Integration & Cost Reduction

Delling Group PLC 24 April 2008 For Release 7:00 am 24 April 2008 DELLING GROUP PLC (DLG.L) 'The AIM listed Marketing Support Services Group' Progress re: Integration and Cost Reduction Delling Group PLC ('Delling' or the 'Group'), the only listed marketing support services group on AIM, whose principal assets are in Scandinavia, is pleased to announce that during the first quarter of 2008 it has completed the integration and rationalisation of three separate business divisions, namely Exhibition Design, Motion Media and Marketing Support Services, into one marketing support services organisation, with its own legal identity both in Sweden and Norway (the 'Marketing Support Division'). The effect of this streamlining initiative into a single marketing support services organisation is expected to be positive, both on sales generation and cost reduction. Delling's sales force within the Exhibition design business has started to sell the integrated marketing support services concept into its customer base. To increase and co-ordinate sales and provide focus within the Marketing Support Division, a function for integrated Marketing Support Sales has been established and is now run by a senior Exhibition design sales director. As an indication of the potential effect this initiative could have, the division's first sales meeting led to the sale of a project worth £200,000 for a major global electronics manufacturer. On the cost side, the head count has been reduced by 20 employees over the last three months. This is a direct consequence of Delling integrating a number of acquired companies, across all parts of the Group. This reduction constitutes around 15% of the total workforce of the Group. The effect of these cost savings is expected to materialise fully in the second quarter of 2008. The Delling Board believes the Group will now be able to secure improved terms with subcontractors by coordinating and aggregating together its purchasing requirements. Delling also expect to benefit from better coordination and management of its cash across the Group. Commenting, Geir Lolleng, CEO, Delling Group, said: 'We are in the process of finalising the integration of four of the companies which we acquired over the past year and a half and are seeing a significant positive impact of this policy on both our sales and costs. This is particularly encouraging, especially as sales have increased over the last three months despite the distraction of the integration process itself'. 'As we have advised previously, we will continue to concentrate on organic growth and improving our performance in the coming months, to take advantage of Delling Group's size in its market place along with the recent and improved greater efficiency throughout the organisation.' For further information please contact: Delling Group Plc www.dellinggroup.com Geir Lolleng, CEO Tel: +46 7652 76024 Adventis Financial PR Tarquin Edwards Tel: 020 7034 4758/07879 458 364 Nabarro Wells & Co Limited - Nominated Advisor Hugh Oram Tel: 020 7634 4700 City Capital Corporation Limited - Broker David Kent Tel: 020 7583 5800 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 120 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
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