RNS Number:1215M
Capital Radio PLC
25 October 2001

                              CAPITAL RADIO PLC

                               25 October 2001

 ACQUISITION OF 19% OF TAINSIDE LIMITED (CHOICE FM) FOR #3.3MILLION VALUING
TAINSIDE AT #16MILLION

Capital Radio Plc ("Capital"), the UK's leading commercial radio group,
announces today that it has acquired, for #3.3million, a 19% stake and an
option to acquire the remaining 81% of the issued share capital of Tainside
Limited and its group companies ("Choice"). Choice owns and operates the two
Choice FM radio licences in London. The transaction values the entire business
at #16million on a debt free/cash free basis.

Choice FM broadcasts to a potential audience of 5.8million adults in London.
96.9FM has been broadcasting to South London since 1990 and 107.1FM began
broadcasting to North London in 2000. The format of Choice embraces all types
of urban contemporary black music. Choice also owns a network of four digital
licences for London, the North West, the North East and the Severn Estuary as
well as a 7% share in the MXR digital radio consortium.

In the last available RAJAR, for the quarter to June 2001, the combined Choice
audience was 277,000 with a total London market share of 0.8% (the equivalents
for Capital's London stations at the same date were an audience of 3.6million
and total London market share of 16.2%). Unaudited figures for the twelve
months to September 2001 show Choice had revenue of #1.4million, made a loss
on its analogue operations before financing costs of #0.1million and invested
#0.1million in its digital activities.

Capital's shareholding in Choice is a strategic investment made in
anticipation of changes in the regulations governing media ownership in the
UK. Capital believes Choice has significant opportunities under its existing
formats to grow its audience and share across London both within the black
community, which has more than doubled in size over the past ten years, and
amongst other listeners who appreciate the music it plays.

David Mansfield, Chief Executive of Capital Radio, commented:

"Choice is an excellent investment for Capital. It brings to us a stake in a
brand that has exciting growth potential and operates in an important music
genre. We anticipate increasing our shareholding and becoming more involved in
the business when the Radio Authority proposals for relaxing ownership gain
government approval."

Patrick Berry, Chief Executive of Choice, commented:

"We are delighted that Capital has taken this step. It is a substantial vote
of confidence in our ability to develop our brand and grow our audience. My
management team and I look forward to Capital's commitment, encouragement and
support over the coming years."

Enquiries
Capital Radio                                           020 7766 6000
David Mansfield, Chief Executive
Peter Harris, Finance Director
Finsbury                                                020 7251 3801
Rupert Younger
James Leviton

Note to Editors

Structure of the deal

Of the initial #3.3million consideration, #1.65million is in the form of
260,253 Capital shares issued to Choice shareholders and #1.65million is in
cash in return for newly issued shares in Tainside Limited. The cash will be
used to fund working capital requirements.

The shareholders of Choice will have the option to put their remaining 81% of
the issued share capital of Tainside Limited to Capital from September 2004
until September 2006, whilst Capital will have the option to call the
remaining 81% from March 2005 to September 2006, subject to regulatory
approval.

The consideration for the remaining 81%, which will be payable entirely in
Capital shares, will be determined in accordance with an agreed formula based
on the achievement of an audience target and will be reduced by any net
indebtedness of Choice.

The minimum payable for the remaining 81%, based on the debt free/cash free
valuation of #16million implied by the current audience of Choice and the
5-day average of Capital's share price to 23rd October of 635.5p, would imply
that the number of further Capital shares to be issued would be 1,997,196.

The maximum price for the remaining 81% will be payable if Choice grows either
its adult audience to 660,000 or more from 277,000 or its 15-34 audience to
330,000 or more from 170,000. As a result of achieving either of these
performance targets, based on the 635.5p Capital share price, the maximum
number of shares that could be issued would be 2,980,673. This would value
Choice at #22.25million on a debt free/cash free basis.
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