DMGT acquires 50% stake in Arcadia Group's ISP - Zoom

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Monday 26 July 1999

DMGT announces that its wholly-owned national newspaper subsidiary, Associated Newspapers, has bought a 50% interest in Zoom.co.uk, Arcadia Group's e-commerce service provider launched on June 14 1999, for a total consideration of £15 million, comprising £5 million in cash on completion and £10 million payable at £2 million per annum over 5 years.

The move will result in Zoom becoming a 50/50 joint venture between Associated Newspapers, owner of the Daily Mail, The Mail on Sunday, Evening Standard and Metro newspapers and Arcadia Group, owner of well-known high street brands Burton Menswear, Dorothy Perkins, Evans, Hawkshead, Principles, Racing Green and Top Shop. Both parties have agreed to promote 'Zoom' service through their existing business channels.

Zoom can draw on both partners for the distribution of its discs and promotion of its brand: newspapers and magazines with a combined weekly readership of 13.5 million from Associated Newspapers; over 2,000 outlets and a database of 5.3 million cardholders from Arcadia Group.

Murdoch MacLennan, Group Managing Director of Associated Newspapers Ltd, said: "We have watched the development of Zoom.co.uk with great interest. As a Group we believe that commerce is a key element in the future of the Internet, and Zoom, with its strong leadership position in the e-commerce clothing market in the UK, is well-placed to benefit from this. Zoom is a site with great style and clarity and will have enormous appeal to our readers."

Peter Williams, Finance Director of DMGT, said: "This investment is a very important addition to the DMGT Group's online activities which include the award winning This is London, This is Money, UK Plus and our soon to be launched complementary women's portal - CharlotteSt.com."

John Hoerner, Chief Executive of Arcadia Group, said: "Arcadia Group intends that Zoom will become one of the major players in the e-commerce/ISP market and be the portal of choice for consumers. This partnership with Associated will help achieve this goal. They are the perfect partner in helping Zoom to maximise its full potential, as they have the leading newspaper titles in exactly the right market."

For further information please contact:
Peter Williams - Tel: 0171 938 6631
Sandra Bull - Tel: 0171 927 1877
Amanda Bassett - Tel: 0171 927 1875