Joint Venture Announcement

RNS Number : 6414L

Infoserve Group PLC

10 May 2010

Infoserve Group plc

INFOSERVE AND ILIFFE NEWS & MEDIA ANNOUNCE JOINT VENTURE TO OFFER INTERNET AND PRINT ADVERTISING PACKAGE

Infoserve Group Plc ("Infoserve"), the online local business search and directory specialist, is pleased to announce that it has today entered into a joint venture agreement with Iliffe News and Media Limited ("INML"), the media arm of Yattendon Investment Trust with interests in local media including newspaper publishing and television.

Under the agreement, a joint venture company ("2i Local") will offer SMEs the opportunity to purchase a combined internet and print advertising package. This will give businesses guaranteed exposure to their target market through online local search and local newspaper coverage. Infoserve and INML will each own 50% of the issued share capital of 2i Local.

The establishment of the joint venture follows a successful seven-month trial in which 2i Local has been offering the new hybrid advertising solutions to businesses in seven separate locations in which INML provides a local newspaper. The results of the pilot have been highly encouraging, leading to both increased classified print revenue and greater conversion of web customers through the combined sales offer. The Board of 2i Local is confident therefore that there is a strong market opportunity for a one-stop marketing solution for SMEs that combines the search capabilities of the web with the visibility of local newspaper advertising.

The Directors of Infoserve believe that, although the prospects for the joint venture are encouraging, as a result of the initial start-up costs of the joint venture, Infoserve's earnings for the year ending 31 March 2011 will be lower than previously expected.

Commenting on the joint venture, David Fordham, chief executive, Iliffe News and Media, said,

"We have the experience of providing local businesses with tailored and innovative print solutions, whereas Infoserve can help them to be found quickly and easily when people search for them on the web. It makes sense therefore to combine our expertise to give local businesses and tradesmen a cost effective 'best of both worlds' solution.

"We will now be discussing the concept with newspaper publishers across the UK and offering them a turnkey solution to reinvigorate and substantially leverage their trades and business advertising sections. This new service will help to bring publishers valuable new revenue as the industry emerges from a very difficult trading period. The trial has shown conclusively how this joint offering can transform the classified sector within local press."

Infoserve's executive chairman, Steve Barnes, added,

"The trial confirmed that there is great demand from businesses for blanket coverage across print media as well as online. The reputation of the newspaper group in its circulation areas and our knowledge of online marketing is a very powerful and credible combination.

"With the favourable customer response we received during the trial, together with the growing amount of repeat business, we are extremely confident that we have found an advertising model which will prove popular with SMEs who are looking for good value and a real return on their investment."

Following the successful trial, 2i Local will now roll out the offering to local businesses across a further 17 newspaper regions covered by INML over the next few months.

Ends.

For further information, please contact:

Infoserve Group plc www.infoservegroup.com

Steve Barnes, Executive Chairman

Steve.barnes@infoserve.com Tel: 0113 238 6200

Jonathan Simpson, Finance Director

Jonathan.simpson@infoserve.com Tel: 0113 238 6200

Nominated Adviser

WH Ireland Limited

Robin Gwyn Tel: 0161 832 2174