Update re Audioboom Investment

7digital Group plc

("7digital" or the "Company")

Update re Audioboom Investment

7digital (AIM:7DIG), the digital music and radio services company, is pleased to announce that it has sold part of the Company's investment in Audioboom Group plc ("Audioboom") as part of a larger placing of new and existing ordinary shares undertaken by Audioboom ("Audioboom Placing"), raising cash proceeds of £3.5 million for the Company ("the Sale").

The Company is selling 29,029,307 Audioboom shares out of its total of 87,029,307, leaving 7digital holding 58,000,000 Audioboom shares, and 8,765,404 warrants which are exercisable at 1.5p. 7digital's remaining shares in Audioboom are subject to a twelve month orderly market agreement, the restrictions of which can be waived subject to market demand and the permission of Audioboom's brokers.

Following the Sale, and upon admission of the new shares issued as part of the Audioboom Placing, 7digital's shareholding in Audioboom will be 10.91% of the enlarged share capital. If the warrants held by 7digital were exercised, this would take the Company's holding to 11.45% of the enlarged share capital of Audioboom.

7digital acquired its stake in Audioboom though the reverse acquisition with UBC. UBC had invested a total of £1.86 million in Audioboom since its original investment in 2010. The stake sold today was valued at £1.6 million at the time of completion of the reverse acquisition; hence the Sale has resulted in a £1.9 million profit for the Company. At yesterday's closing price, 7digital's remaining stake in Audioboom was valued at £11.7 million.

The cash proceeds of the Sale will be used to strengthen the working capital position of the Company.

Simon Cole, CEO of 7digital, commented:

"We invested in Audioboom at an early stage and have seen the value of our investment grow significantly, with today's sale representing a 467% increase on our initial investment. This placing represented an opportunity to realise some of our investment into Audioboom whilst we still retain a substantial holding and continue to remain a supportive shareholder".

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About 7digital

7digital aims to simplify access to the world's music and radio. Our robust, scalable digital music platform and flexible APIs are used to power comprehensive music and radio services for leading consumer brands, mobile carriers, broadcasters, automotive systems, retailers, record labels, artists and agencies. Alongside proven technology, we offer global music rights, award-winning radio production services, and content management expertise, making us a leading global partner in this space.

7digital has powered streaming and download services for global brands like Samsung, T-Mobile, HMV and BlackBerry, has partnered with media giants such as Yahoo and Sirius XM, and is the largest independent producer of radio programming for the BBC. 7digital Group is ideally placed to lead innovation at the intersection of digital music and next generation radio services.