New Income Stream

Debt Free Direct Group PLC
10 January 2007


10 January 2007


                           DEBT FREE DIRECT GROUP PLC

                               NEW INCOME STREAM


Debt Free Direct Group (DFD), the leading debt advice and solutions company,
today announces an agreement to develop a new income stream from its core
business of providing debt advice to consumers.

We previously announced our intention to investigate the potential of further
diversifying our income streams and enhancing profitability by utilising our
existing (creditor funded) debt management leads.

We are delighted to announce that Payplan are now our chosen business partner
for certain cases considered to be appropriate for a debt management solution.
In return, we have negotiated with them a share of the income generated from
those cases which result in a successful debt management plan (DMP).

Payplan is currently the number two provider of non-fee charging DMPs in the UK.
Entering into this agreement will provide them with a platform to achieve their
aim of becoming the UK's leading provider.

The benefits to Debt Free Direct from this partnership are as follows:

   • DFD will enjoy a significant new income stream, whilst maintaining the
    strong ethical position we have built from our inception.

   • DFD will incur no additional advertising or labour costs. We have always
    separately identified those cases where the most appropriate advice for the
    debtor was non-fee charging debt management.

   • DFD continue to provide the debtor with the most appropriate advice. We
    remain firmly of the view that creditor funded debt management always
    represents the best advice for the debtor (and by definition fee-charging or
    debtor funded DMPs can never be considered appropriate).

   • DFD continue to provide the creditors with the best achievable return
    where a DMP represents the most appropriate solution. Research suggests that
    creditor returns from creditor-funded DMPs are, on average, significantly
    higher than those achieved by debtor-funded DMPs.

The partnership arrangements will commence with effect from 10 January 2007.

Andrew Redmond, CEO, commented:

'Following a recent review of the performance of non fee-charging debt
management companies, we are confident that Payplan offers the best service to
consumers and the best returns to creditors. We are delighted to be able to
agree commercial terms, which will benefit not only ourselves and Payplan but
will also be to the advantage of both consumers and creditors.'


Enquiries:

Debt Free Direct Group plc
Andrew Redmond, Chief Executive Officer                            0845 296 0100
Paul Latham, Finance Director                                      0845 296 0200

Numis Securities
Iain McDonald                                                      020 7776 1500
Lee Aston

Financial Dynamics
Ed Gascoigne-Pees                                                  020 7269 7132
Nick Henderson                                                     020 7269 7114


Notes

Debt Free Direct helps individuals find the best solution to their debt
problems, based upon an analysis of their particular financial circumstances.
Financial information on an individual is processed through a computer model
(the Best Advice Model) developed by Debt Free Direct in order to recommend a
solution suitable for that individual's particular financial circumstances. The
solutions offered range from basic advice, such as simply destroying credit
cards and curbing unnecessary expenditure, to the following solutions:

   • consolidation loan
   • re-mortgage
   • informal arrangement
   • individual voluntary arrangement (IVA)
   • bankruptcy

Debt Free Direct is unique in the marketplace in that, unlike most of its
competitors who sell specific products, Debt Free Direct looks to provide the
best advice to the consumer and recommends them the most appropriate service.

Debt Free Direct is based in Chorley, Lancashire, and was admitted to AIM in
December 2002.




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