Placing

Debt Free Direct Group PLC
14 February 2005

14 February 2005

                           Debt Free Direct Group PLC

                        Placing by Teather and Greenwood
            of 6,000,000 new Ordinary Shares at 142 pence per share


Debt Free Direct Group PLC ('Debt Free Direct' or the 'Company'), the leading
debt advice and solutions company, announces that it has placed, conditional on
admission to trading on AIM, which is expected to be 16 February 2005, 6,000,000
new Ordinary Shares of 1 pence each, at 142 pence per share, to raise
approximately £8.5 million, before expenses.  The funds raised will provide
working capital to allow the Company to increase the rate of organic growth
above that previously planned and to pursue potential acquisitions that will
enable it to broaden its business model.


The Placing

The Placing, equivalent to approximately 19 per cent. of the Existing Ordinary
Shares, is being priced at a discount of approximately 4 per cent. to the
closing mid-market price of 148 pence per Ordinary Share on 11 February 2005.


The Placing Shares have been conditionally placed with institutional investors.
Application has been made for the 6,000,000 new Ordinary Shares of 1p each to be
admitted to trading on AIM with effect from 16 February 2005. The new Ordinary
Shares will rank pari passu in all respects with the existing Ordinary Shares in
issue.


Background to the Placing

As reported previously, Debt Free Direct has enjoyed considerable success in
securing media buying deals at advantageous rates.  The benefits of this will be
felt over the forthcoming months.  In particular, these savings will allow the
Company to continue its growth through increased advertising spend in the more
expensive, high volume media areas, whilst still maintaining overall gross
margin.  The funds raised will provide working capital to take advantage of
this, and allow the Company to increase the rate of organic growth above that
previously planned.


In addition, as part of the ongoing strategy to broaden the business model, the
Company has been actively analysing the benefits of introducing either new
solutions into existing markets or existing solutions into new markets.  The
funds raised will allow Debt Free Direct to fully capitalise on its strategy in
this area through appropriate acquisitions.



Andrew Redmond, Chief Executive Officer, commented:



'Debt Free Direct is a rapidly expanding, ethical player in a substantial and
growing market.  This placing will allow the Company to continue its mission of
raising awareness, giving ethical advice and providing appropriate solutions to
an ever-increasing number of over-indebted consumers.'



Enquiries:



Debt Free Direct Group plc

Andrew Redmond, Chief Executive Officer                     01257 240599

Paul Latham, Finance Director                               01257 240529




Teather & Greenwood                                        020 7426 9000

Mark Dickenson


Jon Drage



Citigate Dewe Rogerson                                    0207 638 9571

Michael Berkeley

Sarah Gestetner

Fiona Mulcahy


Note 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 process 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