Placing

RNS Number:5386V
Digital Marketing Group PLC
26 April 2007


NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES,
CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND OR
JAPAN


26 April 2007


Digital Marketing Group plc


Placing of 14,285,715 ordinary shares at 70p per ordinary share with
institutional investors to raise approximately #10.0 million.


Digital Marketing Group plc ("DMG" or the "Company") announces the placing (the
"Placing") by Cenkos Securities plc of 14,285,715 new ordinary shares of 50p
each ("Ordinary Shares") at a price of 70 pence per share to raise #10.0 million
before expenses.


Funds raised from the Placing will allow DMG to repay existing debt assumed from
its acquisitions of Cheeze Limited and Alphanumeric Group (trading as 
"Jaywing"), as well as creating financial flexibility to complete the 
acquisitions of further fast growing digital businesses with complementary 
specialist skills.


Cenkos Securities plc acted for the Company in the Placing of the new Ordinary
Shares with institutional investors, which is conditional upon, inter alia,
admission of the new Ordinary Shares to trading on AIM. Application has been
made for the admission of the new Ordinary Shares to trading and it is expected
that admission will occur and dealings will commence on AIM on 2 May 2007. The
new Ordinary Shares will rank pari passu in all respects with the existing
Ordinary Shares currently traded on AIM. Following admission there will be
64,412,152 Ordinary Shares in issue.


Ben Langdon, Chief Executive of DMG, commented: "We are very encouraged by the
significant interest shown in the Company and welcome our new investors. The
Placing will significantly strengthen the Company's balance sheet and create
additional headroom to continue to pursue our strategy.  This is an exciting
period for DMG as it seeks to enhance its product platform to enable the Company
to provide a fully comprehensive digital direct marketing service to its clients
as marketers continue to follow consumers online."


For further information contact:


Digital Marketing Group                         Tel: [phone]

Ben Langdon, Chief Executive


Smithfield Consultants                            Tel: [phone]

Libby Young


Further information:


Digital Marketing Group plc


Digital Marketing Group (DIGI.L) is a recently formed group of companies focused
on the provision of digital direct marketing services. DMG floated on AIM on 26
October 2006 and simultaneously completed the acquisitions of two agencies
specializing in online and offline direct marketing; HSM Limited (including
"Inbox Digital" and "HSM Telemarketing") and Scope Creative Marketing Limited
(trading as "Dig For Fire"). The Company then acquired Cheeze Limited and
Alphanumeric Group (trading as "Jaywing") on 26 January 2007. The Company
intends to continue to grow organically and by acquiring businesses with
complementary skills in digital direct marketing.


DMG provides its clients with a range of digital direct marketing services,
coupled with database marketing skills. By doing this, DMG is able to offer
clients the ability to coordinate both their "online" and "offline" direct
marketing strategies and concurrently offer the skills necessary to utilise
customer data in order to generate more effective marketing campaigns, higher
brand loyalty and improved client profitability.


For more information please visit: www.digitalmarketinggroup.co.uk


Online Advertising in the UK*


*   #2.016 billion was spent online by advertisers in 2006, a rise of 41.2% 
    year-on-year.


*   The internet now accounts for 11.4% of all advertising revenues, up from 
    7.8% in 2005.


*   Online advertising's share of the UK advertising market (11%) still lags 
    significantly behind its share of UK internet users' media time (25%) and
    represents the growth opportunity still inherent in the channel.


*   65% of the UK population is online, 89% of at-home users are on broadband 
    and a third of them use wireless.


*   The internet is now the second largest advertising market in the UK, after 
    TV, (#3.9 billion spend in 2006), and ahead of national newspapers, (#1.9
    billion spend in 2006).


* Source: Internet Advertising Bureau / PricewaterhouseCoopers UK online adspend
  figures for 2006


Cenkos Securities plc ("Cenkos"), which is authorised and regulated in the
United Kingdom by The Financial Services Authority, is acting exclusively for
the Company as nominated adviser, broker and placing agent in connection with
the Placing. Cenkos is not acting for any other person and will not be
responsible to anyone other than the Company for providing the protections
afforded to clients of Cenkos or for advising any other person in relation to
the Placing.


The new Ordinary Shares have not been, nor will be, registered under the United
States Securities Act of 1933 (as amended) or under the securities legislation
of any state of the United States of America or of any province or territory of
Canada, Australia, Japan, the Republic of Ireland or the Republic of South
Africa. There will be no public offering of the new Ordinary Shares in the
United States. Subject to certain exceptions, the new Ordinary Shares may not be
directly or indirectly offered, sold, transferred, taken up or delivered in,
into or from the United States, Canada, Australia, Japan, the Republic of
Ireland or the Republic of South Africa or their respective territories or
possessions. This announcement does not constitute an offer to sell or issue or
the solicitation of an offer to buy new Ordinary Shares in any jurisdiction in
which such offer or solicitation is unlawful. Accordingly, copies of this
announcement are not being and must not be mailed or otherwise distributed or
sent in or into or from the United States, Canada, Australia, Japan, the
Republic of Ireland or the Republic of South Africa and any person receiving
this announcement (including custodians, nominees and trustees) must not
distribute or send it in or into or from the United States, Canada, Australia,
Japan, the Republic of Ireland or the Republic of South Africa. This
announcement has not been approved by Cenkos for the purposes of section 21 of
the Financial Services and Markets Act 2000. This announcement has not been
examined or approved by The Financial Services Authority or the London Stock
Exchange or any other regulatory authority.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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