DEBT Debtmatters

RNS Number:8526Z
Debtmatters Group PLC
09 July 2007

DEBT.L

                             Debtmatters Group plc

                        ("Debtmatters" or the "Company")


        Placing of 2,627,720 new ordinary shares at 113 pence per share
               to raise #3 million and launch of new product line


The Board of Debtmatters is pleased to announce that Charles Stanley Securities
has, on behalf of the Company, completed a conditional placing (the "Placing")
of 2,627,720 new Ordinary Shares of 10p each (the "Placing Shares") at a price
of 113 pence per Placing Share with institutional and other investors to raise
approximately #3 million.

The funds raised by the Placing will be applied to reduce further and 
restructure the Company's current debt facilities, provide working capital to 
support investment in building a debt management side to the business, either by 
way of organic growth or acquisition, thereby further diversifying the company's
debt solutions business.


Details of the Placing

The Board is pleased to announce that 2,627,720 new Ordinary Shares have been
placed with certain institutional and other investors at 113 pence per Placing
Share. The Placing will raise approximately #3 million before expenses.

As part of the Placing, certain of the Directors purchased the following shares:


Director    Number of    Price   Total number of shares   Percentage of issued 
            Shares               owned following the      ordinary share capital
            subscribed           Placing                  owned following the 
                                                          Placing

G Ratcliffe    686,030    113p               10,070,645                   36.97%                      
                              
N Guilford       8,850    113p                   56,080                    0.21%                     
                              
M Prideaux       8,850    113p                   45,620                    0.17%                   
            
                  
Application will be made to the London Stock Exchange for the Placing Shares to 
be admitted to trading on AIM ("Admission").  The Placing Shares will represent 
9.64 per cent. of the entire issued share capital of the Company immediately 
following Admission.  The Placing Shares will, when issued, rank equally in all 
respects with the existing ordinary shares, including the right to receive any 
dividend or other distribution declared, made or paid following Admission.  It 
is expected that Admission will become effective and that dealings in the 
Placing Shares will commence on 13 July 2007.

Following admission the total number of ordinary shares of Debtmatters in issue 
is 27,243,105 with each share carrying the right to one vote.


The Company's Chief Executive Officer, Ges Ratcliffe, said:

"I am delighted to announce that with effect from today, Debtmatters' new Debt
Management division will commence trading. This necessary and important step
adds Debt Management Plans ("DMPs") as a third major new product line to
compliment the Group's existing IVA and secured loan brokerage businesses.

The Group has always recommended DMPs to clients, when they have been
appropriate, and as the debt industry continues to undergo significant change,
the number of clients suitable for DMPs is rising. The popularity of DMPs
amongst creditors has become very evident in recent months. The decision to add
DMPs to our list of products not only reflects this popularity but also enables
the Group to expand the range of debt solutions now offered in house, providing
important diversification. We believe that our decision will be welcomed by
creditors as a demonstration of the Group's continuing commitment to providing
quality debt advice and greater choice to over indebted consumers.

A team of 15 experienced staff has been recruited to establish the division and
we are pleased to report that we have signed an exclusive contract with a major
financial institution to offer debt advice to its clients where a specific need
has been identified. This contract will provide the business with a platform
from which we expect significant early growth. We look forward to updating
shareholders on progress in this area in due course.

I am also pleased to report shareholders have supported a fund raising exercise
of approximately #3m. These additional funds will provide the Group with the
resources to take full advantage of the current opportunity to diversify into
Debt Management. It also strengthens the balance sheet such that the Group is in
the position to consider other opportunities as and when they arise.

The number of over indebted consumers in the UK continues to rise and this
diversification strategy allows the Group the flexibility to grow in order to
meet the increasing demand for high quality debt advice."


Enquiries:

Ges Ratcliffe                       CEO, Debtmatters Group plc     01204 678 200

Rick Thompson / Freddy Crossley     Charles Stanley Securities     020 7149 6000

Shane Dolan                         Biddicks                       020 7448 1000






                      This information is provided by RNS
            The company news service from the London Stock Exchange

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