Hanover Shareholding

Debt Free Direct Group PLC
17 August 2007



17 August 2007



                           DEBT FREE DIRECT GROUP PLC

    HANOVER SHAREHOLDING AND PROPOSED APPOINTMENT OF NON-EXECUTIVE DIRECTOR


Debt Free Direct Group (DFD), the leading debt advice and solutions company, is
pleased to confirm that Hanover Investors (Hanover) is now a significant
shareholder with a stake of 18%.

DFD is also pleased to announce the intention to appoint a non-executive
director from Hanover, the details of which will be provided in due course.
Hanover's expertise in helping companies deliver profit-enhancing strategies
will strengthen DFD's market leading position.

Commenting on today's announcement, Michael Blackburn, Chairman of DFD, said:

'We are delighted to have Hanover as a supportive shareholder and look forward
to the addition of their expertise to our Board. They have an excellent record
of working with public companies and helping them to implement profit-enhancing
strategies, as well as to deliver significant growth. We are excited about
working with Hanover to grow our position as the UK's leading debt solutions
provider.'

Simon Gilbert, a Principal at Hanover, said:

'This is a great opportunity for Hanover to invest in the market leader in a
rapidly growing sector. DFD is a sophisticated operation that is well-placed to
outperform its competitors and extend its market leadership, particularly as the
industry adapts to the more stable regulatory structure after the recent
uncertainty. We have undertaken significant research into DFD, which we believe
is a high quality but undervalued business, set to benefit from strong
underlying rates of growth and high levels of consumer debt.

'Hanover will play an important role assisting the next stage of DFD's growth.
We will help to develop the strategy and ensure the Company is well-positioned
to take advantage of future strategic opportunities..

'DFD has an experienced management team and we are looking forward to working
closely with them as the Company builds on its position as the leading debt
solutions company in the UK.'


Enquiries:

Debt Free Direct Group plc
Andrew Redmond, CEO                                                0845 296 0100
Paul Latham, Finance Director                                      0845 296 0200

Numis Securities (Broker and Nominated Advisor to Debt Free Direct)
Lee Aston                                                          020 7776 1500

Financial Dynamics (Financial Public Relations advisor to Debt Free Direct)                                         
Ed Gascoigne-Pees                                                  020 7269 7132
Nick Henderson                                                     020 7269 7114

Tulchan Communications (Financial Public Relations advisor to Hanover Investors)
Peter Hewer                                                        020 7353 4200

About Debt Free Direct

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 the UK's leading provider of IVAs.

The recent acquisition of Clear Start, a private competitor in the IVA market,
will support DFDs growth and has genuine synergies, bringing together DFDs
superior IVA operations and creditor realizations with Clear Start's low-cost
online channel and strong creditor relations.

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

About Hanover Investors

Hanover Investors is a London based investment firm which specialises in
undervalued and operationally focused investment opportunities. It invests
mainly in small and mid-cap businesses where it works closely with the
management and can add significant value, often leading the Board through
periods of operational change. Its approach is distinctive because its team of
principals has first-hand experience of general management, strategy
development, corporate turnarounds and deal execution.

Hanover has a track record of successfully leading profit-enhancement and
turnaround strategies. Its investments have included Renold PLC, Elementis PLC
and 4imprint PLC, amongst numerous others.



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