~ £4m-plus deal creates one-stop-shop online direct marketing colossus with massive email list ~

themutual.net plc, which operates the UK’s most popular rewarded shopping portals, has today bought leading email marketing specialist Electronic Direct Response (EDR).

The new group owns and manages over six million high-response email addresses, delivers over 500 million permission-based emails and generates 30 million visits to advertisers’ sites every year.

themutual.net’s existing clients, including brands such as T-Mobile and Amazon currently market themselves to themutual.net’s 1.5 million consumer members through its portals, or in its targeted member emails. EDR brings brands such as MBNA and EMAP to the 500-plus combined client list. As a result of the deal, they, together with new clients, can benefit from a full complement of EDR’s email marketing services, including email sales, brokering, planning, buying and delivery. themutual.net’s existing shopping reward schemes also continue to be grown and developed, with over 40,000 new members currently joining per month.

The deal is comprised of a combination of cash and shares, with further performance-related earn-outs. EDR’s founder James Morris takes a seat on themutual.net’s board and several of its directors move to top management positions at the combined group, which now has 40 staff. EDR will continue to trade in its own name as themutual.net’s subsidiary.

Mark Smith, CEO at themutual.net plc said: “Consumers are buying more and spending more time online: Marketers are correspondingly investing more of their budgets to reach them directly over this channel. This deal allows email marketers to reach one of the largest volume, most responsive databases of permission-based email addresses on the market. With a full complement of services, advanced delivery technology, a strong management team and many years of experience, we anticipate the deal’s synergies will increase our revenues and market share still further.”

About themutual.net plc

Themutual.net is a publicly quoted online direct marketing company which was founded in 1999. It operates the UK’s most popular rewarded shopping portals and is one of the UK’s largest providers of direct email marketing services by volume of emails sent.

Its 1.5 million members earn cash or share rewards by shopping online with over 500 UK retail partners, through www.themutual.net (rewards redeemable for cash or shares) and www.mutualpoints.com (rewards redeemable for cash). themutual.net earns a commission from online shopping referred to its retail partners through its portals, passing back up to 50% to its members in rewards, or from its targeted member emails. themutual.net’s shares have increased 800% in value since 2001.

themutual.net became one of the UK’s largest direct email marketing companies in November 2005 after acquiring Electronic Direct Response. Combined, they provide online marketing, agency and email list management and delivery services to 500-plus advertisers and brands. The group’s database currently contains over 6 million permission-based email addresses and it sends 500 million emails per year, generating 30 million visits to advertisers’ sites.

themutual.net’s expertise in online marketing and reward programmes, combined with a strong management team best places it to capitalise on the rapid growth in both online shopping and online marketing spend.

About Electronic Direct Response (EDR)

EDR was established in 2000, offering full services in email broadcast, sales and delivery. Acting as a sales house and agency for a number of established clients, the business also had over 5 million names across its managed and owned databases, including the rights to sell EMAP’s and thetrainline’s lists as well as owning two high volume databases, Select Your Mail and Offer Central.

If you would like any more information or images, please contact Nik Pollinger or Sukul Bagai at Wide PR:

nik@widepr.co.uk / sukul@widepr.co.uk
0870 010 9998 / 0870 366 9998

Published on: 12:00AM on 11th November 2005