Trading Update

Delling Group PLC 13 December 2005 For Release 7.00am 13 December 2005 DELLING GROUP PLC The AIM-listed marketing services group Trading update Delling Group PLC ('Delling' or 'the Company'), the AIM listed marketing support services group, announces that it sees increased trading potential in a number of the rapidly expanding markets in Eastern Europe, most notably in Poland and the Baltic region, on the back of substantially lower employment and overall business costs. Accordingly, the Company will seek to place an increased emphasis on this region for its outsourcing and new business requirements. After building up quality control systems and staff this autumn, the first customer orders were placed in December, under our new initiative to provide low cost and high quality graphical material sourced from Eastern Europe, into the Nordic area and at a later stage, into the British market. The benefits of this initiative have already been felt with the Company increasing margins as it is able to source printing at a substantially lower cost than the current market rate in Scandinavia; a more significant impact is expected during 2006. The staff located in the Stockholm office include a Polish speaking print specialist. These staffing investments are essential to meet our customers' requirement for quality, timely and secure delivery. It is expected that this quality assured sourcing of print also would give us a significant advantage in getting new major customers in Western Europe. Delling has previously sourced print from Eastern Europe; however, this new more structured approach with quality assurance and Polish-speaking staff has created a significantly improved platform for the Delling concept to expand. Aksel Bradvedt, Executive Chairman of Delling Group, commented: 'We are delighted to announce this positive development, and look to build on the increased margins already experienced. Further expansion and exploitation of these markets is likely since a number of our existing clients are looking to increase their operations into Eastern Europe to take advantage of these same economies. Since we already have customers in the region, this more structured strategy to extend our expertise into a new territory is both low risk and cost effective.' ENDS Contact: Delling Group Plc Aksel Bratvedt, Chairman Tel: 020 7484 5663 James Robinson, Finance Director Tel: 020 7484 5663 Binns & Co PR Ltd Tarquin Edwards/Peter Binns Tel: 020 7786 9600 This information is provided by RNS The company news service from the London Stock Exchange
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