Preference Shares Offer

Debt Free Direct Group PLC
16 February 2004



                           DEBT FREE DIRECT GROUP PLC:

                     OFFER FOR PREFERENCE SHARES/LOAN NOTES


On 22 December Debt Free Direct Group plc ('the Company') announced that it had
made an offer ('the Offer') to acquire all of the preference shares and loan
notes issued by its subsidiary Debt Free Direct Limited ('Debt Free Direct').
This Offer was subject to a number of conditions all of which have now been
satisfied.

Outcome of the Offer

The Directors are pleased to announce that acceptances of the Offer were
received in respect of 91.5% by value of the total preference shares and loan
notes (£2,678,652).

The amount payable by the company in February 2004 in cash in respect of the
acquisition of preference shares and loan notes is £1,252,823.   The remaining
preference shares (totalling £248,095) fall due for redemption as follows:

                                   £
                              
     2005                     83,643
     2006                    128,276
     2007                     36,176
                            --------
                             248,095
                            --------


Consequently the total cash payable by the Company in respect of the Offer and
the future acquisition or redemption of the remaining preference shares will be
£1,500,918.

The total amount which would have been payable had the Offer been accepted in
full for cash would have been £2,051,434.  The maximum amount which would have
been payable upon due redemption of the loan notes and preference shares had the
Offer not have been accepted would have been £2,926,747.


Pursuant to the Offer 2,032,520 Ordinary Shares will be issued at a price of 60p
per Ordinary Share (the price at which Ordinary Shares were issued as part of
the recent placing).   These shares are subject to 'lock-in' arrangements for a
two year period.


Enquiries:

Paul Latham
Debt Free Direct Group plc (01257 240529)

David Youngman
WH Ireland Group plc (0161 832 2174)

Sarah Gestetner
Citigate Dewe Rogerson (020 7282 2920)


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