Media Corporation PLC Trading Update

The Board of Media Corp is pleased to announce that the re-organisation and restructuring of the Group that commenced following the US internet gambling ban at the end of 2006 is now complete and the business is now organised into two divisions: Internet Publishing and Advertising sales.

London, UK (PRWEB) February 21, 2008 -- The Board of Media Corp is pleased to announce that the re-organisation and restructuring of the Group that commenced following the US internet gambling ban at the end of 2006 is now complete and the business is now organised into two divisions: Internet Publishing and Advertising sales.

Following a strategic review and analysis of the internet advertising market, the Board has approved a business plan to invest up to £1 million of its existing cash resources in expanding its businesses during 2008. The Group had cash balances of £6.3 million at the financial year end, 30 September 2007 and this may be enhanced by a further £0.625 million in March 2008 if the earn out provisions relating to the Casino.co.uk sale are met.

The Group is operating in the fast growing internet advertising market which is estimated to have reached £3.4 Billion and accounted for 24.8% of all UK media spend in 2008. In 2009 Internet advertising spend is predicted to overtake TV advertising

The Board believes this investment is essential to ensure that the Group maximises the opportunity presented by the unprecedented growth of the online advertising sector. The change in strategy and investment needed in the near term will mean that although gross profit is still in line with market expectations net profit will be lower. However, it is anticipated this investment will generate accelerated revenue and profit growth for the Group going forward.

Headcount in the advertising sales division is anticipated to increase to 40 people (from the current 20 staff) by the end of 2008 as the Group broadens its current offering to incorporate site representation, new display and video advertising formats. The majority of these new hires will be experienced advertising sales executives and sales support staff.

In the publishing division, the Group's investment will be focused on building an experienced in-house editorial and technical team, and increasing third party content deals. This expansion is essential as the Group expands its current offering and launches its internet portals into new markets. The majority of this investment will be focused on enhancing our key portal assets which the board believes have significant value in excess of the current market capitalisation.

Justin Drummond, Chief Executive of Media Corp. commented:

"The Group is operating in the fast growing internet advertising market which is estimated to have reached £3.4 Billion and accounted for 24.8% of all UK media spend in 2008. In 2009 Internet advertising spend is predicted to overtake TV advertising" (source: Group M).

"With the Group's significant cash resources of £6.3 million at the financial year end, it is essential that we invest in seizing the significant opportunity presented by the growth and potential of the online advertising market".

For further information please contact:

Media Corporation plc
Justin Drummond, Chief Executive
+44 (0)20 7618 9000

Buchanan Communications
Charles Ryland/Suzanne Brocks/Susanna Gale
+44 (0)20 7466 5000

Canaccord Adams Limited
Clayton Bush, Vice President
+44 (0)20 7050 6500

Notes to editors:

Listed on the AIM market of the London Stock Exchange, Media Corp is a leading internet media and advertising group focused on website publishing and online advertising. www.mediacorpplc.com

The Group has two principal divisions:

Website Publishing - Media Corp has a diverse publishing division specialising in online media. Our impressive portfolio of websites includes a number of market leaders including www.gambling.com, www.onthebox.com www.sport.co.uk, www.creditcardexpert.co.uk and www.flightcomparison.co.uk.

Online Advertising - Formed in 1996, Eyeconomy specialises in mass reach campaigns to over 30 Million unique consumers per month via its own proprietary ad-serving and tracking technology for clients including AOL, Dell and American Express.
www.eyeconomy.co.uk

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