CAP Clean Air

Office of Fair Trading approves Capital Radio plc acquisition of        

  Choice FM through purchase of remaining 81% of Tainside Limited ("Choice")   

                                                        Monday 23 February 2004

The Office ofFair Trading ("OFT") today announced approval for Capital Radio
plc ("Capital") to enhance its portfolio of London stations by acquiring
London's Choice FM.

Choice owns and operates the two Choice FM radio licences, broadcasting urban
contemporary music to a potential audience of 5.8 million adults in London.
Choice also currently operates a network of 5 digital radio licences covering
London, the North West, Yorkshire, North East and the Severn Estuary and has
also recently been offered an additional service across the West Midlands,
giving an aggregate potential audience reach of 25.8 million.

Capital acquired a 19% stake in Choice for �3.3million on 25 October 2001 and
entered into a put and call option under which Capital could acquire the
remaining 81% of Choice between September 2004 and September 2006. On 19
November 2003, Capital announced that it had agreed with the Choice
shareholders to accelerate the exercise of the put and call option and to
acquire the remaining 81% equity, with completion expected on 01 March 2004.

Capital's Strategy and Development Director, Nathalie Schwarz commented:

""We are delighted with this announcement from the OFT approving our
acquisition of Choice, the first decision of the OFT considering the radio
industry since the new regulatory environment created by the Communications Act
2003 came into force. Choice is an excellent investment for Capital and one
that complements our existing portfolio of stations in London. We believe that
Choice has significant opportunities under its existing formats to grow its
audience across London and the UK and look forward to announcing completion of
the deal."

Enquiries:
Capital Radio plc
Nathalie Schwarz Strategy and Development Director 020 7766 6166

Jane Wilson Director of Communications 020 7766 6863

Finsbury Group (press enquiries)
James Leviton 020 7251 3801

Notes to Editors:

The consideration for the remaining 81% stake will be payable in Capital shares
and the amount will be determined in accordance with an agreed formula based on
the achievement of audience targets and a net current liabilities adjustment at
completion, estimated at approximately �1 million. The net consideration will
be paid in Capital shares at a pre-fixed notional conversion price of �6.355
per share, resulting in approximately 2.5 million Capital shares being issued
at completion.

Unaudited figures for the twelve months to September 2003 show Choice had
revenue of approximately �1.8 million, made an operating loss from analogue
radio activities of approximately �0.3 million and invested approximately �
0.5million in its digital activities. At 30 September 2003, Choice had
unaudited net liabilities of approximately �0.3 million.





END

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