Interim Results Presentation September 2006

Today’s Agenda Interim Results Review 2.Business Review 3.Future Prospects

2006 Overview  Improved financial performance  Focus on improving the quality of core recurring revenues  Acquisitions performing well: –Ideal Music fully integrated –MusicStyling.com exceeding expectations  Refinancing completed following sale and leaseback of head office

Financial Highlights  Half Year Turnover  Recurring£2.4m  Other£1.5m  Total£3.9m  Operating Profit £91k  Adjusted EBITDA £868k

6 months 30 June 2006 £000 Sales3,946 Recurring revenues2,419 Service sales485 System sales1,042 Adjusted EBITDA868 Depreciation(278) Adjusted operating profit before ‘one-off’ overhead expenditure590 One-off overhead expenditure(89) Operating profit501 Charge for share scheme awards(66) Amortisation of goodwill(344) Interest(120) Profit/(Loss) before Tax(29) Earnings/(loss) per share(0.05)p 2006 Interim Results

30 June December 2005 £000 Intangible fixed assets13,34812,642 Tangible fixed assets1,8262,006 Total fixed assets15,17414,648 Stock Debtors2,2772,051 Total assets18,07217,181 Deferred consideration(625)(300) Trade creditors(910)(622) Accruals and deferred income(1,582)(1,648) Other creditors(1,480)(1,452) Social security and other tax(214)(284) Creditors(4,811)(4,306) Net finance creditors(3,354)(3,305) Net assets9,9079,570 Consolidated Balance Sheet

Net Creditors 30 June31 December £’000s Overdraft/(cash) Long Term loans2,5572,716 Finance Lease and HP2831 3,3543,305

Business Review

Trading Highlights  Major contract win with –500 new store installs –700+ stores on service by the end of 2006 –Possible 100+ store upgrade to AV in 2007  MusicStyling.com exceeding expectations –Circa 650 music zones in 180 luxury hotels worldwide –New contract win with –Now installing in all 24

Trading Highlights  Improving distribution costs:  Growing take up of broadband delivery systems  New supply terms secured with Alcas  Contract renewals and service upgrades with:

Refinancing  Sale and leaseback of Chesterfield offices  £1.6m (pre expenses)  £1.2m used to reduce debt  £0.4m (less expenses) to working capital  Book value of asset £980k – exceptional profit c. £0.5m  10 year lease at initial rent of £114,500 p.a.  New Banking Facilities  New banking facilities completed  Ability to borrow at below cost of capital  Well placed for further acquisitions  Licensing  Historic PPL & MCPS outstandings settled

Near Term Outlook  PPL Performance Licensing Costs under review  Retail and leisure markets remain challenging  Increasing importance of differentiation  Increased Sales Resources  2 experienced sales consultants appointed  2 sales graduates appointed  1 additional Music Styling consultant appointed  Growing order book and pipeline  Confident of meeting market expectations for the year

Near Term Outlook  Imagesound Activity 2 stores networked August Installing 3 stores September 3 stores pilot concluding September AV Pilot installing in September Tender expected in September Paris Restaurant installed in September

Near Term Outlook  Music Styling Activity First install to new group in October - requiring 16 zones of bespoke music Pitching for preferred supplier status - expected September New client first install for Amman - installing now

Longer Term Outlook  Market opportunity remains attractive  Continue to improve operational gearing  Adding new subscribers to existing systems  Large number of outlets still not using a third party provider  Fragmented sector offers opportunities for further consolidation

NameOutletKey customers DMX UK20,000Boots, Arcadia Group, H&M Imagesound plc12,70045 major retail & leisure clients TSG4,500Lloyds No1, Pizza hut Immedia plc4,500Lloyds Chemist, Londis TSC2,000Burger King, Café Nero GMS1,000MFI, Clarks Avanti1,500Toni & Guy, Translusis Kalidovision1200Venue Bars Creative Retail Entertainment1,200M&B Birthdays Team Talk1,200Asda, Allsports C-Burn1,000Conran Restaurants, S&N Radio Ga Ga500All Bar One Competitor Analysis UK Suppliers

Derek MappExecutive Chairman Founder of Tom Cobleigh plc & Leapfrog Chairman of Staffline plc and senior NED at Informa plc Michael ClarkManaging Director Imagesound founder Ken PrattFinance Director Former FD and co-Director of Tom Cobleigh plc and Eton Group Limited Richard GregoryNon-exec Director Former Managing Director Yorkshire Television Non-exec Director of Yorkshire & Clydesdale Banks and National Australia Group Europe Limited Charles FairbairnNon-exec Director Previously ACI plc Finance Director Previously Pearson plc David Clayton-SmithNon-exec Director Management Consultant 12 yrs retail experience with Halfords, Boots, Do It All Group Marketing Director of Courage Directors