Deal Group Media is the biggest and only true online advertiser on the whole of the London stock exchange. Its business is that of focussing on delivering high returns to its clients from online advertising through all differing sizes of web site and search engines. The massive increase in online advertising means it is at the very leading edge of the growth in the industry.

Just a few raw figures to look at in this industry.

*Internet advertising now accounts for around 4% of all company advertising and is growing as a % of all company advertising, we are only at the very beginning of a Mass market.

*The market is expected to break 500 million by the end of December.

*The market saw a 75% increase in revenues in the first 6 months of 2004, so you can see the growth is really staggering.

*Just take a look at this site and others and see all the adverts and pop ups plastered around, theres a good chance that DGM have a hand in many of these adverts.

*The biggest growth stimulant has to be the growth in online shopping and this should increase the market size for many years to come.


The last results reported were very encoraging indeed and 2005 shold be the year this one really breaks out and shines, here are the main points.

Deal Group Media plc, the online marketing group whose activities include
performance-based advertising and search engine marketing, today announces its
interim results for the six months ended 30 June 2004.

Highlights


Business transformed by merger of The Deal Group and IBNet plc


Combined operations turnover 6.55 million (878,000 by former IBNet plc)*


Pre-tax profit 619,000 (before amortisation of goodwill)


Pre-tax profit 45,000 (623,000 loss by former IBNet plc)*


New blue chip clients being won


Core business achieving record growth month on month


An increasingly positive online marketing outlook


Further progress anticipated in the second half of 2004.

The company as an impressive list of clients.......

: AOL, Autotrader, American Express, BT, B&Q, Cancer
Research, Comet, Coral, Dial-a-phone, easyjet, esure, Halifax, Interflora, John
Lewis, Littlewoods, Ladbrokes, Lloyds TSB, Match, MBNA, MoreThan, Nestle, phones
4U, Tiscali, Virgin Megastore, 888 and many more.


Key growth sectors are: mobile telecommunications, broadband, financial and
automotive, with further growth coming from gaming, travel and retail.


On results Adrian Moss, Chief Executive, said:

'We are delighted with the results now being delivered by the Group and our
promising potential. The foundations put in place following the merger, our
focus on delivering return on investment through measurable online marketing for
advertisers and our industry profile, are proving to be a combination that is
delivering value for clients, shareholders and other stakeholders alike. In a
marketplace that continues to grow and consolidate, we are seeking further
acquisitions to broaden the width of our offering and extend our geographic
reach. We look forward to continued growth.'

The company are making great strides to grow organically and are looking at the very large European market were acquisitions will be made.

Outlook

We anticipate that the second half of 2004 will continue to progress
successfully. Turnover exceeded the 1 million a month landmark for the first
time in 2004 and has consistently remained there. Month-on-month, the
Performance Network channel is enjoying record growth. The online advertising
channel is now establishing itself with regular repeat orders. Search remains a
strong growth opportunity and the newly launched affinity channel shows early
signs of success. Our key channels are growing and we anticipate they will
continue to do so.
With nine months of the new business operating and significantly outperforming
the previous entities, we have a solid base to continue delivering for our
clients and shareholders. We can only repeat the sentiments of our 2003 Annual
Report - we remain confident and excited about the Group's prospects.

Fundies.

Y/Ending 31-12-2004 EPS 0.50p P/E 25.00
Y/Ending 31-12-2005 EPS 0.80p P/E 8.5

So forward P/E of 8.5 is very cheap for an online growth stock.

Alpha/Beta

The beta is on the low side so it wont exactly fly, but all in all it looks a solid growth investment. Certainly not another 'As Seen On Screen' but as per this weeks Investors Chronicle, low beta stock have greatly outperformed high beta stock this past year.

Does it have any minuses, well although not a minus some from the old school would be looking at Intangible assets and amortisation of goodwill but as an healthy profit making company I see no reasons to be negative here.

It is a cyclical industry is advertising but lets face it we are now on the upcurve and more and more businesses are turning to the internet for cheaper advertising solutions.

Conclusion

This looks a solid sound investment and although I wont put a figure on the Sp with its ongoing fantastic growth I would be hoping for a very exciting performance during 2005.

DYOR

Cheers GF.

By the way the chart added as per Dils request.....................

From Todays IMRG update....

e-christmas internet sales soar 20% (17/1/2005)
--------------------------------------------------------------------------------

Online shopping sales sparkled again as usual this Christmas despite significantly weaker retail demand, and in sharp contrast with disappointing high street's results, following what the British Retail Consortium described as "the worst Christmas for retailers in the last decade."

E-retail sales for November and December were up 20% on the previous year's exceptionally high levels, outperforming the high street by a factor of eight. High street sales grew by just 2.5%. Half of the UK population was shopping online this Christmas, spending more than 3 billion, which represented 6.8% of all UK retail sales. Stores without websites paid the price in poorer sales.

The IMRG Index reached an all time high of 1766 in November, just 57 months on from its start point of 100, in April 2000. UK online shopping sales for calendar year 2004 were valued at 14.5 billion.

cheers GF.

GF. Is 4% drop today due to another bout of profit taking? Your previous post was very encouraging.

chad,

profit taking is only to be expected after the almost straight line rise we have had, just as I expect that when they meet and exceed expectations and perhaps show a glimpse of what they could realy do next year, then this will motor on again, of that I am sure..

As always, time will tell.

Be lucky.

T..

Just Keep calm guys. We are in a position where the whole small cap sector is being downgraded for a few days.

Keep in there and ride it out.

Cheers GF.

2 very high profile appointments.

