Acquisition

Delling Group PLC 16 October 2006 For Release 7:00 am 16 October 2006 DELLING GROUP PLC (DLG.L) The AIM-listed marketing support services group Acquisition of Scandinavian Exhibition Group AB ('SEG') Highlights: o Third largest expo company in Sweden; o SEG turnover for the year ended 30 June 2006 of £3.5 million; o Will become largest provider of exhibition services in Scandinavia; o Consideration payable of £1.18 million; o Substantial synergy & cost benefits expected. 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 Scandinavian Exhibition Group AB (SEG), a privately owned and profitable exhibition company with offices and operations across Scandinavia. Completion is scheduled for 15 December 2006. SEG, which generally trades under the name Sandberg Expo, had annual turnover of £3.5 million in the year ended 30 June 2006, a gross profit margin of 54 per cent. SEG has offices in Stockholm, Gavle and Gothenburg in Sweden. This acquisition follows Delling's earlier acquisition on 22 August 2006 of Eckerud Scandinavia AB, the largest exhibition company in Sweden. Together with Delling's exhibition business in Norway, the SEG acquisition will position Delling as by far the largest provider of exhibition services in Scandinavia. The Board of Delling sees considerable synergy and cost benefit opportunities from the integration of Eckerud and SEG's operations, such as reducing duplicate production facilities and logistical systems and leveraging off the benefits of increased purchasing power. The consideration payable is approximately £1.18 million, which is equivalent to approximately 5 times SEG's expected pre-tax profit for its present financial year. The consideration will consist of £0.44 million in cash and £0.37 million in shares at the average price over the last 5 trading days prior to the completion day and a guaranteed deferred payment of £0.37 million in cash as of 1 July 2007. As previously announced, Delling continues to explore a number of other possible acquisitions in the other core areas of marketing services included in Delling's integrated marketing support services concept. This may or may not lead to more acquisitions in the coming months. Commenting, on the acquisition, Aksel Bratvedt, Executive Chairman of Delling Group, said: 'This acquisition of SEG demonstrates that we continue to be on track with our plan to build an integrated marketing support service company with more than £100 million in sales within the next few years. With this acquisition and in addition to our strong organic growth, our planned milestone of entering 2007 Company with an annualized turnover of £20-25 million, is within reach. This will also strongly support our work in getting a substantially increased profit margin. Though still focusing on maintaining strong growth, both organically and through acquisitions, we are now placing increased emphasis on improving our profit margins so that Delling would derive the maximum benefit for the whole of 2007.' ENDS For further information please contact: 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 Scandinavian Exhibition Group AB generally trading under the name Sandberg Expo. Scandinavian Exhibition Group has 22 employees and offices in Stockholm, Gavle and Gothenburg in Sweden. The company has an excellent customer base with companies such as Sandvik, Hewlett Packard, Assa Abloy and Telia Sonera. 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 110 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 AIM 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
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