Trading Update

Debt Free Direct Group PLC
06 March 2007


6 March 2007


                           DEBT FREE DIRECT GROUP PLC

                                 TRADING UPDATE



Debt Free Direct Group (DFD), the leading debt advice and solutions company,
today provides a trading update.

In our recent trading update, dated 26 January 2007, we highlighted our
expectation that the final quarter of FY07 would be challenging, which might
make achieving market expectations difficult. We are now in a position to
quantify the impact on profits in FY07 of increased advertising costs and lower
call volumes, together with creditor concerns.

Our confidence in achieving market expectations for FY08 remains unchanged.

Advertising performance

The deterioration in advertising performance continued in February 2007. It is
not yet clear whether this was a result of:

- increased competitor advertising, or

- lower consumer confidence in the IVA solution arising from the tone of press
reporting generated by ongoing creditor concerns

With regard to competitor advertising, we have been encouraged by the
Advertising Standards Authority response to the highlighting of misleading and
untruthful IVA adverts. As a consequence, in the longer term we anticipate that
the IVA advertising market will not remain as competitive as it is currently.

New lead generation source

Notwithstanding the above, as part of its continuing strategy to reduce
acquisition costs, DFD has entered into a 2 year agreement with an established
money advice organisation for the exclusive generation of leads. Those leads
will cover the complete range of debt solutions (including IVAs, DMPs, Trust
Deeds, mortgages and loans). This business is currently generating significant
numbers of leads per month (around 10% of DFD's existing volumes) and
anticipates further growth over the period of the agreement. Whilst this
arrangement will have little impact on the current financial year, it will
benefit future periods significantly.

New IVA case generation

We now anticipate new case numbers for March and April being around 600 new IVA
cases per month (counting joint cases = 1).


Overall DFD Group

Debt Free Direct has made significant progress in FY07. Market expectations for
FY07 were originally at £8 million (adjusted PBT) and were subsequently upgraded
twice, with the consensus moving to adjusted PBT of £11 million.

Since our trading update in January 2007, the consensus has been revised.
However, we believe that the outcome for FY07 will be approximately 10-15% below
the current market consensus range (£9.7 million to £10.3 million adjusted PBT).

Looking ahead, whilst we may be impacted by higher advertising costs (and lower
response rates), the beneficial impact of the new lead source and the increase
in our non IVA revenue per call mean that advertising cost per IVA can increase
significantly without impacting overall profitability. As a consequence, our
confidence in achieving market expectations for FY08 remains unchanged.

Enquiries:

Debt Free Direct Group plc
Andrew Redmond, Chief Executive Officer 0845 296 0100
Paul Latham, Finance Director 0845 296 0200

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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