MILESTONE GROUP PLC
(“Milestone” or the “Company”)
Loan Agreement

The Board of AIM quoted Milestone (AIM: MSG), the provider of digital media and technology solutions, announces that it has today entered into a convertible loan agreement in respect of a convertible loan in the sum of £150,000 (the “Convertible Loan”).

The terms of the Convertible Loan are as follows:

Term 12 months

Fees / costs payable £3,500 plus VAT in respect of legal fees

Net proceeds
 £145,887.50
Coupon 8 per cent. per annum payable on a annual basis

Final conversion / redemption date 31st March 2011

Conversion price - Equivalent to 15 per cent. below the average mid-market price for the 20 business days prior to the date of conversion.

The Convertible Loan will be drawn down immediately. This funding provides additional working capital and enables the Board to further develop the Company in the short term.

Deborah White, Chief Executive of Milestone, commented:

“We are grateful for the continued support of our stakeholders. This short term loan will allow us to continue to develop and deliver our expanding bespoke solutions for web and mobile platforms.”


FOR FURTHER INFORMATION:
 
Milestone Group PLC
Deborah White, Chief Executive  
Tel: 020 7929 7826
 
Strand Hanson Limited
Richard Tulloch / David Altberg 
Tel: 020 7409 3494
 
Hybridan LLP
Claire Louise Noyce / Stephen Austin 
Tel: 020 7947 4004