dotDigital Group Regulatory News (DOTD)

9 January 2012

dotDigital Group Plc

Half Year End Trading Update

dotDigital Group Plc (AIM:DOTD), ("dotDigital" or the "Group")the leading provider of search marketing services, digital strategy advice, intuitive Software as a Service and managed services to digital marketing professionals, announces a half year end trading update for the six months ended 31 December 2011. Unless otherwise stated trends and figures highlighted relate to this period and the corresponding comparative period last year.

The Group continues its excellent growth with revenues for the period to 31 December 2011 increasing by circa 30% compared to the same period in 2010.

Trading

This strong revenue growth was driven across all areas of the business with a 37% increase from e-mail marketing activities; 25% from search marketing; 57% for managed services despite a 9% decline in agency project work.

dotMailer, the Group's e-mail marketing business, continues to demonstrate strong growth in client acquisition adding 831 new clients in the six month period to 31 December 2011 compared to 693 in the same period last year.

The Group also witnessed a continued increase in the size of average monthly invoices of approximately 5%; an encouraging trend and a demonstration of dotDigital's maintained competitive position.

Investment

In line with previously announced plans, the Group has been actively pursuing a programme of recruitment to support the future growth of the business.

This has seen appointments in a number of areas to strengthen the business and include: an interim HR director: a head of product integration; a head of business process change, additional software developers; user experience designers, further sales & account management executives and additional search marketing personnel. The full cost of this additional hiring will be reflected in the second half of the year and the Board views that this investment is an essential element in insuring that the business has capacity and capability to achieve its growth plans for the coming years.

Outlook

The Group expects that work initiated in 2011 to develop new opportunities through channel partners, will start delivering incremental growth during 2012. In addition, the board continues to explore opportunities for geographic expansion and has initiated a number of discussions to explore consolidation opportunities within the e-mail marketing sector.

Despite the uncertain outlook for the UK economy as a whole the board has confidence in the prospects for the business over the coming year.

The full results for six months ending 31 December 2011 will be announced in mid February.

Enquiries:

For more information please visit: www.dotdigitalgroup.com and www.dotmailer.co.uk