CAP Clean Air

RNS Number:7915H
Capital Radio PLC
31 July 2001

        Capital Radio completes sale of Border Television ITV Licence

                       to Granada plc for #50.5 million

31 July 2001

Capital Radio plc ("Capital Radio") today announces the completion of the sale
of the Border Television ITV licence to Granada plc ("Granada") for a cash
consideration of #50.5 million, subject to a net asset adjustment.

Capital Radio acquired Border Television plc (now Border Television Limited)
in May 2000, comprising the three "Century" branded radio stations and the
Border Television ITV franchise. The acquisition enhanced Capital Radio's
strategy of building a national presence for its analogue radio business.

The acquisition proceeds will be used by Capital to reduce its debt.
Accordingly, completion of the deal leaves Capital Radio with approximately 
#40 million of net debt, thereby creating significant financial headroom for
Capital Radio to invest further in radio.

Notes to Editor:

1.  The Border Television ITV licence covers the Border region of the UK.

2.  Capital Radio and Granada signed a put and call agreement in April 2000
    whereby Granada had a right to acquire from Capital Radio, and Capital
    Radio had the right to sell to Granada, the Border Television ITV licence
    for #50.5 million (subject to a net asset adjustment) for a period of three
    years following the acquisition of Border Television plc by Capital Radio.

3.  In the nine months to 30 June 2001, the Border Television ITV franchise has
    generated an operating profit of approximately #2.45 million. The interest
    charge on the #50.5 million debt for the same period was #2.45 million.

4.  The net assets relating to the Border Television ITV licence as at 17 May
    2000 were #8.7 million.

5.  Capital Radio intends to account for the Border Television ITV franchise as
    a discontinued business in its financial statements for the year ending 30
    September 2001.

For further information please contact:

Capital Radio plc

Peter Harris      020 7766 6763


Finsbury Group

James Leviton     020 7251 3801

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