Vision Media Group International | News

28 May 2008 Successful additional £1.5 million fundraise and further
extension of Chairman's loan facility

Vision Media Group (International) plc (AIM:VMG), the outdoor media contractor, announces that is has replaced the convertible loan facility agreed with Trafalgar Capital Specialised Investment Fund ("Trafalgar") as announced on 6 December 2007.

The Board has been in discussions with Trafalgar to secure longer term funding which will provide the Group with the financial footing necessary to continue its increasing growth. As a result of those discussions Trafalgar have agreed to replace the existing £1.25 million facility with a new 24 month facility for a maximum sum of £2.75 million. This will provide an additional new £1.5 million net to the Group. The funds will be delivered in three tranches with the first tranche being an immediate £250,000. On 31 May 2008 the second tranche will provide a further £250,000, with the third tranche delivering an additional £1 million, subject to the Group's commitment to raise £500,000 of new equity.

To assist in the refinancing of the Group, Mike Cottman, Chairman of VMG, has extended his personal loan facility of £350,000 to the Group over the past two months and will do so for a further period whilst the fundraising process continues. By way of recompense for this £350,000 loan facility and in return for Mr. Cottman further agreeing to reduce his indebtedness by £100,000, the independent Directors have agreed to grant Mr. Cottman a licence to the rights to VMG's International [non UK] business opportunities. In return for this licensing arrangement, VMG will retain an ongoing royalty payment from the international operations which will commence at 25% of the net income to be derived from the international business in future years, whilst continuing to provide existing management and support for the international business. Mr Cottman's reduced loan of £250,000 will carry a coupon of 15% per annum.

Eric Anstee, Non Executive Director of VMG, said: "We are delighted with this additional Trafalgar investment in Vision Media Group and are grateful to Mr Cottman for providing the Group with additional financing one more time as the combined effect of these two initiatives will allow us to move towards the completion of our turnaround strategy announced last year. The extra funding will provide working capital for our recent stream of new contracts and also provide the basis for additional enlargement of our screen network."