Interim Results Presentation September 2006 Todays Agenda 1

Interim Results Presentation September 2006

Today’s Agenda 1. 2006 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 – Music. Styling. com exceeding expectations § Refinancing completed following sale and leaseback of head office

Financial Highlights § Half Year Turnover § Recurring § Other § Total § Operating Profit £ 91 k § Adjusted EBITDA £ 868 k £ 2. 4 m £ 1. 5 m £ 3. 9 m

2006 Interim Results 6 months 30 June 2006 £ 000 Sales 3, 946 Recurring revenues 2, 419 Service sales 485 System sales 1, 042 Adjusted EBITDA Depreciation 868 (278) Adjusted operating profit before ‘one-off’ overhead expenditure 590 One-off overhead expenditure (89) Operating profit 501 Charge for share scheme awards (66) Amortisation of goodwill (344) Interest (120) Profit/(Loss) before Tax (29) Earnings/(loss) per share (0. 05)p

Consolidated Balance Sheet 30 June 2006 31 December 2005 £ 000 Intangible fixed assets 13, 348 12, 642 Tangible fixed assets 1, 826 2, 006 15, 174 14, 648 621 482 2, 277 2, 051 18, 072 17, 181 Deferred consideration (625) (300) Trade creditors (910) (622) Accruals and deferred income (1, 582) (1, 648) Other creditors (1, 480) (1, 452) (214) (284) Creditors (4, 811) (4, 306) Net finance creditors (3, 354) (3, 305) 9, 907 9, 570 Total fixed assets Stock Debtors Total assets Social security and other tax Net assets

Net Creditors £’ 000 s 30 June 31 December 2006 2005 Overdraft/(cash) 769 558 Long Term loans 2, 557 2, 716 28 31 3, 354 3, 305 Finance Lease and HP

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 § Music. Styling. 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. 6 m (pre expenses) £ 1. 2 m used to reduce debt £ 0. 4 m (less expenses) to working capital Book value of asset £ 980 k – exceptional profit c. £ 0. 5 m 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

Competitor Analysis UK Suppliers Name Outlet Key customers DMX UK 20, 000 Boots, Arcadia Group, H&M Imagesound plc 12, 700 45 major retail & leisure clients TSG 4, 500 Lloyds No 1, Pizza hut Immedia plc 4, 500 Lloyds Chemist, Londis TSC 2, 000 Burger King, Café Nero GMS 1, 000 MFI, Clarks Avanti 1, 500 Toni & Guy, Translusis Kalidovision 1200 Venue Bars Creative Retail Entertainment 1, 200 M&B Birthdays Team Talk 1, 200 Asda, Allsports C-Burn 1, 000 Conran Restaurants, S&N Radio Ga Ga 500 All Bar One

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