Acquisition

Delling Group PLC 31 August 2006 For Release 7:00 am 31 August 2006 DELLING GROUP PLC (DLG.L) The AIM-listed marketing support services group Acquisition of print company in Sweden Establishment of an office in Stavanger, Norway Delling Group PLC ('Delling' or the 'Company'), the only listed marketing support services group on AIM whose principal assets are in Scandinavia, announces that it has exchanged contracts to acquire Printcenter i Linkoping AB ('Printcenter'), a privately owned Swedish large format print company, with completion scheduled for 30 September 2006. The consideration payable is approximately £0.37 million in cash, equivalent to approximately 5 times Printcenter's expected pre-tax profit for the year ended 31 August 2006. Annual turnover was approximately £1 million, representing growth of 30% on the previous period. It is hoped that sales growth which was expected to be maintained at this level during 2007 should now outperform following integration of Printcenter with the Delling Group. The payment of the consideration will be funded through the financing package announced on 22 August 2006. Printcenter is a highly specialised producer of large format printed products with customers such as Securitas, Saab and Swedish retailer JC Brothers. The similar activities of Delling's existing Norwegian and Swedish businesses will be moved to Printcenter's offices in Linkoping, Sweden's fourth largest city, with the aim of developing Printcenter into a leading Scandinavian producer of such products. The Board of Delling expects the acquisition of Printcenter to be earnings enhancing with sales anticipated to increase following cross selling of Delling's broader offering to Printcenter's customers. The owner of Printcenter, who will be staying on after the acquisition, has over 35 years experience in the printing industry having restructured production processes at a number of companies. His expertise, coupled with scale efficiencies generated from concentrating Delling's large format print work in one location should increase margins. Further, Delling is in the process of establishing an office in Stavanger, Norway. An experienced manager with strong customer relationships has been hired to develop the business. Stavanger is the hub of one of Europe's leading offshore oil and gas clusters. Delling will offer its full marketing support services to companies in this Western Coast area, which is currently experiencing strong economic growth driven by offshore activities in the North Sea. The office is expected to be profitable from its first month of operation. Commenting, on the acquisition, Aksel Bratvedt, Executive Chairman of Delling Group, said: 'I am pleased to conclude another acquisition. On the back of our substantial pipeline of profitable targets, we intend to maintain the current rate of acquisitions over the coming months. Printcenter increases Delling's expertise within a specialised area of printing, and will allow the Group to reduce costs through a rationalisation to one location. This acquisition together with our strong organic growth moves Delling closer to our stated aim of being the largest marketing support services company in Scandinavia.' For further information please contact: ENDS Contact: Delling Group Plc Aksel Bratvedt, Chairman Tel: 020 7484 5663 James Robinson, Finance Director Tel: 020 7484 5664 www.dellinggroup.com Adventis Financial PR Tarquin Edwards/Peter Binns Tel: 020 7034 4758/020 7034 4760 Kreab AS Brynjulf Freberg Tel: +47 9066 3646 Notes to Editors Delling Group is a leading supplier of marketing support services for marketing and communication departments throughout The Nordic countries. Delling manages all fields of graphic support in many different forms and formats including trade fairs, exhibitions and interactive digital solutions for the web, mobile telephone marketing solutions, motion media for flat screens, plasma or LCD. It also supplies IT solutions which support and increase the efficiency of both marketing and information departments. However, its major strength is that the Group can deliver complete turnkey solutions, tailor-made for its customers' every need. Delling also offers outsourcing solutions that can substantially save costs and improve efficiency. The Group's major activities are today concentrated in the Norwegian and Swedish markets, however, it is quickly expanding into other Nordic areas, as well as having customers and production facilities in Eastern Europe. It also has well respected suppliers as far a field as China and Thailand. Delling Group has today 80 employees. It is rapidly developing its organisation by focusing on supplying its customers with the quality they demand, delivered on time at the right price. Central to its philosophy lies the fact that its customers will obtain greater effects and efficiency for every pound they invest in marketing and information. The Group has strong growth, both through further development of existing clients and establishment of many new relationships, together with acquiring companies that enhance and further develop our business concept. Delling's goal is within the course of the next two years, through both satisfied customers and recommendations, to be the largest and most profitable company in the field of marketing support services within the Nordic countries, and a significant player within Eastern Europe In October 2004 it was the first Scandinavian business to be listed on the Alternative Investment Market, the London Stock Exchange's international market for smaller growing companies This has given Delling the access it needs to capital funds needed to maintain and strengthen the further development of the Group. This information is provided by RNS The company news service from the London Stock Exchange
UK 100