Regulatory Announcement

Company: Hallwood Financial Limited

Headline:  Offer Update

Released: 13 May 2009

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, SWITZERLAND, SOUTH AFRICA OR JAPAN OR ANY JURISDICTION WHERE IT IS UNLAWFUL TO DO SO

Second Revised Cash Offer by Hallwood Financial Limited for the entire issued and to be issued ordinary share capital of The Local Radio Company plc not already owned by Hallwood

Further to UKRD's announcement on 12 May 2009 that the Second Revised UKRD Offer at 4 pence per TLR Share had been declared unconditional, Hallwood regretfully announces that Hallwood's Second Revised Offer, which was announced on 5 May 2009, is withdrawn.  

Such withdrawal is effected with the consent of the Panel, owing to the fact that it is no longer possible for Hallwood's Second Revised Offer to obtain acceptances in respect of TLR Shares which, together with TLR Shares acquired or agreed to be acquired before or during the Second Revised Offer, carry in aggregate more than 50 per cent. of the voting rights normally exercisable at a general meeting of TLR.  

Hallwood is not going to accept UKRD's offer of 4 pence per TLR Share.  

Commenting on the withdrawal, Anthony Gumbiner, Chairman of Hallwood and Non-executive Chairman of TLR, said, 'It would be ungracious of me not to congratulate UKRD on its victory and I wish UKRD well. To fight and win a contested takeover battle is no small thing especially in the middle of the recession. I will do all I can to make the Board transition as easy as possible.'  

13 May 2009

For further information, please contact:

Hunton & Williams     Tel: 020 7220 5700
(Legal Adviser to Hallwood)
Paul Tetlow

Capitalised terms used in this Announcement have the same meanings as in Hallwood's announcement of the Second Revised Offer on 5 May 2009.  

The release, publication or distribution of this Announcement in jurisdictions other than the UK may be restricted by law and therefore any persons who are nor resident in the UK or who are subject to the laws of any jurisdiction other than the UK should inform themselves about, and observe, any applicable requirements. Any failure to comply with the applicable requirements may constitute a violation of the securities laws of any such jurisdiction. This Announcement has been prepared for the purpose of complying with English law and the City Code and the information disclosed herein may not be the same as that which would have been disclosed if this Announcement had been prepared in accordance with the laws of jurisdictions outside the UK.