DFD Mortgages

Debt Free Direct Group PLC
30 November 2006


30 November 2006





                         DEBT FREE DIRECT GROUP PLC

                 FSA APPROVAL GRANTED FOR DFD MORTGAGES LIMITED


Debt Free Direct Group (DFD), the leading debt advice and solutions company,
today releases an update with regard to further progress for DFD's re-mortgaging
business, DFD Mortgages Limited.


Increasing profitability from the DFD re-mortgage broking business

We are delighted to announce that FSA approval has been granted to take our
re-mortgage broking business in-house over the coming months, and expect that it
will be fully operational by January 2007.

In the year ended 30 April 2006, our existing advertising activity generated
over 3,500 re-mortgage leads, from which we derived referral income and profits 
before tax of almost £1 million.

Our current business model is expected to generate an income stream and profits
before tax of approximately £1.5 million in the year ending 30 April 2007.
However, we have been considering how we might otherwise maximise the value of
this business, whilst continuing to provide solutions that are appropriate for
customer needs.

As a result, we have decided to establish DFD Mortgages Limited ('DFD
Mortgages'), a 100% subsidiary of Debt Free Direct Group Plc. The business will
be both a broker and packager of re-mortgages and secured loans and will be
managed day to day by Nicola Hackney as Director of Operations.

Nicola has over 11 years of management experience in the mortgage arena. She is
fully qualified, having attained the Cemap and MAQ qualifications. Her previous
roles with The TSB, Midland Bank and Abbey National have given her a wealth of
experience and she brings the ethics and values that we believe are fundamental
to achieving sustainable growth in this industry.

We believe that profits to be generated in the year ending 30 April 2007 from
this new business model will not be incremental to the existing anticipated
level of approximately £1.5 million before tax. However, we are confident that
improved conversions from existing lead generation will provide incremental
profit growth in subsequent years.



Andrew Redmond, CEO, commented:

'We are delighted to announce that DFD Mortgages has been granted FSA approval.
This development enhances our existing re-mortgage business and means that we
are well placed to cement our position as a consumer champion, by ensuring that
our customers continue to receive appropriate advice and are offered the right
product at the best rate available.

Moreover, we will be maximising our income from those leads where an IVA would
not be the appropriate solution, either for the consumer or the lender.

This business continues to be built organically without incurring acquisition
costs.'


Enquiries:

Debt Free Direct Group plc

Andrew Redmond, Chief Executive Officer              0845 296 0100
Paul Latham, Finance Director                        0845 296 0200

Numis Securities
Iain McDonald                                        020 7776 1500
Lee Aston

Financial Dynamics
Ed Gascoigne-Pees                                   020 7269 7132
Nick Henderson                                      020 7269 7114


Notes

Debt Free Direct helps individuals find the best solution to their debt
problems, based upon an analysis of their particular financial circumstances.
Financial information on an individual is processed through a computer model
(the Best Advice Model) developed by Debt Free Direct in order to recommend a
solution suitable for that individual's particular financial circumstances. The
solutions offered range from basic advice, such as simply destroying credit
cards and curbing unnecessary expenditure, to the following solutions:

   • consolidation loan
   • re-mortgage
   • informal arrangement
   • individual voluntary arrangement (IVA)
   • bankruptcy

Debt Free Direct is unique in the marketplace in that, unlike most of its
competitors who sell specific products, Debt Free Direct looks to provide the
best advice to the consumer and recommends them the most appropriate service.

Debt Free Direct is based in Chorley, Lancashire, and was admitted to AIM in
December 2002.




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