Re Contract

Delling Group PLC 01 June 2006 For release 7.00am 1 June 2006 DELLING GROUP PLC The AIM-listed marketing services group New Contract Win 'Delling wins two year £0.5 million per annum contract with the Nordic subsidiaries of US pharmaceutical company, Bristol-Myers Squibb' & 'First Pan-Nordic Outsourcing Agreement for Delling' Delling Group PLC ('Delling' or 'the Company'), the AIM-listed marketing support services company, is delighted to announce that it has entered into a two year outsourcing agreement with the four subsidiaries of US pharmaceutical company Bristol-Myers Squibb that comprise the Nordic region being Sweden, Norway, Denmark and Finland. The two year contract commences on 1 June 2006 and is expected to have an annual income to Delling of approximately £0.5 million. Under the contract, Delling will be the main supplier of all the marketing material for Bristol-Myers Squibb in the Nordic area. The contract is expected to build up to the full monthly volume by August this year. The Board considers this contract to be extremely important in the evolution of the Delling concept. It is the first pan-Nordic outsourcing agreement that Delling has entered into and it demonstrates the very substantial benefits that a cross-border approach can offer to Delling's international customer base. A cross-border approach should deliver to those clients a reduction in their core marketing-related costs, significant economies of scale and an improvement in the quality and efficiency of their supply chain procurement of marketing materials. The Company will announce its final results for the year ended 31 December 2005 on Tuesday, 20 June 2006 and as advised earlier, Delling continues to expect its results to be in line with current market expectations. Geir Lolleng, CEO of Delling Group commented: 'The Bristol-Myers Squibb contract together with the previously announced (09/01 /06) contract with McDonald's strongly supports our view that we now have entered into a new phase of development. This is further supported by the fact that we recently have made a number of smaller deals that, when combined, should have a positive impact on our cash flow. We are now starting to see the benefits accrue following our significant investment into the marketing support arena and the further development and enhancement of Delling's unique offering. This contract also underpins our dual strategy to deliver strong growth both organically and through acquisitions.' ENDS For further information please contact: Contact: Delling Group Plc Geir Lolleng, Chief Executive Officer Tel: +46 7652 76024 James Robinson, Finance Director Tel 020 7484 5664 Tarquin Edwards/Peter Binns Tel: 07879 458 364 / 07768 392 582 This information is provided by RNS The company news service from the London Stock Exchange
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