Deal Group Media PLC
26 January 2005


Press Release 26 January 2005


Deal Group Media plc

Appointment of Non-Executive Chairman and Finance Director


Deal Group Media plc, the full service online marketing group, announces the
appointments of Lord Stone of Blackheath and Andrew Dickson to the Board as
Non-Executive Chairman and Finance Director respectively with immediate effect.

Lord Stone of Blackheath was raised to the peerage as Baron Stone of Blackheath
in 1997. He joined Marks and Spencer plc as a trainee in 1966 and retired his
position as joint managing director of the company in 1999. He is currently a
director of several non-government organisations, a retail company and is
involved in several charities. He also chairs the charity DIPEx that helps
patients gain information on their condition and their options.

David Lees is stepping down as Non-Executive Chairman, but will remain on the
Board as a Non-Executive Director.

Andrew Dickson was previously finance director of the Ministry of Sound group of
companies, which he joined as group chief accountant in 2000. In his role as
finance director, he prepared and executed a strategy for a turnaround of the
company from a 12.6 million loss in 2002 to a 3.2 million profit in 2003. He
was instrumental in restructuring the business from 38 companies to 4 companies,
refinancing a 3i investment with a distribution to shareholders and negotiating
a 6 million long-term loan from Barclays Bank.

Andrew Dickson started his career as a trainee accountant at Coopers & Lybrand
in 1995. In 1999 he moved to become a financial controller at PA Consulting.
In 2000 he joined Invaluable.com, the antique collectors' website, where he
supported the finance director and IPO team for an impending float.

Adrian Moss, Chief Executive Officer of Deal Group Media plc, said: 'We are
extremely pleased to welcome Lord Stone of Blackheath and Andrew Dickson to the
Board. Lord Stone's unparalleled knowledge of the retail industry will be
instrumental to the business going forward as online retailing continues to
grow. Andrew has the right mix of growth company experience combined with a
strong record of restructuring businesses and internal processes. His
experience at Ministry of Sound demonstrates his ability to drive businesses
forward and create shareholder value.'

Lord Stone of Blackheath added: 'Online advertising and retailing is growing at
a considerable rate. This is a very exciting time to be joining Deal Group
Media, the UK's largest independent online advertising group. They are well
positioned to take advantage of this market and I look forward to being part of
such a talented team and their continued success.'

Lord Stone of Blackheath, previously Andrew Zelig Stone, aged 62, is and has
been a director of the following companies and organisations during the past
five years:

Current Directorships Directorships held in the past five years
N Brown Group plc Ted Baker plc
DIPEx Brainboost Limited

cheers GF.

These are very importent appointments indeed. The future is being planned and put in place. There is no better time to buy in than now.

MS

GF. (Excuse me as this isnt about DGM) Whats ur stance on the IDD thread that you started in 2003? IDD slumped badly in 2004 but is there a possibility for a recovery this year with all the talk about government ID cards?

Hi Chad, as marked down on the daily thread I had on this board I sold out quite some time ago, when things were starting to look a little grim. Im not really up to date with the story my appologies.

cheers GF.

Looks like a 12 month high for DGM today. Certainly the two high profile recruits to the Board have spurred this one on.

cheers GF.

Encouraging article in shares mag today. Looks like this one still has a long way to go.

What does it say Chad?. Havent got a copy yet.

cheers GF.

BIG volume today.

2 sales amounting to over 6.5 million shares resulting in ratio of 4:1, sells to buys.

RNS Number:8935H Deal Group Media PLC 27 January 2005 indicating a THE EUREKA INTERACTIVE FUND LIMITED now has holding of 3.8%.

Recent trading statement is very positive. SP should be interesting between now and mid-march preliminary results.

Cheers.

GF. DGM was picked as one of Shares' 'Penny shares from heaven' buys. They just reeled off all the usual facts n figures. eg. 76% rise in spending in online advertising, turnover hitting 1 million a month, that sort of stuff.

Cheers Chad and its up again, NICE.

cheers GF.

GF. As DGM is the only independent UK listed online advertiser, does this mean there arent really any opportunities for Deal to grow by acquisitions? Is Deal a possible takeover target for bigger more well established traditional advertisers looking for a bigger piece of the online action? PS. take a look at Avanti Screen Media, another advertiser who's built up a nice little niche in the business of advertising on those flat screen tv's you see in shopping centres and pubs. Tipped in Shares mag this thursday. I bought in today.
Cheers.

Chad been in avanti screen media for a while now and earned a nice profit.

Your right about DGM and its ability for takeovers, I beleive thats one reason why we have seen the reorganisation and also the appointment of the 2 new guys this week.

Growth should be really remarkable.

cheers GF.

GF. You said youve been in ASG for a while - have you got a target price? - rise since flotation seems to have been pretty steep. You must be tempted to take profits?

Yup winnie tipped them on t1ps.com I am told by a buddy and says hold, so Im doing just that, though tempted to lop the top, a profit aint a profit untill trousered.

cheers GF.

True.

Chad asked whether DGM could eventually be a target for takeover by one of the big ad companies. Definitely ! Last week one of the big agencies, Aegis (AGS) bought De-construct, a digital media company to "plug a gap" in what Aegis can offer. Here is a bit of what Aegis said...(find more on RNS)

Doug Flynn, CEO of Aegis Group plc, said 'Digital media is generating many more
ways to reach consumers and, in an increasingly cluttered media environment,
outstanding creativity has become an integral element of effective
communication. The UK was one of the few gaps in Isobar's creative service
capability and De-construct's award winning capability in the digital space will
now deliver the highest level of service to its clients. In Isobar, we have an
international digital network that can meet all the needs of marketers in the
new media landscape and part of that will be the ability to offer outstanding
creativity around the world'.


As digital media takes more and more of the total share, the big companies MUST have a presence