tuesday 30th july 2002

Virtue Broadcasting plc ("LSE: TDO"), One of Europe's leading Digital Content Distribution and Service Providers and the name behind some of the world's most extensive Internet broadcasts, today announce the acquisition of Streamway Netcasting Ltd, the online corporate communications specialists whose clients, either directly or through re-sellers, include some 15% of FTSE100 companies including BP, BG Group, Rentokil, Reuters and HBOS and large Fortune 500 companies Roche and Deutsche Bank.

The consideration for the acquisition is 11,396,552 new ordinary shares of 5p each in Virtue Broadcasting plc representing ten per cent of the enlarged issued share capital of Virtue Broadcasting. At the middle market closing price on 29 July 2002 of 5.25p per share, the acquisition values Streamway at £598,319. In addition, Tornado Virtue has agreed to repay £195,000 of shareholders' loans.

In the year to 30 April 2002, Streamway recorded an operating loss of £510,178 on turnover of £573,757. At 30 April 2002, Streamway had net liabilities of £225,711. The operating loss includes a charge in respect of development cost written off to the profit and loss accounts of £236,261.

Since the year-end, Streamway has continued to experience growth in revenues. With the synergies expected to be generated from the integration of Streamway's business with that of Virtue Broadcasting, it is expected that Streamway will generate positive cash flows to the group by the latter part of 2002.

The acquisition will further strengthen Virtue Broadcasting's product and service offering and position in the UK Internet Broadcasting market place and should assist Virtue Broadcasting in its move towards profitability. The purchase follows the merger of Tornado Group and Virtue Broadcasting in April 2002 and is a further demonstration of the group's strategy of intelligent consolidation in the digital media broadcast and distribution market.

Adding to Virtue Broadcasting's already considerable experience and success in both media and corporate markets, the integration of Streamway's powerful "Presentation Manager" product and an extensive client list, presents excellent opportunities for cost savings, cross selling and the delivery of the first 'Enterprise' level internal and external communications platform. Streamway provides access to an extensive reseller network including Cantos, CCBN, Medialink, PR Newswire and STSN.

Virtue Broadcasting can now boast a comprehensive range of solutions for all forms of online communication from large event broadcasting, integration with video conferencing systems and daily webcast communications from the desktop.

"The corporate communications marketplace is a fundamental component of Virtue Broadcasting's long-term business strategy and the purchase of one of the strongest providers in this space has obvious synergies and demonstrates our determination to increase our market share and product offering in this sector," says Neil Ferris, CEO of Virtue Broadcasting plc.

"This is an exciting and growing market which presents extensive opportunities for a strong industry leader. By joining Virtue Broadcasting, I am confident that Streamway's vision for growth and expansion in this industry will be achieved," says Dan Grapengiesser, CEO of Streamway. "This deal now provides a platform to deliver world leading corporate broadcast communication tools and services to the markets that we are currently working in. Not only will our clients have access to leading broadcast applications but also greater value due to the reduced cost of delivery."