Issue of Loan Note

RNS Number : 7554S

Deal Group Media PLC

26 May 2009

Press Release

26 May 2009

Deal Group Media plc

('Deal Group Media' or 'the Group')

Issue of Convertible Redeemable Loan Note

Deal Group Media plc (AIM: DGM), an independent online marketing group, is pleased to announce that, to further strengthen the Group's balance sheet, it has successfully raised £500,000 by way of a convertible loan note ('The Note') which has been issued to River Don Limited, a company controlled by John Porter, the Group's former Chairman.

The Note, which carries a 15% coupon payable with principal on redemption or repayment is, subject to the passing of certain resolutions at the Group's forthcoming AGM, convertible into such number of the Group's ordinary shares as will result in River Don Limited and John Porter having, in aggregate, a maximum of 29.99% of the Group's issued shares, at a conversion price of 0.5 pence per ordinary share. The Note is redeemable on one months notice from River Don Limited and can be repaid by the Group on one months notice, such notice not to expire before the first anniversary of The Note. The Note is secured by way of a charge over two associated Group holdings in DC Storm Ltd and DGM (UK) Limited.

Due to this being a related party transaction under the AIM Rules, the Group's directors, having consulted with Daniel Stewart & Company plc, the Group's nominated adviser, consider the terms to be fair and reasonable insofar as shareholders are concerned.

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