Media Square plc ("Media Square" or "the Group")

Acquisition

Media Square plc (AIM: MSQ), the international marketing communications group, today announces that the Group has acquired the advertising agency Chick Smith Trott ("CST") from Cagney plc with immediate effect.

CST is a top 50 Advertising Agency with a strong creative and planning heritage and reputation.  Their clients include NS&I, COI, Subaru, Crusha, Douwe Egberts and Enjoy England.  The agency has a well renowned senior team, which includes Dave Trott, Gordon Smith, Stephen King and Sonia Sheta.

The agency will complement Media Square's existing UK advertising agency, The Gate, with which it will be co-located at The Gate's offices in St. Katherine's Dock.

The total consideration for the transaction, to be sourced from the Company's internal resources, is £430,000 in cash, payable on completion.  Media Square will acquire net assets of £230,000 on completion. For the financial year ended 31 December 2009, CST is expected, subject to audit, to report a profit before tax of approximately £140,000 on net revenue of £2,000,000.  

Commenting on the acquisition, Peter Reid, Chief Executive of Media Square, said:

'We are delighted to welcome CST to the Group. We believe that the transaction will bring real benefits to both CST and The Gate and, in particular, to their clients.'

Philip Gregory, Chairman of The Gate, who will become Chief Executive of CST, added:

'Dave, Gordon, Stephen, Sonia and their team are a fantastic addition to the Group.  They have the potential to significantly broaden and enhance our advertising proposition.  At the same time, CST should benefit enormously from the broader set of resources available at the Gate and in other parts of the Media Square Group.'

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