Blenheim Chalcot

DEBT FREE DIRECT GROUP PLC INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2007

Debt Free Direct Group (DFD), the leading debt advice and solutions company, today announces its interim results for the six months ended 31 October 2007.

HIGHLIGHTS

• Group to be renamed Fairpoint Group Plc. (“Fairpoint” or the “Group”)
• Clarity on agreed fee structures and confirmation of Fairpoint’s successful audit and “accreditation ready” status
• Growing consumer debt problem and the “credit-crunch” provides an increasingly favourable market backdrop
• The benefits of the Group’s scale and industry-leading performance increasingly important and already becoming evident
• Fairpoint’s new strategic direction set:
  • continue industry consolidation plans as market leader, following the successful integration of Clear Start UK Limited (“Clear Start”), which is anticipated to deliver greater-than-expected synergies of £2m over the next 12 months
  • develop as a broader based financial services company with full range of solutions for “financially stressed” consumers
  • accelerate the growth of non-IVA products and services
• Total Group revenue in H1 FY08 of £20.1m, including a £4.7m non-recurring item (H1 FY07: £13.0m)
• Adjusted profit before tax in H1 FY08 of £5.4m, including net £4m non-recurring items (H1 FY07: £5.4m)
• Watershed in industry providing marked change in trading environment. Positive outlook, with significant profitability and growth expected. We are now able to forecast with greater confidence given agreed fee structures and a more stable backdrop.

Mike Blackburn, Chairman, said:

“It has been a challenging first half where the well-documented issues affecting the IVA industry impacted on the Group’s profitability, particularly as we continued to invest heavily in marketing in order to grow our market share and build up our back book. We have seen a material improvement in the key factors influencing trading in the last two months. The competitive landscape has changed following a period of uncertainty in the industry. We now have an equilibrium in which the newly named Fairpoint Group can prosper as a market leader in providing solutions for the increasingly financially stressed UK consumer. The board is approaching the future with considerable optimism for a return to significant growth and profitability. Against that background the Board itself is undergoing further changes. Paul Latham, Finance Director and one of the founders of the business, has chosen to step down today but will remain available to ensure a smooth handover to his successor. I would like thank Paul for his invaluable contribution in building up the market leading position of DFD. Further details are provided later in this announcement.”

INTRODUCTION TO FAIRPOINT

Following the acquisition of Clear Start UK Limited in June 2007 and the creation of an enlarged group with a broadening service range, it is proposed that the Group will change its name to Fairpoint Group Plc. A resolution to that effect will be put to shareholders at a forthcoming EGM (notices to be given as soon as practicable). The Group will continue to operate all its existing consumer brands.

The new board of Fairpoint has agreed a strategic plan for the group which is to continue its growth as a Financial Services provider of advice and solutions to ‘financially stressed” consumers. We expect to continue to be the market-leading provider of IVA solutions to over-indebted consumers but also offer a broader range of debt solutions, as well as a new suite of products and services aimed at assisting consumers as they rehabilitate their finances and thereafter. These will be added by both organic development and consolidating in-fill acquisitions.

Commensurate with the values that have guided the Group to date and helped us create a market leading position:-

“We continue to believe that best advice to both consumers and creditors, will build “most trusted advisor” relationships, which will allow us to provide services throughout the lifetime of our customer relationships.”