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SMG & M.E.N Arena Sign 25 Year Deal

SMG has reached a new long term management agreement with the Manchester Evening News Arena (M.E.N), a 20,000+-seat arena in Manchester, England. Considered one of the top three arenas in the world based on concert ticket sales, SMG has managed the M.E.N. Arena since its 1995 opening. The new contract allows SMG to retain this position with the facility through 2035.

The announcement comes as Development Securities PLC, a leading property development and investment company in the United Kingdom, announced it had acquired the Victoria Exchange complex, which includes the arena, in a deal worth approximately $90.81million. The M.E.N. Arena was the first SMG-managed venue outside of North America. SMG operates nine entertainment venues across Europe and has its European Head Office at the M.E.N Arena.

“We are delighted to be able to work with Development Securities on the long term provision of a world-class venue for Manchester,” said John Sutherland, Managing Director and Senior Vice President, SMG Europe. “In its 15 years the arena has brought virtually every major touring artist in the world to the city, providing entertainment for almost 20 million people and major economic benefits to Manchester.”

“The M.E.N Arena is an iconic, world class venue and represents a major added value opportunity for us,” said Matthew Weiner, Executive Director of Development Securities. “We are delighted to have secured an immediate restructuring of the SMG lease, which enhances both the value and positioning of the asset.”

Across the globe, SMG manages more than 12 million square feet of exhibition space and over 1.5 million arena and theatre seats. SMG Europe is the largest operator of sports and entertainment venues in the United Kingdom and Europe, controlling over 75,000 seats in nine operational facilities. The Manchester Evening News Arena is believed to be the largest indoor concert arena in Europe.

“We are confident that we can make subsequent value enhancing decisions, working closely with SMG, that further raise the arena's profile and status in this new phase of its existence,” added Weiner.

In related SMG Europe news, the company has been selected to operate Britain's Leeds Arena, scheduled to open in 2012. Also under SMG management, and due for completion in early 2011. is the Ora Arena, Istanbul – Turkey's first multi-purpose entertainment venue. In addition, the newly formed SMG subsidiary SMG Polska, has just signed a 12 year contract for the management of the 42,000-seat Wroclaw Stadium being built as a focal point of the 2012 European soccer championships.

SMG is determined to continue to build on its success with the M.E.N. Arena, which was validated by the signing of the multi-decade lease agreement. “The new deal allows us to plan for the future investment and success of the venue in a way in which would have been impossible as we neared the end of the original 20-year management contract,” said Sutherland.

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