ISD Imagesound

RNS Number:9052F
Imagesound PLC
02 December 2004



2nd December 2004

                                 Imagesound plc

                 Launch of TV trial for B&Q and Business Update

Imagesound plc (AIM: ISD.L), the UK's leading supplier of in-store music, radio
and TV services to the branded retail and leisure sectors, announces that it has
today commenced an in-store TV trial with B&Q for its "next generation" stores
in East Kilbride and Bristol. To be known as B&Q TV, the trial is expected to
run until April 2005, with additional stores added to the trial as they open.

B&Q TV is designed to enhance the retailing experience and service levels for
customers and to help them with their purchasing decisions. Five plasma TV
screens will be located at various points within each new format store with the
following applications:

-        Three of the screens will be activated by PIR Motion Sensors and will
run content relating to the product offering of the area in which they are
located.

-        One screen is located in the main demonstration area of the store and
will carry continuous and regularly updated "How to" demonstration programmes
together with regularly scheduled advertising breaks.

-        The final screen will be located in the Cafe Bar and will form part of
an "Inspiration Wall", running continuous programmes of hints, ideas and tips on
creative home decor and interior design.

Imagesound already supplies a bespoke instore radio service to all of B&Q's
existing stores. B&Q TV will operate alongside this in-store music and messaging
system in the new stores and will utilise the same satellite broadcast supply
chain.

Business Update

In addition to today's announcement of the launch of B&Q TV, Imagesound is also
providing an update on its business since the company's creation in July 2004,
through the merger of Imagesound, Rolec and TTL and the reverse takeover by the
enlarged group of AIM-listed ACI plc. This update shows:

-        Recurring revenues, which are the core of Imagesound's business and are
derived from the contracted supply of audio, TV and messaging services to
customer sites, are running ahead of expectations.

-        New customer wins since July include new contracts with Wolverhampton &
Dudley's 'Bostin pub chain, the managed pub chain of SA Brains, the Cardiff
based brewer and the previously announced roll-out to all 600 Somerfield stores.
Additional sites have also been secured at existing customers including Fitness
First, Subway and Pitcher & Piano. The Group is on track to achieve its 11,500
target number of sites in 2004 (2003: 10,000).

-        The company will also be rolling out a bespoke music and equipment
package to a further 120 Pizza Express restaurants early in 2005. This will take
the total number of Pizza Express restaurants supplied by Imagesound to over
220.

-        The physical integration of the three businesses has been completed
ahead of schedule, with the closure of TTL's Linby premises and transfer of
operations to Imagesound's office achieved in early November. Good progress has
also been made on the financial, operational and systems integration of the
three businesses and the Group is on track to deliver the synergy benefits
anticipated at the time of the merger.

-        In addition, restructuring has also been completed at the Group's
systems installation operation, to create a more flexible operating model with a
lower cost base. This restructuring is in response to lower than expected levels
of non-recurring systems installation revenues. Non-recurring revenues are
stand-alone projects and do not impact future recurring revenue streams.

Michael Clark, Chief Executive of Imagesound said:

"With the integration now largely complete we now have a much clearer picture of
the business going forward and believe we have a very solid platform on which to
build.

"We are excited by the opportunities for the enlarged group and by the levels of
new business activity that we are attracting. As a result, recurring revenues
are running ahead of our expectations at the time of the merger and these will,
in time, more than compensate for the lower levels of non-recurring revenues.

"The B&Q TV pilot is a very interesting and exciting project and builds on our
existing experience of providing bespoke TV content to over 600 retail and
leisure outlets via Yates TV, Foot Locker TV and Megabowl TV."

                                    - 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 services to over 40 leading branded retail and leisure
chains reaching over 10,000 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.

The adoption of broadband and satellite technology has enabled Imagesound to
provide its clients with highly bespoke daily playlists tailored to match
customer demographics and promotional advertising (audio and visual) right at
the point of sale. Music profiles and message campaigns can be targeted at
national, regional or even individual outlet level. Research has shown that
in-store music and messaging can increase dwell times and influence purchasing
decisions in store.




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