First day of dealings on AIM

Z Group PLC
21 June 2005

                                                                    21 June 2005

                    Z Group Plc ('Z Group' or the 'Company')

                          First day of dealings on AIM



Z Group, a profitable marketing-led technology company, announces that it has
today commenced trading on AIM.  The Company's ticker is 'ZGP'.



Z Group was established by Jack Bekhor and James True in March 2002 and has
grown its revenue from £94,000 to £2,800,000 (for the 11 month period to 28
February 2005) in under three years. Gross margins for the 11 months to 28
February 2005 were 82% and the Company made pre tax profits of £585,000.



The Company currently comprises three software services businesses, the first
two of which have launched services and are trading profitably with the third
launching this summer:



  • Net2Roam.com and NetAway.com; services that allow individuals and SMEs to
    obtain local dial-up access numbers worldwide at rates below normal
    international rates;
  • OnSpeed.com; a service that increases the speed of internet connectivity
    for web and email; and
  • OnShare; a service that enables end-users to communicate and share files
    securely through existing networks.



In addition, the Company has a pipeline of further technology services which
will address high growth mass markets.



The Company follows a strict cost and performance based marketing strategy to
exploit its three existing sales channels:



•          online and direct response marketing;

•          retail stores (e.g. recent confirmed orders from WH Smith, Amazon,
           Game and PC World); and

•          wholesale ISP partnerships (e.g. recent BT Yahoo! deal to upgrade
           dial-up customers to near broadband speeds with OnSpeed).



The Company has territorial exclusivity in respect of distributing its licensed
and owned technology.



The Company has raised £3.0 million (before expenses) through the placing of
2,777,778 new ordinary shares at a price of 108 pence per share.  In addition,
2,129,630 existing ordinary shares were placed on behalf of selling
shareholders. On admission the Company will have 19,470,573 ordinary shares in
issue.



The Directors believe that Admission will enhance Z Group's profile among
customers and prospective partners. The principal use of proceeds will be to
finance further acquisitions and/or in-licensing of intellectual property, the
expansion of marketing into selected new territories and the development of new
software services.



Jack Bekhor and James True, Joint founders and Chief Executives, commented:



'We are delighted by the positive response we have received from institutional
investors in the UK. A successful fundraising will provide us with the means to
acquire and develop further technologies and take advantage of the international
growth opportunities available. We look forward to our future on AIM.'




Z Group Plc (www.zgroupplc.com)                       08700 111 173
Jack Bekhor and James True

Hansard Communications Ltd                            020 7245 1100
Nicholas Nelson / Andy Tan

Panmure Gordon & Co                                   020 7459 3600
Aubrey Powell/Jonathan Retter /Marcus Jackson



Notes to Editors:



Net2Roam Limited, the first operating business, was founded in March 2002.
Net2Roam.com was initially launched as a service which provides local dial-up
internet access when travelling abroad that could be purchased via an online
download. In April 2004 NetAway.com, a retail version of  Net2Roam.com, was
launched under a distribution agreement with DesignGo, one of Europe's largest
distributors of software travel products.



OnSpeed, an internet acceleration service, was launched by Turbodial Limited as
an online download in December 2003. In March 2004, Turbodial Limited signed an
exclusive agreement with SlipStream Data, a Canadian software development
company, to add further enhancements to the service. In July 2004 Turbodial
Limited started distributing the OnSpeed service through retail channels
including e-tailers such as Amazon.com, Inc. and eBay Inc.. A German language
version of the retail and online version of this service was launched in
Germany, Austria and Switzerland in November 2004. In February 2005, Turbodial
Limited signed a non-exclusive wholesale agreement with BT Group Plc to supply
the OnSpeed service to BT Yahoo! Anytime dial-up customers and an exclusive
distribution agreement with Koch Media UK to deliver the retail version of the
service from May 2005 to high street retailers throughout the UK. In March 2005
OnSpeed launched Italian and Spanish language versions of the online service,
followed by its US launch in April 2005.



A Pocket PC version of the OnSpeed service was launched in April 2005 in both
the UK and the US, which significantly accelerates web browsing through Pocket
PC mobile devices. The Directors intend to launch an OnSpeed service to
accelerate web browsing on other handheld mobile devices.



OnShare Limited, the third operating business, was founded in May 2004 and in
July 2004 acquired the

intellectual property for a new technology developed by ex-Ministry of Defence
personnel. Under the terms of the acquisition, Z Group granted the developers of
the technology a 49 per cent. interest in OnShare Limited. Z Group retains a
call option over the remaining 49 per cent. interest in OnShare Limited that it
does not own. The first service derived from OnShare Limited's technology is
currently in development and the launch to users is expected during the summer
of 2005 with further services to follow. This first service will allow user
groups to communicate and share information between PCs, which are not
necessarily part of am existing network, securely via the internet.



Background and History



The Directors believe that the Company's key strengths can be summarised as
follows:

  • knowledge and experience of demand for technology services:
      • proven track record in the selection and development of technologies
        and in growing technology companies
  • highly skilled workforce many members of which have a technology
    background;
  • strong marketing expertise:
      • proven track record (e.g. cost effective, performance based
        marketing); and
      • skilled team with online, direct response, viral marketing and
        customer retention skills;
  • end customer ownership: high level of customer service and retention;
  • all products can be sold to a global market; and
  • pipeline of new services and products to be launched.




                      This information is provided by RNS
            The company news service from the London Stock Exchange