1. Preliminary Results Presentation March 2008

2. 1.Overview 2.Market Background 3.Preliminary Results 4.Outlook 5.Appendix Agenda

3. Investment Overview  Leading provider of in-store music, messaging and AV  Good earnings visibility: –64% recurring revenues –typical contracts of 3+ years  High quality blue chip client base  Proven consolidator in highly fragmented sector  International growth opportunities - under-developed markets in contrast to UK  Experienced, ambitious and proven management team

4.  The Background Music (BGM) sector emerged on the back of the‘branded’ retail and leisure boom of the 80’s and 90’s  Background music and messaging are now very established in retail and leisure as brand reinforcement tools Control the audio environment Creating a point of differentiation  Increasingly being used to make a ‘Foreground’ contribution… Tactically communicating key offers and promotions Increasing dwell times and driving customer spend  Fragmented market, with 10 identified direct competitors (including two quoted companies – Immedia and Avanti Screenmedia) Market Background

5.  Established in 1998 to exploit emerging MPEG and low cost satellite airtime opportunities  Investment capital secured in 2000 from Quester to develop robust software and operating systems and platform for sector consolidation  Six acquisitions completed to date (aggregate value of £22m): –July 04 - Reverse takeover of ACI plc (AIM listed cash shell) - Acquisition of TTL Music and Rolec –June 05 - Acquisition of Ideal Music –May 06 - Acquisition of Music Styling.com –Sept 06 - Acquisition of Impact Automedia –July 07 - Acquisition of TSC Music Systems Ltd Imagesound History

6.  UK’s leading listed supplier of in-store music, radio and AV services  Two market leading trading brands: –Imagesound (retail & leisure chains) –MusicStyling (luxury hotels)  Offices in Chesterfield and Vancouver  76 staff  Growing international presence: –Distributor agreements signed in 2007 covering Portugal/Spain, Middle East and Eastern Europe –21% revenues currently from international business  Refocused management roles Imagesound Today

7. Music Styling  Acquired May 2006  Consultancy approach  1700 music ‘zones’  447 hotels  75 countries worldwide  Office in Vancouver to serve N. American market  24/7 multi-lingual hotline for worldwide support established

8. “Imagesound help us get the music right for everyone, hour after hour, day after day.” “Sales uplifts on advertised lines have been as high as 24.5% and are currently averaging an impressive 16%.” “Since introducing FootlockerTV, our customer awareness surveys revealed a 26% increase in Footlocker brand awareness.” Offer Driven Chains Mainstream Chains High Profile Chains Imagesound Offer

9.  Imagesound provides music and messaging services to 50+ leading branded retail and leisure chains reaching 17,800 subscriber outlets Blue chip client base

10. 2007 Operational Highlights  Subscriber outlet growth - 17,800 sites/zones (06: 13,383)  Major renewals and additional sites secured with Wickes, Superdrug, Bon Marche, HBOS, Foot Locker, Phase8 and Poundland  New contracts signed with Au Naturelle (180 stores), Swarovski (45 stores), Richleys (28 stores), Slug & Lettuce (92 bars), Ha Ha bars (27 bars)  MusicStyling 175 site roll-out to Marriott and Rezidor chains completed with continued work with Hyatt, Starwood & Marriott  Distributor agreements signed covering Portugal/Spain, Middle East and Eastern Europe  Transitioning from satellite to web-based delivery solution offering efficiencies and cost savings

11. 2007 Financial Highlights  Revenue up 8% to £8.8m (2006: £8.2m) –Recurring revenues up 10% to £5.6m (£5.1m) –International revenues now 21% of total recurring revenue (2006: 9%)  Adjusted* EBITDA up 38% to £2.3m (2006: £1.6m)  Adjusted* EBITDA margin increased 6 percentage points to 26%  Operating loss reduced by 36% to £0.7m (2006: £1.1m)  Reported loss before tax £1.1m (2006: £0.8m)  Adjusted* earnings per share up 45% to 1.81p (2006: 1.25p)  Cash from operations of £1.5m (2006: £0.1m) * Adjusted to exclude amortisation of intangible assets, non-recurring expenditure, share based payments and tax

