Trading Statement

Debt Free Direct Group PLC
04 August 2006


4 August 2006



                           DEBT FREE DIRECT GROUP PLC

                          TRADING UPDATE FOLLOWING AGM


The board of Debt Free Direct, the leading debt advice and solutions company, is
pleased to announce that all the resolutions proposed at its Annual General
Meeting on 4 August 2006 were passed.

Trading update

It is clear from our analysis of the market that IVA providers have yet to
deliver anywhere near the number of IVAs that are required by over-indebted
consumers in the UK.

As a result of improved conversions and new advertising creatives, we have
significantly increased our ability to generate IVA leads. Our lead generation
capability is very strong and continues to grow, and our key challenge has been
to focus on the speed with which we can build capacity to deliver best advice
and IVAs to those consumers.

Historically the business has always been constrained in its ability to grow,
notwithstanding the fact that our run-rate has grown eight-fold over the last
three years.

Improvements in our business processes, training and systems have dramatically
reduced our lead times in recruiting new staff and bringing them to full
productivity. As a consequence, we are confident that our ability to grow
skilled employee numbers will become a rapidly diminishing constraint on the
business in future months.

Once we have moved into new operating facilities in October this year (since our
original announcement in April 2006 we have subsequently increased the space
available to us by a further 26 per cent), the final constraint to our future
growth for the foreseeable future will have been removed.

We are confident that we are now in a position to comfortably exceed the market
expectations with regard to our future IVA run-rate.

Looking ahead

The above demonstrates the significant progress we have made in the last six
months. Looking ahead, we are investigating the potential of further expanding
our existing (creditor funded) debt management and re-mortgage businesses.

In the year ended 30 April 2006 our existing advertising activity generated in
excess of 18,000 (exclusively creditor funded) debt management referrals.
However, we believe that such leads provide us with the opportunity to
potentially diversify our income streams and further enhance profitability.

Similarly, in the year ended 30 April 2006 we generated (approximately) 3,500
re-mortgage leads from which we derived income and profits of approximately £1
million. We would expect this income stream to grow organically in this
financial year under current arrangements, but we are now looking at how we
might otherwise maximise the value of this business.

In planning to build upon the above businesses, we are well placed to enhance
our market position as a consumer champion, whilst maximising our income from
those leads where an IVA would not represent best advice to the consumer.

We will update the market further as we have substantive news in either of these
areas.

Andrew Redmond, CEO, commented

'Whilst growth in recent years has been strong, we have always been frustrated
by those factors which have constrained us. We believe that we have now
addressed those restraining factors and we now have the opportunity to
demonstrate our true growth potential. I am confident that we are now in a
position to comfortably exceed the market expectations with regard to our future
IVA run-rate. Our focus looking forward is to enhance our lead utilisation and
thereby increase profitability.'

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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