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Press Releases

Citibank Asia Contract Win

21/01/2008

Deal Group Media plc (AIM: DGM), an independent online marketing group, today announces that it has won a contract to become the only approved digital media agency for Citibank Asia’s credit card business line. The contract encompasses digital media planning and buying strategy in addition to execution, and is the first client for the Group’s new business unit, Deploy Digital, “Deploy”.

Deploy will support Citibank’s’ online customer acquisition strategy which is targeting 10% of all new credit card customers to be delivered through the Internet. A key component of remuneration is delivery of agreed objectives, which ties in with the Groups performance based delivery ethos.

Adrian Moss, Chief Executive of DGM, said: “This is the first contract with a major brand we have won in Asia where we are working as a more complete digital media agency in addition to our existing business units. We have a proven track record of delivering customers to clients and are very excited about the prospects of this contract. The Group is currently in discussions with other major brands in Asia to provide a similar offering.”

Trading update

Following the recent disposal of a majority stake of the UK business to Isco Technical Services Ltd (“ITS”) for £1.5 million, the Group can provide the following update:

£1 million from the proceeds of the sale were received before the financial year end of 31 December 2007 with a further £500,000 due to be received no later than 31 January 2008.

This cash inflow satisfies the Groups working capital and current investment plans.

In addition, the transaction has created two important drivers of cost savings for the Group. First, technology costs have been materially reduced and have in effect been outsourced. Secondly, due to the refocus on Asia, UK-based central costs have also been significantly reduced, the benefits of which will accrue over 2008.

Results for 2007, as previously stated, are expected to be in line with the Board’s earlier announcements showing a reduced post-tax loss relative to that experienced in 2006, before account is taken of the impact of the recent UK disposal.

Unaudited 2007 trading results demonstrate good underlying growth in overseas operations. The UK based business showed a profitable contribution for the period although at deteriorating levels relative to prior periods.

Adrian Moss commented: “The Group can now focus purely on the Asia Pacific region and the benefits of this can already be seen. Customer concentration continues to be reduced and a number of new clients have been added across all the territories DGM operates in. We remain confident that the Group will return to positive cash flow in H1 2008 and that DGM will return to a profitable position during 2008.”

-Ends-

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