12. 2007 FY Results Pro forma Income Statement Year ended 31-Dec-07 Year ended 31-Dec-06 (Unaudited)(As restated) Revenue 8,841 8,184 Adjusted EBITDA 2,257 1,630 Depreciation (744) (561) Adjusted Operating Profit 1,513 1,069 Non recurring expenditure (587) (109) Amortisation of intangible assets (1,494) (1,903) Share based payment charge (133) (145) Operating loss (701) (1,088) Profit on sale of head office - 609 Net financing costs (362) (293) Loss before tax (1,063) (772) Taxation 272 932 (Loss)/Profit after Tax (791) 160 Adjusted Earnings per share (p) 1.81 1.25 Weighed average number of shares 63,312,500 61,945,000

13. Consolidated Balance Sheet 20072006 £000 Intangible fixed assets15,01011,262 Tangible fixed assets1,787891 Deferred tax asset19- Total fixed assets16,81612,153 Stock551440 Debtors3,3862,510 Total assets20,75315,103 Bank overdraft(624)(1,085) Interest-bearing loans and borrowings(918)(112) Trade and other payables(4,644)(3,807) Current Liabilities(6,186)(5,004) Non current interest-bearing loans and borrowings(6,563)(1,437) Total Liabilities(12,749)(6,441) Net assets8,0048,662

14. Consolidated Cash Flow Statement 20072006 £000 Operating profit before changes in working capital and provisions1,6681,520 Working Capital166(1,457) Interest Paid(336)(239) Capital Expenditure(1,402)1,190 Acquisitions(5,231)(384) Repayment Loans(107)(2,657) Drawdown on expansion facility6,0351,500 Net Increase/ (Decrease) in cash equivalents461(527)

15. Recurring Revenue = the hire of music services and equipment Non Recurring Revenues = the installation of equipment & servicing costs 2007 Total Revenues £8.8m 36% Non-Recurring 64% Recurring Good earnings visibility

16. 2007 Total Recurring Revenues £5.6m 21% International 79% UK Geographic Split International Revenue = Music Styling + partnership deals in Spain/Portugal, Dubai and Budapest

17.  Major supplier of music services to branded fashion retail, coffee chain, fast food and retail financial services sectors  Acquired July 2007 and fully integrated within 6 months  £4.75m in cash  3,500 outlets across the UK  Significant synergies and cost savings realised  Organic growth within client base with continued roll-outs across Starbucks, Orange, Caffé Nero, Alliance & Leicester and Gala Bingo Acquisition of TSC Music Systems Ltd

18.  Retail and leisure markets remain challenging –Increasing the importance of brand differentiation  Continue to improve operational gearing & profitability –New client wins –Advancements in technology improve margins  Large number of outlets still not using a third party provider (c.75%)  Opportunities for further international expansion –Roll-out UK customers internationally –Win new clients within underdeveloped markets for BGM  Fragmented sector offers opportunities for further consolidation –Re-shaped balance sheet & banking facilities in place Outlook

19. Appendix

20. NameOutletKey customers Mood / DMX UK23,000Boots, Arcadia Group, H&M Imagesound plc17,80050 major retail & leisure clients TSG4,500Lloyds No1, Pizza Hut Immedia plc3,000Lloyds Chemist, Londis GMS1,000MFI Avanti Screenmedia1,500Toni & Guy, Translusis Kalidovision1,200Venue 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 * Source: Management estimates

21. Derek MappExecutive Chairman Founder of Tom Cobleigh plc & Leapfrog Day Nurseries Chairman of Staffline plc and senior NED of Informa plc Michael ClarkManaging Director - Sales & Marketing Imagesound founder Ken PrattManaging Director - Finance & Operations 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 Stephen YappNon-exec Director (Chairs Audit Committee) Chairman of Watermark Plc Previously CEO of DCS Group David Clayton-SmithNon-exec Director Management Consultant 12 yrs retail experience with Halfords, Boots, Do It All Previously Group Marketing Director of Courage Directors

22. Imagesound plc. Venture Way Dunston Technology Park Chesterfield S41 8NE T: 01246 572 990 www.imagesound.co.uk