• Combination of leading brands and channels across critical 25-54 audience demographic
• Anticipated $25-30 million annual pre-tax cost synergies, with potential for revenue synergies
• Transaction expected to be >100% EPS accretive to SCA shareholders

Southern Cross Media Group Limited (SCA) and Seven West Media Limited (SWM) have entered into a Scheme Implementation Deed to merge the two companies. Under the proposed merger, SWM shareholders will receive 0.1552 SCA shares for every SWM share they own, resulting in SCA shareholders owning 50.1% and SWM shareholders owning 49.9% of the combined group. The merged entity will be a leading integrated Total TV, Audio and Digital platform, combining SCA's and SWM's brands, broadcast and digital channels. The combination will create a platform with scale, reach and diversification to better serve Australian advertisers, audiences and communities. The companies anticipate annual pre-tax cost synergies of $25-30 million, to be realized within 18-24 months post completion, through reductions in shared corporate overhead, operating expense duplication and facility consolidation. Further work is underway to identify potential revenue synergies. The transaction is expected to be more than 100% EPS accretive to SCA shareholders. The SWM Board unanimously recommends its shareholders vote in favor of the proposed merger, and SWM's largest shareholder, SGH Limited, has indicated it intends to vote its 40.2% stake in SWM in favor of the transaction.

The transaction is expected to deliver annual pre-tax cost synergies of $25-30 million, to be realized within 18-24 months post completion.

The merged entity will be a leading integrated Total TV, Audio and Digital platform, with the scale, reach and diversification to better serve Australian advertisers, audiences and communities. The combination is expected to generate significant strategic and financial benefits, including cost and potential revenue synergies.