Trading Statement

Debt Free Direct Group PLC
04 September 2006



4 September 2006



                         DEBT FREE DIRECT GROUP PLC

                               TRADING UPDATE


Debt Free Direct Group (DFD), the leading debt advice and solutions company,
today releases a trading update, after 4 months of the current financial year
ending 30 April 2007.



Highlights

•    DFD has experienced a very strong trading performance in the first 
     4 months of the financial year ending 30 April 2007.

•    Average monthly new IVA case run-rate for the first quarter to 
     31 July 2006 was 551 cases per month (or 767 counting joint cases as 2). 
     This represents an increase of 196 per cent compared to the same period
     last year.

•    Growth continued into August 2006, which was a new DFD record month for 
     new IVA cases, with a total of 607 (841 counting joint cases as 2) new
     cases.

•    Average monthly new IVA case run-rate after 4 months is already ahead 
     of brokers' average run-rate forecasts for the whole financial year 
     ending 30 April 2007 and continues to increase.

•    We are now expecting that profits for the financial year ended  30 April 
     2007 will be at least 10% ahead of the current market consensus (of 
     £9.8m Adjusted PBT), with an attendant uplift in future years.

•    We are delighted with the success of our Northern Ireland operation.  
     This has already achieved its expected new case run-rate and we are
     now looking at how quickly its capacity can be expanded still further.

•    The relocation to our new operating facilities in Chorley is fully on 
     track.  We expect to be operational at that site by 8th October 2006
     and have already commenced our recruitment drive in anticipation of the
     additional seating capacity that will provide.

•    Debt Free Direct Australia commenced trading operations during August 
     2006 and early indicators are positive.  We continue to anticipate that 
     it will be fully operational by the end of this calendar year.

•    On 3 August 2006 we issued a comment to the market, calling for 
     regulatory change.   We are encouraged, particularly from recent
     press coverage, that this view is shared by other interested parties 
     in the industry.



Andrew Redmond, CEO, commented:

'Debt Free Direct strongly believes that its ethical approach to providing debt
advice and appropriate solutions is at the core of its success.

We focus on providing the customer with best advice, whilst ensuring that the
lenders' returns are maximised.  We have always suspected that the DFD approach
led to better returns for lenders than those generally achieved in the IVA
market.  A recent report published by PwC has, for the first time, enabled us to
quantify that benefit to lenders.  We are delighted that a DFD proposal offers a
29 per cent higher return to lenders than the average achieved by the rest of
the IVA market.  This can only contribute positively to our market leading
position.

We remain confident that the combination of continued growth, together with our
focus on ethics and quality, thereby maximising lenders' returns, will ensure
even greater rewards going forward.'




Enquiries:


Debt Free Direct Group plc

Andrew Redmond, Chief Executive Officer                            01257 240599
Paul Latham, Finance Director                                      01257 240529



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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