AGM Statement

4imprint Group PLC
23 April 2008


4imprint Group PLC

23 April 2008


Chairman's Statement - AGM

Since taking up the role of Executive Chairman of 4imprint, in 2004, I have used
the Annual General Meetings to update Shareholders on the evolution of the
Strategy the Board is pursuing and our performance on executing this. This
morning I intend to continue this theme.

Shareholders will have seen from the recently published 2007 Annual Report that
the three Divisions, on which the Board is basing its growth strategies, are all
now soundly established, and I will now tell you about the progress being made
in each of them.

First, the Direct Marketing Division, which markets under the 4imprint name. As
you know this is the largest Division in 4imprint. It is also our fastest
growing Division. Division sales in 2004 were $73m growing to $145m in 2007.
This growth has been achieved through two parallel avenues of investment.

First, we have continued to invest, annually, considerable revenue in the search
for and acquisition of new customers, using catalogues and internet marketing as
our main prospecting vehicles. This investment has allowed us to grow our
customer file substantially each year. In 2004 we added approximately 30,000 new
customers; in 2007 we added well over 70,000 new customers. This prospecting
activity has been the major driver of the growth of sales and operating profit.

In 2007, 53% of all orders came from existing customers and 47% of orders came
from first time buyers. Of the orders from existing customers, 74% came from
customers acquired in the years prior to 2007 and 26% from repeat purchasers
acquired in 2007.

We have complemented these investments by providing both new and existing
customers with the highest standards of customer service in price/competition,
quality and delivery. This has been achieved by investing and training new
people, extending our product range, optimising our search engine skills, and
establishing industry leading I.T. systems.

Our market share in USA though growing strongly, is still small and provides us
with enormous growth opportunities. We intend to maintain both strands of our
investment policy. Furthermore, we are confident from our US and UK experiences
that the model we are employing has wide appeal, and we intend to establish
similar activities in Western Europe.

The next largest Division is the End User Division. This Division, which has
total sales in excess of £50m per annum, comprises three companies:

(a)     The Manchester based business now with a new name BRAND ADDITION.

(b)     The Kreyer business based in Germany.

(c)     The Product Plus International Business based in London.

Both the Manchester and German based businesses distribute promotional products
both to 'Blue Chip' clients with focussed Corporate Support Programmes, and to a
wide range of smaller Companies using conventional sales representation methods.
The Corporate Client Base is being continually extended, both in UK and Germany
while the rep based 'Field Sales' business has also been growing well and is set
to continue. The Product Plus Business in London has more sales volatility, but
the customer base has been extended steadily, with particular success in sectors
like Health and Beauty, Airlines and Publishing. This breadth of customer base
is offsetting the volatility and led to good growth in 2007.

The Manchester based business has benefited substantially from the separation of
the Product Source Trade Business into Blackpool, and the integration of the UK
Direct Marketing with US Direct Marketing, and now has a strong, more focussed,
base to support revenue growth.

The Trade Division, which has a turnover of around £23m per annum is the third
Division of the Group. This Division was formed from the integration of the
4imprint Product Source business with the Supreme business, which we acquired at
the end of 2006. These two businesses were integrated on a common site at
Blackpool in the second half of 2007 under the name of SPS (EU). Despite
problems in terms of output and customer service, which affected the business in
the second half of 2007, this Division has very good prospects. It has the
widest range of production, printing, and design capabilities of any promotional
wholesaler in the UK. It also has a successful and growing export business,
where sales in 2007 represented 8% of total sales. The Division's main tasks now
focus on revenue growth, developing the very large export opportunity, and
expanding the range of products and 'badging' services in the Divisions
portfolio.

Trading Update - First Quarter

Sales in the US Direct Marketing Division were 19% ahead of the same period last
year, reflecting our decision to maintain a steady increase in our prospecting
investment. However, the yield of new customers from this investment is
currently lower than previous years and reflects the weaker economic climate in
the USA. As a result, Divisional operating profit in 2008 is likely to show a
reduced level of growth than for previous years.

Continuing sales from the End User Business were over 10% ahead of last year
with good progress from Kreyer and Product Plus International. Divisional
operating profit for 2008 is expected to show good growth over the previous
year.

The Trade Division has had a very slow start to the year; but sales in March
were better and this improvement is continuing. Further cost savings have also
been made. However the slow start will adversely impact our Divisional operating
profit expectations for 2008.

OUTLOOK

Against the background set out earlier the Board expects that the Group will
make further progress in 2008 with the second half being stronger than the
first.

K.J. Minton
Executive Chairman
23 April 2008

Enquiries:

4imprint Group plc
K.J. Minton, Executive Chairman                      020 7299 7201

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