Catalyst Media Group PLC 31 October 2005 31 October 2005 Catalyst Media Group Plc ("Catalyst Media Group" or the "Company") Disposal Catalyst Media Group is pleased to announce that it has completed the sale of Media Services Acquisition Corporation ("MSAC"), the Company's New York based media services business, to JSAC LLC. MSAC trades under the name GMS. The consideration payable to Catalyst Media Group is 15 per cent. of gross revenue of MSAC from 1 January 2006 to 31 December 2010, payable in cash quarterly in arrears and will be applied to general working capital purposes. GMS will continue to provide the Catalyst Media Group with the technology infrastructure necessary to host and serve the Company's websites at no cost until 31 December 2010. Catalyst Media Group will continue to offer GMS's services, acting as an authorised reseller and GMS will continue to promote and market the Catalyst Media Group intellectual property catalogue on a non-exclusive basis and will share the revenue 50/50 with Catalyst Media Group. This revenue does not form part of the 15 per cent. consideration payable to Catalyst Media Group as described above. In the financial year ended 31 October 2004 MSAC recorded a loss before tax of £0.229 million on turnover of £0.52 million and had net liabilities of £0.194 million as at that date. JSAC is jointly owned by Adam Cohen, a former director of the Company and Jennifer Sultan. Accordingly the transaction is a related party transaction under the AIM Rules. The Directors of Catalyst Media Group consider, having consulted with Strand Partners Limited, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned. Paul Duffen, Chief Executive of Catalyst Media Group, commented: "This is a win-win solution for GMS and CMG and is in keeping with our new strategy to re-focus the Group on our UK operations following the recent acquisition of Alternateport. The local management are best placed to take the necessary decisions to drive the GMS business forward and this deal enables CMG to retain the ability to represent and benefit from the streaming media products and services that have been developed under our ownership. I wish Adam and Jennifer every success in the future and look forward to working with them." Enquiries: Paul Duffen Catalyst Media Group plc 020 7927 6699 This information is provided by RNS The company news service from the London Stock Exchange