Trading Statement

    


IMSG



Date: 20 August 2008

On behalf of: International Marketing & Sales Group Limited

("IMSG" or "the Group" or the "Company")

Embargoed until: 0700hrs

                                 Trading Update

IMSG, the emerging markets oriented marketing services group, listed on both AIM
in London and Aktietorget in Stockholm, today provides an update on current
trading prior to the announcement of its interim results for the six months to
30 June 2008.

First Half Trading

The Board believes that the results for the first half of the year will be below
market expectations, primarily due to a significant deterioration at RPM Radar
("RPM"), its Turkish advertising agency. This has resulted, at the Group level,
in both a shortfall in operating performance in the first six months of 2008,
which is expected to continue in the second half, and an impairment to the
carrying value of goodwill in respect of this subsidiary. The company is
considering its strategic options with regard to RPM, including the possibility
of a near-term disposal. Consequently, the Group expects to take a one-off
non-cash charge to the profit and loss account for the period ended 30 June 2008
of US$8 million.

In Russia, the single biggest territory in terms of Group revenues, the Company
suffered considerable unanticipated disruption to its business as a consequence
of the previously announced loss of a number of key personnel. Although the
Russian business is making a strong recovery in the second half, the Company
feels it is prudent to make a number of bad debt and other provisions that will
negatively affect the first half performance. In addition, as a result of an
ongoing review of its accounting procedures, the Company has decided to take a
more conservative view of its budgeting in Russia for the remainder of the
financial year.

Change to FY08 Guidance

As a consequence of both the disappointing performance at RPM Radar and the more
conservative view of its Russian business, IMSG now expects its turnover in 2008
will be at least US$230 million, and its pre-tax profit (adjusted for non-cash
impairment charges) will be at least US$8 million.

                                    - Ends -

Enquiries to:


Terry Livingstone                                           Tel: [phone]
Johanna Fagrell Kohler                                      Tel: [phone]
International Marketing & Sales Group Limited

Emily Bruning/Andrew Best
Shared Value Limited                                        Tel: [phone]

Mark Williams / Henry Fitzgerald O'Connor
Canaccord Adams Limited                                     Tel: [phone]

Notes to Editors

    --  IMSG was founded in 1996 and the Group was admitted to trading on AIM on
        6 December 2005.

    --  Since 2002, the EBITDA of the Group has grown at a rate in excess of
        100% per annum. IMSG has been profitable since 2000.

    --  The Group's clients include multinational and first tier local companies
        operating in FMCG, telecommunications, retail trade, banking and
        finance, automotive, consumer electronics and pharmaceutical industries.

    --  IMSG currently has over 40 offices predominantly in emerging markets:
        Moscow, Saint Petersburg, Yekaterinburg, Kazan, Nizhniy Novgorod,
        Novosibirsk, Rostov-on-Don, Samara, Krasnodar (Russia), Kiev (Ukraine),
        Almaty, Astana (Kazakhstan), Dushanbe (Tajikistan), Tashkent
        (Uzbekistan), Erevan (Armenia), Belgrade (Serbia) Istanbul (Turkey), New
        Delhi, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad (India), Kuala
        Lumpur (Malaysia), Dubai (UAE), Doha (Qatar), Budapest (Hungary),
        Bucharest (Romania), Athens (Greece), Sofia (Bulgaria) London (UK),
        Stockholm, Malmo (Sweden) and Barcelona (Spain).

    --  Further information about the Group is available on its website at:
        http://www.imsg.co.uk