UBC Media Group (AIM: UBC), the multimedia content and services company today provides an update on its investment in Audioboo Limited ("Audioboo") and the progress of its proposed acquisition of 7digital Group Inc. ("7digital"). These transactions are part of the previously announced strategy to transform the company.

As part of this strategy, UBC has been seeking investment in its associate company, the fast growing audio social network platform Audioboo. As announced previously, UBC signed non-binding Heads of Terms with One Delta plc ("One Delta"), a cash shell quoted on AIM, to acquire the entire issued and to be issued share capital of Audioboo in a potential all share transaction which would leave UBC with a significant stake in the enlarged group.

On 11 April UBC, along with Slovar Limited ("Slovar"), who together hold 76.56% of the issued share capital of Audioboo, have entered into irrevocable commitments to enter into a share sale agreement with the Company on terms broadly consistent (unless otherwise agreed) with the non-binding agreement in principle announced on 17 March 2014 in respect of their entire holdings of shares in Audioboo. The irrevocable commitments entered into by each of Slovar and UBC will automatically terminate on 8 June 2014 if no agreement has been entered into for the sale of the entire issued share capital of Audioboo to One Delta on or before 8 June 2014.

As part of the transaction, One Delta has entered into a loan agreement with Audioboo pursuant to which it will make a loan of £150,000 (the "Loan") available to Audioboo (the "Loan Agreement"). The Loan Agreement has been entered into in the expectation that One Delta acquires the entire issued share capital of Audioboo before the end of June 2014. The Loan will be used by Audioboo to fund further technical infrastructure and user interface.

It is noted that the proposed acquisition of Audioboo is deemed to be a reverse take-over in accordance with the AIM Rules for Companies. Accordingly an admission document must be produced and One Delta's shareholders' approval obtained. Work on this is at an advanced stage and, subject to completion of certain regulatory and due diligence, the publication of the admission document is expected to be announced in the near future. There is no guarantee, however, that any negotiations in respect of Audioboo will lead to its acquisition.

Concurrently, as part of the strategy to transform the Company, UBC is in the process of acquiring 7digital, a leading global supplier of digital music services. UBC announced on 17 March 2014 that it had signed Heads of Terms with 7digital and expects to publish an admission document by May 2014. Progress towards that end remains on track and further updates will be made as and when required. In accordance with the AIM Rules for Companies, UBC's shares will remain suspended until the admission document is published or the Company confirms that the acquisition of 7digital is no longer taking place.

Enquiries:
UBC Media Group 020 7453 1600
Simon Cole, Chief Executive
Chris Dent, Finance Director

finnCap 020 7220 0500
Charlotte Stranner - Corporate Finance
Victoria Bates - Corporate Broking

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