Acquisitions

Digital Marketing Group PLC
26 January 2007


                                                                 26 January 2007

                          Digital Marketing Group plc

    Acquisition of two companies for £24m creates leading UK digital direct
                               marketing platform

Digital Marketing Group plc ('DMG' or the 'Group') today announces the
acquisition of 100% of the share capital of two leading UK companies, Cheeze
Limited ('Cheeze') and Alphanumeric Group (trading as 'Jaywing'), for a total
initial consideration of £24m, comprising cash and shares. The acquired
companies' management teams will continue to develop the businesses within the
Group with further consideration shares and performance options in the group
dependent upon future growth. These cornerstone acquisitions follow on from the
Group's listing on AIM and acquisitions of HSM Ltd and Scope Creative Marketing
(trading as 'Dig for Fire') in October 2006.

Acquisitions Highlights

  * Acquisition of strong, profitable, and fast-growing companies in digital
    direct marketing, with blue chip clients
  * Group delivering on 'buy and build' acquisition strategy ahead of schedule
  * Integrated digital direct marketing offering positions DMG well to
    capitalise on current and future market opportunities
  * Strong platform for organic growth with significant cross selling and new
    business opportunities, and potential for further platform-enhancing
    acquisitions

Cheeze

Cheeze is a leading digital media planning and buying agency founded by
Katherine Jerman and Jamie Riddell in 1999. The company is based in Ipswich,
with offices in London and Leeds.

In addition to its core services of planning and buying for digital media
campaigns, Cheeze also offers search engine marketing, customer relationship
marketing ('CRM'), Web 2.0 services and digital direct marketing consulting.
Prior to its acquisition by DMG, Cheeze has already worked successfully with HSM
and Dig for Fire.

Cheeze has grown rapidly into a profitable business and its unaudited financials
for the year ended 31 December 2006 show turnover of £10.5m (up 64% on audited
2005 turnover of £6.4m), profit before tax of £768,000 (up 72% on audited 2005
profit before tax of £446,000) and net assets of £950,000 (up 71% on audited
2005 net assets of £554,000).

100% of the share capital of Cheeze has been acquired for a total initial
consideration of £9.5m, comprising £6m in cash and 6,140,351 shares in DMG. In
addition, Cheeze will receive a maximum of a further 1,754,386 contingent
consideration shares in DMG vesting in March 2008, subject to business
performance. The acquisition was based on a cash free debt free position at
completion.

Jaywing

Jaywing is a leading independent provider of marketing, credit and fraud
consultancy services, specializing in data interrogation and analysis and the
designing of data-driven marketing initiatives. Jaywing is also pioneering the
development of proprietary data-based marketing products and software for use in
digital media channels such as 'Digital Brain' and 'Smartdecisions'.

The Company was set up in 1999 by Martin Boddy and Andy Gardner, and has offices
in Derby, Harrow, Wakefield and Witney. Jaywing has grown to achieve an annual
audited turnover for the year ended 31 March 2006 of £10.8m (up 98% on 2005),
with EBIT of £1.3m (up 143% on 2005) and net assets of approximately £1.1m (up
167% on 2005).

100% of the share capital of Jaywing has been acquired for a total initial
consideration of £14.5m, comprising £8.6m in cash and 9,833,333 shares in DMG.
The acquisition was based on a cash free debt free position at completion.

An application has been made by DMG for admission of the 15,973,684 initial
consideration shares, which is expected to become effective today. The total
number of 50p ordinary shares in the Company with voting rights is 50,126,437.
This figure may be used by shareholders as the denominator for the calculations
by which they will determine if they are required to notify their interest in,
or a change to their interest in, the Company under the FSA's Disclosure and
Transparency Rules.

Ben Langdon, Chief Executive of Digital Marketing Group, commented:
'We are delighted to welcome two such high quality and fast growing businesses
as Jaywing and Cheeze into Digital Marketing Group. With these acquisitions, we
have expanded our integrated digital marketing platform quicker than forecast.
We are now able to offer digital marketing, digital media, direct marketing and
data services within a highly focused, specialist Group, and will proactively
build on the enormous cross-selling opportunities this offers. We will also
consider opportunities to acquire businesses that further enhance our offering,
either in web design and build, mobile, b2b or digital media & entertainment. We
are determined to leverage our skills to become the pre-eminent digital direct
marketing group in the UK and we now have the core businesses to make this
happen.'

Enquiries:
Digital Marketing Group                           Tel: [phone]
Ben Langdon, Chief Executive

Smithfield Consultants                            Tel: [phone]
Noemie de Andia / Libby Young





Further information:
Digital Marketing Group (DIGI.L) floated on AIM on 26 October 2006 and
simultaneously completed the acquisitions of two agencies specializing in online
and offline direct marketing; HSM Limited (including 'Inbox Digital' and 'HSM
Telemarketing') and Scope Creative Marketing Limited (trading as 'Dig For
Fire'). The Company intends to continue to grow organically and by acquiring
businesses with complementary skills in digital direct marketing. As of 25
January 2007, the Company was capitalised at £21.4 million.

DMG provides its clients and the clients of each of the acquired businesses with
a range of digital direct marketing services, coupled with database marketing
skills. By doing this, DMG is able to offer clients the ability to coordinate
both their ''online'' and ''offline'' direct marketing strategies and
concurrently offer the skills necessary to input, collect, analyse and apply
customer data in order to generate more effective digital direct marketing,
higher brand-consumer loyalty and improved client profitability.

For more information please visit: www.digitalmarketinggroup.co.uk




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