Trading Update

Debt Free Direct Group PLC
06 February 2006



6 February 2006


                           DEBT FREE DIRECT GROUP PLC


                                 TRADING UPDATE

                    PROFITS AHEAD OF MANAGEMENT EXPECTATIONS

Debt Free Direct Group (DFD), the leading debt advice and solutions company,
today releases a trading update following the third quarter ended 31 January
2006.

   • Profits for the 9 months ended 31 January 2006 were ahead of management
    expectations, reflecting our continuing strong growth in new case run-rate
    and turnover as shown below.

                            New IVAs average monthly case        Actual monthly
                                       run-rate                      turnover
                        Joint cases = 1        Joint cases = 2         £K                                      
                                 

January 2006                  438                  600                 1,628
January 2005                  193                  260                  788
                                                                      
                                                                Average monthly
                                                                     turnover 
                                                                       £K
                                                                     
3 months to January 2006      380                  522                 1,479
3 months to January 2005      166                  228                  674


   • The very strong post-Christmas response to our advertising was again,
     ahead of management expectations.

   • As a result of this strong growth in our ability to generate more IVAs,
     we are accelerating our plans to increase our IVA processing capacity.

   • We would anticipate that profits for the financial year ending 30 April
     2006 will be closer to the top of the range rather than the consensus of
     analysts' current forecasts.

Andrew Redmond, Chief Executive Officer, commented: 'We are pleased to be able
to confirm that we continue to grow ahead of our expectations.'

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
Dominick Peasley


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.




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