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LEADING EMPLOYEE BENEFITS PROVIDER FUTUREMEDIA ANNOUNCES HOME COMPUTING INITIATIVE 2005

Brighton, UK – (July 20, 2005) – Futuremedia plc (NasdaqSC: FMDAY), a leading European e-learning and managed benefits services provider, today announced the launch of its Home Computing 2005 (HC2005) product to the UK market. Designed to bring additional benefits to corporations and institutions and provide greater flexibility to employees, HC2005 sets the standard for the delivery of products and services under the UK government’s Home Computing Initiative (HCI) and the full suite of salary sacrifice programs in the UK.

In addition to providing convenient access to HCI, as well the tax-free bicycle and childcare voucher programs in the UK, HC2005’s enhancements include a new online shopping portal, optional broadband access, home visits from personal computer trainers and optional self-installation. HC2005’s new online shop will offer additional computer hardware and software products, as well as stationery and other related goods. Participating employees will be given a £50 voucher, with the chance to save even more in the Futuremedia virtual shop. Employees will have the flexibility to sign-up for HC2005 24 hours a day, seven days a week.

"HC2005 is an innovative lifestyle-enhancing benefits program that provides outstanding value to businesses and their employees,” commented Leonard M. Fertig, CEO of Futuremedia. “We have made it easy for employees to access the full suite of salary sacrifice programs, while adding additional value-added services that our customers have been asking for. This isn’t just about providing computers to employees through HCI – it’s about helping them to take full advantage of all of the benefits that being connected offers. HC2005 is a family-friendly product that takes HCI to another level by empowering the UK workforce and increasing the quality of their lives.

In conjunction with the launch of HC2005, Futuremedia also unveiled its new corporate branding around the theme Work Smart Live Smart. The revitalized brand positions Futuremedia as a learning and lifestyle company that enables consumers to improve their lives both at home and at work. The new Futuremedia logo, Web site (www.futuremedia.co.uk) and marketing was developed by brand consultant Marc Ortmans, in cooperation with leading brand communications agency 23red.

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