MEI Media And Income Trust Plc

RNS Number:0254S
Media & Income Trust PLC
26 February 2002


The issuer has made the following amendment to the Banking Update announcement
released on 25 February 2002 at 17:32 under RNS No 0022S.

Amendment:  the following paragraph has been added to text of document:

"It is currently anticipated that when and if the fixed cumulative
preferential dividend payable on the Preferred Income Shares is resumed, it
will continue at the level which Shareholders are entitled under the Company's
Articles of Association."

All other details remain unchanged. 



The full announcement reads:

Following the announcement made by the Company on 19 December 2001 and against
a background of continued weakness in markets, the Directors are currently
considering their options in relation to the Company's capital structure and
high gearing levels.

Falls in the value of the Company's total assets have resulted in a situation
in which the Company can no longer satisfy the net assets test in Section 264
(1) of the Companies Act 1985. At current levels, the Company is prohibited
from paying dividends on its Ordinary Shares or Preferred Income Shares.

In light of current market conditions, and the expected partial repayment of
the Company's bank loans, referred to below, the Board expects future
dividends on the Ordinary Shares, when and if the Company is able to resume
such dividend payments, would be at a lower level than those paid for the
previous year.

It is currently anticipated that when and if the fixed cumulative preferential
dividend payable on the Preferred Income Shares is resumed, it will continue
at the level which Shareholders are entitled under the Company's Articles of
Association.

Also, the value of the Company's net assets has fallen to less than half of
its called up share capital. An extraordinary general meeting of the Company
will accordingly be convened in compliance with section 142 of the Companies
Act 1985 with a view to considering the steps that should be taken to deal
with the situation. These are expected to include proposals in connection with
the Company's capital structure and high gearing levels.

It was also announced on 19 December 2001 that the Company had agreed with its
bankers an extension of its amendment to its banking arrangements until 28
February 2002 whereby cash balances may be deducted when calculating
qualifying assets and total borrowings. The Board is currently negotiating
with its bankers terms for a repayment of a significant proportion of its bank
loans, and for further amendments to its banking arrangements to assist the
Company in complying with its banking covenants. The Directors expect to be
able to announce details of an agreed schedule of repayments shortly.





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