News

Aquisition(s)

14 March 2008

Placing of 41,666,667 Ordinary Shares at a price of 6p each
Application for admission of the Enlarged Share Capital to AIM
Interim Results for six months to 31 December 2007
Proposed reduction of capital
and
Notice of General Meeting

Creation of substantial advertising and marketing agency outside London

Ekay PLC ('Ekay' or the 'Company'), an advertising and marketing agency specialising in the use of television, national and local press, magazines, the internet, direct mail and posters, is pleased to announce the conditional acquisition of the whole of the issued share capital of WFCA Integrated Ltd ('WFCA'), following a placing to raise £2,500,000 before expenses. Ekay also announces its Interim Results for the six month period ended 31 December 2007.

Highlights of the acquisition:

• Creation of substantial advertising and marketing services agency based outside London with enhanced resources and established client list featuring reputable household names
• Synergies from the merger will allow the enlarged company to increase its competitive offerings and market position
• Strategy to provide a potent 'brand leader' positioning as the 'largest London agency outside London'
• Ekay is now the largest agency outside of London by media billing
• Bob Morton, a substantial new investor, to become Chairman, Michael Richards of WFCA to become Chief Executive and Eddie Powell becomes managing Director

Highlights of the Interim Results:

• Revenue up 30.3% to £23.1m (2006: £17.8m)
• Gross profit increased by 80.3% to £1.898m (2006: £1.052m)
• Profit before tax of £253,934 after exceptional credit of £115,000 for legal fees
• New client wins and focus on higher margin services
• Full integration of the two previous acquisitions, leading to expanded service offerings and presence around the UK

Eddie Powell, Chief Executive, Ekay, Commented:

'Both companies are an obvious fit with each other providing complementary services but to different customer groups. We view the integration process to be rapid and look forward to sharing each others' talents to the greater benefit of our customers, staff and stakeholders.'

Michael Richards, Chief Executive WFCA, commented:

'Both Ekay and WFCA can boast of having skilled and loyal staff who have already started working together on a range of projects which includes an invigorated marketing campaign to present the augmented offering to new and potential customers.

'Whilst building revenues from our existing core clients is central to our strategy, we look forward to further opportunities to capture new business, to build on our base of national and international clients.'

14 March 2008

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