XPH X-Phonics

RNS Number:8943W
X-Phonics plc
21 May 2007



                                 X-Phonics Plc
                         ("X-Phonics" or the "Company")

                                  21 May 2007

                               Major Record Deal



Record Label

X-Phonics (AIM: XPH.L), the independent music and media group, is pleased to
announce a ground breaking contract to licence The Attic Lights to
Universal-Island Records Limited.

The Attic Lights were signed to X-Phonics Music Ltd in November 2006 and are a 5
member band based in Glasgow. The Attic Lights sound is a mix of classic 60's
Beach Boys meets Snow Patrol and although the band have been together for less
that two years they have already shown a measurable level of success, regularly
playing on the Scottish festival scene and receiving good support from such
radio stations as XFM and Radio 2.

The Company has licenced the band to Universal-Island Records in a 5 album deal.
Under this arrangement Universal-Island have the exclusive rights to acquire the
recordings produced for and by the band for exploitation on a worldwide basis.
To date the Company has received an advance and fees in relation to the
production of the bands debut album.  This has been delivered to
Universal-Island Records having been recorded during the last 3 months in The
Mixing Rooms in Glasgow. In addition the Company will receive royalties based on
future worldwide sales.


John McLaughlin, Chief Executive, said,

"This is a significant signing for our record label demonstrating that we have
the ability to identify artists and produce records that are of real interest to
the major record labels. We are beginning to create a real buzz in the industry
that we hope will create a basis for major record labels to work with us closely
in the future. "


For further information please contact,

John McLaughlin, Chief Executive
X-Phonics Plc
Tel. 020 8987 0800

Mike Hosie, Finance Director
Tel. 020 8987 0810

Notes to Editors


X-Phonics is an independent music and media group that has and is developing
opportunities across all aspects of the industry in a way that creates and
maximises returns from the relationships between its artists and writers.

X-Phonics has a number of artists who have been contracted to the Company
because of their potential to be developed within the business for the longer
term or because they are perceived to have broader appeal which can be delivered
earlier to the market in partnership with larger record labels.

Working with the Company's artists are a number of song writers who can
collaborate or who work individually and who also work on external projects. The
Company has signed a number of well known writers who bring with them catalogues
of previous work which can be further exploited by the Company and who will
attract other commissions and artists with whom to work. It is the Company's
intention to build a rosta of writers and to own and build a catalogue of songs
which will generate revenues over the longer term.

The Company has two additional activities and resources that both support the
record label and publishing activities and that generate external income.

It has an audio recording facility which is made available to its artists and
writers to facilitate and support the development of in-house projects as well
as being made available to external chargeable clients. It also has access to a
state of the art, fully specified recording studio facility which compliments
the Company's internal facilities.

There is also a broadcast quality video editing facility which allows
promotional requirements of the artists to be met in a cost effective and fully
controlled manner as well as offering the opportunity of being commissioned for
the production of external video and film work.

The synergistic nature of the business is worth re-iterating. Not only does each
of the business areas generate projects and revenues in their own right but
wherever possible complimentary revenue streams are sought through the
involvement of other aspects of the Company in the projects. As an example, an
artist can be working with the Company's writers allowing the Company to share
in the publishing revenues as well as in the record label revenues that accrue
from the promotion and marketing of the artist's album. Recording of the album
would be completed using the Company's in-house recording facilities and if
appropriate a promotional video could be produced using the Company's video
capabilities.

By adopting this business model the Company can maximise its opportunity of
revenues or a revenue share at each stage of the artistic process.








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