Deal Group Media PLC 12 December 2007 Press Release 12 December 2007 Deal Group Media plc ("DGM" or "the Group") Management buy-out of UK business Deal Group Media plc (AIM: DGM), an independent online marketing group, announces that it has today exchanged contracts to sell a majority stake of its UK trading business, dealgroupmedia (UK) Ltd, and central technology team, to Isco Technical Services Ltd ("ITS") for a total consideration of £1.5 million. The disposal of the UK business follows a strategic decision by the Board to focus its resources on the Group's Asia Pacific operations where the supply of digital advertising services is at an earlier stage of evolution and not currently meeting advertiser demand. In the year ended 31 December 2006, the UK business generated EBITDA* profit of £0.1 million. *Calculated as profit before interest, tax, depreciation, amortisation and share based payments The disposal of 51 per cent. of the UK business is being satisfied in cash with £1 million payable immediately with the remaining £500,000 to be paid on or before the 31 January 2008. The transaction is to be completed by 31 December 2007. The Group will continue to hold 49 per cent. in order to enable its shareholders to profit from any future uplifts in the UK business. ITS has been formed by a management team in order to facilitate the acquisition of the majority stake. This management buy-out team is led by John Porter, current Chairman of DGM and Carl Davis, current Chief Technology Officer of DGM. The management buy-out team will assume full operational control of the UK business. Under the Agreement, ITS will provide IT services to DGM at an agreed monthly fee and commit to rent an area at the Group's current headquarters at Highgate Studios for a minimum period of 18 months. DGM in turn will grant an exclusive license free of charge for the use of all software, trading names, and intellectual property rights within Europe as well as provide accountancy services at an agreed monthly fee. The sale of the UK business is a related party transaction for the purposes of the AIM Rules and accordingly the independent directors, having consulted with DGM's nominated adviser Evolution Securities, consider that the transaction is fair and reasonable insofar as the shareholders are concerned. Adrian Moss, CEO of DGM, commented: "The buy-out represents an important milestone in our development and creates a win-win situation for both the UK business and the overseas operations. It allows the Group to focus on the Asia Pacific region where we have made considerable progress and are looking forward to take further advantage of the significant opportunities in these territories. At the same time the buy-out enables the UK management to focus their considerable knowledge on maximising the opportunity in the more mature UK marketplace." Carl Davis of ITS, said: "We are delighted with this agreement and look forward to maintaining our close links and relationships with current customers, distributors and suppliers". -Ends- For further information, please contact: Deal Group Media plc Adrian Moss, CEO Evolution Securities Limited Tom Price, Corporate Finance Tel: +44 (0) 20 7071 4300 Jeremy Ellis, Corporate Finance www.uk.evosecurities.com Abchurch Communications Ariane Comstive/Franziska Boehnke Tel: +44 (0) 20 7398 7700 franziska.boehnke@abchurch-group.com www.abchurch-group.com Notes to Editors Deal Group Media plc is an independent online media-marketing and technology group, which provides a range of stand alone and multi-channel marketing solutions including: affiliate marketing, search marketing, email marketing, and online display advertising. The Group works alongside advertisers and online partners to help them achieve their e-business objectives specifically return on investment (ROI). Deal Group Media's delivery is powered by sophisticated technology which includes the Group's proprietary software, dgmPro. Deal Group Media currently employs over 100 staff worldwide in offices in the UK, South Africa, Australia, New Zealand, Singapore and India. The Group operates across the spectrum of vertical sectors and its clients includes Avis, Dell, Demon, nPower, Pipex, Sainsbury's Bank, Sky, Virgin, Vodafone, and The World Wildlife Fund. More information is available at www.dealgroupmediaplc.com This information is provided by RNS The company news service from the London Stock Exchange