RNS Number:6457Q
Air Music & Media Group PLC
08 October 2003


8 October 2003
                                        
           Air Music & Media acquires the Original Record Company Ltd
                                        
Air Music & Media Group plc ("Air Music" or "the Company"), a leading UK
producer and supplier of low-priced entertainment products to the international
market,  announces that it has acquired the Original Record Company Ltd
("Original").   Original trades as New Sound 2000, the low price CD label.

The acquisition will be for a maximum consideration of #3 million, comprising 
an initial payment of #550,000, of which, #175,000 will be in cash and the
balance will be satisfied by the issue of 4,604,616 Air Music ordinary shares at
a price  of 8.144p each.  Further annual payments may be made depending on the
profit-after-tax attributable to Original, for the financial periods ending 2004
and 2005. Subsequent  payments will be in loan notes and/or shares, at Air
Music's option.  In accordance  with Air Music's stated acquisition policy,
Original is expected to be earnings per  share enhancing.

The New Sound 2000 label is a strong brand in the budget CD market and is a
direct  competitor of Air Music's existing Going For A Song label.  It will
bring new  customers, licences and distribution channels to the Company and will
provide  significant opportunities for the exploitation of Company owned
copyrights.   New Sound 2000's sales function will continue to trade from its
existing offices,  while its logistics and finance functions will be integrated
into Air Music's.   New Sound 2000's sales have grown from #1.3 million in 2001
to #3.1 million in 2003  and it is expected that sales levels will be maintained
at 2003 levels, with growth  potential.

Commenting, John French, Chairman of Air Music, said: "The acquisition of the
New Sound 2000 label strengthens Air Music's position at  the forefront of the
low price entertainment market.  It provides us with another  strong CD label,
additional routes to market for our existing products, including  DVDs from our
subsidiary, Hollywood DVD, which we acquired in December 2002, and  further
licenses which we can cross sell through our other international businesses.  
We will continue to look for additional acquisitions in the UK and abroad that
will  be both earnings enhancing and improve shareholder value."

For further information:

Air Music & Media
John French, Chairman                                               07836 722482
Mark Frey, Chief Executive                                         01442 877 018

mj2 ltd
Richard Sunderland                                                 020 7491 7789

Seymour Pierce Limited
Mark Percy, Ewan Leggat                                            020 7107 8000

Notes to editors

Air Music & Media is a manufacturer and distributor of value CDs and DVDs. Its 
products have an established customer base and are therefore less exposed to the
risk associated with the often fickle, fashion-led area of the entertainment
market.
The Company moved from Ofex to AIM in July 2002 and at its most recent results 
(for the year ended 31st March 2003) turnover improved 83% to #8,032,035 
(2002: #4,374,373) whilst profit before tax, interest and goodwill amortisation 
increased 33% to #1,127,473 (2002: #847,968).

In 2001, Air Music & Media acquired the Canadian company Legacy Entertainment
Inc,  which provided an increased catalogue of audio products and opportunities
for cross  selling with existing catalogues, as well as an important foothold in
the North  American market.  This was followed, in December 2002, by the
acquisition of the  UK based company, Hollywood DVD, a leading manufacturer and
distributor of low  priced DVDs.  The management believes that the DVD market
affords a huge opportunity  and the acquisition is the first stage in Air Music
& Media's strategy to diversify  from being a pure audio business to that of a
manufacturer, distributor and licence  holder of a broad range of entertainment
products.

Air Music & Media now operates in 55 countries and continues to look for suitable 
acquisitions.






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

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