SWD Sportsworld

RNS No 7183a
SPORTSWORLD MEDIA GROUP PLC
1 July 1999

Sportsworld Media Group plc ("Sportsworld")

Acquisition of Lone Eagle Enterprises Inc.

Sportsworld is pleased to announce that it has entered into a conditional
agreement to acquire a 60 per cent. interest in Lone Eagle Enterprises Inc.
("Lone Eagle") from Michael Geddes and his wife ("the Vendors").

Lone Eagle is a sports television production company, based in Canada, the
principal activity of which is the production of a sports television trivia
series and a golf series. It has relationships with major broadcasters and
sponsors including CTV, CBC and Labatts. Sportsworld expects to utilise Lone
Eagle's network to sell its existing programme formats into the Canadian
marketplace, as well as marketing the Lone Eagle programme format through
Sportsworld's existing international network. 

Lone Eagle has not previously been required to publish audited accounts.
However, information supplied by the management of Lone Eagle for the eight
months ended 25 May 1999, indicated that Lone Eagle generated an unaudited net
income of CN$111,008 on turnover of CN$461,155 and had unaudited net assets of
CN$132,637.

The initial consideration for the acquisition is approximately CN$1,250,000
(approximately #540,000) which is to be satisfied as to CN$600,000 by the
issue of 261,462 new ordinary shares in Sportsworld ("Consideration Shares")
and as to the balance in cash. The number of Consideration Shares to be issued
was calculated from the average mid market price of a Sportsworld share as
shown on the London Stock Exchange Daily Official List for the 10 business
days prior to the signing of the acquisition agreement. Deferred consideration
may become payable depending upon the annualised average net profits of Lone
Eagle for each of the years ending 30 June 2004. Any deferred consideration
would be paid partly in shares and partly in cash. 

Sportsworld will have a call option and the Vendors will have a put option
over the remaining 40 per cent. of the shares in Lone Eagle, exercisable (i)
in the case of Sportsworld, on any one of the annual exercise dates commencing
in 2007 and (ii) in the case of the Vendors, in a single, or, at their
discretion, two equal tranches on any one of the annual exercise dates
commencing in 2005. The consideration payable on exercise of the put or call
option will be determined by reference to the appropriate percentage of six
times the annualised average net profits of Lone Eagle. 

The total consideration payable under the terms of the acquisition, including
the consideration payable on the exercise of the options, is subject to a cap
of #8,000,000.

In addition, at completion of the acquisition, Sportsworld will provide a
working capital loan of CN$500,000 to Lone Eagle.

Completion of the acquisition is conditional upon, inter alia, no objection
being raised under the Investment Canada Act.

Application will be made for admission of the Consideration Shares to the
Official List of the London Stock Exchange ("Official List").

Commenting on the acquisition, Geoff Brown, Sportsworld's Chief Executive
said:

"The acquisition of Lone Eagle is in line with our strategy of expanding our
international presence and represents our first move into the North American
market. It is highly complementary with our existing business, providing a
range of production and related capabilities in Canada. In addition, we expect
to be able to exploit Lone Eagle's existing relationships with Canadian
broadcasters to increase sales of our existing programming in an area in which
we have not previously been represented."

"We anticipate Lone Eagle's natural fit with Sportsworld to lead to increased
cross referral of products on an international basis."

Enquiries:

Geoff Brown / Andy Fletcher, Sportsworld Media Group plc      0171 240 9626
Jagjit Mundi, Investec Henderson Crosthwaite                  0171 597 5970
Tim Spratt / Tania Wild, Financial Dynamics                   0171 831 3113

END

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