Independent Media Support Group PLC
14 March 2007


For immediate release                                              14 March 2007





                      Independent Media Support Group Plc

                    ('IMS' or the 'Company' or the 'Group')

                                 Trading Update


As the Board of IMS previously announced in July last year, the signing of a new
contract, at reduced prices, with a major customer in that month led the
Directors to expect that the Group would be loss-making in the second half of
the year ended 31 December 2006. This would, in turn, lead to a small overall
loss before tax for the full year excluding any costs of dealing with the
approach by the Executive Chairman regarding a possible offer for the Group
(talks on which were terminated in November).


The Group is now in a position to give an indication of its full year results.
The Board believes that the Group is likely to report an underlying loss before
tax in the region of £240,000, excluding the professional costs of dealing with
the possible offer for the Group of £53,000.


Turnover in the year was approximately £1m lower than 2005 as a result of the
reduced performance in the Group's core business of deaf and hard of hearing
subtitling for television broadcasters, mainly as a consequence of the amended
customer contract referred to above. Whilst the impact of this revised contract
was largely anticipated, the Board had hoped that growth in the second half of
2006 in other areas of the business as well as cost reduction measures
introduced in the first quarter of 2006 would mitigate more substantially
against the loss of margin.


The Group has had some success in growing other areas of the business, such as
subtitling for commercials and audio description. However, the rate of growth in
2006 in these areas was not sufficient to make up for the reduced margin in
IMS's core market. Overall gross margins were also less than expected due to the
slower than anticipated roll out of services in other European markets.


The forecast loss before taxation also includes payments for consultancy
services provided to the Group by former directors of the Company which have
been treated as related party transactions for the purposes of the AIM Rules.
Kiren Shah, the former finance director of the Company provided assistance to
the Company in relation to various matters, including completion of the 2006
interim financial statements. Pursuant to this consultancy contract, the Company
agreed to pay a day rate of £578, which amounted in total to an agreed total
consultancy payment of £5,929 in respect of the year ended 31 December 2006.
Additionally, Melvyn Angell, the former chief operating officer, provided a
range of assistance to the Group in relation to new business development
initiatives and other strategic developments which are expected to be effected
in 2007. Pursuant to this consultancy contract, the Company agreed to pay a day
rate of £1,000, which amounted in total to an agreed total consultancy payment,
after adjustments, of £50,000 in respect of the year ended 31 December 2006.
Melvyn Angell agreed to waive and remit consultancy payments otherwise invoiced
in excess of this total agreed amount. The independent directors of the Company
consider, having consulted with the Company's nominated adviser, that the terms
of the consultancy agreements with Messrs Shah and Angell are fair and
reasonable insofar as the Company's shareholders are concerned.


The Company expects to announce its full results for the year ended 31 December
2006 in April 2007.


Enquiries:

IMS                                           Tel: 020 7440 5400
Sylvia Sheridan
Mark Robinson
Beaumont Cornish Limited                      Tel: 020 7628 3396
Roland Cornish


ENDS



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