Acquisition

Delling Group PLC 20 June 2005 For Release 7:00am 20 June 2005 Delling Group Plc Overseas Acquisition Delling Group ('Delling Group' or 'the Company'), the marketing support services group, announces that it has exchanged contracts to acquire Full Bredde AS, a Norwegian based subcontractor for delivering printed marketing material, for a total consideration of £300,000, or approximately three times pre-tax profit. The acquisition, due to complete on 1 August 2005, will be paid in three installments: £75,000 in shares based on the market price on 1 July 2005, £150,000 in cash on 1 August 2005, and the remaining £75,000, to be paid in cash on 1 August 2006 subject to certain conditions regarding sales performance. Full Bredde AS, a privately-owned business established in 2002, is a significant subcontractor in the production of in-store advertising material to consumer production companies and retail chains in Norway. It has a strong customer base and extensive contacts with marketing departments. For the year ended 31 December 2004 Full Bredde AS had a turnover of approximately £1.1m, a pre-tax profit of approximately £110,000 and net assets were £23,000 at 31 December 2004. The acquired business has a strong customer base. Its assets and key employees will be fully integrated into Delling Group's current businesses in Norway to exploit customer demand for a 'one shop' supplier in the marketing support industry. Commenting on the acquisition, Geir Lolleng, Chief Operating Officer, Delling Group, said: 'This acquisition is in line with our strategy of growing organically and through niche acquisitions in ancillary market sections and it represents an excellent addition to our business in Norway. The acquisition adds further revenues, a strong customer base and competence in the procurement of production services and logistics. The deal has been structured to optimise shareholder value and avoid unnecessary dilution for current shareholders.' ENDS For further information please contact: Delling Group Plc Aksel Bratvedt, Chief Executive 020 7010 8210; 077669152 Geir Lolleng, Chief Operating Officer 0207 010 8210; +4670855672 Binns & Co PR Limited Peter Binns 0207 153 1477 Hannah Sloane 0207 153 1480 This information is provided by RNS The company news service from the London Stock Exchange
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