Acquisition of The Communications Agency Limited

10 June 2014

Communisis plc

("Communisis" or "the Group")

Acquisition of The Communications Agency Limited

-Acquisition brings important new capabilities which support the growth strategy of the Group's Design segment and broaden the Group's integrated agency offering.-

-Expected to be earnings enhancing in the first full year.-

Leading provider of personalised customer communication services, Communisis plc (LSE: CMS), announces that it has acquired the entire share capital of The Communications Agency Limited ("TCA" or "the Acquisition").

Strategic Rationale for the Acquisition

TCA is a long-established, award-winning agency that specialises in brand response and customer relationship marketing. Its broad capabilities and experience across all media channels including TV, experiential and digital are central to the development of Communisis' integrated and differentiated agency model. TCA also brings long-standing client relationships with leading brands in the financial services, retail and consumer goods sectors. The Acquisition offers considerable scope for growth and revenue synergies with the Group's existing client portfolio and the cross-selling of other marketing services in social media, video, digital development and content marketing.

TCA is based in London with 42 employees, all of whom are transferring to Communisis. The Chairman, Robert Prevezer, and Chief Executive, Adam Leigh, the principal vendors, are also joining the Group in senior executive roles.

Terms of the Acquisition

Communisis has acquired TCA for £7.25m ("the base consideration") plus the amount of TCA's surplus cash of up to £0.75m. The consideration will be satisfied in cash of up to £6.55m and 2,404,643 new ordinary shares in Communisis to the value of £1.45m. Of the base consideration, up to £0.5m in cash is deferred and contingent on TCA delivering its projected adjusted EBITDA (*on a normalised basis before non-recurring items) for its financial year ending 31 October 2014. The base consideration takes account of TCA's adjusted EBITDA* both for the year ended 31 October 2013 and projected for the three years ending 31 October 2016, before synergy benefits.

For the financial year ended 31 October 2013, TCA generated adjusted EBITDA* of £0.45m on turnover of £6.2m (£4.0m net of recharged costs). Gross assets at that date were £1.38m.

The Acquisition is expected to be earnings enhancing in its first full year of ownership by Communisis.

 Andy Blundell, Communisis Chief Executive, said:

"TCA is a long-established, award-winning and well-respected agency that brings an impressive range of new capabilities and experience to the Group's Design segment. It will sit at the heart of Communisis' creative offering. The growth prospects are excellent."

For further information please contact:

About Communisis

Communisis is the leading provider of personalised customer communication services that specialises in helping clients communicate with their customers more effectively and more profitably in fast-changing markets.

Communisis has a reputation for production excellence and innovation and is trusted by many leading, consumer-facing brands to design, produce and deploy multi-channel personalised customer communications accurately, securely, reliably and at scale.