Acquisition

MediaZest plc 26 August 2005 MediaZest Plc (the 'Company') Acquisition of Touch Vision Limited ('Touch Vision'), placing and notice of Extraordinary General Meeting Introduction The Board of the Company announces that it has reached agreement on the proposed acquisition of Touch Vision, a wholly owned subsidiary of Touch Group Plc. Furthermore, the Company announces that it has, conditional on the acquisition, placed 4,705,883 shares at 42.5p, raising £2,000,000 before expenses. The Company has convened an EGM for 19 September 2005. A circular has been posted to shareholders outlining details of the above. Terms of the acquisition The Company has agreed to acquire the entire issued share capital of Touch Vision for a consideration of up to £3,000,000 comprising of £700,000 of cash and £1,875,000 of shares in MediaZest on completion and an additional £375,000 of deferred consideration conditional on the pre tax profits of Touch Vision for the 12-month period ending 31 December 2005. The agreement is conditional on the approval of the Company's shareholders. Placing The Company proposes to issue 4,705,883 placing shares at 42.5 pence, which will raise in aggregate £2,000,000 for the Company (before expenses). The net proceeds of the placing will be used to satisfy part of the consideration for the acquisition of Touch and to provide additional working capital for the enlarged group. Extraordinary General Meeting A notice has been sent to shareholders of the Company convening an Extraordinary General Meeting to be held on 19 September 2005, at which amongst other things shareholders will be asked to approve the acquisition. This information is provided by RNS The company news service from the London Stock Exchange