Music Choice Europe PLC 22 February 2005 Music Choice Europe ("The Company") Trading update 22 February 2005 In its last interim statement dated 28 September 2004, the Company warned that, while achieving a good first half performance, it was facing stronger competition in its market place. In recent months the Board has noted that the pace of change in its marketplace has accelerated. In particular, the Board expects that TV broadcasting platforms will seek greater discounts for basic content which is, currently, the prime source of the Company's revenue and that this will place increased pressure on margins. At the same time, the costs to the Company of maintaining its technical infrastructure are increasing. The Board is therefore undertaking a strategic review of its activities given this worsening outlook for its operations. This review will include a wide ranging examination of the Company's cost structure and its approach to marketing value added services. The Board expects to provide a further update at the time the Company announces its preliminary results towards the end of March. Contacts: Teather & Greenwood Jeff Keating 020 7426 9000 Music Choice Europe plc Margot Daly 020 7014 8755 This information is provided by RNS The company news service from the London Stock Exchange