EIC Eicom

RNS Number:8395M
Multimedia Television PLC
27 May 2005


MultiMedia Television PLC sells Job Channel Limited

MultiMedia Television PLC ("the Company") announces its agreement with 
Eicom PLC, an AIM listed company, for the sale of Job Channel Limited, its 
subsidiary which operates The Job Channel, the digital television job search 
and recruitment service. The Job Channel enables certain digital TV users to 
access job search and other recruitment services. In the year ended 30 April 
2004 Job Channel Limited made a post tax loss of #233,000 on turnover of 
#172,000. As at 30 April 2004, Job Channel Limited had net liabilities of 
#7.4 million arising from the cost of developing Job Channel over the previous 
5 years. The liabilities are principally in the form of intercompany debt owed 
by Job Channel Limited to the Company, which Eicom is acquiring from the 
Company for #1. This had been fully provided for by MultiMedia Television PLC.

Eicom has bought Job Channel Limited from its parent MultiMedia Television PLC.
The maximum consideration payable is #1 million. Initial consideration of
#125,000 is being satisfied by the issue of 15,625,000 shares in Eicom at 0.8p
per share. The shares are subject to normal lock-in and orderly market
requirements and it is the Company's current intention to retain these shares,
as a strategic investment. The additional consideration will be payable in 
Eicom shares at 0.8 pence per share as follows: #50,000 to be paid in shares 
if the turnover in either of the financial years ended 30 June 2006 or 
30 June 2007 exceeds #275,000. Additionally, for each #1 by which the turnover 
for the financial year ended 30 June 2007 exceeds #400,000, 137.5 pence in 
shares will be paid to a maximum #825,000.

Negotiations for the sale of Job Channel Limited to Eicom commenced in 2004, 
and consequently upon amendment of Rule 15 of the AIM Rules (relating to 
disposals resulting in a fundamental change of business) in March 2005, the 
Company sought the consent of the London Stock Exchange to the sale of 
Job Channel Limited without the need for the consent of the Company's 
shareholders being given in general meeting. This approval was given by the 
London Stock Exchange upon the Company's application.

Following the sale of Job Channel Limited the Company's directors will continue
to review the Company's activities and, if necessary, consent from shareholders
for its future strategy will be sought at the Company's next AGM. The Directors
have acquired significant knowledge and expertise relating to interactive
digital television in the course of the last five years. The two investments
held by the Company are in this area, namely the shares in Eicom specified 
above and a holding of 4,332,979 shares in YooMedia PLC. The Company has 
reviewed its investment in the latter and has now classified it as a current 
asset rather than a fixed asset. The Company has recently sold 2,050,000 shares
in YooMedia to provide #300,000 of working capital. The Company believes that 
YooMedia has a leading position in the field of interactive digital television 
and is well placed to benefit from future growth in this field. It will review 
its investment from time to time and any decision as to the disposal of this
investment will depend on the future trading performance of YooMedia, its share
price and any future capital requirements of the Company, subject to the 
lock-in requirements applying to the majority of this holding.

The Company is also actively exploring the opportunity of work with the 
European Union and the employment departments of various European Governments 
to make job vacancies available to viewers through interactive digital 
television. The Company gained considerable experience in this area by enabling 
the Jobcentre Plus division of the Department of Work and Pensions in the UK to 
make a database of job vacancies available to digital television subscribers on 
Sky, NTL and Telewest. EURES, the EU organisation responsible for employment 
services and labour mobility, is exploring with the Company plans for launching 
pilots in one or more European Union member states.

27 May 2005


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