ISD Imagesound

RNS Number:7577N
Imagesound PLC
20 June 2005





20 June 2005

                                 Imagesound plc

            Acquisition of Ideal Music adds 1,200 subscriber outlets

Imagesound plc (AIM: ISD.L), the UK's leading listed supplier of in-store music,
radio and TV services to the branded retail and leisure sectors, today announces
that it has acquired Ideal Music Communications Limited and Ideal Music Media
Limited ("Ideal Music").

Ideal Music is a major supplier of music services to the branded fashion retail
sector, supplying over 1,200 retail outlets across the UK with in-store music
and radio solutions. Its customer base includes leading brands such as Next,
River Island, Monsoon, Accessorize and Mk One.

Founded in 1985, by Jon Pope and John Perou, Ideal Music is based in Newbury and
London. The Ideal Music operations will be integrated into Imagesound's existing
offices in Chesterfield and London over the coming months. The founders of the
business will enter into consultancy agreements with Imagesound to assist in the
integration and future development.

Imagesound will acquire Ideal Music for an initial consideration of #600,000 in
cash. A deferred consideration of up to a maximum of #300,000 will be payable in
December 2005, subject to achieving certain revenue targets. Up to #225,000 of
the deferred consideration can, at Imagesound's complete discretion, be
satisfied by the issue to the vendor of ordinary shares of 10p in Imagesound plc
("Consideration Shares"), with the balance payable in cash or bank guaranteed
loan notes. The value of the Consideration Shares will be calculated by
reference to the average closing middle market price of an ordinary share in
Imagesound prior to their allotment.

As at 30 April 2005, Ideal Music Communications had turnover of #264,000,
operating profit of #68,433 and net assets of #16,700. As at 30 September 2004,
Ideal Music Media had turnover of #342,000, operating profits of #67,108 and net
assets of #615. The Imagesound directors anticipate that, excluding any costs
associated with the integration, the acquisition will be earnings enhancing in
its first full year of contribution.

Commenting on the acquisition, Michael Clark, Chief Executive of Imagesound
said: "We are delighted to be acquiring one of the UK's leading players in the
fashion retail space. The acquisition fits in well with our growth strategy and
will benefit the Group from improved efficiencies and economies of scale. The
in-store music sector remains very fragmented. We started the consolidation
process in August last year, when we acquired two businesses in conjunction with
our listing. Today's deal adds a third and we see more opportunities to continue
this process over time.

"In the highly competitive fashion sector, the quality and ambience of the
retail environment plays a critical role in the success of the retailer. By
offering flexible, high speed delivery and remote management of profiled music
channels and targeted media, we can add real value to retailers. Ideal's
customers are significant blue-chip retail brands and welcome additions to our
already strong client list and we look forward to working with these retailers
going forward. Not only does this acquisition open up new opportunities for
Imagesound, but it also reinforces our position as the UK's leading listed
supplier of background music to the retail sector."

                                    - Ends-

For further information:

Imagesound plc
Michael Clark, Chief Executive                     Tel: 01246 572 990

Hogarth Partnership
James Longfield/Georgina Briscoe                   Tel: 020 7357 9477

About Imagesound plc

Imagesound is the UK's leading listed supplier of in-store music, radio and TV
services. It provides music and messaging services to over 40 leading branded
retail and leisure chains reaching over 11,500 subscriber outlets.

Customers include Superdrug, Yates, B&Q, Kwik Save, Foot Locker, Carphone
Warehouse, McDonald's, Subway, Halifax, Pitcher & Piano, Tiger Tiger, Holiday
Inn, Holmes Place, O'Neill's, Fitness First, Pizza Express and JJB. Imagesound
estimates that of the 200,000 branded retail and leisure outlets in the UK only
50,000 currently use a licensed music provider.

Imagesound is listed on the AIM market of the London Stock Exchange (ISD.L)




                      This information is provided by RNS
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