DGS.L Regulatory News (DGS)

13 March 2014

Digital Globe Services, Ltd.

(the "Company" and together with its subsidiaries "DGS")

Contract Wins for DGS Edu

Digital Globe Services, Ltd. (AIM: DGS), a leading provider of online customer acquisition solutions for large, consumer-facing organisations, is pleased to provide an update on progress for DGS Edu, the lead generation business for the education sector which was acquired in November 2013.

The integration of DGS Edu across company-wide operations is now complete and the Company is pleased to report that DGS Edu has successfully launched a significant number of new US-based clients since closing the transaction, in line with management expectations. The new clients enhance DGS Edu's strength in the growing not-for-profit education sector and add to its existing strengths in the for-profit education sector, including creative arts and business programmes.

DGS Edu provides pay-for-performance lead generation through the provision of online marketing activities, including optimised paid search, call centres and social media to deliver high quality prospective student acquisition for education clients. The quality of the prospects delivered by DGS Edu can be reflected in, amongst other things, their propensity to enrol, the average cost of conversion and the value of converted prospects to the education service provider.

As with DGS's online customer acquisition activities in other verticals, the DGS Edu business optimises its activities to deliver the highest quality customers. The combination of DGS Edu's proprietary education lead-generation IP with the dgSmart platform and processes offers improved cost efficiency in generating valuable leads and customers, and has resulted in an acceleration of new client wins in the education sector.

Jeff Cox, CEO of Digital Globe Services, commented:

"We are delighted with the progress that has been made with DGS Edu since the acquisition in November 2013, accelerating our entrance into a new industry vertical in line with our stated growth strategy. The pace of launch of these new client partnerships is a significant endorsement of DGS's offering to the education market, and reflects our strategy of targeting clients in growing segments, such as the not-for-profit education sector, where we see further opportunities."

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Overview of DGS

Founded in 2008 with offices in London, Bermuda, Netherlands, USA and Ireland, DGS is a specialist provider of outsourced online customer acquisition solutions for large, consumer-facing corporations. DGS delivers customers to its clients through optimised paid search, integrated websites and contact centre support, receiving a fee for each customer acquired for its clients.

DGS is seeking to establish itself as the leading international provider of outsourced online customer acquisition services, through its focus on having the premier technology platform for pricing and procuring paid search advertising on a cost effective basis. Paid search refers to the auction process for key search terms that search providers run and in which prospective advertisers, or their agents, compete in order to have their advertising or search results displayed.

By using its optimizing technology platform, dgSMART, and its experience of website management, efficient contact centre operations and other process expertise, DGS is able to bid appropriately and cost effectively for search terms in order to achieve conversion rates that deliver profitable, high quality customers to its clients.

DGS employs over 600 staff in Europe, North America and Asia. The Company currently has over 30 direct and indirect client relationships globally, many of which are with companies in the US Fortune 500. In 2012, DGS commenced operations in Canada and Mexico and, in February 2013, its shares were admitted to trading on AIM, raising additional funds in order to support further growth opportunities in Latin America, Europe and Asia Pacific. In October 2013 DGS acquired the education business unit of a San Francisco based online customer acquisition company and began serving educational institutions via a sector focused business unit, DGS Edu. DGS has also recently started providing its customer acquisition services to the home automation and renewable energy sector, and is examining additional opportunities in the insurance, retail banking, utility and consumer technology sectors.

About DGS Edu

Founded in 2009 in San Fransisco, the acquired DGS Edu business has a strong track record of pay-for-performance lead generation in the education industry in the United States using paid search, call centres and social media advertising. DGS Edu boasts an impressive customer portfolio and proprietary education lead generation IP that has been integrated into company-wide operations. DGS is applying its dgSmart platform to the lead generation activities of DGS Edu and leveraging operating efficiencies including offshore technical development and contact centres to generate paid-for customer leads in a manner that is both cost-effective to DGS Edu's clients and profitable for DGS.