Virtue Broadcasting Pty Limited, the Australian subsidiary of Virtue Broadcasting plc ("LSE: TDO"), one of Europe's pre-eminent digital content distribution and service providers for Media and Corporate distribution and communication solutions, today announces the acquisition of Viewpoint Media Pty Limited, one of Australia's leading providers of corporate streaming solutions.

The consideration for the acquisition was satisfied by the issue of shares in Virtue Broadcasting Pty Limited to the shareholders of Viewpoint Media pursuant to which they will end up holding a stake representing 20% of the enlarged issued share capital of Virtue Broadcasting Pty Limited.

The acquisition will further strengthen Virtue Broadcasting's product and service offering and position in the Australian Internet broadcasting market place and further underlines Virtue Broadcasting's aim to internationalise its business and product offerings. The purchase closely follows the acquisition by Virtue Broadcasting of Streamway Netcasting Ltd in July 2002 and demonstrates 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 Viewpoint Media's live event delivery capability and an extensive client list, presents excellent opportunities for cost savings, cross selling and the delivery of truly global corporate communications solutions. Viewpoint Media provides access to the largest portfolio of investor relations streaming clients with some 24 clients who are listed on the Australian Stock Exchange.

Although Viewpoint's contribution to revenues will be relatively small in the current year, Viewpoint's key contribution is the increased scale that it should bring to Virtue Broadcasting, assisting it in being acknowledged as Australia's leading provider of corporate and media industry streaming solutions.

Following completion of the acquisition, the combined businesses will be re-branded using the Virtue Broadcasting name.

"The corporate communications marketplace is a fundamental component of Virtue Broadcasting's long-term business strategy and the consolidation of two of the pre-eminent players in an exciting market place such as Australia brings obvious synergies in terms of cost savings and enhanced product offerings for our customers," says Neil Ferris, CEO of Virtue Broadcasting. "Furthermore, it accelerates the development of our subsidiary's business to a level that should ensure it is in a position to make a positive contribution to the Group as a whole."

"This deal gives us the critical mass and international credibility to extend to our customers the world's first 'Enterprise' level global internal and external communications platform" says Ben Meek, Technical Director of Viewpoint Media.

"Viewpoint Media has an excellent client base and a quality delivery focus in this exciting and growing market. This deal will release substantial synergies," says Iain Bartram, CEO of Virtue Broadcasting Australia. "Our teams and infrastructure complement each other perfectly. This acquisition now places us in a position to accelerate the acceptance and adoption of streaming into mainstream one-to-many corporate communications."