Trading update

hibu plc

Trading update

On 25 July 2012, in announcing its results for the three months ended 30 June 2012, hibu plc (the "Group") explained that the on-going decline in the Group's legacy product revenue was negatively affecting EBITDA. Although the Group is delivering cost savings through its new global operating model and remains cash generative, these trends continue to impact current and expected financial performance and it is now expected that EBITDA will under perform market expectations for the current financial year.

Mike Pocock, Chief Executive Officer, said:

"We are confident in the Group's four year strategy to transform hibu by capitalising on its unique position in the SME community. The Group continues to progress our new strategy, developing and piloting new digital products as well as progressing new partnerships, such as the payment services agreements announced recently."

The Board is also encouraged by the constructive discussions underway with its lenders concerning a balance sheet restructuring, the aim of which is to provide the Group with an appropriate capital structure to support the legacy business while enabling growth and development of the digital strategy.

As previously stated, a number of capital structure options are being considered. While no decision has yet been made, certain options may result in a dilution of existing shareholders' interests including some options which may attribute little or no value to the Group's ordinary shares.

Ends

About hibu

hibu helps communities thrive by facilitating millions of connections each year between consumers who want to find products and services locally and the merchants who provide them.

hibu helps consumers find local businesses and shop in new, innovative ways. Its dedicated online hibu markets provide comprehensive, convenient access to local goods and services. hibu helps merchants compete in the digital world with a broad range of marketing and commerce solutions delivered online and through hibu's direct sales teams. Building on its heritage as a premier directories provider, hibu continues to offer a full range of print- and distribution-based marketing services.

hibu operates in the UK, US, Spain, Argentina, Chile, Peru and US Hispanic markets. In the year ended 31 March 2012, hibu had 1.2 million SME customers and total revenues of £1.6 billion.

For further information about hibu, visit hibu.com.

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