The Business Model.

The mutual.net plc, the AIM quoted on-line reward company has developed a website to act as a portal for its members to access around 500 online shopping sites. Themutual.net incentivises shoppers by rewarding them with shares in the Company or with points which are redeemable for cash. themutual.net now has over 1.15 million registered members. This Xmas as seen an explosion in online shopping and all indications are that this one as done very well.

Highlights From Last Interim Results 31st Oct 2004.


Membership grown to over 1.15 million

Over 1 million visitors sent per month to advertisers' websites

Share consolidation completed, cash rewards introduced and share buy-back
programme initiated

Increased revenue by 94% to 1.53 million (6 months to 31 Oct 2003: 0.79m)

Doubled EBITDA to 0.68 million (2003: 0.34 m)

75% increase in pre-tax profit to 0.38 million (2003: 0.22m)

Cash at bank increased to 1.225 million (against 0.919m at April year end 2004.

Director Speak.

Mark Smith, CEO, said: 'This has been a period of good progress for
themutual.net, which saw the company consolidate its position as a major
facilitator of email marketing and online shopping. We are delighted with the
strong growth in our website and email marketing revenues, which has flowed
through to enhance our profitability and balance sheet. With the development of
MutualShop and the substantial continued growth in the online advertising
market, we look forward to the future with confidence.'


Activity During The Period.

During this period we implemented a number of strategies to deal with the
challenges that email marketing faces now and, potentially, in the future.
These included:

* Working closely with ISP's to improve understanding and cooperation with
regard to email delivery;

* Double opt-in registration to ensure the validity and quality of new
members;

* Collection and use of increased targeting data to assist in delivering
mails that are both relevant and effective to our members and our clients;
and

* The introduction of an eCRM program to educate new members and further
encourage existing members to utilise our services.


Outlook Statement From The Chairman.

From our website activity, themutual.net now generates in excess of 1,500,000
of online sales for our website partners each month. We anticipate this will be
greatly enhanced by the introduction of the MutualShop, our new shopping portal
which is due for `soft' launch shortly before Xmas, with a final launch to
include price-comparison shopping and full functionality by the financial year
end. This is the largest overhaul of the website that the company has
undertaken, including a full redesign, and will be further supported by adding
user functionality, allowing better control of their membership and the number
of emails received.

To have managed such internal change while the company continued its
substantial growth in revenue and profitability is a strong achievement and
testament to the scalability of our business model and operations.

We have also begun exploratory analysis of launching a similar product into
France and Germany. We will report on this further at the year end.

Fundies.

In their note of 29th November 2004, Durlacher has forecast 2.2p a share in earnings for 2006, which means that TMN is on a forward PE of just over 14.

The average multiple for the sector is 26, and then there is ASOS on a 2006 PE of around 27. Clearly there is a good argument for TMN to be re-rated.

I notice that Growth Company Investor tipped TMN recently at 30p. Hopefully the next few months will ensure the re-rating will get underway for themutual.net.

Dyor.

cheers Gf.

Markets looking a bit choppy at the moment so maybe not the best time to be getting in but some more positive news today.


TMN Group says non-executive chairman Warren Tayler ups stake in co


LONDON (Thomson Financial) - TMN Group PLC said non-executive chairman
Warren Tayler has bought a further 11,500 shares in the company at 87 pence a
share, raising his stake to 823,486 shares or about 1.64 pct.
TFN.newsdesk@thomson.com
jjo/bsu/gp