EQI EQ Grp

RNS Number:3440A
EQ Group PLC
30 June 2004

                              EQ GROUP PLC ("eq"):

                          DISPOSAL OF THE LEAD AGENCY

eq group plc ("eq"), the AIM listed marketing services group, announces the
disposal of The Lead Agency ("TLA"), its demand generation business, to Mark
Donkin, TLA's Commercial Director.

The Lead Agency Limited was acquired in December 2002 for #15,000 to exploit a
tactical opportunity in the IT industry. During the 12 months to 31st December
2003, the business generated pre-tax profits of #90,301 as a result of focused
business development, strong collaboration within the group and direct input
from eq management. During the first half of 2004 TLA failed to maintain this
initial momentum and has recently become loss making. As a result your board has
taken the decision to sell the business to a company controlled by Mr Donkin for
#20,000 to be satisfied in cash.

The book value of the assets being disposed of is #64,206 although the directors
do not believe that this amount could be realised in the event of a sale of
those assets. The proceeds from the sale will be used to repay debt.

Going forward our growth strategy remains consistent. We will continue to grow
the group organically and through acquisition. Acquisitions in our core
disciplines will focus on established, profitable, cash generative businesses
with a sustained record of success. We will also selectively establish or
acquire low risk businesses that are capable of producing rapid returns by
calling upon the experience of the eq management team and the core capabilities
that exist within the group.

The directors consider, having consulted with KBC Peel Hunt, the company's
nominated adviser, that the terms of the transaction are fair and reasonable
insofar as its shareholders are concerned.



                      This information is provided by RNS
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