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Statement re Client solvency issue

5 March 2007

Ekay PLC (`Ekay' or the `Company')

APS Group of Companies (`APS') - Client solvency issue

Ekay undertakes media buying for the majority of its clients on a prepaid basis. Historically, however, Ekay has traded successfully with a number of clients on terms which involve Ekay extending a certain amount of credit to those customers. Such terms have historically been extended to the APS group of companies with the credit amounting on average to between £800,000 and £1m at any one time. Since 1 July 2005, all trading with APS has been undertaken by our quasi-subsidiary, Docklands Holdings Limited (`DHL').

The APS group of companies consists principally of APS Mortgages (UK) Limited, a company incorporated in England and Wales and based in Swindon and APS Mortgages Limited, a company incorporated in Jersey operated by partners and staff of HLB Jackson Fox Chartered Accountants.

We were informed during August 2006 by APS that it had run into certain financial difficulties and following discussions with both the UK and Jersey directors of the relevant APS entities a plan for paying down the amounts due to Ekay was agreed with APS, under which payments continued until early December 2006.

Further time was extended to enable the APS to refinance but unfortunately it would appear that this has proved unsuccessful and last week we commenced High Court proceedings against APS Mortgages (UK) Limited for recovery of the debt due from that company.

Additionally, a meeting was held in Jersey last week between Ekay and APS Mortgages Limited to discuss the outstanding debt due from APS Mortgages Limited. Following that meeting we were notified that due to uncertainty concerning whether or not funding from APS Mortgages (UK) Limited and support from DHL would be available, APS Mortgages Limited had ceased to trade. DHL has therefore notified the directors of APS Mortgages Limited that they should commence a creditors winding up or place the company in desastre (a form of bankruptcy proceedings in Jersey). A meeting of the directors of APS Mortgages (UK) Limited is being held today to consider this.

The total amount due to Ekay and DHL from APS is approximately £1.65m inclusive of interest charges for late payment. The increase from the average was due to the unwinding of media commitments ending in August 2006.

The directors of Ekay intend that they should pursue vigorously the outstanding amounts due to the Company, using all available means.

A provision with regard to the outstanding amounts may be required to be made in the financial results for Ekay for the 12 months ended 30 June 2007. We will by the end of this month be announcing our interim financial results for the 6 months ended 31 December 2006, at which time we will (or sooner if appropriate) provide an update on any significant changes with regard to the outstanding amounts due from the APS Group. Shareholders will be notified of developments as they arise.

Procedures have since July 2005 been implemented to ensure that credit is only extended to clients where the sums due are adequately covered by credit insurance except with a small number of historic customer accounts. Ekay does not currently trade with any other account on credit terms not adequately covered by insurance.

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