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

Restricted Share Award to Senior Managers

Media Square plc (AIM: MSQ), today announces that 4.2 million restricted stock units have been issued to senior managers in the Group.  These awards reflect the Group's strategy, previously announced in its 2009 Annual Report and Interim Statement dated 24 November 2009, of making greater use of stock remuneration in order to incentivise senior managers to deliver improved operating performance across the Group and therefore align participants' interests with shareholders.

All of the awards have strict performance vesting conditions which will relate to the performance of the Group's underlying agencies or their aggregate performance in relation to those participants who are head office employees. Awards will vest should the relevant agency exceed certain stretching hurdle targets based on both operating profit margin and cumulative operating profit over the next three financial years ending 28 February 2013.  The earliest date that the awards can vest will therefore be 28 February 2013.

Should an award vest then each restricted stock unit will be satisfied by the issue to the employee of one ordinary share in Media Square, such share issues to be principally satisfied from the Group's employee benefit trust (the "Employee Benefit Trust").

As part of the awards, two Executive Directors have today received restricted stock awards which are disclosable under the AIM Rules for Companies.  Peter Reid, who was appointed Group Chief Executive on 1 January 2010 received an award of 900,000 units, in line with the terms of his appointment as CEO.  Bruce Winfield, Group CFO, received 300,000 units. A summary of the resultant interests of these Directors is set out below:

Note(1): Includes 43,000 ordinary shares held by Mr Winfield's spouse

Commenting on the awards, Group Non-Executive Chairman, Roger Parry noted: "the Board believes that it is critical to Media Square's future success that its senior managers are incentivised to grow operating profit.  This is the major priority for the Group over the next three years now that the restructuring has been completed". 

Enquiries to:

Notes to Editors:

In November 2009, the Group placed 3 million newly issued shares into an Employee Benefit Trust.

At the same time, Directors and senior managers in the Group agreed to cancel 2.9 million existing warrants and share options.