Apace Media - Successful Fund Raising and Acquisition of Leading Bulgarian Multi-Channel Broadcaster

Apace Media - Successful Fund Raising and Acquisition of Leading Bulgarian Multi-Channel Broadcaster

LONDON, December 1/PRNewswire/ -- Apace Media plc, the intellectual property and branded content
company announces that it has conditionally raised GBP7 million through the
issue of 46,666,666 new ordinary shares at 15 pence per share. The placing,
which attracted both new and existing institutional investors, included a
GBP1.6 million investment by the Chairman and Deputy Chairman. The new funds
are being used to invest in new television production and broadcasting
assets. The placing is subject to shareholder approval at an EGM, which has
today been called for 22 December 2005, notice of which has been sent to
shareholders.

Some of the money raised will be used to fund the acquisition
from Diema Group of a 50% holding in Diema Vision, the leading Bulgarian
cable/satellite broadcaster. The acquisition is subject to certain closing
conditions. Over the next two years, Apace will acquire another 16% of Diema
Vision, the timing and consideration for which will be determined by the
future performance of the business. The acquisition of Diema brings four
additional television channels to the existing two channels Apace already
owns in Bulgaria. This acquisition establishes Apace, alongside News
Corporation, as one of the biggest multi-channel broadcasters in Bulgaria.

Diema's channels cover sport, films, news and
pay-TV/pay-per-view. In addition to television rights, Diema retains home
entertainment and cinema rights for some of the films it acquires. The
group's sporting rights include exclusive broadcasting of English
Premiership, French and Spanish football championships.

The new funding will also be used to invest in the development
and creation of new products by Steadfast, Apace's UK entertainment
production division acquired earlier this year, and by the group's other UK
operations.

Making the announcement Apace Chairman, Didier Stoessel said,

"The success of this fundraising is a reflection of how well
our strategy has been received by the investment community. The Bulgarian
acquisition consolidates Apace's position as a content producer, rights
controller and broadcaster in one of the fastest growing broadcast markets.
It dovetails with our declared strategy of building a group of entertainment
and production companies capable of exploiting their rights in the UK and
other fast growing markets."

Apace Deputy Chairman and Chairman of Steadfast, Chris Rowlands added,

"In addition to acquiring these valuable Bulgarian media
assets, the funds will allow us to accelerate Steadfast's production
activities by investing in key creative and business affairs executives. In
this way we shall be able to create a well- resourced, internationally
focussed production arm greatly enhancing Apace's commercial potential."

Application has been made for the new ordinary shares to
trading on AIM and dealings in 5,000,000 shares placed with VCT investors are
expected to commence on 22 December. The remaining shares are expected to
commence trading on 23 December 2005, subject to shareholder approval.

Background on Apace

Apace Media was founded in 2002 and admitted to AIM in April
this year. The business specialises in:

- the creation, distribution + exploitation of intellectual
property in television and recorded music;

- the development and distribution of branded content.

In September, Apace announced revenues for the first six
months of 2005 of GBP1.6 million, with a pre-tax profit of GBP0.9 million
before amortisation of goodwill. At the same time it announced:

- the acquisition of MM Televizia, an integrated Bulgarian
media group, including the country's leading music television channel TV
channel;

- the acquisition of Steadfast Television Limited, a UK based
independent TV production company specialising in factual entertainment
programmes.

Background on Bulgaria.

Bulgaria is one of the emerging countries of Eastern Europe.
It has a population of approximately eight million people and its entry into
the European Union is currently targeted for January 1st, 2007. Bulgaria is
substantially restructuring its economy and infrastructure in preparation for
EU entry. A large-scale privatisation programme has been implemented and
foreign investors are already very active in the country.

The Bulgarian economy has performed well over the last 3 years
with GDP growth averaging 4.75 % per year. Inflation in 2004 was below 3.5%.
The Bulgarian government has a GDP growth target of 5%- 6 % for 2005 and
projects a budget surplus. After EU entry, EU funds representing 4%-5% of GDP
for the 2007-2009 period are expected to be invested in infrastructure.

Source: Apace Media plc

Enquiries: Didier Stoessel: +44(0)7775-508988, Simon Forrest: +44(0)7885-317746

-------
Profile: intent