For immediate release

 6 November 2008

Independent Media Support Group Plc 

('IMS' or the 'Company')

Corporate Update

As announced in the unaudited interim results for the six months ended 30 June 2008 (the 'Interim Results'), the Board of IMS noted that one of its clients was facing cash flow difficulties and, in respect of projects recently delivered by the Company, the client had proposed a payment plan to settle amounts owed to IMS. On 30 October 2008, IMS was notified by Griffins, the insolvency practitioners, that the directors of Liberation Entertainment Ltd (being the client referred to above) had decided to commence liquidation proceedings. At this stage, IMS is not in a position to assess the recoverability of any amounts owed by Liberation Entertainment Ltd to the Company. However, the Directors of IMS believe that it is likely that the audited results for the year ending 31 December 2008 will include a provision for up to the full amount of £120,000 which is owed by Liberation Entertainment Ltd.

Additionally, the Board of IMS also noted in the Interim Results that there was a contingent risk to the Company arising from claims for costs submitted to the Competition Appeals Tribunal ('CAT') by Ofcom, Red Bee Media and the BBC in respect of IMS's appeal to CAT. IMS is currently seeking leave to appeal CAT's decisions of May 2007 and August 2008 which gave rise to these cost claims. At the time of the Interim Results, IMS believed that it was unlikely that Red Bee or the BBC would be awarded any costs in this matter. CAT has now ruled that, in the event leave to appeal is refused, or the appeal itself is dismissed, IMS will pay 35 per cent. of such costs as may be agreed between IMS and Red Bee or as determined by CAT as the costs reasonably incurred in the appeal to CAT. CAT also ruled that the BBC will bear its own costs. IMS will continue to update the market on the progress of its appeal as appropriate and the monetary amount of any cost contribution the Company may have to make in due course should leave to appeal be refused, or the appeal itself is dismissed.

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