Daily Mail & General Trust plc

Sale of Study Group by DMG Information

DMG Information (‘DMGI'), the information publishing division of DMGT, has reached agreement to sell Study Group International to funds advised by CHAMP Private Equity, an Australian-based private equity firm, and Petersen Investments.

The consideration is £72 million plus a working capital adjustment at closing. DMGT will report an exceptional profit on sale of approximately £60 million but, given that the majority of Study Group’s operating profits arise in the final quarter of the financial year, there will be a reduction in Study Group’s current year operating profit contribution.

Study Group International provides English language and academic preparation courses to students through its colleges in the U.K., Australia, Canada, New Zealand and the U.S.A. In the year ended September 30, 2005 Study Group’s revenues were £95 million and its contribution to operating profits was £3 million.

DMGI’s portfolio of business information companies has grown strongly in recent years, including Hobsons which has developed a thriving business to business product range. Following a strategic review, it was decided that capital could be better deployed backing these activities and this led to a decision to seek a buyer for Study Group International.

The transaction is subject to regulatory clearances, and is expected to close during September.

DMGI were advised by Greenhill & Co. and Caliburn Partnership on this transaction.

Enquiries to:

Peter Williams Finance Director, DMGT 020 7938-6631
Paul Sykes Chief Financial Officer, DMGI 001 203 973-2940
Brian Cassin Greenhill & Co 020 7198 7410
Andrew Honnor Tulchan Communications 020 7353-4200