Placing

Debt Free Direct Group PLC
25 September 2003


25 September 2003

                           Debt Free Direct Group Plc
                                    Placing


The Directors of Debt Free Direct plc ('Debt Free Direct' or the 'Company'), the consumer debt advice and solutions 
company, are pleased to announce that at the Company's Annual General Meeting held earlier today all the proposed 
resolutions were passed.


The Company has today placed 6,416,667 ordinary shares at 60p per share
principally with institutional investors through its Nominated Adviser and
Broker, WH Ireland Limited.  Immediately following the placing, such shares
represented 22.2% of the Company's enlarged issued ordinary share capital.



Background

Debt Free Direct was successfully admitted to AIM in December 2002 and since
then has continued to grow its customer base.  The Directors believe that the
Company has an opportunity to build upon its existing reputation for delivering
best advice to over-indebted consumers.



The Directors believe that due to the underlying economics of the UK's consumer
debt market, the Company is well placed to increase significantly its operating
capacity. The growth in business is anticipated both from traditional sources
(targeted advertising) and from the opening of several new and exciting routes
to market.  The Directors believe that these new routes will help broaden the
business model and allow the Company to develop new demand for its product
offerings.



Use of Proceeds

The placing will significantly reduce the level of gearing in the Company's
balance sheet and will allow Debt Free Direct to increase its operating capacity
as well as increasing its flexibility to pursue new business opportunities.



The Directors anticipate that investment will be made in increasing its
operational and management resources, together with investment in additional
marketing and advertising, as well as new premises to accommodate the expected
growth.



Trading Update

Management accounts show trading for the first 4 months in the current year has
been in-line with expectations.



The Group now plans to invest significant funds in additional staffing and
management together with further marketing and advertising, as well as new
premises to accommodate this growth.



The Directors anticipate that this investment will lead to increased costs over
those originally budgeted in the current financial year, but the Group will reap
the benefits in the next financial year and those to follow.






Grenville Folwell, Chairman, said:



'I am delighted that Debt Free Direct has raised additional financing to take
the Group to the next stage in its development.  The market for our services is
rapidly expanding and we are now in a prime position to successfully grow our
business further.'





Enquiries



Debt Free Direct                   01257 240 599
Andrew Redmond
Paul Latham

Citigate Dewe Rogerson             0207 638 9571
Sarah Gestetner
Daphne Claude



Notes to Editors



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.


                      This information is provided by RNS
            The company news service from the London Stock Exchange