28 May 2009

THE LOCAL RADIO COMPANY PLC 

('LRC' OR THE 'COMPANY')

UKRD Group Limited provides loan facility

The Company has previously announced that its cash position is extremely tight and that an injection of funds was urgently required in order to continue trading. Further, as a result of the Open Offer to raise approximately £1.5million, announced on 6 March 2009 not proceeding, and the Offer from UKRD Group Limited being declared unconditional on 12 May 2009, the Company is pleased to report that it has signed a working capital loan facility with UKRD Group Limited.  

The principle terms of the loan are as follows:

*    Facility of up to £1m

*    Monthly draw downs

*    Initial term of six months

*    9% fixed interest rate

*    Secured by a debenture over the assets of The Local Radio Company plc

For the purposes of Rule 13 of the AIM Rules for Companies and as UKRD Group Limited is a related party under the AIM Rules, the directors who are independent of UKRD Group Limited, having consulted with the Company's nominated adviser, Ruegg & Co Limited, consider that the terms of the loan facility are fair and reasonable in so far as the Company's shareholders are concerned.

For further information please contact: 

Roxane Marffy/Brett Miller

Ruegg & Co Limited

Nominated Adviser & Broker

Tel 020 7584 3663