~ results indicate strong performance to October 31, 2005 ~

themutual.net plc has issued its six-month interim accounts today, which show strong growth in turnover and profitability

The company, one of the UK’s largest online direct marketing specialists, reports a record 6-month turnover of £1.76m, compared to £1.53m in the same period last year. Operating profit at AIM-listed themutual.net has increased by 28%, to £0.47m from £0.37m in the same period last year. Profit before tax has grown to £0.95m, which includes a £0.44m profit from the sale of an investment, or £0.33m on a pre-exceptional basis (33% growth vs comparable period).

The operator of the UK’s most popular online shopping portal has seen its member base grow to 1.55 million, from 1.225 million in October 2004. Revenue generated for advertisers from the portal and targeted emails is estimated to now stand at over £2m per month.

themutual.net also offers a complete range of email marketing services, including planning and buying, through Electronic Direct Response which it acquired in November 2005. Over 500 clients have access to 6.5 million permission-based email addresses, one of the highest concentrations of addresses in the UK.

Other interim highlights

Net cash of £2.56m (2004: £1.23 million)
Basic eps up to 1.59p (2004: 0.60p)
Diluted eps up to 1.49p (0.56p)
Mark Smith, CEO at themutual.net plc said: “Our interim accounts show we are well positioned to meet our full-year forecasts, with the record revenues recorded in the first half of 2005 are set to continue into the New Year, which will compound our market share in the sector.”

Warren Tayler, chairman at themutual.net plc, said: “Our focus is on providing advertisers with a high quality, high response, database of online consumers. This database is growing organically as a result of our development of the reward programmes, with a record 40,000 new members joining per month. Our recent acquisition of EDR expands both our database and our service offering and strengthens our position still further in a dynamic market set to grow by 25% in 2005.*”

Full interim accounts are available at our website: www.themutual.net.

*Source: E-consultancy’s 2005 report into the growth of spend on email marketing in 2005, taking it to £148m

Notes to editors

About themutual.net plc

Themutual.net plc 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.

Its 1.55 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 plc 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. plc’s shares have increased 800% in value since 2001.

themutual.net plc 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 over 500 advertisers. The group’s database currently contains 6.5 million permission-based email addresses and it sends 500 million emails per year, generating 30 million visits to advertisers’ sites.

themutual.net plc’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.

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

E: nik@widepr.co.uk

T: 0870 010 9998


Xmas/online shopping

Source: IMRG, end of November 2005

The Interactive Media in Retail Group (IMRG - http://www.imrg.org/) says that British e-commerce spending was up 40 per cent year-on-year in October (online sales up 2000% in 5 years). On the basis of that, it predicts that 24 million British shoppers will spend £5 billion online this Christmas, an average of £208 each, generating 130 million internet shopping deliveries. The trade association estimates that 24 million people spent GBP1,786 million online in October, an average of GBP74 each. The latest online shopping sales figures show that online shopping is currently growing 130 times faster than high street sales. Not only are more people shopping online in 2005 but the average online spend is also increasing - GBP1,025 a year per person compared to GBP936 in 2004.

Published on: 12:00AM on 8th December 2005