RNS Number:2603L
New Media Industries PLC
19 May 2003

               New Media Industries plc ("the Company" or "NMI")

                               Trading statement

                    Placing of 6,929,070 new ordinary shares

              Proposed further placing of up to #2m of new equity



Trading statement



Due to a number of factors including the delay of several theatrical releases,
the effect of war on several clients and the general poor performance of the
video games industry over Christmas 2002, the directors of NMI ("the Directors")
expect to report turnover for the year ended 30 April 2003 approximately 25 per
cent. lower than that achieved in the previous financial year. The Directors
expect that this will result in greater losses being incurred for the current
financial year than those incurred in the financial year ended 30 April 2002.



Despite the persistence of extremely difficult trading conditions with the
marketing services sector, NMI continues to make significant new business wins
and progress with current clients across all of its business units.



The Directors consider that the most critical issue facing the Company is a
severe volatility in client spend both in terms of quantum and timing. The
Directors are pleased to confirm that, as referred to in the Company's interim
results for the six months ended 31 October 2002 released on 31 January 2003, it
has increased its debt facilities to #3,000,000 giving the Company additional
headroom in a period when working capital utilisation has increased due to
restrictions being imposed on NMI regarding its credit terms with major
suppliers.



Placing and proposed placing of new shares



The Company also announces that it has raised #175,726 through the placing of a
total of 6,929,070 new ordinary shares of 1p each ("Ordinary Shares") with
investors ("the Placing Shares") (under the authority approved by shareholders
at the last AGM), 5,929,070 Ordinary Shares having been issued at a price of
2.5p per share and 1,000,000 Ordinary Shares at a price of 2.75p per share. The
Placing Shares represent approximately 8.17 per cent. of the Company's existing
issued ordinary share capital. The Company is to apply for the Placing Shares to
be admitted to trading on AIM (Admission").



In addition, the Company is proposing to raise up to #2m by the placing of
further new Ordinary Shares with investors ("the Further Placing"). The Further
Placing will require shareholders' approval at an extraordinary general meeting
to, inter alia, disapply pre-emption rights. A further announcement will be made
as soon as is practicable and a circular will be despatched to shareholders when
the terms of the Further Placing have been finalised.



The Directors are of the opinion that the Placing and the Further Placing are
required so as significantly to increase the Company's working capital in order
to take advantage of upcoming trading opportunities, and to provide further
comfort levels in a difficult market environment.



Subject to completion of the Further Placing,  the Directors are confident that
any prior constraints on investment and working capital have now been
satisfactorily resolved, positioning the Company for further growth.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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