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Chrysalis drops Air Studios

Chrysalis today announces that it has agreed, together with its joint venture partner Pioneer GB Limited to dispose of 100% of the ordinary share
capital of Air Studios, the recording studios business based in Hampstead London, to a new company Air Holdings Limited, for a total consideration of ?3.25 million. Air Holdings Limited is a new company associated to Strongroom
Limited, an independent recording studio operator.

Both Chrysalis and Pioneer will each receive ?1.625 million in cash on completion for their respective 50% shareholdings. The agreement also provides for a payment of certain additional consideration to Chrysalis and Pioneer in the event of a subsequent sale of Air Studios or the studio property currently
owned by Air Studios within three years of completion.

The disposal of Chrysalis’ share in Air Studios is consistent with the Group’s strategy of focusing on its profitable radio and music businesses where it
enjoys strong market positions that offer good growth prospects.

The carrying value of Chrysalis’ 50% share of Air Studios’ net assets at 31 August 2005 was ?1.6 million. Consequently, the disposal will not have a
material impact on Chrysalis’ results for the current financial year.

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