Trading Update

Debt Free Direct Group PLC
04 May 2006


4 May 2006



                           DEBT FREE DIRECT GROUP PLC
                                 TRADING UPDATE

Debt Free Direct Group (DFD), the leading debt advice and solutions company,
today releases a trading update ahead of its preliminary results announcement,
which will be made during the week commencing 26 June 2006.

Highlights

   • The IVA market has again shown dramatic growth of over 130% during the
     first quarter of 2006, compared to the same period last year. DFD has grown
     even faster and expects that its market share exceeded 20% in April.

   • DFD's annualised new IVA case run-rate has again more than doubled in
     the last 12 months and has increased by 59% during the last 6 months.

   • DFD's average monthly turnover has nearly doubled in the last 12 months
     and has increased by 50% during the last 6 months.

   • Turnover per employee increased by 35% during the last 12 months, which
     represents a significant increase in operational efficiency.

   • Anticipated profits for the financial year ended 30 April 2006 will
     comfortably meet market expectations.

   • We- anticipate that profits for the financial year ending 30 April 2007
     will be around 20% ahead of the current market consensus (of £8.0m Adjusted
     PBT).

Andrew Redmond, Chief Executive Officer, commented:

'The Board of Debt Free Direct strongly believes that its ethical approach to
providing debt advice and appropriate solutions has been, and remains,
fundamental to building a strong and sustainable business. We have always
focused on providing the customer with best advice, rather than maximising short
term profits. We are now just beginning to see the start of the rewards of that
long term policy and remain confident that this policy will deliver even greater
rewards going forward.'

Market share

The IVA market has again shown dramatic growth of over 130% during the first
quarter of 2006, compared to the same period last year. DFD has grown even
faster, with market share growing to 19.8% during the first quarter of 2006 and
we expect to have exceeded 20% in April.


                                 2004              2005               2006
                                                                (Q1 annualised)

Market size                    10,800             20,292             30,588

DFD cases                       1,577              3,693              6,056

DFD market share                14.6%              18.2%              19.8%


The trend market growth compared to DFD's growing market share can be
illustrated on the graph via the following link:

http://www.rns-pdf.londonstockexchange.com/rns/4092c_1-2006-5-3.pdf


Trading update

Debt Free Direct's run-rate and associated trends have continued to increase as
shown below.


                                New IVAs           Average      Average turnover
                             average monthly       monthly      per employee
                              case run-rate        turnover     per month
  
                        Joint cases  Joint cases     £K               £K
                             = 1         = 2

FY 2004                       83         113         351              4.0

FY 2005                      159         216         701              4.6

FY 2006                      347         477       1,328              6.2

                         -------------------------------------------------------

6 months to 30 April 2004     95         130         392              4.4

6 months to 30 April 2005    208         285         858              5.6

6 months to 30 April 2006    422         581       1,586              7.4

                         -------------------------------------------------------

The above growth and labour efficiency improvements can be illustrated on the
graph via the following link:

http://www.rns-pdf.londonstockexchange.com/rns/4092c_2-2006-5-3.pdf


Current trading and prospects

The company's results for the financial year ended 30 April 2006 will reflect
its success in generating increasing numbers of IVAs cost effectively, together
with increased efficiency in processing those IVAs. The combined effect will
translate into reported profits for the full year which will comfortably meet
market expectations.

As a result of increasing new IVA run rates, lower acquisition costs and higher
levels of efficiency, we have entered the new financial year in a stronger
position than anticipated and now expect that profits for the financial year
ending 30 April 2007 will be around 20% ahead of the current market consensus
(of £8.0m Adjusted PBT).

Enquiries:

Debt Free Direct Group plc

Andrew Redmond, Chief Executive Officer             01257 240599
Paul Latham, Finance Director                       01257 240529


Numis Securities

Iain McDonald                                      020 7776 1500
Lee Aston


Financial Dynamics                                 020 7831 3113

Ed Gascoigne-Pees
Nick Henderson


Notes


The new IVA average monthly case run-rate has been calculated consistently with
previous announcements. An IVA is recognised on issue of a finalised IVA
proposal to the debtor which, based on historic experience and case data, is
subject to a provision for those cases that may not be approved by the meeting
of creditors. In addition, the total includes referred IVA cases.

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.



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