Trading update

 12 December 2012

Media Corporation Plc

(the "Group" or the "Company")

Trading Update

Following the passing of the Company's previous year end of 30 September the Company is pleased to provide a trading and strategic update.

Since its recent and continuing reviews of the perceived failings of the past the Board has completed a programme to assess how best to develop the Group's existing technologies and achieve sustainable profitability.

To that end, the directors are focusing on the following points to be addressed or completed by the end of the first quarter of 2013, and in time for the publication of our annual report for the 15 months period to 31 December 2012.

• The focus of the Group is to be placed on its existing and developing new technologies, with the emphasis on commercialising those technologies as soon as practicable

• To reflect the break with the past and the new focus the business will be renamed, Inta plc

• It is the intention that additional experienced board members will join the Company to add experience and stability in the technology, marketing and gaming sectors.

• Creation of a commercialisation team is planned, opportunities are in progress to launch associated sites based on the core Intabet technology as well as the ability to licence it directly and through joint venture partners. The first two instances, Bet Comparer and Mobet, are scheduled to go live on 1st March and 15th April respectively. Further details about each product will be provided nearer to the targeted launch dates.

• A full review of all non-core businesses within the Group, including Eyeconomy, with a view to potential disposal

• A resolution of all and any outstanding legacy issues pre the acquisition of Intabet

Intabet

Intabet, a company that had developed a gaming software platform was acquired in May 2012. The proposed synergies between the Intabet platform and the Purple Lounge division of the Company seemed a logical fit, based on what was reported to be in situ, including a leading licensed poker site, casino and payment platform along with many thousands of registered and active players.

The accurate position was somewhat different; long term operational failures led the previous management to surrender Purple Lounge's gaming licence to the Maltese Regulators, with question marks around the state of the players fund account and a deficit made up of real and bonus cash balances. The management team judged that the business was not viable and proceeded to liquidate The Purple Lounge as announced on 31 May 2012.

The consequence of that situation is that it has posed a significant challenge when launching a new gaming brand from within the Group. The management are working actively on ways to ensure that players and other creditors are treated fairly as the Purple Lounge liquidation process proceeds. However, in the absence of a conclusion of the liquidation it is easy to understand why effected Purple Lounge customers would, through the historical association, view an Intabet launch negatively.

In the meantime, the Company has continued to develop the platform to enable it to initially launch as a bet comparison site (www.betcomparer.com) and this is scheduled to launch on or by 1st March 2013. In addition, the Company will focus on opportunities surrounding the application of certain elements of the software developed. This will allow the company to commercialise the new technology it has developed in other markets and/or for other operators. Such opportunities for licencing out the technologies developed are presenting themselves in the UK and elsewhere.

Eyeconomy

Eyeconomy is an established and respected media agency which holds the benefit of contractual rights over cornerstone online real estate giving valuable access to large audiences through prime websites.

Despite investing in an expanded sales team, revenues for Eyeconomy have softened over the last two months due to tough trading conditions and strong competition in the media sector from larger competitors. As a result, the directors expect a loss for the division for the 15 months period ending 31 December 2012.

Moving forward, a number of scenarios are being assessed for Eyeconomy, including how Eyeconomy now fits within the new strategic direction of the Group and further updates will be provided if and when appropriate.

General

The Company has not been truly profitable for some significant time and has suffered from the burden of using cash to prop up loss making businesses, often without a coherent plan or overarching strategy.

The current Board believes that the first half of 2013 will be transitional, and believe that it will see a business emerge with a new focus on technology and commercialising the technologies developed through Intabet, bringing about revenues earlier and laying foundations upon which a significant and robust business can be built.

Phil Jackson, Chairman, commented: "Whilst it has been an undoubtedly turbulent period for the Group, I feel we are finally in a position to look forward and as we assess new and exciting applications for our existing technologies I am hopeful for 2013 and look forward to announcing new appointments and the formal launches of new products and sites throughout the next year and setting out the full plan for the Group in our report and accounts due to be published by 31 March 2013."

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