DGM Deal Grp

RNS Number:7245J
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
END

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