Trading Update

RNS Number:6674G
Internet Business Group
31 October 2007


                          Internet Business Group plc
                               ("IBG" or "Group")
                                        
                                Trading Statement
                                        

Internet Business Group plc, the online advertising and media specialist, is
pleased to provide the following trading update for the financial year ended 31
October 2007.

Operational Update

Performance advertising:

As reported in both the conclusion of the strategic review statement published
on 21 June 2007, and more recently in the interim results statement published on
30 June 2007, the Group has continued to focus on the medium term goal of
creating a substantially larger advertising and media operation. To this end,
the Board is pleased to report that certain elements of the scaling up of
operations were successfully brought forward from the 2008 financial year to the
last quarter of the 2007 financial year. Whilst this resulted in a short term
reduction in sales, the Group is now better placed to benefit from an improved
product portfolio delivered ahead of schedule.

The most significant of the changes brought forward has been the development and
deployment of a new, substantially improved, toolset for both affiliates and
merchants within the AffiliateFuture network in the UK. A preview of this new
platform was made at the recent A4U Expo in London's Excel Centre, which was
attended by a number of industry experts. Initial feedback from both affiliates
and merchants has been very positive, and the new toolset is due to be made
available as a beta release on 2 November 2007 with a view to switching all
users to the new platform before the end of the calendar year.

In order to further improve reliability and "uptime" of the AffiliateFuture
platform, substantial changes in the hosting infrastructure of IBG have also
been successfully implemented, resulting in a third data centre in London being
brought online.

Media:

The Company's media operations have continued to perform well with a number of
launches across its largest online property, CheapHolidayDeals.co.uk. These
include the launch of a dedicated ski holidays channel as well IBG's first foray
into the world of user generated content with Reviews.CheapHolidayDeals.co.uk.
In addition, there are a number of enhancements to the Henoo.com platform
currently in development. These are expected to support revenues in both the
media and performance advertising divisions due to the anticipated increase in
the syndicated travel related functionality within the AffiliateFuture platform
in time for the expected peak in demand for holidays in January 2008.

E-Commerce:

The new management and processes put in place in the first half of the 2007
financial year have started to have a positive effect on the performance of the
e-commerce division. The Board believes that there are significant opportunities
for the e-commerce operation, but the Group's current strategic focus on its
advertising and media operations may be limiting potential growth within this
division. As such, strategic options in respect of this division are to be
considered within the 2008 financial year.

International:

IBG's international operations are performing in line with management
expectations and the Board expects to launch the new AffiliateFuture toolsets in
the US market towards the end of the current calendar year.

Financial:

In the 2007 financial year, the Group has grown sales, EBITDA and normalised
profits (profit before tax, movement in investments and share based payment
charges).

As a result of the prudent focus on medium term product development, rather than
short-term sales, as stated above, for the year ending 31 October 2007 the Board
expects sales to be approximately #16.5 million and normalised profits
approximately #1.4 million, in each case approximately 10% below market
expectations. Normalised earnings per share is expected to be approximately
1.8p.

However, as a consequence of the measures described above, as well as the
continued developments planned for the first half of the 2008 financial year,
the Group is much better positioned within its core advertising and media
divisions and the Board looks forward to the future with confidence.

Maziar Darvish, Chief Executive, commented: "Following two years of triple digit
percentage sales growth, 2007 has been a year of transition, with the focus
being on the implementation of infrastructure for the next phase of the Group's
development. Traditionally, product development and innovation have been the key
strengths of IBG. Our focus on these elements returned in the last quarter of
the financial year and the early feedback has been positive.

IBG is a growing business with a strong balance sheet, including in excess of
#1.5 million of cash at the year-end and no debt. These factors, together with
the measures outlined above, ensure that the Group is well placed both
financially and operationally for the future. The Group continues to maintain a
clear focus on delivering value to its shareholders and the Board looks forward
to the 2008 financial year as we continue to implement new products and
operational procedures with a view to building a substantially larger
advertising and media business over the medium term."


Enquiries:

Internet Business Group plc
Maziar Darvish, CEO
Mob: [phone]
www.ibg.co.uk

Tavistock Communications
Matt Ridsdale
Tel: [phone]
Mob: [phone]

Strand Partners Limited
James Harris / Braden Saunders
Tel: [phone]




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