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

AGM STATEMENT

Ahead of its AGM which is being held at 12 noon today, MSQ gives the following update on its trading for the first four months of its current financial year from 1 March 2010 to 30 June 2010.

In the first four months of the financial year, the Group recorded a cumulative headline operating profit in excess of £400,000.  This compares to a loss of £1.3m in the same four months of 2009. The improvement of approximately £1.7 million is attributable to the closure or sale of loss making agencies and the reduction of costs at both an agency and group level, as well as a modest increase in client spending. Each of the four months in 2010 has been profitable versus a loss in each of the first four months of the last financial year.

Peter Reid, CEO, commented:

"In 2009 we saw the full impact of the recession and at this point last year we were in the middle of a radical restructuring of the group which has now been completed.  We remain cautious about trading conditions for the remainder of the year, with consumer and corporate confidence fragile, as evidenced by the recent IPA Bellwether report on the prospects for advertising spending in the UK, and uncertainty around future public sector advertising spend.  Despite that, the Board of Media Square is confident that the Group remains on track to meet management expectations for the current year."

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