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Possible Acquisition and Directorate Change

29 June 2006

The Board of VTR plc (“VTR” or “the Company”) announces that it is in advanced negotiations with regard to the possible acquisition of Clear (Post Production) Limited (“Clear”), a privately owned Soho-based post production company with a strong presence in the advertising market. If this transaction proceeds, the Board believes that the integration of Clear will strengthen the business of the VTR, particularly in the field of digital visual effects. The possible acquisition would be treated as a Substantial Transaction for the purposes of the AIM Rules and the consideration for Clear is currently expected to be a combination of VTR ordinary shares and cash.

The Board also announces that Peter Samengo-Turner, Finance Director, will be leaving the Company at the end of June in order to pursue another opportunity within the financial services sector. Paul Tracey, Managing Director, said, “I have worked for more than 10 years with Peter, who has skilfully handled the financial function within VTR through many changes and who played a pivotal role in securing the recent strategic investment by our new parent company, Prime Focus. I will miss his sound financial advice and send him every good wish in his new undertaking.”

Anshul Doshi, who joined the Board earlier this month, following the transaction with Prime Focus Limited (“Prime Focus”), will be appointed Finance Director with effect from 3 July 2006.

Following the investment by Prime Focus in late April, a number of initiatives have started to be put in place to return VTR to profit and progress of these will be announced in due course. Trading conditions remain tough, as previously indicated, and it will take time before the benefits of the various initiatives start to become apparent.

A further announcement will made in respect of Clear in due course.

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