AMU Air Music&Media

RNS Number:5354Y
Air Music & Media Group PLC
18 June 2007


                                                                    18 June 2007

                          Air Music & Media Group plc
                                 ("Air Group")
                       Sale of Legacy Entertainment Inc.

The Directors of Air Group, the UK distributor of home entertainment products,
are pleased to announce the sale of the non-core operation in Canada, Legacy
Entertainment Inc. ("Legacy") to Terry Perusini (the President of Legacy) and
Mark Frey (Former CEO of Air Group). The sale was completed after the close of
the market on Friday 15 June 2007.


Legacy has been sold for cash consideration of Can$500,000 (#232,000), payable
by instalments over nine months. Air Group has indemnified the purchasers for
potential tax liabilities relating to on going investigations for the periods
2002 to 2005. The results of Air Group for the year ended 31 March 2007 will
include a provision of #503,000 (unaudited) for the maximum estimated tax
liability. The final tax liability will only be determined after agreement has
been reached with the Canadian tax authorities. Air Group has also entered in to
a license agreement with Legacy which may result in an income due to Air Group
based upon Legacy's future sales performance. The Air Group results for the year
to 31 March 2007 will include an asset write down of #312,000 (unaudited) and a
goodwill write off of #618,000 (unaudited) in relation to Legacy. The Directors
consider, having consulted with Seymour Pierce Ltd. as their Nominated Adviser,
that the terms of the transaction are fair and reasonable insofar as its
shareholders are concerned.


As highlighted in the interim statement and trading update, performance at
Legacy had been disappointing in the current year with little prospect for
improvement. Sales for the year to 31 March 2007 were #2.5 million (unaudited)
compared to #4.6 million in the previous year. Legacy made a loss before tax and
exceptional items of #110,000 (unaudited) for the year to 31 March 2007 compared
to a profit of #678,000 in the previous year. As at 31 March 2007 Legacy had net
assets of #232,000 (unaudited).


Peter Cowgill, Chairman of Air Group, commented: "The sale of Legacy completes
the strategic actions taken this year by the Board to address Air Group's
underperforming operations. We closed down our pilot retail operation in
September 2006 and earlier this month we absorbed the activity of Air Music and
Media Sales in to our wholesale business, ESD Wholesale. The transparency and
key focus of the business is now significantly improved."


                                    --ENDS--


Enquiries:

AIR MUSIC & MEDIA GROUP PLC                                   Tel: 0161 767 1620
Peter Cowgill, Chairman
www.airmusicandmedia.com

SEYMOUR PIERCE LIMITED                                        Tel: 020 7107 8000
Mark Percy

BISHOPSGATE COMMUNICATIONS LIMITED                            Tel: 020 7562 3350
Dominic Barretto







                      This information is provided by RNS
            The company news service from the London Stock Exchange

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