New Contracts

RNS Number:3801I
Delling Group PLC
09 February 2005





DELLING SIGNS AGREEMENTS FOR OVER #3.7 MILLION PER ANNUM AND TRADING UPDATE



Delling Group has entered into contracts with Hewlett Packard and the retail
chain Beijer plus a number of other customers.  The Board believe that the
combined value of these new contracts represent more than #3.7 million per annum
in revenue terms. The agreements will last between two and five years.  In
combination the annual value of these agreements represents almost twice the
Group's turnover in 2004.



The agreements with HP and Beijer are for the Swedish market and represent a
strong support for the viability of a business concept that includes
outsourcing, which the Group has developed through its subsidiary Depicta.



The Group has also entered into two other agreements, the first with
Scandinavian Service Partners, a subsidiary of Compass Group, to provide
IT-solutions to support on-demand print in its restaurants throughout Sweden and
plasma screen communication for customers. The second, through its subsidiary
Butler, with an international restaurant chain regarding a turnkey concept for
plasma screens in its 60 restaurants in Norway. The Group has also won a number
of new mid sized customers in all its business areas including an agreement with
Statoil regarding supply of market material to its petrol stations.



These deals represent a break through in establishing the Group as a leading
player in the growing market of outsourcing back office functions in marketing
departments in the Nordic area. The growth in the market for outsourcing of back
office functions in marketing departments is driven by new business concepts
made possible by the development of new IT-solutions.



The outsourcing concept makes it possible for the Group's customers to make
significant cost savings and allows marketing departments to focus on more
strategic tasks. The outsourcing deals are tailor made to each customers' needs
and can include procurement of all marketing information material, logistics and
information storage.



The contracts have opt out clauses in accordance with common business standards.
However, the actual experience of the directors is that such contracts are often
extended substantially beyond their formal life span.



The Group is aggressively pursuing a growth strategy through organic growth and
through suitable acquisitions.  The Board expects to announce its preliminary
results in April 2005 and the Directors continue to be confident about the
Group's trading performance.



Aksel Bratvedt, Delling Chief Executive Officer, commented:



"These deals represent a major turning point in the Group's development as our
strong organic growth continues to accelerate.  As we already have established
the cost base and organisational infrastructure to handle new outsourcing
customers, these contracts will have a significant positive effect on the
Group's net cash flow and enhance margins."



                                                                 9 February 2005




Enquiries:


Delling Group                                                020 7010 8210
Aksel Bratvedt, Chief Executive Officer
Geir Lolleng, Chief Operating Officer

Seymour Pierce Limited
Dru Edmonstone                                               020 7107 8000

College Hill                                                 020 7457 2020
Adrian Duffield/Clare Warren




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