Trading Statement

Deal Group Media PLC 20 January 2005 Press Release 20 January 2005 Deal Group Media plc Trading update Deal Group Media plc, the full service online marketing group, which comprises the newly rebranded operating company dgm, provides the following trading update as it enters its close period. Trading conditions for the year ended 31 December 2004 continued to be very strong and the Board expects the Preliminary Results to be in line with the uplifted market expectations as stated in the second quarter of 2004. Trading for the last quarter reflected a growing demand among Christmas shoppers to buy online with Group turnover increasing to £4.45 million for Q4 2004 representing 232 per cent. of the equivalent period for 2003. The internet advertising sector experienced strong growth during 2004 and now accounts for 3.4% of ad spend in the UK (Interactive Advertising Bureau/ PwC). Industry analysts maintain a positive outlook for the sector, fuelled by rising online penetration through the growth of Broadband, and increased demand for advertising with a visible return on investment. Against this background, the Group's performance has outstripped that of the sector, increasing its market share by offering a broader sales mix. This has been achieved by focusing on client retention, taking advantage of cross-selling opportunities, and new client acquisitions. Recent wins include Oxfam, Standard Life Healthcare, Alliance & Leicester and ING Direct. During the final quarter of 2004, the Group undertook a major restructuring in order to provide future scalability. There have been a number of key senior management appointments across all disciplines, a reorganisation of the sales and account management functions, and products have been structured into three distinctive branded offerings: dgmPerformance, dgmSearchLab and dgmAdNetwork. Additionally, the Group has embarked upon a business continuity programme to provide a more robust technology infrastructure in line with its growing business levels. As stated at the time of the Interim Results, the Board continues to look for potential earnings enhancing acquisitions and will update shareholders of any developments. Adrian Moss, Chief Executive of Deal Group Media plc, said: 'Our performance in the last year has been in line with market and internal expectations. These targets have been achieved by improving the Group's sales mix, thereby creating a number of cross-selling opportunities, and through the acquisition of new clients. 'The recent restructuring has been undertaken in anticipation of further future growth and our rebranded products mark a step change in the presentation and marketing of our services. We look forward to reporting our Preliminary Results in mid-March.' For further information, please contact: Enquiries: Deal Group Media plc Adrian Moss, Chief Executive Officer / Jonathan Lines, Marketing Director Tel: +44 (0) 20 7691 1880 Durlacher Limited Richard Swindells Tel: +44 (0) 20 7459 3600 Media enquiries: Abchurch Communications Ariane Comstive Tel: +44 (0) 20 7398 7700 ariane.comstive@abchurch-group.com www.abchurch-group.com - Ends - This information is provided by RNS The company news service from the London Stock Exchange
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