DMGT expands online activities with two acquisitions

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Monday 8 May 2006

Associated Newspapers, the national newspaper division of DMGT, announces that it has recently made two online acquisitions as part of its continuing strategy of making investments to increase its exposure to key areas of the online advertising market, pertinent to Associated such as automotive, dating, jobs and property.

Allegran has been acquired which operates a portfolio of dating web sites, catering for different segments within the UK market. In the year to 31 January 2006, Allegran reported revenues of £7.4 million, an increase of approximately 160% on the previous year. Allegran’s sites include three ranked in the top seven dating sites in the UK market during March 2006 by Internet monitoring firm, Hitwise.

Associated has also acquired 62.5% of Data Media and Retail (‘DMR’) and has agreed a three-year earnout with its management to acquire the remaining 37.5%. DMR is the UK’s leading privately-owned operator of car classified portals, including Carsource.co.uk, with a combined Hitwise ranking of 4th in March 2006. It also provides online marketing services relating to data capture, profiling and email marketing. In the most recent financial year to 30 November, 2005, DMR’s revenues increased by over 40% to £4.3 million.

The combined headline valuation for these acquisitions was £46.5 million, with initial payments made of £32.5 million.

Both acquisitions are expected to be earnings enhancing before amortisation in DMGT's current financial year.

Enquiries:
Nicholas Jennings, Company Secretary, DMGT 020 7938 6625
Andrew Hart (Associated re Allegran), 020 7927 8675
Mike Stewart, (Associated re DMR), 0870 731 3604
Andrew Honnor / Peter Hewer, Tulchan Communications, 020 7353 4200