with the option to re-acquire a 51% interest in the
future. Once the Moscow venue is completed, the Group has the first right to
lease and manage the venue. The Group expects that further disposals will be
completed and announcements will be made to this effect in due course.


BOARD APPOINTMENT
The Group has also appointed Michael Stift, aged 47, to the Board as Group
Managing Director with immediate effect. Previously Michael was responsible for
the EXPO XXI chain of international exhibition and congress centres, operated by
the Group. He joined the Group in April 2004 from Reed Exhibitions, where he was
CEO of Reed's Austrian businesses, including the venues in Vienna and Salzburg
and over 50 international and local exhibitions. Michael's professional roots
are in sales and marketing and - previous to his career in the exhibition
industry - was managing large retail-networks in the automotive business with
revenue responsibility of over 370 Million Euros and more than 1500 employees
under his management.

Michael Stift has options over 250,000 Expomedia shares at 80 pence per share
and over 500,000 shares at 25 pence per share, subject to certain performance
criteria. Furthermore Michael has a 20 per cent shareholding in ExpoXXI Venue
Management Ltd. The other 80 per cent is owned by Expomedia. The company
provides consultancy services to venue owners outside the Group.


Within the last five years, Michael has held the following directorships/
partnerships:

Stift d.o.o. (2005 to date)
Expo XXI Venue Management Ltd (2005 to date)
Reed Messe Wien GmbH (2001 - 2003)
Reed Messe Salzburg GmbH (2001 - 2003)

No further disclosures are required under Schedule 2 paragraph (g) of the AIM
Rules in respect of Mr. Stift's appointment.

Commenting on today's news, Mark Shashoua, Chief Executive, stated: "In our
interim report on 20 September the Board informed shareholders about the Group's
immediate plans. I am very pleased with the progress made in executing these
plans and, in particular, in our success in releasing the equity from our assets
in Warsaw. With a strong net cash balance we are in an ideal position to expand
on our strategy of making acquisitions of branded events that we can clone into
our territories. In light of this we are also pleased to welcome Michael to the
Board of Expomedia. We believe that he will be a valuable asset as we grow the
Group and Michael brings a wealth of experience in this role."


                                    --ENDS--

Enquiries:

Expomedia Group Plc                                           Tel: 020 8386 0070
Mark Shashoua
Rosalind Ireland

Bishopsgate Communications Ltd.                               Tel: 020 7562 3350
Dominic Barretto
Sophie Davis




                      This information is provided by RNS
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