Progress Report

Delling Group PLC 23 October 2007 For Release 7:00 am 23 October 2007 DELLING GROUP PLC (DLG/L) The AIM-listed Marketing Support Services Group Progress re: Integration and Cost Reduction Delling Group PLC ('Delling' or the 'Company'), the only listed marketing support services group on AIM whose principal assets are in Scandinavia, is pleased to announce considerable progress in the turn-around of its only loss-making subsidiary and in Delling's further development of its customer base. Delling announced in its interim results on 10 September 2007 that the Company is currently focussed on both integrating its sales efforts and improving organic growth in turnover, along with implementing enhanced efficiency and cost cutting activities throughout the organisation. Delling also advised that out of its 4 subsidiaries, only one subsidiary was still in loss during the period and that whilst this subsidiary accounted for 15% of Group turnover, it accounted for all of the loss, thereby reducing the impact of the profitable performance of other companies in the Group. Delling is pleased to announce that the turn-around of this business is progressing according to plan and that the subsidiary has seen a pleasing increase in its gross profit margins, along with a reduction in its fixed costs. Our profitable Exhibition business, Delling Expo, that accounts for approximately 40 per cent. of Delling's turnover, has seen a similar improvement in margins and a reduction in fixed costs, in line with managements initiatives to improve synergies and economies of scale. At the same time, the Company is pleased to announce a number of new client wins, in addition to securing additional business from existing clients. These clients include: Nike, ABB, Mitsubishi Electric, The Warner Group ( a major Scandinavian wide clothing retailer), Stokke Furniture, Stockholmsmassan, Citroen cars, Telenor and Assa Abloy. Commenting, Geir Lolleng, Chief Executive Officer of Delling Group, said: 'I am delighted with the development so far this autumn, as far as our profit improvement plan is progressing, where our focus on reducing fixed costs and on improving margins has been paying off. This progress, in combination with excellent sales development within our most profitable areas, bodes well for the future. Our focus in the coming months is to continue this work according to our plans.' ENDS Contact: Delling Group Plc Geir Lolleng, CEO Tel: 020 7484 5663 www.dellinggroup.com Seymour Pierce Nicola Marrin Tel: 020 7107 8000 Adventis Financial PR 020 7034 4758/4759 Tarquin Edwards/Chris Steele Tel: 07879 458 364 / 07979 604 687 Notes to Editors Delling Group is a leading supplier of marketing support services for marketing and communication departments throughout The Nordic countries. Delling manages all fields of graphic support in many different forms and formats including trade fairs, exhibitions and interactive digital solutions for the web, mobile telephone marketing solutions, motion media for flat screens, plasma or LCD. It also supplies IT solutions which support and increase the efficiency of both marketing and information departments. However, its major strength is that the Group can deliver complete turnkey solutions, tailor-made for its customers' every need. Delling also offers outsourcing solutions that can substantially save costs and improve efficiency. The Group's major activities are today concentrated in the Norwegian and Swedish markets, however, it is quickly expanding into other Nordic areas, as well as having customers and production facilities in Eastern Europe. It also has well respected suppliers as far a field as China and Thailand. Delling Group has today 150 employees. It is rapidly developing its organisation by focusing on supplying its customers with the quality they demand, delivered on time at the right price. Central to its philosophy lies the fact that its customers will obtain greater effects and efficiency for every pound they invest in marketing and information. The Group has strong growth, both through further development of existing clients and establishment of many new relationships, together with acquiring companies that enhance and further develop our business concept. Delling's goal is within the course of the next two years, through both satisfied customers and recommendations, to be the largest and most profitable company in the field of marketing support services within the Nordic countries, and a significant player within Eastern Europe. In October 2004 it was the first Scandinavian business to be listed on AIM, the London Stock Exchange's international market for smaller growing companies. This has given Delling the access it needs to capital funds needed to maintain and strengthen the further development of the Group. This information is provided by RNS The company news service from the London Stock Exchange
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