Digital Classics was selected by Investors Chronicle as one of 10 Star Penny Share Buys out of 250 companies analysed

Digital Classics was set up in 1999 to broadcast music via the internet. Unfortunately the business struggled to take off, necessitating a change of direction. So it acquired Iambic, a TV production company that recently produced a programme on the life of Michael Jackson.

Digital Classics now has a vast collection of performing arts content - the bulk comprises classical music, opera and dance. The challenge has been increasing distribution, and the real scope to drive this came earlier this year when the group agreed to acquire rival RM Associates. RM is a leading distributor of music, arts documentaries and performing programming and also has an extensive catalogue and sells this as well as third party products to TV, cable, satellite, in-flight entertainment and DVD supplies.

Digital Classics estimates that the combined group will have a catalogue of over 2,000 hours- at least 3 times greater than that of it's nearest rivals- and it doesnt rule out the possibility of growing it further still. The emergence of themed Digital channels all over the world has led to a surge in demand for arts-related content and Digital Classics is in a strong position in terms of pricing.

Recent results confirmed that Digital Classics returned to profit in the last 2 months of 2003 and a 2m placing has strengthened the balance sheet. Merging with RM provides scope for cost savings and increase margins.

So no Money Am DTC holders then ???

Have been looking at this one in the past - waiting for some profit to plough back in so may have to wait! Let it plummet again and may get in.

Ok Fonty good luck...

But watch out for more 1 mln+ buys

You mean those 1 million sells??

You think?

Is anyone following this stock?? They have been low for some time now, and with this piece of good news released yesterday, does anyone think this could be a sign of good things to come? (Currently hold)


Embargoed: 0700hrs, 11 January 2005

Digital Classics Plc

(the 'Company')

Re. Agreement

Digital Classics Plc is delighted to announce that it has been awarded
preferred supplier status for the BBC Digital Curriculum project as part of the
EdICTs Consortium.

Digital Classics has joined a group of other software and content providers in
the consortium, which is one of a small number that has the right to tender for
supplying educational materials to the BBC's Digital Curriculum, a project
anticipated to take six years. The Company envisages that the BBC will announce
several tenders every year, each for a specific subject and age range. Digital
Classics would expect to be strongly involved in tenders for subjects around
its areas of expertise, such as Music, History of Art, English literature,
Drama etc.

The BBC has set aside approximately 150 million per year to set up and provide
half the total UK digital curriculum. This will be offered free to schools, so
that the money ring-fenced by the Government for schools to buy digital
curriculum products (currently 130 million per year) can be spent by schools
on topics not covered by the BBC (such as Digital Classics' own Key Stage 3
music product, MusicSuite). Half the BBC's half of the curriculum has to be
commissioned from non-BBC sources.

Digital Classics Chief Executive, Chris Hunt said, 'This is an exciting
potential new revenue stream for us, and a tribute to the work of our Education
division. On average each preferred supplier can anticipate contracts worth
several million pounds per year for several years and we are delighted to be
part of a consortium that has won this opportunity.'

-Ends-

For further information please contact,

Chris Hunt

Chief Executive

Tel. 020 7636 1400

Adam Reynolds / Ben Simons

Hansard Communications

Tel. 020 7245 1100

There has been good news coming from DTC for the whole of 2004 but sp has not reflected same.