Milestone Group Plc

(“Milestone” or the “Company”)

Issue of Equity

AIM quoted Milestone Group PLC (AIM:MSG), the digital solutions provider, announces that it has agreed to issue 8,802,944 ordinary shares of 0.1 pence each in the capital of the Company (“Ordinary Shares”), at a price of 1 pence per Ordinary Share to certain creditors in lieu of £88,029.44 payable in respect of services performed to the Company.

Despite the Company’s current liability position being reduced as a result of the issue of the Ordinary Shares, as previously announced, the Company continues to be reliant on its ability to manage the timing of settlement of its liabilities and further fundraisings will be required in the immediate to short term.

Application will be made for, in aggregate, 8,802,944 new Ordinary Shares to be admitted to trading on AIM, which is expected to occur no later than 1 April 2010.  The new Ordinary Shares, when fully paid and issued, will rank pari passu in all respects with the existing Ordinary Shares of Milestone.

Total Voting Rights

Following the issue, Milestone will have in issue 229,354,066 Ordinary Shares with voting rights.  The Company does not hold any Ordinary Shares in treasury.  The figure of 229,354,066 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA’s Disclosure and Transparency Rules.

So far as the Company is aware and subject to any new notifications received, the following persons will have a notifiable interest in the issued share capital of Milestone following this issue of Ordinary Shares:
 

                                                            Current percentage holding                    Resultant percentage holding

Deborah Jane White                                   34,883,774 (15.82%)                                   34,883,774 (15.21%)

HBS 049 Limited                                          30,000,000 (13.60%)                                    30,000,000 (13.08%)

Cormac Crawford                                       18,954,772    (8.59%)                                    18,954,772 (8.26%)

Brett J. Desmond (all held by 
                Aurum Nominees Limited)         15,929,204    (7.22%)                                    15,929,204 (6.95%)

Lynchwood Nominees Ltd                             9,083,489   (4.12%)                                     9,083,489 (3.96%)

For further information, please contact:

Milestone Group Plc
Deborah White, Chief Executive        Tel: 020 7929 7826

Strand Hanson Limited, NOMAD
Richard Tulloch / David Altberg         Tel: 020 7409 3494

Hybridan LLP, Broker
Claire Louise Noyce                            Tel: 020 7947 4350